The sea breeze caresses the face, with swaying coconut shadows. The winter season is in full swing as a prime time for tourism in Sanya. Located in Haitang Bay, within Zone C of CDF (China Duty Free) Sanya International Duty Free City, the Global Beauty Plaza is bustling with people. Among the various cosmetic counters adorned with foreign logos, the three Chinese characters of Florasis stand out prominently. It’s not just the logo; the shop itself boasts a creative and beautifully designed underwater garden theme, which is truly captivating.
This is the brand-new flagship store of Florasis, recently opened in Zone C of CDF Sanya International Duty Free City. It marks a significant milestone for this beauty brand and represents a pioneering move for Chinese beauty brands in establishing independent stores within the duty-free channel. It also signifies that Florasis, following its global flagship store “Xihu Yinyuan,” is now making efforts to expand its offline business international.
Independent store, the first for Chinese beauty brands
In recent years, the duty-free market in China has experienced rapid growth. According to the China (Hainan) Reform and Development Institute, the scale of the duty-free consumption market in Hainan Island is expected to exceed 160 billion yuan ($22.25 billion) by 2025. However, for a long time, the duty-free channel has been dominated by international beauty brands. Although some Chinese beauty brands have been available in Chinese airport duty-free shops in the past couple of years, Florasis is the first to open an independent brand store in CDF Sanya International Duty Free City, among the multitude of international beauty brands.
CHAILEEDO found that Florasis’s brand store in Zone C of CDF Sanya International Duty Free City is located on the first floor near the escalator, adjacent to various international beauty brands.
From the storefront, Florasis’s duty-free store continues the design style of “Oriental Gardens” from Xihu Yinyuan, becoming a beautiful landscape in the commercial area. According to the staff on-site, the entire store has an area of over 40 square meters, making it a medium-sized store within the commercial area. The store’s design theme revolves around the Oriental Gardens, showcasing a combination of the underwater garden style and local characteristics of Hainan, such as the use of local vanilla, red coral, and Baihualing installations. It can be described as a unique and distinctive beauty.
Through the creation of a unique aesthetic space with an underwater garden, Florasis’s new store not only balances the elegance and fashion of Oriental culture but also fully expresses the agility and charm of marine natural life. On-site visits by observers reveal that Florasis’s store, with its unique cultural aesthetics and the “Oriental Hospitality” in its service, not only provides consumers with a completely different shopping experience but also attracts a large number of customers to take photos and check-in.
“In the past, duty-free channels were dominated by international brands, so seeing a Chinese beauty brand with its own store here makes me proud,” said a consumer on-site. “Being able to stand alongside international brands in the duty-free channel shows that Chinese beauty brands are increasingly popular in the market and their status in the minds of international consumers is rising.” Foreign tourists who have visited the store also expressed their experience, saying, “This store has a strong sense of Oriental culture, and that carved lipstick is truly beautiful.”
It is worth mentioning that as a Chinese brand, Florasis adapts to the business model of the duty-free city, despite differences in duty-free policies between Chinese and imported brands, and offers maximum benefits to consumers with sincerity. Observers have noticed that many consumers have posted on social media stating that Florasis’s products in the duty-free channel are more affordable compared to other channels.
Innovative path anchoring the international market
Chinese beauty brands opening independent stores in duty-free channels is a rare business model seen not only in the beauty industry but also in other industries. It represents an innovative path for Chinese brands to anchor the international market.
This move is also a proactive response to national policies. As early as March 2020, the National Development and Reform Commission and 23 other departments jointly issued the “Implementation Opinions on Promoting Consumption Expansion, Quality Improvement, and Accelerating the Formation of a Strong Chinese Market.” It mentioned the importance of developing duty-free shops into platforms for supporting Chinese high-quality products, showcasing independent brands, and promoting traditional Chinese culture. Additionally, many provinces and cities across China, including Beijing, Shanghai, and Zhejiang, have introduced favorable policies for duty-free channels. Beijing, for example, stated in its “Implementation Plan for Creating a ‘Dual Hub’ International Consumer Gateway (2021-2025)” that it supports the sale of Chinese high-quality products in airport duty-free shops to help Chinese brands expand their international market.
In essence, duty-free channels are indeed a powerful tool for Chinese brands to reach the global market. On the one hand, publicly available data shows that the global duty-free market is projected to reach 743.7 billion yuan ($103.41 billion) by 2026, with the Chinese duty-free market expected to account for 44.8% of the global market share. This means that the global duty-free market will experience even greater growth in the post-pandemic era, presenting a significant growth opportunity for Chinese brands. On the other hand, looking at the rise of many global brands, the role of duty-free channels is undeniable. Take South Korea, for example. Leading duty-free operators like Lotte and Shinsegae have played a crucial role in promoting a group of South Korean Chinese brands to the international stage, and they have sparked a Korean beauty trend in the Chinese market.
It’s not just Korean beauty but the financial reports of international beauty conglomerates such as Shiseido, L’Oréal, and Estée Lauder show that the travel retail business dominated by duty-free channels plays an important role in their performance. Publicly available data shows that travel retail accounted for as much as 27% of Estée Lauder’s sales in the 2022 fiscal year, and approximately 10% for the L’Oréal Group. This demonstrates that duty-free channels, as a concentration of leading beauty brands, can indirectly strengthen their high-end attributes.
In fact, this is not the first time Florasis has partnered with China Duty Free Group (CDF). As early as September 2023, Florasis collaborated with CDF to open a seasonal pop-up store at Hangzhou Xiaoshan International Airport during the “Welcome Asian Games” period. At the same time, CHAILEEDO learned on-site at CDF Sanya International Duty Free City that Maotai, a benchmark brand in the Chinese liquor industry, will also establish a presence there. From Maotai to Florasis opening an independent store, it reflects CDF’s active promotion of Chinese high-end brands entering the international market. Partnering with CDF undoubtedly enables excellent Chinese brands and products to reach consumers worldwide.
It is evident that China Duty Free Group, as the world’s largest integrated duty-free business entity, has built competitive barriers in terms of mall operations, supply chain development, and consumer services. This will undoubtedly help Chinese brands expand international and gain recognition from global consumers. Similarly, the opening of Florasis’s second offline store in CDF Sanya International Duty Free City may be related to its brand’s international expansion strategy. By entering duty-free channels, Florasis may venture into global markets such as Europe and America in the future.
Setting a new benchmark for Chinese brands going global
Undoubtedly, Florasis’s own strength is the key to being the first Chinese brand to open an independent store in duty-free channels. As a leader in Chinese cosmetics, Florasis has demonstrated steady performance in the market. According to statistics from China Bank Securities, from 2020 to 2023, Florasis consistently ranked among the top three cosmetic brands in the Chinese market, maintaining a market share of over 5%. This indicates that Florasis has a solid market foundation.
The market recognition is closely related to Florasis’s creation of a series of popular products, such as Fairy Peach Blossom Ultra-Light Setting Powder, Blooming Rouge Love Lock Lipstick, and Flawless Jade Breathable Pressed Powder. Recently, Florasis launched the “Nomadic Glam” series, which explore the intangible cultural heritage of Mongolian leather carving art and incorporate elements of saddle and auspicious traditional patterns. While showcasing the “free and easy” beauty of the Mongolian ethnic group, Florasis interprets the beauty of Chinese ethnic groups through the distinctive Mongolian culture.
Florasis’s solid product strength is also the result of its continuous efforts in research and development. It is understood that Florasis has established a pioneering Oriental Beauty R&D system, which encompasses research on traditional Chinese medicine theory, East Asian skin tone and texture, formulation research on East Asian ingredients, East Asian color system research, Eastern craftsmanship, and modern applications. This system is built on the foundation of Florasis’s millions of users and 200,000 product experience ambassadors, demonstrating its innovative value. Additionally, Florasis has committed to a five-year, one billion yuan investment in research and development, ranking among the top in the Chinese beauty industry. As of now, Florasis holds 181 patents, including 62 invention patents.
What’s even more commendable is that after becoming a leading Chinese cosmetics brand, Florasis aims to bring Chinese quality and culture to the world. Unlike most Chinese beauty brands that expand into Southeast Asia, Florasis chose mature beauty markets such as Japan and the United States as its first destinations when going global. It has consistently pursued an upward trajectory in its international expansion. As early as 2019, Florasis established official overseas accounts and launched the “West Lake Impressions Custom Gift Box” themed around the “Ten Scenic Spots of West Lake,” which became a hot topic on Japanese social media. In September 2023, Florasis also opened its first seasonal limited-edition offline store in Japan’s prestigious Isetan department store.
“As ethnic as it gets, as global as it gets.” From opening a seasonal store in Japan’s Isetan department store last year to landing in the C zone of CDF Sanya International Duty Free City as an independent store this year, Florasis not only becomes an exemplary brand for Chinese beauty going global, but also sets a new benchmark for Oriental aesthetics and Chinese culture in the international arena. In the current era of revitalizing national culture and the rise of national brands, Florasis is gradually constructing its unique Chinese fashion discourse system and will represent Chinese cosmetics in the international stage.
