BEIJING: On the southern Chinese island of Hainan, a duty-free shopping paradise, mainland tourists keen to splurge will often patiently line up for an hour or more to enter a Gucci, Tiffany or other luxury brand store.
Driven by well-heeled consumers forsaking their usual overseas trips to places like Milan and Paris as well as pent-up demand that built during lockdown, spending in China on luxury goods has surged. Sneakers of Italian high fashion sneaker brand Golden Goose are displayed at its store in Beijing, China, Sep 23, 2020.
China is, however, the place to be. Store numbers for top luxury brands there rose 4 per cent in the first half of 2020, while those for cosmetics brands jumped 8 per cent, according to a report by property consultancy Savills. It cut import tariffs in 2018, enabling luxury brands to reduce their China prices, while this year in Hainan, it has expanded the amount of duty-free shopping allowed to 100,000 yuan from 30,000 yuan as well as the types and number of products allowed.