Core Viewpoint - The departure of Sunrise Duty Free marks the end of its dominance in the duty-free market at Beijing and Shanghai airports, with new operators taking over key projects, leading to increased competition in the industry [1][3][4]. Group 1: Company Developments - Wangfujing has won the bid for the duty-free project at Beijing Capital Airport's T2 terminal, with a guaranteed operating fee of 113 million yuan in the first year and a sales commission rate of 5% [3]. - China Duty Free Group has secured the T3 terminal project at Beijing Capital Airport, with a contract duration until February 10, 2034, enhancing its channel advantages in core domestic airports [3][4]. - The operating area for the duty-free projects at Shanghai airports has expanded significantly, with the total area at Pudong Airport increasing by approximately 1,181 square meters [5]. Group 2: Changes in Revenue Model - The revenue model for duty-free operations at Shanghai airports has shifted to a "fixed rent + commission" structure, moving away from the previous model of higher of minimum sales commission or actual sales commission [5][6]. - The fixed monthly fees for the new contracts at Pudong Airport range from 2,827 to 3,141 yuan per square meter, with commission rates varying between 8% and 24% depending on the product category [5][6]. Group 3: Market Dynamics - The duty-free market at Beijing and Shanghai airports is transitioning from a monopoly by Sunrise Duty Free to a "three-legged" competitive structure, allowing multiple operators to participate [9]. - The bidding process for airport duty-free projects has been designed to prevent any single operator from dominating, promoting a more market-oriented development in the industry [9][10]. - Experts believe that increased competition will enhance product offerings and service experiences for consumers, leading to a healthier development of the duty-free industry [10].

Core Insights - The recent bidding results for the duty-free shop operating rights at Shanghai Airport revealed that the incumbent operator, RiShang Duty Free (Shanghai) Co., Ltd., lost the bid to global duty-free giant Dufry and domestic leader China Duty Free Group (CDFG) [2][3] Group 1: Bidding Results - The bidding process for the duty-free shop rights at Shanghai Airport covers the period from January 1, 2026, to December 31, 2033, involving three terminals at Pudong and Hongqiao airports [3] - CDFG won the rights for the T2 terminal at Pudong International Airport and the T1 terminal at Hongqiao International Airport, while Dufry secured the T1 terminal at Pudong Airport [3][6] Group 2: Ownership and Support Issues - RiShang Shanghai was unable to secure the bid due to a lack of support from its major shareholder, CDFG, which holds approximately 51% of RiShang Shanghai [3][5] - CDFG directly participated in the bidding and requested RiShang Shanghai to withdraw its bid [6] Group 3: Changes in Revenue Model - The new bidding results indicate a shift in the revenue model for Shanghai Airport, moving from a high minimum rent structure to a model based on fixed monthly fees and commission percentages [7][10] - The fixed monthly fee for Dufry at Pudong T1 is set at 3,141 RMB per square meter, with commission rates ranging from 8% to 24%, while CDFG's rates are similar [7][8] Group 4: Market Competition Dynamics - The competitive landscape for duty-free sales is evolving, with increased pressure from cross-border e-commerce platforms and new entrants in the duty-free market [11][12] - The profit margins for duty-free products, particularly in cosmetics, have significantly decreased, with gross margins dropping from over 50% to around 20% [11][12]

Core Viewpoint - The recent bidding results for the duty-free store operation rights at Shanghai Airport indicate a significant shift in the competitive landscape, with major players like Dufry and China Duty Free Group winning the contracts, while the incumbent operator, Sunrise Duty Free (Shanghai), lost its bid due to lack of support from its major shareholder [3][4][8]. Group 1: Bidding Results - The bidding for the duty-free store operation rights at Shanghai Airport for the period from January 1, 2026, to December 31, 2033, was announced on December 11, 2023 [3][5]. - China Duty Free Group secured the operation rights for the T2 terminal at Pudong International Airport and the international area of T1 at Hongqiao International Airport, while Dufry won the rights for the T1 terminal at Pudong [6][8]. - Sunrise Duty Free (Shanghai) was unable to renew its contract as it did not receive backing from its major shareholder, China Duty Free Group, which holds approximately 51% of its shares [6][8]. Group 2: Changes in Revenue Model - The new bidding results indicate a shift in the revenue model for Shanghai Airport, moving from a high fixed rent model to a combination of guaranteed rent and commission [10][11]. - Dufry's bid for the T1 terminal at Pudong was set at a fixed monthly fee of 3,141 RMB per square meter, with commission rates ranging from 8% to 24% [10]. - The previous model allowed for a higher commission rate of up to 42.5%, which has now been significantly reduced, indicating a lower revenue potential for the airport [12]. Group 3: Competitive Landscape - The duty-free market is experiencing increased competition from cross-border e-commerce platforms, which have lower operational costs and are driving down prices [14][15]. - New entrants into the duty-free market, such as Wangfujing and Hainan Tourism Investment, are also impacting the competitive dynamics, further challenging the pricing power of airport duty-free stores [14][15]. - The changing competitive landscape necessitates that airport duty-free stores reconsider their pricing strategies to remain attractive to consumers [15].

12月11日，上海机场新一期免税店特许经营权招标结果公布，在上海机场运营免税店长达26年的日上免税行（上海）有限公司（下称"日上上海"）最终无 缘续签，中标方为全球免税巨头杜福睿和国内免税龙头中免集团。 大股东令日上出局 今年11月，上海机场集团对未来8年（2026年1月1日—2033年12月31日）的免税店特许经营权进行招标，主要涉及浦东和虹桥机场三个航站楼的进出境免 税店项目三个标段。 根据中标公示，中免集团拿下上海浦东国际机场T2航站楼及S2卫星厅国际区域，以及上海虹桥国际机场T1航站楼国际区域两个标段的进出境免税店的运营 资格。杜福睿则中标上海浦东机场T1航站楼及S1卫星厅国际区域的进出境免税店运营，此次中标也是其首次大规模进入中国机场的免税领域。 值得注意的是，此前一直运营上海机场免税店业务的日上上海，此次无缘续签，原因是未能获得公司大股东支持投标，而日上上海目前的控股股东，正是 中免集团。 目前，日上上海由中免集团控股约51%，其余的股份由外资创始股东佰瑞投资有限公司和上海机场全资子公司持有。 2025年12月6日，日上上海召开董事会，中免委派的4名董事，投票否决了日上参与竞标上海机场免税店。 在 ...

Core Viewpoint - The recent bidding results for the duty-free shop franchise rights at Shanghai Airport indicate a significant shift in the competitive landscape, with major players like Dufry and China Duty Free Group winning the contracts, while the incumbent operator, Sunrise Duty Free (Shanghai), lost out due to lack of support from its major shareholder [1][2][4]. Group 1: Bidding Results - The bidding for the duty-free shop franchise at Shanghai Airport for the next eight years was won by Dufry and China Duty Free Group, marking a notable change in operators [1][2]. - China Duty Free Group secured the operational rights for two segments at Shanghai Pudong International Airport and one segment at Shanghai Hongqiao International Airport, while Dufry won the rights for another segment at Pudong [2][4]. Group 2: Sunrise Duty Free's Exit - Sunrise Duty Free (Shanghai) was unable to secure a renewal of its franchise due to the lack of support from its major shareholder, China Duty Free Group, which holds approximately 51% of Sunrise [2][4]. - The board of Sunrise, influenced by China Duty Free Group, voted against participating in the bidding process [4]. Group 3: Changes in Revenue Model - The new bidding results indicate a shift in the revenue model for Shanghai Airport, moving from a high fixed rent and sales commission structure to a model based on a fixed monthly fee plus a lower commission rate [5][6]. - The fixed monthly fees for the winning bids are set at 3,141 RMB per square meter for Pudong T1 and T2, and 2,827 RMB per square meter for Hongqiao T1, with commission rates ranging from 8% to 24% [5][6]. Group 4: Market Competition Dynamics - The competitive landscape for duty-free sales is changing, with increased pressure from cross-border e-commerce platforms and new entrants in the market, leading to a decrease in profit margins for traditional duty-free operators [8][9]. - The profit margins for products sold in duty-free shops have significantly decreased, with the gross margin for perfumes and cosmetics dropping from over 50% to around 20% [8][9].