Sunrise Duty Free Set to Exit Shanghai Airport Market

Sunrise Duty Free (Shanghai), one of China’s most influential airport retail operators, is set to exit Shanghai’s two main airports after being blocked from participating in the latest duty-free tender. The decision was made by the company’s board of directors, with the decisive votes coming from four directors appointed by China Duty Free Group (CDFG), effectively preventing Sunrise from bidding to retain its concessions.

As a result, Sunrise will no longer be eligible to operate at Shanghai Pudong and Hongqiao airports once its current contracts expire. The move signals the beginning of the end for Sunrise’s long-standing exclusive presence in Shanghai’s airport duty-free market, closing a chapter that has lasted more than two decades.

Sunrise first entered Shanghai Pudong International Airport in 1999, becoming the first foreign-invested duty-free operator to establish a foothold in a Chinese airport. It later expanded operations to Shanghai Hongqiao and Beijing Capital International Airport, creating a rare dual-hub presence across China’s two most important aviation markets. For years, Sunrise was widely regarded as a gatekeeper of premium airport retail channels, shaping brand access and consumer expectations in the duty-free sector.

The boardroom decision comes amid mounting financial pressure at CDFG, Sunrise’s dominant shareholder. In 2024, CDFG reported a 16.38% decline in revenue, while net profit plunged 36.44%, marking its sharpest downturn in recent years. The trend has continued into 2025, with revenue down 7.34% year-on-year in the first three quarters and net profit falling by more than 22%.

These challenges stand in contrast to a broader recovery in the global duty-free and travel retail market. Worldwide duty-free sales reached USD 74.1 billion in 2024, up 3% year-on-year and recovering to nearly 86% of pre-pandemic levels. China’s inbound tourism has rebounded strongly, with visitor numbers rising 60.8% and spending surging 77.8% compared with the previous year.

At the same time, consumer behavior is undergoing a structural shift. Duty-free shoppers are increasingly motivated by experience, cultural relevance, and emotional connection rather than price alone. The value proposition is moving away from discounts toward curated experiences, exclusivity, and lifestyle storytelling.

As the industry pivots from channel-driven dominance to experience-led engagement, companies such as Sunrise Shanghai now face a fundamental challenge: adapting to a new consumer mindset in a rapidly evolving duty-free landscape.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com