Duty-free shopping in China is bolstering consumer spending with a spate of policies driving retail sales, and industry players are not shying away from forecasting more gains after the sector's stellar growth in the past year.
Brands from home and abroad are flocking to introduce new products and exclusives for travel retailers during the China International Consumer Products Expo in Haikou, capital of Hainan province, where incentives like zero import taxes and shorter negative lists are fueling business optimism.
Japanese cosmetics company Shiseido is introducing two highend lineups－The Ginza and Baum－to the Chinese market via the expo, which runs through Monday.
The event and policies to drive offshore duty-free shopping "further show China's resolute determination of opening wider to the outside world to share development opportunities", said Shiseido China CEO Kentaro Fujiwara.
Swiss food and beverage giant Nestle is debuting 29 products at the event, a move "demonstrating continued commitment to the local market", said David Fang, vice-president of Nestle China.
Highlights include the introduction of Vital Proteins, a brand under Nestle Health Science known for fitness and nutritious food offerings, as well as Nestle International Travel Retail, a business unit providing confectionary brands in limited portfolios and packaging exclusive to travel retailers, such as at airports and on cruise ships.
The construction of the Hainan Free Trade Port represents "a big, significant step" in China to further advance opening-up, because it helps facilitate business and captures travel retail opportunities, said Fabrice Megarbane, president of L'Oreal North Asia Zone and CEO of L'Oreal China.
"It offers a fantastic opportunity to address consumers' needs for premium products and we, as a company, are able to interact with them," said Megarbane, whose company has unveiled several Hainan-only duty-free packages under multiple brands.
Last year, China raised the annual cap on zero import duty to 100,000 yuan ($15,548) for each traveler departing from the tropical island. This policy has encouraged travelers from
