Shenzhen Duty-Free Bets, Domestic Champions, and Sports as China’s Growth Engines

Weekly Brief | Week of August 24, 2025

Welcome to Weekly Brief by Jingzhi Chronicle, our column spotlighting the key shifts shaping China’s neo-luxury economy. This week, Shenzhen’s landmark downtown duty-free debut, Laopu Gold’s explosive growth, and the unstoppable momentum of sportswear brands highlight how refined retail formats, domestic champions, and lifestyle-driven consumption are defining China’s next chapter of growth.

Retail & Tourism: Shenzhen Duty-Free and the New Consumption Map

Shenzhen’s first downtown duty-free store opened on August 26. Hosting over 200 international and domestic brands across luxury, beauty, and lifestyle, the 30,000-square-meter store is more than a shopping destination — it’s a statement. Shenzhen, long seen as an innovation hub, is now positioning itself as a gateway for inbound consumption, aligning with the government’s broader push to make tourism and retail a driver of GDP growth.

The data confirms the momentum. From January to July, Shenzhen’s duty-free sales surged 200% year-on-year to RMB 584 million, reflecting the rebound in cross-border travel and local appetite for luxury. Combined with July’s national retail figures — up 3.7% YoY, with gold and jewelry sales climbing 8.2% and cosmetics up 4.5% — the outlook is uneven but quietly promising.

Luxury groups are also experimenting with more focused formats. Louis Vuitton opened its first standalone beauty boutique in Nanjing’s Deji Plaza, synchronizing the launch of its La Beauté collection with global pre-orders. For LVMH, it’s a signal that while store openings may be slowing overall, China still demands investment — but in highly curated, experience-driven formats rather than mass expansion.

Chinese Brands Surging, Global Players Retreating

If Shenzhen’s duty-free signals policy-driven optimism, domestic brands’ earnings point to a deeper market realignment. Laopu Gold posted extraordinary results, with H1 revenues up 251% to RMB 12.35 billion and net profit soaring 286% to RMB 2.27 billion. Its market cap has now reached HK$135 billion, making it one of the brightest performers in China’s jewelry sector. Gold’s dual role as adornment and investment has struck a chord with consumers, especially younger buyers seeking both cultural heritage and financial security.

In beauty, the Hurun CBE Top 50 Makeup list reaffirmed Maogeping, Florasis and Perfect Diary as leaders, while NAN Beauty debuted with a focus on “clean-performance” skincare — proof that innovation pipelines among Chinese beauty brands remain robust. By contrast, Pandora announced plans to close up to 100 China stores in 2025, underscoring how foreign players still struggle with distribution models and consumer resonance.

Celebrity marketing continues to shape the category. Kans named actor Ding Yuxi its new ambassador, while Guerlain tapped Dilraba Dilmurat for Asia-Pacific and Hera signed actress Tang Wei. These signings reveal how both local and global brands are racing to tether their narratives to familiar cultural touchstones, with Chinese celebrities playing an outsized role in driving relevance.

Sports & Lifestyle: China’s Resilient Growth Engine

Amid the uneven luxury landscape, sportswear is still powering ahead. Amer Sports reported Q2 revenues up 23.5% to $1.24 billion, led by Arc’teryx (+32%) and Salomon. Net profit came in at $18.2 million, reversing a loss last year. Arc’teryx further deepened its China presence by launching the Arc’Lounge experiential concept — blending retail with community events and lifestyle content.

Performance brands also saw strong traction. Brooks reported 80% sales growth in China in Q2, Asics grew 15.7% to ¥194.4 billion with Onitsuka Tiger as a standout, and On Running surged 101% in APAC sales. The pattern is consistent: health, outdoor culture, and lifestyle-driven consumption are among the few categories experiencing true tailwinds.

On the supply side, Intersport announced plans to double private-label production and shift sourcing closer to China, reducing dependency on Southeast Asia. This reflects China’s evolving dual role: not only as a consumption powerhouse but also as a production hub reshaping global supply chains.

Even streetwear is joining the momentum. 9090, a rising Chinese streetwear brand, staged a buzzworthy Shanghai pop-up, reinforcing how younger labels are carving cultural space alongside the giants.

Bite-Size Highlights

• SMCP (Sandro, Maje) reported 11% sales growth, returning to profit on China reopening.
• Peacebird acquired Jason Wu’s Asia operations, aiming to elevate design credibility and global expansion.
• Chopard x Pop Mart collaboration blurred the lines between collectibles and luxury jewelry.
• Shein reported UK sales of £2.05 billion in 2024, making it its third-largest market after the US and Germany.
• JD.com revenues rose 22.4% to RMB 356.7 billion in Q2, though profit halved due to logistics spending.

Jingzhi Perspective

This week’s developments highlight three forces shaping China’s consumer market: refined retail formats, the ascendancy of domestic champions, and lifestyle-driven growth. Shenzhen’s duty-free opening and Louis Vuitton’s beauty boutique in Nanjing show how global and domestic players are recalibrating toward more precise, experiential models.

Meanwhile, Chinese brands in beauty and jewelry are no longer catching up — they are setting the agenda, whether through financial outperformance or product innovation. Sports and lifestyle categories, in turn, underscore how deeply cultural shifts around health and identity are reshaping consumption.

The jingzhi lesson: in today’s China, resilience lies not in scale or legacy, but in the ability to adapt with precision, agility, and cultural resonance.