CTG DUTY-FREE(SH:601888) Jing Ji Wang·2025-12-16 09:57Core Insights - Hainan Free Trade Port will officially start its full island closure operation on December 18, 2025, implementing a policy characterized by "one line open, one line controlled, and free within the island" to promote higher levels of openness [1] - The duty-free shopping policy in Hainan, launched in April 2011, has continuously evolved alongside the Free Trade Port construction, reshaping the consumption landscape in Hainan [1][2] - China Duty Free Group (CDFG), a subsidiary of China Tourism Group, plays a crucial role in the implementation of Hainan's duty-free policy, driving the development of a diverse and innovative "duty-free+" ecosystem [1][4] Policy Evolution and Market Impact - The Hainan duty-free policy has undergone multiple iterations since its inception, expanding beyond a single shopping scenario to meet diverse traveler needs and integrating deeply into Hainan's cultural tourism industry [2][4] - In November 2025, the new duty-free policy led to a significant increase in sales, with duty-free shopping amounting to 2.38 billion yuan in the first month, a year-on-year increase of 27.1% [2] - CDFG has actively responded to policy changes, enhancing service and innovation to support consumption and enrich the shopping experience [2][4] Infrastructure and Sales Performance - CDFG's Sanya International Duty-Free City has achieved cumulative sales exceeding 100 billion yuan, becoming the first duty-free store in Hainan to reach this milestone [5] - The CDF Haikou International Duty-Free City, with a total construction area of 280,000 square meters, is recognized as the world's largest single duty-free store [4][5] - CDFG has established a comprehensive duty-free ecosystem across six stores in Hainan, covering the entire consumer journey from arrival to departure [4][5] Consumer Experience and Engagement - The consumption narrative in Hainan's duty-free market has been restructured, with a notable shift towards younger consumers and a focus on experiential shopping [6][7] - CDFG has integrated cultural tourism into the shopping experience, creating immersive environments and hosting various themed events to enhance consumer engagement [7][9] - The company has implemented a full-service mechanism covering pre-sale, sale, and post-sale processes, significantly improving customer satisfaction [9][10] Brand and Product Strategy - CDFG is expanding its brand portfolio by introducing first stores and exclusive products, responding to consumer trends and enhancing the uniqueness of its offerings [11][13] - The company has hosted events like the fifth CDF Watch Festival, featuring over 50 global watch brands, including many first-time entrants to Hainan [13] - CDFG is also focusing on the silver economy by developing products and services tailored for older consumers, enhancing their shopping experience [13][14] Future Outlook - With the ongoing development of Hainan Free Trade Port and the continuous release of duty-free policy benefits, Hainan is set to enter a new chapter in its construction as an international tourism consumption center [14] - CDFG aims to deepen its "product + scene + service" innovation model, stimulating consumption vitality and contributing to the robust development of Hainan's duty-free market [14]