DFS Group, the travel retail arm of luxury conglomerate LVMH, plans to build a major shopping and entertainment complex on tax-free Hainan Island in a bid to capture a growing tourism market that’s shown resilience to slowdowns.
DFS is making an “unprecedented investment” in the 128,000-square meter project, which will open by 2026 and feature over 1,000 luxury brands including those from LVMH Moet Hennessy Louis Vuitton, the firm said in a statement. The complex, expected to pull in 16 million visitors a year by 2030, will also include accommodation, dining and entertainment, the company said.
The project marks DFS’s first physical branch in mainland China – the company currently has 12 stores in Hong Kong and Macau, according to the company’s website. It’s part of a series of commitments the company is making in the country, DFS China President Nancy Liu said in the statement.
The move underscores an increasing awareness among global brands that China’s affluent consumers are shifting towards purchasing luxury goods domestically, particularly in the aftermath of COVID-19. Hainan has emerged as a domestic hub for high-end duty-free shopping and has seen a continued sales boom even after Beijing eased strict COVID Zero restrictions that facilitated international travel.
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