SANYA, China (Reuters) – China’s lifting of travel restrictions this month is expected to revive demand in the global luxury retail market, but many consumers are still on duty-free islands. I think there are more reasons to do luxury shopping locally in China. Hainan.
Thousands of tourists in Sanya city, Hainan province, flocked to the CDF Mall, a shopping center dedicated to duty-free shops, on Wednesday to stock up on cosmetics and handbags during the Lunar New Year holiday.
“The UK is quite far and tickets are hard to come by,” said student Yu Shunxiao, who once shopped at London’s Harrods. “In Sanya, you can come and go at any time.”
In early January, following a nationwide relaxation of COVID-19 prevention policies, Beijing ended a long-standing requirement that all inbound travelers undergo quarantine at hotels upon arrival.
As a result, there was a flood of Chinese residents traveling abroad. On Trip.com, a popular airline ticket booking site, he saw over 200% of his international ticket purchases the day after the policy change was announced.
Luxury brands and retailers hope an outbound tourism boom from China will bring strong sales in 2023, just as the post-pandemic frenzy in the US and Europe cools down. read
Nevertheless, some experts argue that even if consumers were allowed to travel freely, an increasing portion of China’s luxury spending would remain within its borders.
Jonathan Yang of Shanghai-based consulting firm Roland Berger told Reuters that three years of border closures have made Chinese shoppers accustomed to buying foreign luxury goods in China.
“Some (luxury shoppers) will go back to pre-COVID-19 overseas spending,” Yang said. “But I think local[luxury markets]will also be important for most brands.”
Reported by Alessandro Diviggiano from Sanya, written by Josh Horwitz from Shanghai. Edited by Raju Gopalakrishnan
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