The rapid development of the offshore duty-free sector in Hainan province since 2011. By the end of 2020, the offshore duty-free business was worth approximately USD5 billion, boosted by the introduction of an enhanced shopping policy in July 2020, which gave tremendous impetus to brands in the channel as other duty-free markets fell into a deep pandemic-driven slump. This white paper considers Hainan FTP’s offshore duty-free business within the context of a global duty-free industry that was worth USD86.4 billion in 2019 (pre-COVID). It documents the relentless rise of the business from 2011 to 2020 and notes how Hainan FTP became the ‘lighthouse’ of travel retail last year as other markets collapsed.
Nicole Zhang
Partner in-charge of Hainan business,
KPMG China
Jessie Qian
National Head of Consumer Markets,
KPMG China
Patrick Lu
Tax partner,
KPMG China