Swire Properties is betting on the country's growing appetite for destination retail with its first resort-style Taikoo Li development on the Chinese mainland, as shopping centers increasingly evolve into leisure destinations encouraging extended stays rather than places to simply fill up shopping carts.
The Hong Kong-based developer announced recently that its new project in Sanya, Hainan province, will be named CDF Taikoo Li Sanya. Jointly developed with China Duty Free Group, the project is scheduled to launch a phased opening later this year.
Located in the Haitang Bay National Coast area, the 210,000-square-meter development will combine luxury retail, dining, arts, culture and resort experiences. As the third phase of Sanya International Duty Free City, it will connect seamlessly with the existing duty-free complex to create an integrated shopping and tourism destination, said the company.
The project reflects a broader shift in the country's retail industry as developers respond to changing consumer habits.
Rather than visiting malls solely to shop, consumers are increasingly seeking destinations that combine retail with dining, entertainment, wellness and cultural experiences. Industry observers describe the trend as the rise of "resort retail" or "retail tourism", where consumers are willing to spend hours — or even an entire weekend — at a commercial destination.
David Poraj-Wilczynski, CEO of Swire Properties Chinese mainland, said the company sees long-term opportunities in Hainan as the tropical island province develops into an international tourism and consumption center.
"As Swire Properties' first resort-style Taikoo Li project, CDF Taikoo Li Sanya combines our expertise in placemaking and community building with Sanya's unique local culture. We are confident in the long-term development prospects of both Sanya and the Hainan Free Trade Port," Poraj-Wilczynski said.
Sun Fang, deputy general manager of China Duty Free Group, said the project will create a complementary "duty-free plus duty-paid" ecosystem by integrating with the existing phases of Sanya International Duty Free City, offering visitors a more diversified retail and resort experience.
The investment underscores how China's commercial property sector is increasingly competing on experiences rather than floor space. Developers are seeking to transform shopping malls into destinations where consumers spend time — not just money.
The strategy also aligns with Hainan's ambition to become an international tourism and consumption center. During this year's National Day holiday, the province received 4.75 million visitor trips, up 13.1 percent year-on-year, while tourism revenue rose 14.7 percent to 6.88 billion yuan ($1.03 billion).
The shift toward experiential retail is also reshaping other commercial formats, particularly outlet malls.
According to the 2025-26 China Outlets Industry Development Report released by the Outlets Industry Development Committee of China Commerce Association for General Merchandise, China has about 265 outlet projects with combined annual sales of 248 billion yuan, an increase of 3.8 percent from 2024.
The report said outlet centers are evolving from discount-shopping venues into "third living spaces" that integrate shopping, dining, leisure and social interaction.
Leading operators are already investing heavily in experience-driven retail.
In Beijing, Wangfujing Well-Town, opposite Universal Beijing Resort, attracted more than 3.3 million visits and generated over 300 million yuan in sales during its first month through a mix of flagship stores, first-to-market brands and immersive experiences.
In Shanghai, Qingpu Bailian Outlets unveiled the second phase of its long-established complex last year, adding global flagship stores as it seeks to position itself as one of Asia's premier outlet destinations.
