KOTRA Helps Korean Premium Consumer Goods Enter Chinese Domestic Duty-Free Stores

Jung Domestic Duty-Free Store Entry Briefing and Consultation Held

The Ministry of Trade, Industry and Energy and KOTRA announced on the 28th that they will hold a briefing session and sourcing consultation meeting for entry into the Hainan second-tier duty-free market in China at the KOTRA headquarters in Yeomgok-dong, Seoul. The purpose is to expand the entry of domestic mid-to-high-end consumer goods companies into the Chinese premium market.

The Chinese government is establishing Hainan Province, home to the world's largest duty-free complex 'Haikou Duty-Free Town,' as a free trade zone and is implementing the second-tier duty-free policy to stimulate domestic consumption.

KOTRA Headquarters Exterior.

The second-tier duty-free policy grants duty-free benefits to both domestic and foreign visitors who visit Hainan and return to mainland China, similar to the domestic duty-free shops in Jeju Island. Visitors can purchase duty-free goods online within 180 days after visiting Hainan, with an annual duty-free shopping limit of 100,000 yuan (approximately 18 million KRW) per person.

At this event, purchasing managers from Chinese duty-free companies Wangfujing Group and Hainan Tourism Investment Group will visit Korea to introduce duty-free store entry strategies to Korean companies. A one-on-one consultation meeting will also be held to support the entry of premium consumer goods such as domestic fashion, jewelry, golf equipment, and health functional foods targeting the Chinese premium consumer market. Additionally, in cooperation with the Consulate General of the Republic of Korea in Guangzhou, meetings between local duty-free companies and Korean companies will be arranged. Support will continue to help more Korean companies enter the market, including operating a Korean pavilion at local exhibitions such as the upcoming 'Hainan International Consumer Goods Expo' in April.

Kang Xue, General Manager of Fashion Purchasing at Wangfujing Group’s Hainan Duty-Free Store, said, "Currently, the number of domestic tourists with purchasing power who want to utilize the duty-free policy in Hainan is steadily increasing. Especially, Korean premium brands are highly preferred by wealthy consumers in China, resulting in strong sourcing demand."

Hwang Jae-won, Head of KOTRA’s China Regional Headquarters, emphasized, "The rapidly growing domestic Chinese duty-free market is one that our companies must not miss. KOTRA will take the lead in helping excellent Korean small and medium-sized enterprises and mid-sized companies actively enter the Chinese premium consumer goods market through entry into the Chinese duty-free market."