Since its opening in 1991 Shenzhen Bao’an Airport has grown into one of China’s most important domestic and international gateways

After a tough three years, Shenzhen Duty-Free Group Chairman You Jiangwei will be delighted at the contract retention, which comes as China reopens to the world

CHINA. Shenzhen State-owned Duty Free Commodities (Group) Co (Shenzhen Duty-Free Group), the long-time incumbent, has been awarded the arrivals and departures duty free contract at Shenzhen Bao’an Airport Terminal 3.

Shenzhen Duty Free Group Chairman You Jiangwei confirmed the award to The Moodie Davitt Report.

The company headed off rival bids from Wangfujing Duty Free and Zhuhai Duty Free. The contract term is five years from 1 December 2022 to 30 November 2027.

Notably, the retailer has won the new contract on sharply improved terms. It will pay whatever is the highest of a) a minimum monthly rent of CNY3,280 (US$483) per square metre per month, and b) 30% and 24% of sales, respectively, on arrivals and departures sales.

Commenting on the new terms, BofA Global Research noted that the arrivals percentage had been reduced from 35% to 30% with the departures percentage a modest 24%. The minimum rent is -67% lower than the previous contract struck in 2017, BofA pointed out.

Shenzhen Airport said a “dynamic adjustment mechanism” has been put in place for the monthly rent based on traffic level percentages related to a pre-pandemic 2019 benchmark.

Commenting, BofA Global Research said, “We think the changes are consistent with the trends in other global airports, with airports bearing more traffic risk in a post-COVID world by having a traffic-dependent rent. For instance, Incheon Airport’s ongoing tender has a ‘rent per passenger’ component instead of a fixed minimum rent.” It noted that the reduced terms may have also reflected Ministry of Finance guidance on contract conditions issued in 2019.

Shenzhen Duty-Free Group will operate a total area of 2,195.73sq m across arrivals and departures. It offers perfumes & cosmetics, fashion, wines & spirits, tobacco, food & confectionery and other categories.


Founded in January 1980, Shenzhen Free Group is the first state-owned company approved by the State Council to operate duty free commodities in China.

As reported, Shenzhen Duty Free Group recently also won the rights to operate the departures duty free shop concession at Guangzhou East Railway Station, following a tender. The company will manage two stores covering 163sq m on the fourth floor under its Times DF branding. These will serve Hong Kong-bound travellers from the station. ✈

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