Can Islands'S Tax Exemption Competition Leveraging Chinese Luxury Goods Consumption?

The black duty free shop in Meilan Airport opened on the 21 th, marking the duty exemption in Islands.

When offshore duty-free policy puts on the "competition" jacket, "price is more attractive", "the international front line."

The duty-free shop is again overflowing to avoid shopping temptation.

At 10:15 on the 21 th, when the black duty free shop in Meilan Airport Quarantine area announced the opening of the business, hundreds of tourists poured into the store.

Dior, Chanel, Lancome and other cosmetic counters were packed with tourists (micro-blog).

In a short while, many tourists were holding a pile of cosmetics in their hands, waiting in line for payment.

Ms. Yang, from Chongqing, sighed, "the price of cosmetics is cheaper than other domestic stores."

The teacher said that perfume and cosmetics in duty-free shops are about 40% cheaper than other stores.

In addition to the "cosmetic area", candy and chocolate areas are also crowded.

Qian Wenting, who was on a business trip to Hainan, bought some duty-free items such as chocolate, cosmetics and perfume. She said, "I didn't expect the price to be so cheap. A box of chocolate is cheaper than the outside dozens of yuan, and bought directly on the plane Islands."

Reporters found that duty-free shops such as chocolate and other candy products than others.

Reporters saw in the black duty-free shop, with 13 items of 16000 watches, including watches, bags, perfume, cosmetics, chocolate, and so on.

Gucci, Dior, Prada and other international first-line brand goods have been put on shelves.

According to the briefing, on the 21 day, the first storefront of the storefront reached 1070, totaling more than 1.6 pieces, with a total value of 50 million yuan.

Du Wei, chairman of Hai Hui company, said that the duty free categories and prices of black duty free shops are basically the same as those of Sanya duty-free shops, but the types of chocolates sold in black duty shops will be much richer than those in Sanya stores.

Echoing this, the Sanya duty free shop, which is dominated by the group, has opened business since April 20th this year.

According to statistics from the black Customs Department, a total of about 400000 tourists were shopping in Islands from the end of April 20th to the end of November, and about 1200000 items of duty-free goods were supervised and sold.

Hainan Provincial Standing Committee, propaganda minister, vice governor Tan Li said that as of November 30th, Sanya duty free shop to achieve operating income of 800 million yuan.

Because the black stores will buy goods at the airport, their operating income will be even more substantial.

Islands's tax exemption forms a new pattern of "competition"

In March this year, the Ministry of Finance issued a notice to set up a duty free shop in Islands and Sanya.

In April 20th, Sanya duty free shop opened by China duty free products (Group) Co., Ltd.

The black duty free shop opened in December 21st was jointly operated by Hainan duty-free products Co., Ltd. and HNA international tourism island development and Construction Co., Ltd., which accounted for 51% of Hainan Company and 49% of Hainan Airlines.

Tan Li said that the difference between the main body of operation determines that there must be a competitive relationship between the two. The key to offshore duty-free policy's introduction of the competition mechanism is to ensure that there is sufficient supply of goods for tax exemption, and that the price of goods is more attractive, so that consumers can get more benefits.

In fact, in the industry view, offshore duty-free policy in Hainan comprehensive pilot implementation, issued a clear signal.

This policy can not only give full play to the attraction effect of tourism economy, but also keep more consumption interests in China and reduce the spillover effect of luxury consumption in China.

According to Goldman Sachs statistics, more than 40% of China's luxury consumption is overseas.

In 2010, Chinese people spent 200 billion yuan on luxury goods abroad.

The most direct reason is that domestic prices are higher than those outside.

The prices of 20 kinds of high-end consumer goods, such as watches, bags, clothing, wine and electronic products, are about 20 higher than those in the mainland. The price of the mainland market is about 40% higher than that of Hongkong.

Zhou Ting, executive director of the luxury research center of University of International Business and Economics, said that relying on offshore duty-free policy is conducive to the orderly integration of the international luxury market and the Chinese market, reducing the threshold of China's luxury consumer market, and promoting the development of the high-end retail industry through reducing paction costs.

Lv Yong, deputy director of the Hainan Provincial Department of finance, admitted that the price of Hainan duty-free commodities will not be higher than the prices of Hongkong commodities, while the world's first line brand suppliers will also have a constraint on the prices of tax-free commodities, which will have great attraction for domestic tourists.

Luxury consumption is full of "reflux" road.

Du Wei said in an exclusive interview with reporters that more than 10000 yuan of international luxury brands will be on the shelves before the Spring Festival, but the proportion in the duty-free shops is not high.

On the one hand, we should consider paying more than 5000 yuan duty-free goods, and the consumption structure of duty-free shops still needs to be explored.

With the gradual implementation of offshore duty-free policy, Sanya and black duty-free shops will increase the supply of luxury goods and keep the consumption of luxury goods in China. "After all, the purchasing power of Chinese people is too strong."

But many industry insiders told reporters that under the constraint of the objective factors such as tax-free purchase policy, commodity type and market environment, offshore duty-free policy still has a long way to go to retain the "money flow" of luxury goods.

Reporters in the black duty free shop to see, a variety of world-renowned brands of perfume, cosmetics occupy more than half of the duty-free shop area.

Most accessories, sunglasses, decorative bags and advanced watches are priced below 5000 yuan.

Yuan Yubao, the general manager of the duty-free shop limited by Hailan Meilan Airport, said that there are more than 90% goods under 5000 yuan in the black duty-free shop that has just opened.

In Yuan Yubao's view, "Islands tax-free" shopping is still in the test stage. There are many restrictions on the varieties, times and quantity of consumers. From the perspective of simple shopping, Hainan's attraction is far less than that of Hongkong's brand outlets.

"In the form of tax exemption, the huge consumption of luxury goods in China still needs efforts from all sides."

Xia Feng, director of the Hainan Research Institute of China (Hainan) reform and Development Research Institute, said that China's domestic tax exemption channels are not enough to excavate and occupy a very small proportion in the entire luxury consumption market. Under the premise of rapid growth of Chinese consumer demand for luxury goods, the quality and level of Hainan duty-free goods sales and related services industry need to be improved.

Ye Chang Zhang, director of the Hainan Provincial Department of Commerce, said that Hainan will promote the operation of duty-free goods companies and large and commercial enterprises and duty free business groups at home and abroad, so as to raise the level of construction, operation and management of duty free shops.

By speeding up the development of other commercial formats such as outlets, and promoting the construction of regional shopping centers, Hainan has become a "fashion capital" and "shopping paradise".