Foreign operators participate in Pudong duty-free tender

Gavin Lipsith

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Two retailers have confirmed that non-Chinese travel retailers will be eligible to bid in its forthcoming duty-free tender

International travel retailers are competing for the duty-free business at Shanghai Pudong airport after it was granted an exemption from the law restricting airport duty-free in China to Chinese companies. DFNI Asia understands that the airport’s pre-qualification process, originally due to be concluded in early September, has yet to be completed.

The new exemption, similar to the one granted at Hainan Meilan airport which allowed DFS Group to run outlets there, opens the field to several international companies. One European retailer told DFNI Asia: “We are examining the opportunity and we understand that other non-Chinese retailers are also looking, besides the more obvious candidates—Sunrise Duty Free, Orient King Power, DFS Group and Nuance-Watson.”

Sunrise Duty Free holds the contract for core duty-free categories (liquor, tobacco, cosmetics and fragrances), while Orient King Power, the subsidiary of King Power Group (Hong Kong), operates general merchandise outlets including fashion, accessories and packaged foods.

An Asian retailer involved in the process reported that political factors had delayed the pre-qualification process. “We have not heard anything from the authority, but there has been a certain amount of political friction in Shanghai recently so I would not be surprised if the process was put on hold.”