DFS sets the stage for the future of Chinese luxury retail at 5th Hainan Expo
The LVMH-owned travel retailer is leveraging the high-profile trade event to position itself as a key partner for international brands entering China’s fastest-growing luxury market.
CHINA. Leading luxury travel retailer DFS Group is enjoying a notable presence at the 5th China International Consumer Products Expo (Hainan Expo) in Hainan, being held this week (13-18 April) in Haikou.
The LVMH-owned company is leveraging the high-profile trade event to position itself as a key partner for international brands entering China’s fastest-growing luxury market.
The company’s expansive booth also highlights its upcoming Yalong Bay project, hailed as Sanya’s first world-class, seven-star luxury retail and leisure destination.
DFS China President Nancy Liu underscored the company’s strategic role in supporting the Hainan Free Trade Port’s transformation into a global consumption and tourism hub.
She said: “Moving forward, DFS will leverage LVMH’s global resources to help Hainan attract more international luxury and high-end retail brands, fostering coordinated development between consumption and industrial upgrades.”
DFS highlighted the growth of Hainan’s offshore duty-free market, backed by strong domestic demand and global connectivity.
As reported, the offshore duty-free sector recorded sales of CNY6.61 billion (US$912 million) during the Spring Festival holiday period from 14 January to 22 February. Tourism also surged on the island in 2024, with arrivals reaching 97.2 million, up +8% year-on-year and tourism revenue surpassing CNY200 billion (US$27.2 billion), a +12.5% increase.
Liu said: “As a long-term and trusted partner of internationally renowned brands, DFS has the resources and capabilities to serve as a reliable operating partner for global brands participating in the development of the Hainan Free Trade Port and duty-free retail. We aim to continuously elevate the luxury retail landscape in Sanya and enhance the overall operational standards of duty-free retail in Hainan.”
The DFS Yalong Bay project: A game-changer
DFS’s most ambitious project in 60 years, the Yalong Bay development in Sanya, is expected to draw 16 million to 18 million visitors annually by 2030, host over 700 high-end brands and support economic development in the region.
As the Yalong Bay project is positioned as Sanya’s key luxury shopping hub, Sanya has climbed to third place in China’s luxury consumption rankings, surpassing Guangzhou and just behind Shanghai and Beijing.
Despite this growth, a DFS survey of 2,500 visitors identified gaps in brand variety, pricing, service and retail environment compared to global destinations. To address these, Liu noted the company’s plans to enhance supply-side quality and retail standards.
Lui said: “DFS will leverage the LVMH Group’s resources to attract more international brands to Hainan, injecting new momentum into China’s consumption upgrade.”
By combining LVMH’s brand portfolio and exclusive launches with DFS’s operational expertise, the company highlighted it plans to further upgrade Sanya’s luxury retail sector to meet the demands of global and domestic high-end travellers.
How policy is shaping the next phase of growth
Hainan’s Free Trade Port has been a focus of China’s Government Work Report for seven consecutive years, with plans for island-wide customs closure by the end of 2025.
Hainan Governor Liu Xiaoming confirmed that key systems for trade liberalisation are in place, reinforcing the island’s role in China’s high-level openness strategy.
Lui said: “These policies present major opportunities for foreign enterprises like DFS. We are confident in China’s market and will continue investing to support Hainan’s rise as a global luxury retail leader.”
With Chinese consumers leading global luxury spending at US$32.5 billion and per capita overseas luxury purchases reaching CNY30,000 (US$4,000), DFS anticipates strong growth in 2025.
The company highlighted its continued support in Hainan’s rise as a world-class free trade port and the fastest-growing luxury market, leading the next wave of luxury retail expansion.
The Moodie Davitt Report is on location at the Hainan Expo. Look out for our daily WeChat updates on China Travel Retail Express* while Martin Moodie will present an overview and highlights of the event on this website in coming days. 
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