BEIJING, June 11, 2021 /PRNewswire/ — This is a report from China.org.cn:
On Wednesday, President of China Duty Free Group (CDFG) Charles Chen recognized the promising prospects of the global alcoholic beverage market and shed light on the beneficial impact of Hainan’s offshore duty-free policy on the sector.
“The implementation of Hainan’s offshore duty-free policy has tapped into the huge potential of duty-free shopping among Chinese consumers,” said Chen via a video link at the French Association of Wine and Spirits Exporters (FEVS) Annual General Meeting. “This also puts Hainan in the spotlight of the global tourism and retail industry, drawing attention from recognizable brands around the world,” he added.
China’s domestic tourism and retail industry continues to boom currently. Statistics from Haikou Customs show Hainan’s offshore duty-free sales amounted to 993 million yuan (about 127 million euros) during the country’s five-day May Day holiday.
The market potential has been highly recognized by global top alcoholic beverage companies, and many of them intend to explore the duty-free business opportunities in Hainan.
According to Chen, CDFG has introduced some 300 alcoholic beverage brands and over 1,000 stock-keeping units to Hainan. Through analyzing the region’s consuming feature on the sector, the company also brought in limited-edition products and CDFG exclusives and organized themed promotion events. All these have helped increase the influence of Hainan’s offshore duty-free alcoholic beverage market among consumers.
Given the effective pandemic prevention and control efforts and the promotion of vaccines, Chen also envisioned the sector’s future development when overseas travel resumes. According to a recent report by the Economist Intelligence Unit (EIU), China’s outbound tourism is expected to return to pre-pandemic levels in early 2024.
Before the pandemic outbreak, China used to have the highest travel and tourism expenditures. “The Chinese market is big enough and has tremendous opportunities,” Chen stressed. He also acknowledged the fast-growing consumption potential among people born in the 1990s, adding that their demand will translate into thriving business opportunities for alcoholic beverage companies.
With the soaring sales revenue of alcoholic beverages in Hainan, the sector is very promising in both tourism retail sales and traditional distribution, Chen noted.
Looking ahead, with the support from its parent company China Tourism Group (CTG), CDFG plans to introduce more global brands and limited-edition products into China with better prices to meet the demand of Chinese consumers, so as to further promote the sustained and sound development of global tourism and the retail market via cooperation and innovation.
CDFG President Charles Chen: Global alcoholic beverage market highly promising