Hainan Tourism Investment Duty Free Sanya Mall celebrates fifth anniversary

The “High Five – The Fifth Anniversary Celebration” campaign, running from Dec. 30 to Jan. 18, positioned the Sanya Mall as an innovation-driven player in Hainan’s rapidly evolving travel retail landscape. The timing coincided with the New Year holiday travel period, traditionally one of the strongest trading windows for offshore duty-free retail in China.

Strategic expansion amid Hainan’s retail transformation

The anniversary celebration showcased Hainan Tourism Investment Duty Free’s hybrid consumption model, blending duty-free shopping with entertainment and lifestyle experiences. The campaign featured robot dance performances, sci-fi-themed shows, pop star concerts, and a partnership with the Honour of Kings Challenger Cup esports tournament – complete with cosplayers and limited-edition merchandise.

Sporting goods brands eye Hainan opportunity

The opening of Under Armour Outdoor at HTDF Sanya Mall signals continued interest from sporting goods brands in Hainan’s duty-free channel. The expansion reflects the island province’s position as a key growth market for international sporting goods companies seeking to reach Chinese consumers at competitive prices.

Under Hainan’s offshore duty-free policy, travellers departing the island can purchase goods exempt from customs duty, import-stage value-added tax, and consumption tax within annual limits. Since the policy was expanded in July 2020 – raising the annual duty-free quota from 30,000 yuan ($4,215 / €4,050) to 100,000 yuan ($14,050 / €13,500) and expanding product categories – offshore duty-free sales have surged to 206.9 billion yuan (approximately $28.3 billion / €27.2 billion) by August 2025, according to government data.

Sporting goods are among the 47 categories approved for duty-free sales in Hainan, alongside cosmetics, perfumes, apparel, bags, watches, and electronics. The price advantage created by tax exemptions has made Hainan an attractive destination for mainland Chinese consumers, particularly for international sporting goods brands that typically carry 20 per cent to 30 per cent premiums in mainland retail due to import taxes.

Hainan’s evolving customs regime reshapes market access

Hainan’s duty-free sector entered a new phase on Dec. 18, 2025, when the island officially became a separate customs zone from mainland China. Under the “first-line liberalization, second-line control, intra-island freedom” framework, qualified goods from overseas can enter Hainan duty-free and move freely within the island. However, goods transferred to mainland China remain subject to standard import tariffs.

The separate customs designation expanded tariff-free import categories from 1,900 to 6,660, although key travel retail categories including apparel and bags – both relevant to sporting goods – were excluded from the initial duty-free list for island-wide circulation. These categories remain eligible under the existing offshore duty-free policy for travelers departing Hainan.

The customs policy shift forms part of China’s broader strategy to develop Hainan into a fully integrated free trade port by 2035, positioning the island as an international tourism and consumption center. For sporting goods brands, the evolving regulatory landscape presents both opportunities and complexities in channel strategy.

HTDF’s competitive positioning in Hainan’s duty-free market

HTDF Sanya Mall competes with other major duty-free operators in Hainan, including China Duty Free Group, Shenzhen Duty Free Group, and other license holders operating across Sanya, Haikou, and Boao. The sector has seen aggressive expansion since 2020, with travel retailers establishing duty-free networks throughout the island.

The addition of Under Armour Outdoor alongside fashion brand Hechter and the opening of SUQQU’s first-ever global duty-free boutique reflects HTDF’s portfolio enhancement strategy. For sporting goods brands, Hainan’s duty-free channel offers direct consumer access in a market where brand-owned retail and wholesale partnerships remain the dominant distribution models on the mainland.

The island’s position as a tropical destination with visa-free entry for citizens of 85 countries also creates potential for international visitor traffic, though mainland Chinese consumers currently drive the majority of duty-free sales.

Broader implications for sporting goods industry

Hainan’s offshore duty-free sector represents a strategic retail channel for sporting goods brands navigating China’s complex and competitive market. The tax advantages, combined with Hainan’s status as a tourism destination, create a consumption environment distinct from mainland retail dynamics.

The sporting goods categories that have gained traction in Hainan’s duty-free market include performance footwear, athletic apparel, outdoor equipment, and lifestyle-oriented sportswear – categories that align with China’s growing fitness participation, outdoor recreation trends, and the convergence of sports and fashion culture among younger consumers.

However, the December 2025 customs policy shift introduces regulatory complexity. While the offshore duty-free policy for departing travelers remains intact, the exclusion of apparel and bags from the island-wide duty-free list signals continued government control over which categories benefit from tax advantages. The Ministry of Finance, General Administration of Customs, and State Taxation Administration retain authority to revise the taxable goods list, leaving room for future policy adjustments.