Data snapshot Hainan, China’s premier duty-free destination, has become a focal point in the evolving luxury landscape. According to Re-Hub’s Daigou Report 2024, duty-free sales on the island surged 25.4% YoY in 2023, reaching a staggering 43.76 billion RMB ($6.2 billion). The island, which saw over 90 million visitors last year, offers up to 40% discounts through duty-free mechanisms, stacking coupons, and credit card offers. This growth has inadvertently fueled the return of daigou operations as price-sensitive Chinese consumers seek even deeper discounts. The report highlights that while Hainan’s regulatory environment is tightening to curb daigou activity, the island's favorable pricing structures have made it an attractive hub for reselling luxury goods, despite the risks involved. Analysis Hainan's emergence as a duty-free powerhouse underscores a significant shift in cross-border e-commerce and daigou trends. With prices up to 40% lower than mainland China, the island provides fertile ground for small-scale daigou operators. This trend opens opportunities for brands to strategize pricing and inventory control, ensuring that domestic markets remain competitive while managing gray market risks. The Jing Daily Data Snapshot presents a swift take and analysis on the latest data from the leading research firms in the Chinese luxury and lifestyle markets.
