Behind Hainan Expo: The changing trend of Chinese consumption

The ongoing 6th China International Consumer Products Expo (CICPE) in Hainan offers a window into China's evolving consumption landscape.

This year's CICPE is the first national-level consumer expo since the launch of island-wide special customs operations in the Hainan Free Trade Port.

The city of Sanya in Hainan Province sees the benefits of the tax-free policies. In Q1 2026, Sanya's duty-free sales hit 10.06 billion yuan ($1.47 billion), up 28.2% year-on-year, with store visits and transactions rising 20.7% and 21.1% respectively, according to the Commerce Bureau of Sanya.

The figures also mirror national trends: China's retail sales reached 12.77 trillion yuan in Q1 2026, up 2.4% year-on-year, with online goods and services retail growing at 8.0% and online physical goods sales up 7.5%, according to the National Bureau of Statistics. Categories such as communication devices (up 20.8%) and textile products (up 9.3%) showed increases, according to the National Bureau of Statistics.

Behind these numbers lies a shift in consumer behavior: quality-oriented purchasing, experience-driven consumption, and instant gratification. Chinese consumers are trading up—from products to experiences, and from basic needs to premium lifestyles. 

Hainan's role in China's opening-up strategy is anchored in its island-wide customs closure policy. Post-closure, zero-tariff import coverage will jump from 21% to 74%, spanning 6,600 tax categories, according to the State Council Information Office.

This synergy between institutional innovation and consumption upgrading positions Hainan as a gateway connecting domestic and international markets. As the "intersection point" of China's dual circulation strategy, the free trade port attracted over 80.98 billion yuan in foreign investment over five years, with foreign enterprises growing 43.7% annually, according to data released by Hainan Provincial Government. 

With service consumption outpacing goods and digital retail growing double-digits, the "change" and "trend" at the CICPE tell a compelling story of China's consumption-led transformation—promising mutual benefits for domestic consumers and international businesses alike.