On January 19, China Tourism Group Duty Free Corporation Limited (hereinafter referred to as “China Duty Free Group”), French luxury conglomerate LVMH Moet Hennessy Louis Vuitton Group, and DFS Group, the global luxury travel retailer jointly owned by DFS co-founder and shareholder Robert Miller, jointly announced that they have reached a cooperation agreement under which China Duty Free Group will acquire DFS’s travel retail business in Hong Kong and Macau, as well as its intangible assets in the Greater China region.
Through this transaction, China Duty Free Group will acquire DFS’s retail stores in Hong Kong and Macau and its intangible assets in the Greater China region (including the exclusive right to use a series of DFS-owned brands and IPs in the Greater China region). According to the DFS official website, DFS operates two stores in Hong Kong (including one Beauty World store) and eight stores in Macau (including three Beauty World stores).
China Duty Free Group will carry out the acquisition through its wholly owned subsidiary, CDFG International Limited. The transaction consideration will be paid in cash. Upon completion of the transaction, DFS will continue to operate its luxury travel retail business in other regions worldwide.
In addition, the LVMH Group and the Miller family will participate in a capital increase of China Duty Free Group by subscribing to newly issued H shares in Hong Kong, with the subscription amount equivalent to part of the sale consideration. The subscription will be completed after the closing of the sale transaction.
At the same time, China Duty Free Group and the LVMH Group have signed a strategic cooperation memorandum, under which the two parties plan to establish cooperative relationships in retail sectors where their strategies are aligned. Such cooperation will also be consistent with the current business models of LVMH Group’s brands. This cooperation will enable China Duty Free Group and the LVMH Group to further deepen their collaboration in the Greater China region by leveraging their respective strengths, achieving mutual benefit and win-win outcomes. The two sides will cooperate in areas including product sales, store openings, brand promotion, cultural exchange, tourism services, and customer experience.
Completion of the transaction is still subject to customary closing conditions and is expected to be completed in approximately two months.
China Duty Free Group (601888.SH, 1880.HK) is a large listed company controlled by China Tourism Group. Its current business operations cover duty-free retail, duty-paid retail, development of travel retail complexes, and other areas. The company has established approximately 200 duty-free stores of various types in more than 100 cities in China and overseas, making it the duty-free operator with the most comprehensive store formats globally and the largest single-country retail network. Its sales rank among the top globally.
For the third quarter of fiscal year 2025 ended September 30, 2025, China Duty Free Group reported revenue of RMB 39.86 billion (approximately USD 5.6 billion), representing a year-on-year decline of 7%; net profit amounted to RMB 3.052 billion (approximately USD 427 million), down 22% year-on-year. As of before the publication of this article by Luxeplace on January 20, China Duty Free Group’s latest total market capitalisation on the Shanghai Stock Exchange stood at RMB 199.8 billion (approximately USD 28.0 billion).
As a practitioner and demonstrator of the Hainan offshore duty-free policy, China Duty Free Group’s Hainan operations achieved sales of over RMB 2.5 billion (approximately USD 350 million) on December 18, 2025, the first day of Hainan’s island-wide customs closure, representing a year-on-year increase of 90%. On January 1, 2026, single-day sales across China Duty Free Group’s Hainan offline stores and online mall exceeded RMB 3 billion (approximately USD 420 million).
Sanya International Duty Free Shopping Complex
Founded in 1960, DFS Group is a leading global luxury travel retailer, with stores located at major airports and downtown locations worldwide. DFS Group is a privately held company, with LVMH Group as its principal shareholder, while DFS co-founder Robert Miller also holds part of the equity.
For the third quarter of fiscal year 2025 ended September 30, 2025, revenue of the selective retailing division of LVMH Group, where DFS is reported (also including beauty retailer Sephora), increased by 7% year-on-year. During the third quarter, DFS’s revenue trend improved, particularly in the Macau and Hong Kong markets, with operational optimisation measures implemented since the beginning of the year starting to generate positive results.
DFS Hong Kong Canton Road Store
Chang Zhujun, Director and General Manager of China Duty Free Group, said, “This transaction will further expand China Duty Free Group’s service network, radiate into the Greater Bay Area, build a platform for Chinese cultural brands going global and an international business middle platform, and continue to provide high-quality travel retail consumption experiences for domestic and overseas tourists. It will effectively fulfil the responsibilities of a central state-owned listed company and support the high-quality development of the retail economy in Hong Kong and Macau. This is an important move for China Duty Free Group, under the leadership of its parent company China Tourism Group, to accelerate the layout and expansion of its international business, and to actively implement the Guangdong-Hong Kong-Macao Greater Bay Area strategy and the strategy of Chinese cultural brands going global.”
Ed Brennan, Chairman and Chief Executive Officer of DFS, said, “This transaction in Hong Kong and Macau is an important step for DFS. The deep market foundation and outstanding operational capabilities that DFS has established in Hong Kong and Macau are achievements of which we are extremely proud. China Duty Free Group will, with its professional capabilities and fresh perspective, allow the DFS shopping experience to continue and be further enhanced. We are proud of DFS’s development journey in this region and sincerely thank all employees who have contributed along the way.”
Michael Schriver, President of North Asia at LVMH Group, said, “For decades, DFS has played a key role in promoting Hong Kong and Macau as premier travel retail destinations. Given China Duty Free Group’s deep expertise and proven success in travel retail, looking ahead, we believe China Duty Free Group is the ideal partner to operate DFS’s Hong Kong and Macau business and lead it into a new chapter. This transaction also fully demonstrates our confidence in the long-term potential of the Chinese market.”
丨Source: Official press releases, Luxeplace historical reports
丨Image Credit: China Duty Free Group, DFS official websites
丨Editor: LeZhi
