[Asia Economy Reporter Yoo Hyun-seok] The HQ (formerly Gamma Nu) announced on the 13th that it will officially begin supplying domestic and international brand products by entering the Hainan L?tou Duty-Free Shop.
The Hainan L?tou Duty-Free Shop, where The HQ has entered this time, is a state-owned enterprise wholly owned by Hainan Tourism Investment Development Co., Ltd., which is invested by the Hainan State-owned Assets Supervision and Administration Commission. Tourists visiting Hainan through travel agencies are linked to visit this duty-free shop, which has a total area of 2,200 pyeong and houses various global brands including cosmetics, perfumes, and overseas luxury goods.
The HQ was allocated a space of 200 to 250 pyeong in the Hainan L?tou Duty-Free Shop based on CEO Woo Sung-deok’s China network, the largest scale duty-free customer referral performance in Korea, and know-how related to the duty-free business. It plans to supply a total of 30 domestic and international brand products, including domestic brands as well as overseas luxury goods. Following the recent supply of duty-free products to the ‘Ilpumhoe Duty Free shop,’ it is expected that sales related to the Hainan duty-free business will expand further through this entry into the L?tou Duty-Free Shop.
Additionally, The HQ is promoting the supply of domestic and international brand products in the same manner to at least three of the eight duty-free shops on Hainan Island.
A company official said, “As Chinese people who cannot travel abroad due to COVID-19 have chosen Hainan as an alternative destination, revenge consumption is increasing, and with the Chinese government’s active duty-free shopping support policies, sales at Hainan duty-free shops surged by 127%. As the Hainan duty-free market rapidly grows, global luxury brands are accelerating their store openings, and The HQ was able to enter the Hainan L?tou Duty-Free Shop under favorable conditions, recognized not only for CEO Woo’s business know-how but also for its capabilities as the number one domestic inbound platform business.”
He added, “Since the Hainan L?tou Duty-Free Shop is a state-owned enterprise leading Hainan tourism development with the support of China’s policy direction and assistance, it has competitiveness in attracting tourists, so it is expected that stable sales and profits will be generated once entered. Starting with this successful duty-free shop entry, we plan to additionally enter at least three Hainan duty-free shops and focus on growing our performance related to the duty-free business,” he emphasized.
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