Tax-free concept stocks have continued to rise recently，Especially Wangfujing、Bailian Holdings and Caesars Travel。

July 9，Wangfujing fell slightly by 1.75%，Stock closing price 72.82 yuan。But 188bet previous 8 trading days，Wangfujing has soared 77%。Bailian shares rose even more fiercely，Six daily limits have been pulled 188bet past 9 trading days，Share price from 13.45 yuan rose to 26.37 yuan，Increase 96%。Caesar Travel has directly hit the daily limit of 8，114% increase 188bet past 9 trading days。

Why the increase is so high？21st Century Business Herald learned during the interview，These three companies are not only expected to enjoy the benefits of Hainan’s offshore island tax-free policy，There are new tax-free bonuses waiting to be distributed in Beijing and Shanghai。China Merchants Securities analyst Li Xiumin pointed out，The city’s 188bet shop policies are expected to be adjusted in the second half of this year，The amount and categories may be relaxed，The shopping target of outbound stores may be expanded to include Chinese people to drive the sales of 188bet goods。Li Xiumin is expected to be in Beijing in 2025、The market size of 188bet shops in Shanghai has reached 20 billion yuan and 30 billion yuan respectively。

Challenge for new entrants

Evening of July 8th，Wangfujing announcement，Planned to establish a wholly-owned subsidiary, Beijing Wangfujing Duty Free Products Management Co., Ltd.，Registered capital 500 million yuan，Used to carry out 188bet goods operations and other businesses。Also clear，Based on actual business needs，It is planned to add the business scope of 188bet goods。

“This investment is to establish a 188bet goods operating company，Will help companies enter the tax-free market，Combining taxable business with tax-free business，Helping the transformation and upgrading of existing retail business。" A person from the Wangfujing Investor Relations Department said in an interview with the 21st Century Business Herald on July 9。

But the above-mentioned Wangfujing Investment Relations Department person also admitted，It takes time from the establishment of a company to the implementation of operations，Currently, the company is just in the process of setting up a tax-free team，It is unlikely that tax-free gains will be realized within the year。An unnamed tax exemption expert told reporters，It may not be possible to generate tax-free operating income next year。21st Century Business Herald learned from Wangfujing’s controlling shareholder, Beijing Tourism Group，BTG Group is currently recruiting internally，To form a 188bet team to participate in 188bet goods management。

“There is still a long way to go after Wangfujing establishes a tax-free company。”OTRO Oriental Duty Free Retail Observation Expert、"Jessica's Secret" CEO Wang Meng told the 21st Century Business Herald，The 188bet industry originated in Europe，It is an emerging industry in China，Including managers，Operation staff，Purchasing personnel are scarce resources。Also as a newly added tax-free enterprise，Need to negotiate lengthy licensing and purchasing agreements with international brands，Also with customs、Interconnection with airline systems，And signing negotiations at the airport pick-up counter, etc.，Every negotiation and docking will not be a short process。

However，should see，Wangfujing has many years of experience in operating traditional shopping malls，Although there is currently no large reserve of tax-free talents，But many years of operating experience in traditional shopping malls is also a major advantage of the company。So when operating 188bet shops in the city，Also has a certain foundation。

Similarly，On July 7, it was announced that the controlling shareholder of Bailian Co., Ltd. is applying for the qualification to operate 188bet goods，The advantages and disadvantages are the same as Wangfujing，Both belong to the two major retail department store giants in Beijing and Shanghai，But they have no tax-free experience。

According to reporter’s understanding，Different from the previous tax-free licenses approved in more detail，188bet operators approved in this round，Potential to obtain full tax-free license，Not only can you operate outlying island 188bet shops in Hainan，You can also operate city 188bet shops in Beijing or Shanghai。

The city’s 188bet market is another blue ocean of 188bet.

Recent research teams from China Merchants Securities and Tianfeng Securities，Invariably, they all use the Korean 188bet market as the research target to explore the trend of China's urban 188bet market。

As understood，South Korea’s 188bet market reached US.3 billion in 2019，The average annual compound growth rate in the past 10 years is 22%，Among them, South Korean national consumption is US.5 billion，The average annual compound growth rate in the past 10 years is 9%，Foreign tourists spent US.8 billion，The average annual compound growth rate in the past 10 years is 27%，Overseas tourists constitute the main spending power of South Korea’s 188bet market。

The biggest feature of South Korea’s 188bet market is that city stores are the main 188bet channels in South Korea，Sales accounted for over 80%。The Korean government further liberalized tax-free licenses in 2013，The number of 188bet shops in the city has rapidly expanded from 10 before 2012 to 27。Currently，The city’s 188bet shop channels account for about 85% of the Korean 188bet market，The corresponding market size is approximately US billion。

Compared to airport 188bet shops，The city’s 188bet shops have larger product display space、Longer shopping time，Give consumers more time to make decisions，2016 to 2020，The unit price of 188bet in South Korea has been increased from US0 to US,000，The proportion of 188bet shops in South Korea has also increased to 84%，The price per customer at the airport store is only US5。

The scale of South Korea’s 188bet increases channel bargaining power，City store model rebates consumers。There are two main reasons why the price of Korean 188bet goods is the lowest in the world，On the one hand, it is because the rent of the city store model is lower，188bet operators can rebate more to channels and consumers，On the other hand, South Korea’s 188bet wholesale model makes South Korea’s 188bet scale huge，In 2018, South Korea’s two major 188bet operators, Lotte and Shilla, ranked second among global 188bet operators、Three people，The bargaining power of 188bet goods is directly linked to the scale of 188bet，Therefore, Korean 188bet operators can obtain the lowest cost price in the world，So as to have more advantages in pricing。

There is a Korean case first，The prospect of my country’s urban 188bet shops seems to be quite promising。After all，Sales of Korean 188bet shops，A high proportion comes from Chinese consumers。

Beijing and Shanghai 188bet new cake

Compared to South Korea，Domestic city 188bet shops are still in their infancy。It is reported that domestic city stores are 188bet shops on outlying islands、Three types of 188bet shops in the city for returnees and 188bet shops in the city for departures，Returnees are Chinese citizens with entry and exit records (non-Hong Kong and Macao) within 180 days，China Travel Service and Hong Kong China Travel Service have 188bet licenses。188bet shops in the city are targeted at outbound foreign tourists，Currently there is Beijing in China Free Trade Zone、Shanghai、Qingdao、Dalian、Licenses from Xiamen and other cities。But except for the performance of 188bet shops on outlying islands which is acceptable，The income of other 188bet shops in the city is not large。

Therefore，March 13，23 departments including the National Development and Reform Commission jointly issued the "Implementation Opinions on Promoting Consumption Expansion and Quality Improvement to Accelerate the Formation of a Strong Domestic Market"，It mentioned further improving the 188bet industry policy，Insist on serving overseas people and our outbound residents with equal emphasis，Improving the city’s 188bet shop policies，Build a number of city 188bet shops with Chinese characteristics，Based on the improvement of residents’ income level and consumption upgrade，Study and adjust tax-free limits and types of tax-free items in a timely manner。

This policy sends a strong signal to the outside world。Soon，Wangfujing was approved for tax-free operation in early June，Bailian shares are also applying for qualifications。Other contents in the "Implementation Opinions" need to be further implemented。Many experts in the tax-free field interviewed by the reporter agreed，There is a high possibility of introducing a new policy for 188bet shops in the city in the second half of the year。

Lee Xiumin thinks，The top-level design emphasizes serving both overseas people and Chinese outbound residents，Currently shopping in Korean stores includes domestic residents and foreign tourists，And China only includes foreign tourists，In fact, China Duty Free’s main sales targets are Chinese，The government has also been actively guiding the return of overseas consumption，She thinks it is very likely that shopping at 188bet shops in the city will be expanded to include Chinese people。

And，The "Opinions" propose to upgrade based on income level and consumption，Study and adjust the tax exemption limit in due course。Wang Meng thinks，The entry tax exemption limit has not changed for ten years。As the domestic per capita income continues to rise，Growing demand for 188bet goods，The tax-free limit is expected to be increased。

Lee Xiumin thinks，With the opening of 188bet shops in the city，Consumers’ convenience in purchasing 188bet goods will be greatly enhanced，It is expected to have a certain substitution effect on existing taxed channels，Drive the scale of the 188bet market to further increase。

Calculated based on airport shopping conversion rate method and square footage method，Li Xiumin estimates that Beijing’s 188bet shops will achieve a 188bet scale of 20 billion yuan in 2025，Estimated profit volume is 4.6 billion yuan；Shanghai’s 188bet shops will achieve a 188bet scale of 30 billion yuan in 2025，Estimated profit volume is 6.7 billion yuan，Both local SASAC-affiliated 188bet enterprises and China Duty Free Company hope to participate in the competition in the local city store market。

*Source of this article：21 Finance, author: Gao Jianghong, original title: "Wangfujing、Behind the surge in Bailian shares: New policies for 188bet shops in the city are about to be announced》.