Core Viewpoint - The newly opened city duty-free shops are performing well in terms of customer traffic, but the overall duty-free industry is still under pressure [12]. Group 1: City Duty-Free Shops Performance - The city duty-free shops in Guangzhou and Shenzhen opened on August 26 and have seen good customer traffic since their opening, especially on weekends [3][4]. - Popular products include electronic items like headphones and tablets, as well as "Guochao" (national trend) products [3][8]. - The shops cater to travelers who are about to depart within 60 days and require valid entry documents and tickets [6]. Group 2: Industry Challenges - Despite the positive performance of new city duty-free shops, the overall duty-free industry faces challenges, including a decline in sales at other types of duty-free stores [12]. - For instance, from January to June 2025, the duty-free shopping amount in Hainan's offshore duty-free stores was 16.76 billion yuan, down 9.2% year-on-year, with a significant drop in the number of shoppers [12]. - Major companies like China Duty Free Group reported a revenue of approximately 28.2 billion yuan in the first half of 2025, a decrease of 9.96% year-on-year, while Wangfujing's duty-free business saw a revenue drop of 15.93% [12][14]. Group 3: Future Outlook - The industry is transitioning from a "price war" to "value service," aiming for high-quality development [14]. - The opening of the first city duty-free shop in Wuhan has provided valuable operational experience for companies in this sector [14]. - The overall market is expected to benefit from the recovery of cross-border tourism and improved consumer purchasing power [14].