CHINA REBORN


China’s ‘bounceback’ ability represents a beacon of hope for the entire DF&TR industry


The inaugural TFWA China Reborn virtual event attracted more than 5,000 live- stream connections and offered a fascinating insight into China’s recovery from the Covid-19 pandemic. The online webinars outlined opportunities presented by the new offshore duty free policy in Hainan, as Andrew Pentol discovers.


H


aving witnessed the continued recovery of China’s DF&TR market


from the coronavirus (Covid-19) pandemic, Tax Free World Association (TFWA) President Alain Maingreaud is backing the wider industry to bounceback. Speaking after the inaugural TFWA China Reborn online event (1-3 December), Maingreaud said: “We hope these webinars have provided valuable insights into the remarkable strength of China’s DF&TR market. “Its resilience and ability to bounce


back from the devastating impact of Covid-19 gives us much reason to believe our industry will emerge stronger from this crisis and prosper once again.”


A positive outlook Industry commentators presented a positive outlook during the three- day event, which attracted over 5,000 live-stream connections. The highest attendance was


on day one, when 1,510 delegates tuned into the English livestream of the ‘Changing Market, Changing Consumer’ webinar. Simultaneously, 1,460 delegates were following the Chinese version. The first day kicked-off with a


rallying call from Maingreaud, who described China’s recovery as a prime example of what can be achieved when stakeholders proactively embrace change in a supportive and regulatory environment. He then reflected on a traumatic


year for everyone due to Covid-19. “The extent to which our world


has changed would have been unimaginable twelve months ago; the resulting impact of Covid-19 has been something we have all faced directly since March.”


DECEMBER 2020 An insightful address followed


from Charles Chen, China Duty Free Group President. He said the tripling of the offshore duty free allowance on 1 July, among other measures, have ‘effectively promoted the return of tourist shopping and eased demand for Chinese consumer consumption’. He reminded webinar attendees


that in the four months to 31 October, total sales reached RMB12.01 billion ($1.7bn), a staggering 214% increase year-on-year. The total number of goods purchased reached 12.896m (+139.7%). Chen then discussed the


company’s nimbleness and agility in adapting to new and innovative business amid the pandemic. This has been achieved through close collaboration with the Chinese government, customs and different brands. Eudes Fabre, CEO North Asia


at Lagardère Travel Retail then discussed the ‘breathtaking’ return of domestic air travel, before revealing that Lagardère is set to open a new shop in Hainan in December. Lagardère Travel Retail, which


possesses an impressive network of more than 400 stores across approximately 26 airports in China, said the recovery ‘hotspots’ have been larger for airports that have rebounded quickly.


CNSC ‘ready to open’ Fabre said: “We have some locations outperforming 2019 numbers. The demand is there; there is always some weariness with winter and the resurgence of localised (Covid-19) hotspots where there may be a temporary dampening effect on travel. Overall, it is a story of robust recovery and a strong appetite for travel, whether for leisure


or business.” Another company which is ‘ready


to open’ in Hainan is The China National Service Corporation for Chinese Personnel Working Abroad (CNSC). CNSC will be able to open its new store once its offshore duty free licence is approved. “Combining the exclusive


advantages of Sinopharm Group (of which CNSC is a subsidiary) in the field of healthcare, we will create a new experience of duty free class health,” according to Evita Qu, Deputy General Manager at CNSC. “We would like to fully meet all the


needs of family-based customers.” The standout presentation on the


final day was from DutyFreeExpert Founder Jason Cao, who revealed offshore duty free shops on Hainan island are forecast to take between a 17-17.5% slice of the global duty free market by 2022. «


“The extent to which our world has changed would have been unimaginable twelve months ago; the resulting impact of Covid-19 has been something we have all faced directly since March.”


Alain Maingreaud, President, TFWA


TRBUSINESS 17


Above: A presentation from China Duty Free Group President Charles Chen offered some fascinating insights into how the company has prepared for the restart.


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