Exclusive

On the evening of September 17, a source close to the Hainan provincial government disclosed to the 2 1 Century Business Herald that the fifth tax-free license for outlying islands had been obtained, and the Hainan provincial government would announce the results in these two days.

In the past three months, license plates have been hunted by Zhuhai Duty Free Shop, Shenzhen Duty Free Shop, Zhongfu Duty Free Shop, Wangfujing and other enterprises, and the conclusion is coming soon.

Hainan's duty-free consumption has increased substantially.

The gold content of tax-free licenses is getting bigger and bigger.

A set of data recently disclosed by Haikou Customs shows the powerful "cargo effect" of the tax exemption policy for outlying islands. According to the data released by Haikou Customs in September 1 1, in July and August when Hainan's tax exemption policy for outlying islands was implemented, the shopping amount reached 5.58 billion yuan, 6122,000 pieces and 832,000 person-times, up by 22 1.9% and1respectively. The amazing growth data not only highlights the strong spending power of foreigners, but also highlights that the tax-free license for outlying islands is an "unlimited" beacon.

After years of tax exemption in China and Hainan's monopoly on the duty-free market in Hainan, the tax exemption policy for outlying islands has undergone major adjustments this year.

On August 19, Hainan Government announced that Hainan Tourism Investment Duty Free Products Co., Ltd., a wholly-owned subsidiary of Hainan Tourism Investment Development Co., Ltd., and Hainan Development Trading Co., Ltd., a wholly-owned subsidiary of Hainan Development Holdings Co., Ltd., two local enterprises obtained the third and fourth batch of duty-free business licenses for outlying islands.

On the same day, Chen, director of Hainan Provincial Department of Commerce, proposed to build three duty-free shops (Phoenix Airport Store +2 local stores) in Hainan, of which 1 local duty-free shops on outlying islands will be selected through competitive negotiation from enterprises with duty-free goods business qualifications outside the province. "Enterprises with duty-free goods business qualifications outside the province" is the focus of the above statement. In other words, companies outside the province will get the fifth tax-free license for outlying islands.

There are eight enterprises with duty-free licenses in China, among which Japanese duty-free shops, Shanghai duty-free shops and Chinese duty-free shops are all controlled by China, and four duty-free shops in Hainan are also directly or indirectly owned by China. Therefore, combined with the information mentioned by Chen at the press conference, it is possible to choose Pearl Exemption, Deep Exemption, China Service Exemption and Wangfujing.

2 1 Century Business Herald also learned from various information sources that the above four companies have been operating intensively in Hainan in recent months, and are seeking partners to unite with Lian Heng to seek a breakthrough according to the requirements of the Hainan provincial government.

Which of the four candidates won?

Judging from the policy requirements, as early as July 10, the announcement issued by Hainan Provincial Department of Finance, Department of Commerce and Market Supervision Bureau mentioned that the new duty-free shopping business entities in Hainan Island will be selected and determined according to the principle of brand, variety, price and international synchronization through market-oriented competition such as bidding. By benchmarking with international standards, we can see the government's expectation of building high-standard duty-free shops.

Judging from these four "candidates", Zhuhai and Shenzhen are both local state-owned enterprises. Among them, the deep exemption started the earliest and was established in 1980 1. Up to now, there are nearly 40 entry-exit duty-free shops in Shenzhen Luohu Port, Airport International Terminal and other places, and duty-free shops have been opened in Xinjiang Horgos Border Port, Yunnan Ruili Border Port and Shaanxi Xi 'an International Airport. Shenzhen Ziyou established Shenye Regent Co., Ltd. in Hong Kong, specializing in the purchase of duty-free goods. It has a global direct purchase channel for duty-free goods. Suppliers mainly come from Europe, America, Japan, South Korea and other countries and Hong Kong, Macao and Taiwan regions. The main products include tens of thousands of varieties such as tobacco, food and incense.

Up to now, Zhumian Group has opened about 8 stores with strong profitability, and the sales volume of duty-free business at ports ranks second in the country. According to the data, in 20 18 and 20 19, Zhuhai duty-free group achieved operating income of 2.256 billion yuan and 2.669 billion yuan, with net profit margins of 28.52% and 35.38% respectively. However, the product categories of Zhumian are mainly tobacco and alcohol, accounting for about 90% of sales revenue, and the production ratio of fragrant products is weak. In May this year, gree real estate launched the purchase of Zhuhai free of inspection. Although the restructuring work has not yet been completed, gree real estate recently won the commercial land on the Phoenix Coast of Sanya, which is considered as a warm-up step to enter the duty-free industry in Hainan.

China Overseas Personnel Service Co., Ltd. is a state-owned franchise company authorized by the State Council to operate duty-free goods except China, and it is also the only enterprise in China that operates duty-free entry for China nationals. At present, Zhongfu Duty Free Shop has 17 duty-free shops, covering five types: airport port, land port, port port and overseas, covering Northeast China, North China, East China, Southwest China and Central China, and has overseas duty-free and logistics distribution centers in Japan and Dubai, forming a new operation mode of "city+port+overseas+online". In the past year, Zhongfu upgraded 1 1 duty-free shops, and opened five new duty-free shops in 20 19, with a relatively strong development momentum. Not only that, Zhongfu also set up a joint venture with Temple Library and Caesars Tourism, which focus on high-end services, to cooperate in brand, technology, network, channels and services.

Wangfujing Group, as the latest newly-established enterprise with tax-free license, has maintained the leading position in the department store industry in China for many years. * * * operates 54 large-scale comprehensive retail stores and 7 Ole stores, which has advantages in management and brand building. However, after obtaining the tax-free license, according to Wangfujing's latest statement, although a series of related work has been carried out, including the establishment of duty-free commodity management companies, the formation of teams, the creation of supply chains, and the search for projects. However, because it is in its infancy, it has not carried out tax-free business in essence.

From the above comparison, deep cotton and residential cotton have been deeply cultivated in regional operation for many years. The former has its own characteristics in procurement channels and commodity categories, while the latter has strong profitability, relying on gree real estate or welcoming new development space; Zhongfu Duty Free Shop has national experience in duty-free goods operation, and has made frequent moves in improving management level in the past year. Although Wangfujing has formed a mature system in tax channels, it lacks experience in tax exemption, and it is difficult to gain an advantage unless it is blessed by a strong partner.

Comparing the advantages and disadvantages of the four companies, which one do you prefer to win the fifth tax-free license in Hainan Island?

For more information, please download 2 1 financial APP.