Duty-free shop goes global - AMORE STORIES - ENGLISH
#Global Report
2015.12.15
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Duty-free shop goes global

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Introduce the global operations of AMOREPACIFIC

Duty-free shop goes global

Haitang Bay CDF Mall, China


There is one popular destination known to the world as being the Hawaii of China; that is Hainan, which is widely known for its favorable climate, clear turquoise waters and tropical trees. Being a great vacation spot for families, lovers and a wedding photo destination for soon-to-weds, Hainan features the largest downtown-based duty-free shopping center in the world. Also open to citizens, Haitang Bay CDF Mall is the most coveted duty-free shopping destination with Chinese people accounting for 95% of its customers. This News Square covers a story of the duty-free shop of AMOREPACIFIC in Haitang Bay CDF Mall located on the beautiful Island of Hainan, China exuding an air of exoticism.

Downtown duty-free shopping center managed by the Chinese state-owned enterprise CDFG (China Duty Free Group)

Covering an area of 70,000 square meters, Haitang Bay CDF Mall is approximately 7 times larger than Korea's largest downtown duty-free shop, Lotte Duty Free Shop's Jamsil Branch, where our Sulwhasoo, LANEIGE and IOPE counter/stores are located. Famous for being the largest downtown duty-free shopping center in the world and featuring the most convenient shopping destinations for Chinese customers, it is a vital duty-free market for global brands. "Customers who have experienced brands at this Haitang Bay CDF Mall are highly likely to visit those brands again when traveling abroad," said Chris Yu from AMOREPACIFIC TR Division's Global TR Sales Team in charge of sales initiatives here. He emphasized that the first brand experience at Haitang Bay CDF Mall is critical. Due to the nature of being a downtown duty-free shopping center, it requires strict and thorough management to ensure that many brands are able to effectively introduce their new SI (Store Identity) here at Haitang Bay CDF Mall and put forth great efforts to fully manage their stores from the concept to BA services.
Located at the center of the 1st floor amongst other luxury brands, Sulwhasoo registered a monthly average of KRW 700 million (CNY 3.86 million) in sales and heightened its international status as a brand representing K-beauty. BAs at Sulwhasoo's counter are used to serving customers up to the very last minute before the counter closes. LANEIGE and IOPE are located at the largest store on the 2nd floor where only premium brands are permitted to showcase their product lines and LANEIGE is demonstrating a strong showing as a result, coming first and sometimes second among premium brands in terms of sales (monthly average sales of KRW 800 million / CNY 4.41 million). Since opening this past September, IOPE rapidly emerged into the spotlight within a short period of time.

Insights and expertise for managing overseas duty-free shops

Considering the identity of Haitang Bay CDF Mall being the world's largest and most beloved duty-free shopping destination by Chinese consumers, brands know better than to neglect their store management. But because it is situated abroad and Korea currently does not have direct flights going here, the capabilities and roles of BAs on the scene are very important. "Working at the largest duty-free shopping center, BAs here have an exceptional sense of responsibility and loyalty to their brands," stated Chris. In fact, LANEIGE BAs received an award from the shopping center for their excellent and dedicated service. The efforts of BAs here are observed and their opinions are reflected when recruiting new BAs after careful consideration.

A range of TR sets required to fulfill the needs of customers

Open to citizens, Haitang Bay CDF Mall limits the number of cosmetics allowed per person to eight, worth less than CNY 8,000 (approximately KRW 1.43 million) and this is the reason why most customers prefer a set of items, counted as one. "With various fresh TR sets, it will be easier to improve the brand and shopping experience of customers in the duty-free channel than any others," explained Chris with the anticipation of an increased variety of exclusive TR sets.
Sulwhasoo and LANEIGE have maintained 1st and 2nd positions in terms of growth rate and have been receiving loving attention from customers since 2011 when they first opened their stores in Haitang Bay CDF Mall (known as Sanya Bay Duty Free Mall at that time). With IOPE making a debut in China this year, competition is expected to grow stronger.
We wish to give a big hand to the HQ TR Division and all related departments who are producing great results overseas in the duty-free realm, which has been a major fixture in the beauty industry over the past number of years. We hope that they are able to embark into new and unexplored duty-free markets worldwide and deliver beauty to more customers!

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