DFS Group: Hainan's zero tariff policy is a key attraction

en.hainan.gov.cn

Updated: 2025-07-17

A saleswoman introduces products to customers at a duty-free shop in Haikou, Hainan province. [Photo/VCG]

In a strategic move to capitalize on China's evolving economic landscape, DFS Group, a renowned global luxury travel retailer, embarked on a groundbreaking venture within the vibrant Hainan Free Trade Port. The signing of the Shenya DFS Yalong Bay project in Sanya, South China's Hainan province in 2024 marked a pivotal moment, representing the cornerstone of DFS' global expansion strategy and its most significant investment in more than six decades.

This project, envisioned as a fusion of luxury shopping, international hotels, upscale dining, and entertainment offerings, aims to establish itself as the premier seven-star luxury retail and leisure destination in Yalong Bay, Sanya.

With a projected annual turnover exceeding 10 billion yuan ($1.38 billion) and an anticipated influx of over 16 million tourists annually by 2030, the initiative is poised to elevate the stature of Hainan's tourism industry significantly. Notably, more than 700 high-end retail brands are set to establish their presence in the Hainan FTP through the Shenya DFS Yalong Bay project.

DFS Group, a stalwart in the luxury retail sector since its inception in 1960, operates a global network of over 400 stores, strategically positioned in major commercial hubs and popular tourist destinations worldwide.

The collaboration between DFS, a part of French multinational LVMH Group, and Shanghai-based Shenya Group, underscores a commitment to innovation and excellence in the luxury retail landscape.

Nancy Liu, President of DFS China, shared that DFS had set eyes on the Hainan market as early as 2018. The partnership with Shenya in 2021 heralded the commencement of the Shenya DFS Yalong Bay project, a visionary endeavor slated for completion by 2026.

Spanning 190,000 square meters, the project will showcase a curated selection of over 1,000 luxury brands encompassing fashion, accessories, beauty, jewelry, fine dining, and more, redefining the essence of a luxury lifestyle experience.

She added that Hainan's "zero tariff" policy is a key attraction for DFS. Leveraging the unique advantages of the Hainan FTP, including its geographical appeal, visa-free policies, and reputation as a "holiday paradise", DFS is poised to cater to a burgeoning international clientele seeking unparalleled luxury experiences.

Beyond its commercial impact, the project is set to create over 3,000 high-end service industry positions in Sanya, catalyzing the growth of premium logistics and transnational financial services.

"We have confidence in the Chinese market and have formulated long-term investment strategies and development plans," Nancy Liu said. She further highlighted China's escalating prominence in the global economic landscape, ongoing advancements in reform and opening-up policies, continual improvements in the business environment, and the expanding middle-income demographic, all of which present foreign enterprises with abundant growth prospects.

Sources: hndaily.cn and ellechina.com