NEWS ROUND-UP China e-com law ‘yet to register’ on DF sales
China’s new e-commerce law is showing no real adverse effects on South Korean duty free and travel retail revenues, early indications from retail sources suggest. Operators continue to eye a future
dent in Daigou (shuttle trader) sales – a phenomenon that has emerged as a lucrative source of income – following a law that became effective last month to regulate online merchandising and provide consumers with increased protections. However, despite the industry remaining
vigilant, several South Korean travel retailers have told TRBusiness any reported detrimental impacts on duty free have yet to be felt. “It seems that the new e-commerce law
implemented in China has not had any material impact on Korean duty free stores yet,” confirmed one source. “The Korean duty free market is
continuously monitoring the situation.” Another source admitted that while
growth may stutter due to a combination of the new law and pressure on China’s domestic economy, South Korea’s travel and tourism market vitality will act to offset any downturn in Daigou sales. “With over one million customers and
distinguished merchandise, we believe the impact on the duty free market will be limited,” they noted.
“We’ve been communicating with clients from Chinese-speaking countries through diverse channels. “We have secured customers in
partnership with Chinese influential online platforms such as WeChat and Ctrip; this year, we have improved customer accessibility by creating a membership mini-app within WeChat.”
Hainan sales rocket during Spring Festival week
Duty free revenues in China’s Hainan province hit new records during the Spring Festival Golden Week holiday period, according to the state-run Hainan Provincial Tourism Development Commission. Sales tipped RMB100m ($14.7m) on
two consecutive days (8-9 February), with income at shops in Haikou and Sanya rising by 26.3% to RMB558.27m ($83m) during the course of the week (4-10 February).
As reported, the Chinese government last year revealed plans to unveil two new offshore duty free shopping facilities in Haikou and Qionghai in a bid to lift sales from domestic and foreign visitors. The Hainan Provincial Tourism
Development Commission states the two new stores – Haikou Riyue Plaza Duty Free Shop and Qionghai Boao Duty Free Shop – opened for business on 19 January. Quoting Haikou Customs data, China’s
official news agency Xinhua says combined sales for the four duty free shops in Sanya, Haikou and Qionghai rose by 33.6% to RMB601m during the period. On 1 December, the offshore duty free
shopping allowance ceiling for travellers to Hainan lifted from RMB16,000 ($2,432) to RMB30,000 ($4,314). This marked the fifth adjustment to the quota since the hugely successful policy
was introduced in 2011. At the time news of the latest policy
adjustment surfaced late last year, Haikou Meilan Airport Duty Free Shop told TRBusiness it was relishing the increase, which is linked invariably to a number of travel and tourism reforms feeding into the ongoing Hainan Free Trade Zone and Port Pilot. In 2018, the HNDF Haikou Meilan
Airport Duty Free Shop undertook ‘novel’ marketing activities to further improve service quality and strengthen cross-border relations. This involved cooperating with
banks, Chinese payment provider UnionPay, airlines, high-end hotels and other industries. An interview with HNDF will appear in the
official delegate magazine for the TFWA China’s Century Conference, published by TRBusiness.
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