DFS Group, the world’s leading luxury travel retailer, today announced plans to create the first world-class, seven-star luxury retail and entertainment destination, DFS Yalong Bay, in Sanya, Hainan, China, by 2026.

DFS anticipates an unprecedented investment in a 128,000 square meter property, luring over 1,000 luxury companies, including iconic maisons from the LVMH Group, once fully operational. DFS Yalong Bay will become Sanya’s top destination for luxury shopping, world-class housing, eating, and entertainment, supplying international and domestic travelers with innovative, famous luxury brands and experiences.

“DFS Yalong Bay is an incredibly exciting development for DFS, and I believe for the
Chinese travel industry”, said Benjamin Vuchot, DFS Chairman and CEO, in Cannes today. “Think
the glamour and experience of Shanghai, Macau, Dubai, and Las Vegas: now add Sanya to these
dream destinations. Yalong Bay represents a key entry point to Hainan which the China
Government plans to turn into the world’s largest free-trade port. In addition to this strong
policy, Hainan also offers luxurious resorts, beautiful sandy white beaches and high-end
medical facilities. Hence, we believe that Hainan is well-poised to become one of the fastest
growing luxury markets in the world maximizing both domestic and international
consumption.”

DFS Group’s goal is to lead and increase Hainan’s luxury market share in fashion, cosmetics and perfumes, watches and jewelry by establishing a seven-star world-class luxury retail and entertainment destination in Yalong Bay. DFS Yalong Bay development is a key component of DFS’ long-term expansion and investment plan in China, according to Nancy Liu, President of DFS China.

“DFS Yalong Bay is the latest in a series of commitments we are making in China. Yalong
Bay area is undoubtedly the most developed luxury natural cove in Sanya, where DFS will
provide unparalleled personalized services to our patrons. This truly represents a substantial
stride in DFS’ global strategy to expand in the China market through a multi-format, multi channel expansion in the luxury travel retail sector.” said Liu.

Concluding, DFS Chairman and CEO, Benjamin Vuchot said, “This DFS announcement
today is the clearest commitment we can make to the long-term development of Sanya and
Hainan and the entire Chinese tourism market. Upon completion of DFS Yalong Bay, DFS will
not only play a positive role in elevating Yalong Bay, but we will also secure Sanya as a top tier
luxury destination on the global stage with the brand partners we bring, leveraging our DNA in
luxury travel retail. Looking forward, we are committed to forging new retail legends in Hainan
and throughout China with our strategic partners bringing unforgettable experiences to all
domestic and international travelers. We are also proud of the contribution we will make to the
local economy of Hainan. We expect DFS Yalong Bay to attract over 16 million visitors per year
by 2030 and create sizeable economic opportunities within Yalong Bay.”

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