The China International Consumer Products Expo 2022 (hereinafter referred to as "Consumer Expo") is jointly held by the Ministry of Commerce of the People's Republic of China and the People's Government of Hainan Province in Haikou from July 25 to 30. CTG and its subsidiary CDFG attended the Consumer Expo with a booth of 1,100 m2 showing a blueprint for duty-free and travel retail development in light of global consumption innovation.
On the afternoon of July 26, the 2nd Global Consumption Innovation & Duty Free and Travel Retail Conference jointly undertaken by Hainan International Business Council and CDFG is kicked off. Guests including Sheng Qiuping, Vice Minister of the Ministry of Commerce, Shen Danyang, a member of the Standing Committee of Hainan Provincial Party Committee and Executive Vice Governor of Hainan Province, Liu Jin, President of Bank of China, Hao Cheng, Vice President of Bank of Communications, Wang Haimin, General Manager, of CTG, Matthew Margulies, Global Senior Vice President of US-China Business Council, Erik Juul-Mortensen, Chairman of Tax Free World Association attend the conference and deliver their speeches. The conference is hosted by Ni Qiang, Vice Governor of Hainan Province and the Director of Office of the Hainan Free Trade Port Working Committee of the Hainan Provincial Party Committee.
Wang Haimin analyzes the thriving vitality in the consumptive market of China, especially Hainan, from different aspects in his speech. He points out that China is one of the largest and most promising consumptive markets worldwide. According to forecasts, China will continuously act as the global growth engine, with its consumption growth accounting for over 25% of that worldwide in the next decade. Although the global travel retail has shrunken due to the pandemic over the past two years, China's travel retail market increased by 38% YoY. More surprisingly, China's domestic luxury goods market exceeded RMB 470 Billion in 2021, with a year-on-year increase of 36% that surpassed twice that of pre-pandemic era. China is expected to become the largest consumption market for luxury goods by 2025, accounting for more than 25% of the global market.
Wang Haimin says Hainan is one of the most advantageous and vibrant markets in China. First, in terms of resources and positioning, as China's largest pilot zone for comprehensively deepening reform and opening up, Hainan Province has the only free trade port with Chinese characteristics, boasting a policy portfolio as the "reform pioneer" and unique oceanic island resources and marine culture favored by global talents, capitals, technologies, and tourists. Second, in the field of the off-island duty-free market, the total sales of off-island duty-free shops in Hainan Province exceeded RMB 60 Billion in 2021, a year-on-year increase of 84%. Hainan Province enjoys immeasurable potential in China, and even the world, for its deep advance in free trade port policy and further optimization in supporting software and hardware.
After stressing the confidence of CTG and CDFG in the consumption market in Hainan Province, Wang Haimin says CTG will joint efforts with influential brands to provide a premium shopping experience for consumers. As the first state-owned key enterprise migrating its China headquarters to Hainan Province, CTG would continuously increase its investment to participate in the efforts to build the Hainan international tourism island and the international tourism consumption center. By the end of 2021, CTG has 30 enterprises with 8,500 employees, more than RMB 103 Billion in total assets, and RMB 67.2 Billion in annual revenue in Hainan Province. Meanwhile, CDFG has been the largest tourism retailer in the world for consecutive times. Wang expresses that CTG is optimistic about the long-term opportunities in China, Hainan Province, and consumption market, adding that CTG would take advantage of the Consumer Expo to publicize its philosophy of "Integrity Operation and Premium Service" and business strategy of "Deep cultivation in Hainan".
In the panel discussion on "Innovations of Strategies", Chen Guoqiang, General Manager of CDFG introducs the development of new trend in China's consumption market, describing the joint moves between CDFG and some top brands in strategy innovation to meet the diversified demands of consumers. (CTG DUTY-FREE)