China Tourism Group Duty Free Corporation was established in 1984, it was founded as a state-owned franchise company with the authorization from the State Council to manage duty-free operations nationwide. The Beijing-headquartered CDF is now the world’s second-largest travel retailer. It boasts over 320 duty-free shops in more than 30 locations across Greater China and even in Cambodia. Through this transaction, CDF will gain control of DFS Hong Kong outlets (in Tsim Sha Tsui and Causeway Bay) and DFS Macau outlets (in Londoner, Galaxy Macau, MGM Cotai, MGM Macau, Wynn Palace, Four Seasons and Studio City), and valuable intangible assets such as brand portfolios and the exclusive rights to DFS intellectual property in China. These assets offer CDF immediate brand recognition and merchandising advantages in luxury travel retail. It offers more leverage in the international travel retail market, an important benefit CTG Duty Free cannot achieve with the mainland China market alone.

The sale of DFS’s China operations to CDF marks a strategic rebalancing of LVMH’s retail footprint, allowing the group to channel resources into higher-growth ventures within its selective retailing division, such as Sephora. In parallel, LVMH and CDF have signed a memorandum of understanding to form a retail partnership spanning product sales, store development, and brand promotion. This alliance creates opportunities and synergy as both CDF and LVMH can capitalize on their respective strengths and pursue deeper collaboration across China—unlocking mutual value in areas including product distribution, retail expansion, brand building, cultural engagement, travel services, and customer experience. For LVMH, maintaining it’s influence in China’s duty‑free landscape—free from the operational weight of DFS—offers a more agile path to brand growth and a distinct edge over competitors.

Northcroft Hong Kong has been a trusted partner of DFS and its parent company, LVMH, since 1999, providing comprehensive quantity surveying services for the majority of DFS projects in Macau as well as all DFS Hong Kong outlets. With the integration of DFS operations under CDF management, we are confident that the business will thrive, unlocking new opportunities for continued collaboration.

In 2019, Northcroft Hong Kong began its partnership with CDF, undertaking numerous projects for the “Duty Zero by cdf” liquor and tobacco stores at Hong Kong International Airport and a number of intown locations. As CDF takes control of high-profile retail destinations serving international travelers in two of Asia’s busiest tourism hubs, it gains significant global visibility and a strategic platform for further international expansion. Northcroft Hong Kong stands ready to support CDF in this exciting new chapter and its future growth on the world stage.