Only 20% People Are Willing To Buy Luxury Goods In China.

In the largest single duty free shop in the world and the Sanya Ditang Bay duty-free shopping center, Shen Zhen, a tourist from Shanghai, told reporters that she came to Hainan almost every year. After the implementation of offshore duty-free policy, Hainan had a greater attraction for her. It not only breathes fresh air here, enjoys natural beauty, but also buys cosmetics similar to Hongkong's.

"This duty-free shop is much better than the other places I've been shopping for, and the hardware environment of duty-free shopping is much better. At present, there are coupons in tax-free products, and many brands have been reduced quite a lot."

Offshore duty-free policy is highly regarded as a touchstone for building a new high level of domestic consumption.

However, the industry believes that due to the limited amount of existing offshore duty-free policy, the price advantage is not obvious, the sales of duty-free goods and the quality and level of related services are not high, the enthusiasm of Chinese keen on overseas consumption has been decreasing, and the trend of consumption capital outflow is serious.

There is still a long way to go to achieve the goal of "global purchase" at home.

Upgrading of duty free shops in Islands

According to the insiders, the implementation of offshore duty-free policy not only made up for the vacancy of high-end tourism shopping places in Hainan, but also promoted the integration of Hainan's tourism infrastructure with the international advanced level.

The Haitang Bay in Sanya on the South China Sea is China's national coast and the key development area for Hainan to build an international tourism island.

The largest single duty free shop in the world and the Sanya Ditang Bay duty-free shopping center opened in September 1st.

The International Shopping Center at 118 Haitang North Road, Sanya, was crowded with tourists. Many tourists came to see the duty-free shop after expansion.

The total building area of the duty-free shopping mall in Haitang Bay is about 120 thousand square meters, with a commercial area of 72 thousand square meters. It is the largest single - body duty-free shop in the world.

In September 1st, the commercial area invested in operation accounted for nearly 90% of the total commercial area, and the two period was fully opened, which would be completed before and after the Spring Festival in 2015.

Sanya's duty-free shops have less than 10000 square meters of business space, restricted by the narrow space, crowded shops, tourists rush to buy, and so on. The shopping experience has been greatly reduced, and the duty-free goods sold in the shop have been used as "cabbage" to grab.

With enough traffic, Sanya duty-free shops have expanded their capacity from 10000 square meters to 70000 square meters.

Cai Qingxia, deputy general manager of duty-free shops in Sanya, said that in the face of the increasing consumption demand of Chinese luxury goods, there is a huge market space for the development mode of "tourism + duty-free shopping" in Hainan.

At present, the tourism industry in Hainan has a good momentum of development. The number of tourists entering and leaving the island has increased year by year, providing a better passenger flow basis for the tourism retail industry. As a support, offshore duty-free policy has also created a favorable environment for the development of the tax-free market.

Reporter experience found that the huge shopping center contains a variety of formats, but also has more functional experience.

Louis Weedon, Prada, Giorgio Armani and many other top international brands have also entered into five major functional areas, including special products, Hainan products, outdoor sports, food and customer service.

In the Haitang Bay duty-free shopping center, we know that nearly 300 international brands have been introduced, and over 100 thousand fashion items.

Among them, Prada, Giorgio Armani, Rolex and other more than 10 brands are the first time to enter the mainland China's duty-free market channels. Chanel, Dior, EsteeLauder, Lancome and other top brands of perfume and cosmetics tourism retail market, the world flagship store and concept store will also meet with consumers for the first time.

Compared with tax goods, the 15% to 35% discount rate is one of the most important factors to attract domestic tourists to Islands duty-free shops.

Sanya duty-free shops once promised that international brand goods, especially luxury goods, were implemented in a unified sales price strategy in the Asia Pacific region. Moreover, the Hainan provincial government promised that the retail prices of imported goods from duty-free shops in Sanya were flat or slightly lower than that of similar commodities in Hongkong. Therefore, the famous brand goods would not be higher than the Hongkong brand counters.

Similarly, the duty free retail price of imported goods will be about 15% to 35% lower than the domestic tax price.

98% of Sanya's duty-free shops are purchased from the country of origin, and the company directly purchases from the manufacturers to protect the quality, brand and quality of the goods.

Sanya's duty-free shops are still hard to cover up the embarrassment of "fat water outflow".

In recent years, people's enthusiasm for overseas consumption has been decreasing, and the trend of consumption capital outflow is serious.

Hainan Islands tax exempt industry healthy development, the policy effect unceasingly appears.

Shi Fangxiao, director of the Haikou customs supervision office, said that since the implementation of the policy, as of August 15th, the Haikou customs had supervised the total sales of duty-free goods of 12 million 720 thousand tax-free items in Islands, with an amount of 9 billion 220 million yuan and 3 million 480 thousand shopping trips.

In the past three and a half years of tax exemption in Islands, the composition of tourist consumption has also changed significantly.

According to Liu Jing, general manager of Sanya duty free shop, the Sanya duty-free shop is the only duty free shop in the country that can implement Islands's tax-free shopping policy. The consumption composition of Sanya tourists has changed significantly, and the proportion of shopping expenses has increased from 13.8% to 27.6% now.

But the hot duty of duty-free shops still can not conceal the embarrassment of "fat water outflow".

A tourist who has just returned from Korea told reporters that Seoul's duty-free shops have no limit on foreign tourists' shopping, and the price advantage of duty-free products is very obvious, which is more favorable than Hainan's.

"The Lotte duty-free shop in Seoul is almost entirely Chinese. In the cosmetics area, some of the brands in South Korea are crowded with tourists. Some cosmetics are even sold out and there are long queues to pay."

She said, if Hainan's duty-free shopping can also be like.

You don't have to go shopping abroad.

According to statistics, consumption in China accounted for 73% of luxury consumption in 2013, an increase of 8% over 2012.

According to research data from relevant agencies, only 20% of Chinese people in 2013 were willing to buy luxury goods in China.

According to Zhou Ting, President of the Institute of wealth and quality, China's consumers have become the largest consumer group in the global tourism retail sector, supporting the half of the European luxury market.

According to the data released by the financial times, Chinese tourists spend about 300 million pounds (2 billion 780 million yuan) a year in the UK. In Heathrow Airport in London, Chinese tourists account for 1% of the total tourists, but they create 25% tax-free income. Burberry's outlets in Hackney, London, about 3/4 of Chinese tourists are on non weekend.

Wang Jiansheng, President of Hainan Tourism Development Research Association, believes that the implementation of tax exemption in Hainan Islands is insufficient in preventing the outflow of consumption funds.

First of all, a large proportion of Bali Island's duty-free shops are local specialties, which contribute greatly to local economic development and benefit the people.

There are not many local products in Islands duty-free shops in Hainan.

Secondly, tax-free shopping is just a part of building an international shopping center.

Now the hardware is getting better and better, but there are still some shortcomings in the software.

Domestic and international consumption gap still exists

Experts believe that the Islands tax exemption limit still needs to be relaxed.

Compared with the limit of 16000 yuan in Okinawa island of Japan, Hainan Island's 8000 yuan tax-free quota is still not enough.

In addition, after the implementation of Islands's tax exemption in Hainan, there are many benefits in terms of price, but the advantages are limited. Many products are still higher than foreign duty-free shops, and there are no overseas categories.

The Institute of wealth studies predicts that the domestic and foreign consumer price differentials still exist. The insecurity of domestic consumer goods and the shortage of some commodities make Chinese people more willing to trust the quality and shopping experience of foreign goods.

Therefore, the trend of overseas consumption will continue in the future, and the number of overseas tourists will continue to increase, and overseas consumption will continue to grow.

Wang Yongjun, Dean of the Institute of Finance and economics of Central University of Finance and Economics, thinks there are many reasons for the outflow of consumption.

Chinese consumers are pragmatic and pragmatic, and are more and more realistic.

Retreat means not only the pursuit of fashion, but also the consumption orientation of "status goods (brand)", "shopping new experience" and "you have I have to".

The new generation of consumer groups is becoming more and more personalized, and more and more willing to try boldly. At the same time, they have more and more ability to achieve their own economic needs.

Against this background, offshore duty-free policy has been placed with high hopes that it can become a touchstone for building a new high level of domestic consumption.

However, the industry believes that this "hope for the best" type of measures, in the short term to achieve the goal of "global purchase", there is still a long way to go.

Zhou Ting, Dean of the Institute of wealth and quality, thinks that Islands tax exemption is actually a disguised attempt by the state to tariff reform, and it is also one of the effective means to keep consumers in China.

The low price is the main reason to stimulate the consumption of domestic consumers abroad. After the implementation of Islands's tax exemption in Hainan, there are many benefits in terms of price, but the price advantage is very limited. Many products are still higher than foreign duty-free shops, and there are no overseas categories.

Zhou Ting said that although the area of Haitang Bay duty-free shopping center was nearly 7 times larger than that of the indoor duty-free shop before, it did not increase in terms of commodity category. It only added some new brands or expanded the brand stores on the basis of the original categories.

At the same time, the policy of return and exchange is not flexible abroad, and many products do not support return.

Wang Yongjun said that Islands's tax exemption is indeed a new thing in China, and its clonality is relatively high. However, the prospect of success is not so sure, because there are many prerequisites for it.

The impact of centralized tax exemption on taxation is mainly reflected in value-added tax and corporate income tax. After the introduction of real estate (holding) tax, the income of this tax will also be greatly affected.

"China's domestic tax exemption channels are not enough.

In the whole luxury consumption market, the proportion is very small. Under the premise of the rapid growth of Chinese consumer demand for luxury goods, it is necessary to enhance the quality and level of the whole Hainan duty-free goods sales and related services.

The international shopping center requires the full opening and policy innovation of the entire related industry focusing on the service industry.

Xia Feng, director of the Hainan Research Institute of China (Hainan) reform and Development Research Institute, said.