Sou Hu Cai Jing·2025-12-12 17:19Core Viewpoint - The Shanghai airport duty-free market will undergo significant changes in 2026, with China Duty Free Group and Dufry winning the bidding for the duty-free operations at major airports, marking the exit of Japan Duty Free from Shanghai airport operations [1][3]. Group 1: Bidding Results - China Duty Free Group secured the rights to operate duty-free shops at Pudong Airport's T2 terminal and S2 satellite hall, as well as the international area of Hongqiao Airport's T1 terminal [3]. - Dufry, the world's largest travel retail and experience service provider, will enter the Chinese airport duty-free market on a large scale, managing operations at Pudong Airport's T1 terminal and S1 satellite hall [3]. - The operational period for both companies is set at a flexible cycle of "5 years + 3 years," with a special arrangement for Pudong T1 set as "3 years + 5 years" [3]. Group 2: Historical Context - Japan Duty Free, which has operated in China for 22 years, will no longer continue its operations at Shanghai airport due to the lack of support from its major shareholder, China Duty Free Group [3][8]. - Japan Duty Free has expanded its operations significantly since its inception in 1999, reaching a peak revenue of 15.149 billion yuan in 2019, contributing 5.21 billion yuan in rent to Shanghai airport [8]. Group 3: Financial Implications - The bidding results indicate a shift from a monopoly by China Duty Free Group to a dual-stronghold model with both domestic and foreign operators [10]. - The new revenue model for Shanghai airport will transition from "high commission + high minimum guarantee" to a "fixed monthly fee + category commission" structure, with fixed fees around 3,141 yuan per square meter for Pudong and 2,827 yuan for Hongqiao [10]. - Estimated annual fixed fee income for Shanghai airport could reach 6.25 billion yuan, nearly nine times higher than previous contracts with Japan Duty Free [10]. Group 4: Market Trends - The duty-free business at Shanghai airport has been declining, with revenues dropping to 1.212 billion yuan in 2024, a decrease of 5.76 billion yuan from 2023 and 25.76 billion yuan from 2019 [12]. - The new operators are expected to complete the transition by January 1, 2026, leading to a competitive environment between China Duty Free and Dufry at various airport locations [12].