Sanya Tax-Free &Nbsp, Or Will Impact Sales Of Luxury Outlets.

Sanya duty-free shops drive overseas

For example, in 2009, the number of mainland stores in Hermes was close to the total number of stores in Hong Kong, Macao and Taiwan, but sales were only 1/3 of the latter.

As early as September 2010, in a global market research report released by Deutsche Bank, there were doubts: Chinese luxury stores are always empty and hard to estimate the density of sales.

Even if some luxury brands currently enjoy the "hidden rules" in the two or three tier cities in China, the subsidy treatment can alleviate the pressure on the capital, but the impact of Sanya duty-free shops will be long.

According to the introduction, China's current 80% of the two or three line city commercial real estate in order to improve its international quality and regional value, will absorb the big card when entering, is "invite" rather than "recruit", not only in two or three years to luxury brand without rent, but also subsidize the "decoration fees" and "management fees", or even voluntarily pour out the "appearance fee" less than millions, more than tens of millions, in order to just successfully introduce a luxury brand stationed.

Insiders said in an interview: "after Hainan offshore duty-free policy will continue to relax, the pressure on the store will gradually increase.

Because of the inconvenient procedures such as going abroad and customs clearance, some customers who went abroad to spend luxury goods will rush to Hainan. Many luxury brands' front-line products can be bought in Sanya duty-free shops. In the long run, this will have an impact on the sales of luxury outlets in Hongkong and the mainland. "

"Duty-free shops in Sanya are a long-standing impact, which will cause great pressure on the future performance of the stores."

But this person believes that in the long run, luxury brands are also opportunities because they will open up the level of luxury consumption in China.

Direct stores or flagship stores will go higher and higher, because these stores have a number of fixed high-end customers, and those low-end products or basic products and customers will flow to duty-free shops and the Internet.

"Luxury stores in the future should strengthen the management of high-end products and maintain these customers. This is the way forward."

The source pointed out.