Customers visit a duty-free shopping mall in Haikou, south China's Hainan Province, May 2, 2022. (Xinhua/Guo Cheng)
BEIJING, Jan. 13 (Xinhua) -- The annual compound growth rate of China's duty-free market should reach 24 percent during the 2021-2025 period, with per capita consumption maintaining at an annual increase of about 5 to 10 percent, reported Shanghai Securities News on Thursday.
The industry forecast was introduced by Chen Xin, an analyst with UBS Securities on Wednesday at UBS's 23rd Greater China Conference, where Chen also noted that the size of China's duty-free market should hit 117 billion yuan (about 17.37 billion U.S. dollars) by the year 2025.
"According to our research, about 50 percent of the cross-border tourists come from first-tier cities, whereas 70 percent of the duty-free shoppers in south China's Hainan come from second- and third-tier cities," said Chen, explaining that the recovery of China's inbound and outbound tourism could have some impact on the domestic duty-free market in the short term, but at a limited level. It is predicted that in the next few years, duty-free sales in Hainan will maintain its growth at more than 20 percent, according to Chen.
Besides, with cross-border travel becoming more convenient, China's duty-free market will grow to be more mature, as the shopping area will increase, the type of products will be enriched, and the price advantage will be further highlighted, Chen said.
(Edited by Yu Huichen with Xinhua Silk Road, yuhuichen@xinhua.org)
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