Reasons why duty-free goods are cheap. They are cheap because they are not subject to duties, alcohol tax or other levies when they are imported, and on top of that, they don't carry consumption tax. Locations such as the areas you reach after you pass through passport control at the airport, on board flights on international routes, and on board ships sailing in international waters, and other locations where duty-free goods are sold are all treated has being "outside the country." When goods enter the country, they are deemed to be "imported" and are subject to taxation; however when the goods are in these kinds of places (i.e., places "outside the country") then, technically speaking, they haven't been imported and can therefore be sold in duty-free shops at prices that don't include any taxes. Since these goods are not "within Japan" they aren't subject to Japanese consumption tax, either.
Normally, when goods like alcohol, tobacco and perfume are imported, they are subject to quite a lot of taxes. This is why you can buy them duty-free at much lower prices than you can buy them anywhere else in Japan.