The channel and price transparency in China refer to the policy opening of major duty-free shops.
Under the influence of the epidemic, it is not only Hainan islands that have liberalized their policies.
For purchases at airport duty-free shops, it is necessary to pick up the goods at the airport or to drag friends who have plans to go abroad to pick up the goods in the airport store. Therefore, consumers who do not have international flights cannot buy products in duty-free shops. In the past, users with direct mail qualifications had to meet many conditions, such as eligibility for accumulated purchases and annual purchase amount insurance number.
I understand that the currently popular Beijing Rishang, Shanghai Rishang and Hainan Islands and other duty-free shops have introduced varying degrees of liberalization policies, the most important of which is to obtain direct mail qualification.
If Beijing Rishang liberalizes the membership system, each old member can invite 3 new members, so new members will be eligible for SF Express direct mail.
At the same time, the China Service Duty Free Shop, the only inbound duty-free shop in Beijing, has also relaxed its policies. During the epidemic period, according to the original regulations, inbound passengers can enter the store with their entry and exit records within 180 days after returning to the country, with a shopping limit of 8,000 yuan per person.
During the current epidemic, the store has extended the validity period of entry and exit records in stages. Passengers returning from August 1, 2019 to June 1, 2020, if they have unused entry and exit records, can visit Shop at the store before December 31, 2020.
The direct mail qualification of Shanghai Rishang seems to be easier to “popularize”.
It is understood that at present, Shanghai Rishang has four ways to purchase duty-free products.
The first one is to find the VIP and place an order directly, the price of each item + the cost of the corresponding proxy;
The second type, Ctrip searches for “Sunshine PLUS Preferred Privilege Package” for 218 yuan to obtain the purchase qualification, and one coupon represents one purchase and admission qualification. You can purchase 20 items at a time, with a limit of 5 items per item, starting at 1,500 yuan per order, and there is no upper limit on the purchase amount.
p>On August 10, news came out that Greenland Holdings joined the application for duty-free business qualification. According to Times Weekly, the Shanghai Municipal Government has submitted applications for duty-free business qualifications for two companies including Bailian Group and Greenland. On the same day, benefiting from the news of the tax-exempt license, Greenland Holdings’ stock price rose sharply in the afternoon, closing at 8.32 yuan, an increase of about 6.12%.
On the evening of August 12, Lingnan Holdings issued an announcement stating that the controlling shareholder Lingnan Group stated in writing that the group is advancing the application for duty-free business qualifications, and has formally submitted to the relevant departments of the Guangzhou Municipal Government to support its application for tax-free business Request for operating license.
Affected by the above-mentioned good news, Lingnan Holdings opened higher today and moved higher. The daily limit was once during the session, but there was a shock in the end. As of the close, Lingnan Holdings reported 15.07 yuan per share, up 7.64%, the latest total market value of 10.1 billion yuan.
In addition, Caesars Tourism, which is mainly engaged in tourism, has started to explore the tax-free business of Chinese citizens entering the city through cooperation with China Export Service. Caesars Tourism has successively cooperated with China International Service to build Tianjin International Cruise Homeport Entry Duty Free Shop, acquired 20% of Jiangsu China Service to set up duty-free shops in Nanjing, and invested in China Service Beijing Duty Free Shop Operating Company.
Gree Real Estate also intends to acquire 100% of Zhuhai Duty Free. Zhuhai may become the second 100% tax-free operator in China. It is understood that Zhuhai Duty Free Group is the only wholly-owned operator in China that owns the three major businesses of tax-free, tax-free and bonded (cross-border), occupying With a 5% share of China’s duty-free market, it ranks second with Shenzhen Freedom and Haiwaii.
License applications, mergers and acquisitions investment, as the concept of tax exemption is popular, companies are also trying to get a qualification ticket for the tax-free industry just like ordinary consumers.
4. Transformation, impact and stall
On July 9, Wangfujing issued an announcement stating that it plans to invest in the establishment of a wholly-owned subsidiary, Beijing Wangfujing Duty-Free Operation Co., Ltd., with a registered capital of 500 million yuan, which will be used to carry out business such as duty-free operation.
Wangfujing believes that in recent years, with the continuous development of China’s market economy and the further liberalization of tax-free policies, China’s tax-free market has great development potential. This entry will help expand the company’s main business scope. Facilitate the transformation and upgrading of existing retail businesses.