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China travel retail market (market studied) was valued at more than USD 11.6 billion in 2020 and is anticipated to record a CAGR of more than 25% during the period of 2020-2026.
Owing to the sudden outbreak of COVID-19, the travel retail industry has recorded a sudden drop in revenues during the year 2020, as the majority target countries for the outbound tourism to China including France, Spain, the United States, Italy, Mexico, the United Kingdom, etc., are among the majority hit countries by the pandemic. However, China has recovered from the pandemic effect more fastly when compared to other nations, which helped the market studied to record noticeable revenue transactions which are a result of the inbound tourism in the nation.
Travel retail has been one of the profitable industries in China owing to the growing demand for inbound and outbound tourism. With the rapid rise of consumers, travellers who are largely millennials on a noticeable scale, the travel retail industry is transforming in the nation and is attracting more customers. During the year 2020, Hainan island Offshore duty-free sales rose to USD 3.82 billion according to official figures. Since the adoption of the new offshore duty-free shopping policy which came into action on July 1, 2020, the average daily sales have surpassed USD 18.3 million indicating a positive sign of the market expansion.
Scope of the Report
A complete background analysis of China travel retail market, which includes an assessment of the emerging trends by segments, significant changes in market dynamics, and market overview, is covered in the report. China Travel Retail Market is Segmented By Product Type into Fashion and Accessories, Jewelry and Watches, Wine & Spirits, Food & Confectionery, Fragrances and Cosmetics, Tobacco, Others (Stationery, Electronics, etc.), and by Distribution Channel into Airports, Airlines, Ferries, Other (Railway Stations, Border, Downtown). The report also covers the market sizes and forecasts for the China travel retail market. The report offers market size and forecasts for the China travel retail market in value (USD billion) for all the above segments.
|By Retail Activity Type|
|Fashion and Accessories|
|Jewellery and Watches|
|Wine and Spirits|
|Food and Confectionary|
|Fragnances and Cosmetics|
|Others (Stationery, Electronics, etc.)|
|By Distribution Channel|
|Other(Railway Stations, Border, Downtown)|
Key Market Trends
Airports and Airlines are Anticipated to Continue to Dominate the Market
Travel by means of air has been one of the faster means to reach a destination owing to which several travelers especially international travelers have been preferring it for their travel needs. This factor has been helping the airports and airlines to occupy a major share in the revenue of travel retail market owing to the factors such as mandatory prior reporting of 2-4 hours at some airports, prolonged layover periods, etc., which lets the customers spend some quality time for shopping. The high number of airports in the country with high air traffic and the connectivity they provide with major global destinations is also helping the airport subsegment to contribute to the high share of the travel retail market in the country.
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Growing Demand for Luxury Goods is Driving the Market Growth
One of the major factors that have helped the travel retail market is the duty-free charges on a few products and the availability of premium brands at major travel retail destinations including airports, ferries, etc., The growing affordability of customers has been drawing them towards more luxury brands and items. Similarly, due to the impact of import tariffs and price differences, overseas shopping malls and duty-free shops have become the first choice for Chinese consumers to purchase luxury goods which broadly include jewelry, beauty products, fashion accessories, premier branded clothes, wallets, handbags, etc., This trend has performed strongly during the study period, and is anticipated to continue to dominate in the forecast period as well.
The presence of several leading players including China Duty Free Group Co Ltd, Lotte Duty Free, Lagardere Travel Retail, etc., in China travel retail market has made the market more competitive. The leading brands are opening exclusive stores for special products in order to attract more customers. The companies are also promoting, differentiating, and selling limited editions to increase their visibility and brand awareness and to create brand identity in the market.
- May 2021, FAQ made its debut at the Hainan Tourism Duty-Free Shopping Complex in Sanya, China, welcoming a throng of shoppers in conjunction with the Labor Day weekend.
- October 2020, Alibaba teamed up with the world's largest duty-free retailer, Dufry AG to enter the travel retail industry. The two parties announced plans to establish a joint venture company in China, with Alibaba and Dufry holding 51% and 49% of the shares respectively.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints/Challenges
4.4 Market Opportunities
4.5 Value Chain / Supply Chain Analysis
4.6 Porter's Five Force Analysis
4.7 Insights on Government Regulations and Initiatives Effecting the Market
4.8 Consumer Behaviour Analysis
4.9 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Retail Activity Type
5.1.1 Fashion and Accessories
5.1.2 Jewellery and Watches
5.1.3 Wine and Spirits
5.1.4 Food and Confectionary
5.1.5 Fragnances and Cosmetics
5.1.7 Others (Stationery, Electronics, etc.)
5.2 By Distribution Channel
5.2.4 Other(Railway Stations, Border, Downtown)
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 China Duty Free Group Co Ltd
6.2.2 Lotte Duty Free
6.2.3 Lagardere Travel Retail
6.2.4 DFS Group
6.2.5 Gebr Heinemann
6.2.6 China National Service Corporation
6.2.8 Starboard Cruise Services
6.2.9 China Expatriates Overseas-Remittance Tourism Service Corporation
6.2.10 Shenzhen State-Owned Duty Free Commodity Group Company Limited*
7. FUTURE OF THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The China Travel Retail Market market is studied from 2017 - 2026.
What is the growth rate of China Travel Retail Market?
The China Travel Retail Market is growing at a CAGR of >25% over the next 5 years.
Who are the key players in China Travel Retail Market?
China Duty Free Group Co Ltd, China National Service Corporation, Shenzhen State-Owned Duty Free Commodity Group Company Limited, Lagardere Travel Retail, DFS Group are the major companies operating in China Travel Retail Market.