The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
China Tourism Group Duty Free (CTGDF), which last year became the world’s largest travel retailer, posted an 84 percent year-on-year increase in first-half revenues to 35.53 billion yuan ($5.5 billion), per The Moodie Davitt Report.
Of that total, 70.6 percent was generated by China Duty Free Group’s store in Haitang Bay, Sanya, where sales grew by 210 percent year-on-year to 18.53 billion.
Second quarter revenues rose 49 percent on the year, to 17.93 billion ($2.6 billion), and earnings before interest and taxes (EBIT) increased by 592 percent, compared with the same period to 8.45 billion yuan ($1.3 billion).
This said, third quarter results are likely to be impacted by China’s Covid-19 Delta variant outbreak, which began in late July and disrupted summer holiday plans for many domestic travellers.
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China’s Delta Outbreak Cuts Travel, Prompting GDP Downgrades
At least 46 cities have urged residents against traveling unless absolutely necessary, but there are uncertainties about the duration of the outbreak.
With consumers tightening their belts in China, the battle between global fast fashion brands and local high street giants has intensified.
Investors are bracing for a steep slowdown in luxury sales when luxury companies report their first quarter results, reflecting lacklustre Chinese demand.
The French beauty giant’s two latest deals are part of a wider M&A push by global players to capture a larger slice of the China market, targeting buzzy high-end brands that offer products with distinctive Chinese elements.
Post-Covid spend by US tourists in Europe has surged past 2019 levels. Chinese travellers, by contrast, have largely favoured domestic and regional destinations like Hong Kong, Singapore and Japan.