It is reported that Hainan has become the 9th largest consumer goods importer and the 2nd largest cosmetics importer province in the country.
On June 29, Haikou Customs Deputy Director Zhao Junlun introduced at a press conference on “Hainan’s foreign trade and Haikou Customs’ measures to optimize the business environment” that since the issuance of the “Overall Plan for the Construction of Hainan Free Trade Port” on June 1, 2020, Hainan’s foreign trade imports and exports have achieved leapfrog development.
In the three years from June 2020 to May 2023, the total value of Hainan’s import and export of goods trade is 504.48 billion yuan ($69.53 billion), an increase of 101.4% over the previous three years (the same below), ranking first among all provinces and cities in the country in terms of growth rate during the same period.
Zhao Junlun introduced, in the past three years, Hainan free trade port foreign trade subject flourishing development. In the past three years, the number of foreign trade enterprises with import and export performance in Hainan has increased by 144.1% to 2387. Among them, the role of private enterprises in the development of Hainan’s export-oriented economy has become more and more prominent, the number of enterprises with import and export performance increased significantly by 161.1%, reaching 2136.
It is worth mentioning that over the past three years, Hainan’s free trade port has effectively connected to the large Chinese domestic market. Over the past three years, the total amount of duty-free shopping on Hainan’s outlying islands has exceeded 130 billion yuan ($17.9 billion), an increase of 290%. Hainan’s foreign trade imports amounted to 354.79 billion yuan ($48.9 billion), an increase of 127%.
Among them, the import of consumer goods is 133.84 billion yuan ($18.4 billion), a significant increase of 254.9%, Hainan has become the country’s 9th largest consumer goods imports, the 2nd largest cosmetics import province.
According to data released by the Hainan Provincial Bureau of Statistics, total sales of cosmetics in Hainan in 2022 were 26.4 billion yuan ($3.6 billion), accounting for 11.6% of total retail sales of consumer goods, ranking second in sales of all categories. In the previous year, Hainan’s total retail sales of social consumer goods were 249.7 billion yuan ($34.4 billion), of which cosmetics sales totaled 30.7 billion yuan ($4.2 billion), accounting for 12.3%, the highest percentage of all social consumer goods categories.
It is reported that at the end of March this year, Hainan announced the independent customs operation of Hainan in preparation. After this news came out, major beauty brands deployed the region of Hainan, French luxury brand Louis Vuitton opened a shop in Hainan, Estee Lauder’s high-end beauty brand La Mer the world’s largest duty-free shop opened in Hainan, etc.
At the same time, major beauty companies have also made Hainan one of the group’s key strategic regions. Shiseido has positioned Hainan’s free trade port as “a place to launch new brand information”, while Coty sees the domestic duty-free channel on Hainan Island and other places as “another channel” to reach consumers in mainland China. Since 2021, Coty has launched several consumer campaigns in Hainan, such as Lancaster Superbrand Day, Fragrance of the Year Awards, Fragrance Traveller limited-time shop, and virtual games and virtual makeup trial devices at duty-free counters to enhance the in-store experience.
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