China duty free push
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Nineteen inbound China duty-free shops have opened to serve domestic travellers returning home.
The state’s Ministry of Finance announced the stores have been built in 13 airports including Guangzhou Baiyun, Hangzhou Xiaoshan and Qingdao Liuting, as well as six sea ports.
Passengers can carry up to 8000 yuan ($1230) worth of duty-free goods, up from the previous 5000-yuan limit, when clearing customs, the ministry said, claiming that the shops feature more products than existing inbound duty-free outlets.
Isetan Mitsukoshi Holdings says its stores served about 50 per cent more international duty-free shoppers from February 7 to 13 compared with the same holiday week last year, thanks to a spike from mainland China – but customer spend was 15 per cent less this time.
Visitors from mainland China doubled to five million, helping Japan’s overall tourist numbers reach nearly 20 million – a target the government had hoped to achieve by 2020.
Shopping by Chinese tourists at department stores and electronics shops last year created a buzzword, “bakugai”, or “explosive buying”, and came as a boon for Japanese retailers smarting from decades of sluggish demand from domestic consumers. However, China’s economy has since sagged to a 25-year low, with stock markets slumping mid-year.
Questions & Answers
Q.Where have the new inbound duty-free shops in China been opened?
Where have the new inbound duty-free shops in China been opened?
The new inbound duty-free shops have been opened in 13 airports, including Guangzhou Baiyun, Hangzhou Xiaoshan, and Qingdao Liuting. Six sea ports also feature these new stores.
Q.What is the new spending limit for duty-free goods for domestic travellers in China?
What is the new spending limit for duty-free goods for domestic travellers in China?
Domestic travellers returning home to China can now carry up to 8000 yuan ($1230) worth of duty-free goods. This is an increase from the previous limit of 5000 yuan.
Q.How did Chinese visitors impact Japanese duty-free sales during a recent holiday week?
How did Chinese visitors impact Japanese duty-free sales during a recent holiday week?
Isetan Mitsukoshi Holdings saw approximately 50% more international duty-free shoppers due to a spike from mainland China. However, customer spend during this period was 15% less.
Q.What impact has China's economic situation had since the 'explosive buying' trend in Japan?
What impact has China's economic situation had since the 'explosive buying' trend in Japan?
China's economy has since slowed to a 25-year low, with its stock markets experiencing a slump mid-year. This followed a period when Chinese tourism boosted Japanese retail.