LVMH reshapes its Asian strategy with the sale of DFS operations in Hong Kong and Macau

French luxury group LVMH, the world’s leading luxury player, has taken a decisive step in redefining its footprint in Asia by agreeing to sell the Hong Kong and Macau retail operations of its subsidiary DFS Group, along with related Greater China intangible assets. The buyer is China Tourism Group Duty Free, China’s dominant duty-free retailer. The deal value, reported by Reuters, is around $395 million.

The deal brings to a close a long chapter for DFS in two of the most emblematic hubs of luxury travel retail. For decades, Hong Kong and Macau have played a central role in high-end consumption driven by international tourism and Chinese outbound shoppers. Today, though, the environment has evolved. Shifts in travel patterns, the rise of domestic consumption in mainland China, and a new strategic reading of the retail landscape have prompted LVMH to step back from these assets.

From a future-looking perspective, the move aligns with a broader trend among global luxury groups: tightening control over customer relationships, prioritising owned channels, and reallocating capital toward markets and formats with clearer long-term visibility. Traditional travel retail, heavily exposed to tourism flows and regulatory complexity, is giving way to more integrated and resilient models.

For China Tourism Group Duty Free, the acquisition further strengthens its position as the undisputed leader in Asia’s duty-free sector. Backed by the Chinese state, the group consolidates its reach not only across mainland China but also in strategic gateways like Hong Kong and Macau, enhancing its ability to attract both domestic consumers and international travellers in the post-pandemic era.

At an industry level, LVMH’s decision sends a clear message: Asia remains essential to the global luxury equation, but it demands a different approach. The growing weight of the Chinese consumer at home, the acceleration of digital commerce, and the demand for more personalised luxury experiences are reshaping how brands distribute resources and design their retail strategies.

With this sale, LVMH is not retreating from Asia—it is redrawing its map. The group continues to reinforce its maisons, its network of directly operated boutiques, and its capacity to create value through iconic brands, while freeing itself from businesses where future clarity is more limited. A strategic recalibration that reflects how even the largest luxury groups are preparing today for the realities of tomorrow’s market.