What: A duty-free hub is taking the share of the lion on the Chinese market

Why it is important: With a tripled duty free allowance, this market is becoming especially attractive to Chinese customers, who might change their purchasing behaviour even when travelling is authorised again.

Hainan Island is China's smallest province but the region where most potential lies, since it is a much-liked touristic spot for Chinese customers unable to travel abroad. Michael Kors is building its 4th store there, Capri group and other luxury companies consider this market to be the only alternative to duty free sales, which are not expected to recover until 2023. This is fuelled even more by the Chinese government, which increased the allowance for duty free purchases to USD 15,500 per person, tripling the amount from last year.

Ralph Lauren, Coach, Estee Lauder look to China’s Hainan Island as US luxury brands ...