Foreign companies from Coty to Estée Lauder eye Hainan, China’s Hawaii, in bet on post-Covid recovery and duty-free boom
- Global brands are increasing investments in the tropical island of Hainan and the broader Chinese market to catch a revival in consumption
- The China International Consumer Products Expo held in Haikou saw a strong return of interest in Hainan’s high-end consumption market
American-French beauty company Coty, which holds licensing rights in cosmetics and fragrances to brands such as Burberry and Gucci, plans to add nine new sales points – including seven stand-alone shops – to its 29 existing sales points in Hainan in the next financial year, which begins in July, said Guilhem Souche, senior vice-president of global travel retail, in a recent interview with the South China Morning Post.
New York-listed Estée Lauder, meanwhile, established in late March its first office in Hainan, dubbed China’s Hawaii, late last month, citing the region’s “strategic importance” for the group’s travel retail business. It came after the beauty giant last October started selling in 13 shops in Haikou, the provincial capital, in collaboration with China Duty Free.
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New York-listed Coty said it is introducing a new brand to China in the second half of 2023, and eyeing an expansion into the local skincare segment in the next few years.
“[Our] priority’s always been China. If you look at skincare, China is really already the No 1 market in the world, dominating and still growing even during the three years of Covid,” said Souche. “Hainan is playing a key role for travel retail. This is why, for us, Hainan is so important.”
