Shilla Duty Free Enters Hainan Province Market in China … Signs MOU with Local Company

[Asia Economy Reporter Jo In-kyung] Shilla Duty Free is entering the Chinese market to overcome the COVID-19 crisis.

On the 22nd, Shilla Duty Free announced that it signed a strategic MOU with Hainan Haiyou Duty Free(海南旅投免稅品有限公司·HTDF), which operates duty-free shops in Hainan Province, China, to promote the operation of duty-free shops in both countries.

Haiyou Duty Free is a downtown duty-free shop established last year as a subsidiary of Hainan Tourism Investment Development Corporation. The duty-free shop spans approximately 95,000㎡ and offers products from about 45 categories and over 500 brands. It is a premium complex shopping mall that encompasses not only shopping but also dining and entertainment elements. It is located about 15 km from Sanya Phoenix International Airport and about 6 km from the high-speed railway station, and is adjacent to 'Tianya Haijiao (天涯海角)', a must-visit spot for Hainan travelers, making it easy to attract tourists.

Through this MOU, Shilla Duty Free and Haiyou Duty Free agreed to mutually cooperate in all aspects of operations, including product sourcing, market development, human resource exchange, and joint product development, through the establishment of a joint venture in the future.

Shilla Duty Free, operated by Hotel Shilla, has been strengthening its global competitiveness by increasing its overseas business share since 2013 to diversify its markets. It was the first Korean company to open an overseas store at Singapore Changi International Airport, and by acquiring duty-free business rights at Macau Airport in 2014 and Hong Kong Chek Lap Kok International Airport in 2017, it became the world's first duty-free company to operate cosmetics and perfume stores at Asia's three major airports (Incheon, Changi, and Chek Lap Kok International Airports) and has grown into the world's largest duty-free distributor in the cosmetics and perfume category.

A Shilla Duty Free official said, "This MOU is significant because it marks our entry into the rapidly growing Chinese market, especially Hainan, despite the COVID-19 crisis," adding, "We will overcome the difficulties in the duty-free business by entering overseas markets through various methods."

This content was produced with the assistance of AI translation services.