China Duty Free’s Stock Plunges: Is the Duty-Free Franchise Business Dying?

The main issue comes down to business strategy. This company’s leadership was only focused on targeting Chinese consumers and extracting money from them. During the pandemic, they capitalized on lockdowns and made a fortune—but they largely neglected international markets. In contrast, foreign duty-free companies promote their domestic brands to non-resident travelers (i.e., foreigners), which makes them less vulnerable to policy and market fluctuations. China Duty Free, relying solely on duty-free policies without expanding overseas, saw its performance suffer after epidemic controls were lifted.

Luxury brands are turning away from duty-free shops: China Duty Free’s market cap evaporated by 200 billion yuan in just six months | Krcoin