MARCH 6, 2013 - Hainan Provincial Duty Free Company, Limited (HNDF), the only Hainan enterprise authorized to import duty-free goods and operate duty-free shops in Hainan Province, today announced it is building its first off-airport store at the Mission Hills Tourism Town Center in Haikou, China. Set to open by December of 2013, the new downtown retail space not only marks a major milestone for the off-shore duty-free retailer, but also an expansion of its partnership with DFS Group (DFS), the world’s largest luxury travel retailer. At Mission Hills Haikou, the two companies will continue collaborating via the same model that they have developed since late 2011 for HNDF’s operations at Haikou Meilan International Airport with DFS consulting on the store design, brand management, assortment planning, product supply, staff training and store operations.
“Hainan Provincial Duty Free is very excited that we will be opening our first off-airport store within the year,” said Zhang Yi Qing, General Manager of HNDF. “We are also proud to have DFS Group working with us on this new project. After successfully operating our airport stores for the past year with support from DFS, we are confident that together, we can create a truly world-class duty-free shopping experience that will not only delight our customers, but contribute to tourism generally in Hainan.”
Due to the unique duty-free policy exclusive to Hainan Province within China, non-resident shoppers are able to make duty-free purchases of up to 8,000 yuan twice a year, in line with the expanded limit announced by China’s Ministry of Finance in November 2012. By expanding into downtown retailing, HNDF will make it even more convenient for such shoppers to enjoy the superior value of duty-free as they can continue their shopping beyond even the airport. Further increasing the value of this retail offering, DFS will ensure that in addition to increased shopping time, HNDF customers can also enjoy a broader brand assortment, modern retail environments and exceptional service standards.
“We are excited about working with HNDF and Mission Hills on this new project to bring even more Chinese customers and tourists the high-quality shopping experiences we deliver to travelers around the world,” said Philippe Schaus, CEO of DFS Group.
Dr. Ken Chu, Chairman & CEO of Mission Hills Group added: “We’re honored to partner with Hainan Provincial Duty Free to develop its first off-airport store in Haikou. We are pleased to work alongside the industry leader to offer a differentiated and world-class retail experience to international visitors, domestic shoppers and local residents at Mission Hills Haikou. This collaboration creates a world-class duty free shopping experience for all travelers to Haikou.”
HNDF’s store at Mission Hills Haikou will represent a total investment in Hainan of more than 10 billion RMB. To occupy a total space of 100,000 square meters upon completion, the store will open in two stages. When the first opens at the end of 2013, it will span 10,000 square meters, retail 21 categories of duty-free commodities and offer customers 360 degree services at international standards.
One of several projects that HNDF has underway in Hainan, the Mission Hills Haikou store will be followed in the near future by the openings of several other HNDF duty-free retail locations, including at Sanya airport and other shops in Bo’ao, Yangpu and around the island.