Impacted by fluctuating consumer demand and weakened spending power among the middle class, China Duty Free Group (CDFG) experienced a significant decline in performance in 2024, with revenue dropping 16.4% YoY to 56.47 billion RMB ($7.9 billion) and net profit falling 36.4%, marking the lowest level since 2021. The slump was primarily driven by a sharp downturn in its Hainan offshore duty-free business, where revenue declined by 27.13% and the region’s contribution to total sales dropped from 70% to 51.4%. In response, CDFG is seeking growth through product restructuring and channel diversification—introducing more luxury brands, expanding its presence in airport duty-free stores, and accelerating its in-town duty-free store rollout.