Beijing is working hard to become an international consumption hub in the next five years. Yan Ligang, Director of the Beijing Commerce Bureau, said at a recent forum that the city would strive to set up “world-level business circles”, increase the number of inbound tourists and raise the consumption power to realize its goal. Beijing is striving to offer more choices in consumer products and provide incentives to introduce “first stores” to the city. Italian designer Gianvito Rossi, who in April chose Beijing to launch his brand’s first store in China, said that “China has always been an important market for us, as Chinese consumers shop at our boutiques worldwide.” He said Beijing is a major destination for luxury shopping. Kevin Liu, General Manager in charge of the Chinese mainland and Hong Kong for fashion and fragrance business Puig, said choosing Beijing as the location for its first store would help the brand’s long-term development. Liu said revenue at the store in the first month after it opened in July surpassed expectations.
Both Gianvito Rossi and Christian Louboutin set up their first outlets in China at the SKP Beijing department store, the nation’s biggest and most productive retailer, which achieved CNY17.7 billion in sales last year, outpacing renowned British store Harrods’ pre-pandemic performance. Xie Dan, Deputy General Manager of SKP Beijing, said Chinese consumers contribute 35% to global fashion consumption, but only a small proportion takes place in China, meaning that the nation offers huge potential. The SKP-S store, a new outlet one street away from SKP Beijing, opened in December 2019, targeting younger customers. It has attracted many well-known global brands, including Prada, to launch stores or hold events. Armando Tolomelli, CEO of Prada Asia Pacific, said the futuristic concept of SKP-S inspired the company’s strategy of investing in such space and attracting new and younger customers.
Domestic brands that have recently opened or are opening their first stores in the city are eligible for subsidies of up to CNY5 million as part of the capital’s efforts to become an international consumption hub. More subsidies are available for stores that are the first on the Chinese mainland or in Asia. Beijing also supports first flagship bricks-and-mortar stores introduced by intermediary agencies, the owners of commercial compounds, as well as internet platforms. The subsidies must be used to build, decorate and rent stores. According to the Beijing Commerce Bureau, 696 first stores, including flagship outlets, opened in Beijing in the first three quarters of this year – 513 more than the total number of such stores that opened in the city last year. Of the 696 stores, 588 are occupied by domestic brands, accounting for nearly 85% of the total, and the remainder are from overseas – including 19 from Italy, 18 from the United States and 15 from France.
FAO Schwarz, one of the world’s oldest toy companies, opened a first store at the China World Mall in May 2019. The company has benefited from the capital’s policies, receiving CNY5 million in subsidies from the local government. Kidsland International Holdings, a toy retailer with headquarters in Beijing, has also introduced its products in China. Cao Xiang, Executive Director of China Nobleness International and Founder of Choo Noble Art Interactive Café, said Beijing residents have huge consumption power, which led her to open a store at the China World Mall. The store offers a space for customers to draw with crayons imported from Switzerland while enjoying a cup of coffee or tea. “It’s all about experiences. People are now wealthier than they were, but also more stressed. They sometimes need a place to slow down and enjoy their time by quietly doing some art,” Cao said. Be Gallery in Sanlitun is a combination of photo studio and select outlet. A large retail space displaying artworks and offering photographic services, Be Gallery opened a first store in Sanlitun at the start of this year. Jiang Lin, 40, Co-founder of the brand, which is headquartered in Shanghai, said the Beijing store launched with a totally new concept tailored to local residents. “We are cooperating with more than 130 overseas brands in an attempt to introduce fine art from around the world to our customers,” Jiang said. He added that revenue growth at the store has been higher than expected in recent months and predicted that it could recover its costs in two years – less time than previously estimated.
By 2025, Beijing aims to attract more than 3,000 first stores to the city and to launch more than 100 consumption brands, according to the local government’s plan. The central government has announced that five cities – Beijing, Tianjin, Shanghai, Chongqing and Guangzhou, capital of Guangdong province, will become international consumption hubs, the China Daily reports.
