China National Service Corporation’s new duty free shop opened in downtown Shanghai this week. The company closed down its previous retail space in July of this year to move to a bigger property in the more commercial location of Jing’an district. The new store offers over 100 brands in the 35,521-square-foot space spread over two stories.

CNSC was the first duty free company approved by the State Council in 1983, and one of two duty free companies nationwide. Their aim is to entice outbound Chinese tourists to consume foreign goods in China, rather than abroad. This comes as tourist spending globally is deteriorating and likely to face continued pressure in the wake of recent terrorist attacks. According to an analysis of the latest Global Blue data by Barclays, Chinese consumers’ spending  abroad dropped 17.5 percent in June and 17.4 percent in May.

The store sells traditional duty free products, found at airports across the country, along with a wider variety of merchandise. “The first floor is mainly perfume, cosmetics, watches, sunglasses, accessories, and premium fashion. The second floor has entry level fashion brands, suits and shirts, confectionary, kitchenware, rice cookers, small electronic appliance, toys, milk powder, and snacks”, said Jacky Yan, Deputy General Manager of the Duty Free Business Department at CNSC.

Perfume and cosmetic brands on offer include Estée Lauder, La Mer, Clinique, MAC, Sisley, Clarins, L’Occitane, Shiseido, Jurlique, Bobbi Brown, Tom Ford, Jo Malone, and SKII. Fashion brands such as Bally, Aigner, Coccinelle, Vivienne Westwood, Lacoste, and Kipling are also represented. Watchmakers, Tissot, Hamilton, Calvin Klein, Swatch, Titoni, Enicar, Emporio Armani, Tory Burch, Michael Kors, Fossil, Seiko, and Guess, are similarly available.

Chinese consumers over the age of 16 are able to shop in the duty free store if they can provide paperwork to prove that they have arrived from overseas within the past 180 days, following the regulations and policy of the duty free retail sector in the country. Foreign consumers are not able to shop at the store.

There were 500 people in the store within the first 15 minutes of trading in the new location on Monday, and entry had to be restricted due to safety concerns, according to local media reports.

load comments
blog comments powered by Disqus