Wangfujing Group's 'Beyond Duty Free' philosophy redefines China's tourism and retail landscape
Wangfujing International Duty Free Port in Wanning saw a 63% sales increase and a 77% rise in foot traffic, establishing itself as a premier duty free and premium outlet destination
In June 2020, Wangfujing Group made history by becoming the first Chinese department store chain to secure a duty free goods operation license. This achievement set the stage for a core business model that leverages the company’s established success in taxable retail with a rapidly expanding duty free enterprise.
A dual-engine strategy
At the heart of this evolution is Wangfujing’s dual-engine strategy, which integrates both tax-paid and tax-free operations with the explicit goal of transforming China’s retail and tourism sectors. The company blends two distinct but complementary business models into one cohesive vision, driving both innovation and growth.
“We adhere to the philosophy of ‘Beyond Duty Free,’ shares the public relations spokesperson for Wangfujing Duty Free. “By aligning strategies and clarifying priorities, we aim to establish a multi-format, multi-polar duty free ecosystem, driving rapid expansion and implementation of duty free projects.” Through this approach, Wangfujing not only strengthens its traditional retail roots but also positions itself to respond swiftly to shifting market conditions and evolving consumer preferences.
Offshore innovations
The 2023 debut of the Wangfujing International Duty Free Port, which is positioned as both a duty free and premium outlet destination, signaled the early success of this strategy, which has already delivered outstanding results. The location reported a 63% year-on-year increase in total sales as of January 2025, along with a 77% surge in customer footfall. These impressive figures showcase the power of the dual-engine strategy and demonstrate how effectively it drives substantial growth.
Located in Wanning City near popular surfing resorts such as Riyue Bay and Shimei Bay, the 170,000-square-meter Wangfujing International Duty Free Port offers nearly 800 international and domestic brands across nine product categories, including luxury goods, sports gear and fragrances.
But this Hainan destination goes beyond traditional retail. It is also designed to provide experiential attractions that cater to travelers seeking active lifestyle experiences. Notable highlights include a competition-grade skatepark and Hainan’s first dedicated duty free sports section for surf and skate enthusiasts, making it the island’s largest sports hub.
In addition, Wangfujing has partnered with prestigious brands such as MAX MARA and Penfolds to offer customers an elevated shopping experience, while a drive-in cinema adds an element of entertainment that further enhances the destination’s appeal.
Harbin Taiping International Airport’s duty free space embraces the city's cold-climate ice snow heritage
Airport innovations
Wangfujing Group has also expanded its retail footprint at major Chinese travel hubs in Heilongjiang Province’s key cities. In August 2024, the company secured agreements to operate departure duty free stores at Harbin Taiping International Airport and Mudanjiang Hailang International Airport. These stores represent the company’s ability to create retail environments that enhance the transit experience of departing passengers, offering a wide range of products from fragrances and cosmetics to wines and luggage.
These airport duty free spaces also ensure that travelers not only shop, but also engage with the region’s cultural identity, creating a unique sense of place. In Harbin, for example, where operations began in January 2025, Wangfujing has developed a space that reflects the city’s iconic cold-climate heritage, highlighted by its renowned Harbin Ice Festival. “The designs blend Harbin’s urban identity and ice-snow culture with airport layouts, creating functional, locally themed shopping spaces,” states Wangfujing Duty Free’s spokesperson.
Located in the Wangfujing Department Store, Changsha’s duty free space features cultural and artistic experiences, including Yuelu Academy and Xiang embroidery
Urban innovations
In addition to its successes in offshore and airport locations, Wangfujing Group is redefining urban retail by introducing easily accessible duty free spaces in major cities, blending modern shopping with local cultural heritage.
One standout project is located in the bustling Wushang Mall in Wuhan, where Wangfujing Duty Free obtained operational rights in December 2024. Developed in collaboration with Wushang Group, this urban duty free space integrates iconic architectural elements such as the Yellow Crane Tower and the Yangtze River Bridge, merging traditional Chinese symbolism with on-trend retail offerings.
Similarly, another innovative Wangfujing Duty Free project that began operations in January 2025 is located within the flagship Wangfujing Department Store in Changsha. This space combines cultural emblems such as Yuelu Academy, a historic learning center dating back to the Song Dynasty, with Xiang embroidery, a traditional craft known for its intricate and colorful designs.
