More than 8,400 brands have chosen Shanghai as the location for their first stores, and while the reasons behind each decision may vary, they all point to a shared recognition: the city’s powerful appeal to brands from around the world. The debuts include global, Asian and national firsts. For international brands, launching their China stores in Shanghai offers a valuable testing ground for entering one of the world’s largest consumer markets. A successful debut in the city is often seen as a strong indicator of the broader potential in China. For homegrown brands, meanwhile, establishing a presence in Shanghai provides a springboard for expanding beyond domestic markets and reaching global consumers.
“This marks a new stage in Shanghai’s ‘first-store economy’, shifting from one-way brand introduction to a more dynamic exchange between global and Chinese brands,” said Kelvin Li, Managing Director of East China at Cushman & Wakefield, a global real estate services firm. “Many of the emerging Chinese brands we work with choose to open their global flagship or debut stores in Shanghai not simply to boost short-term sales. Their goal is to tap into the city’s global fashion networks, supply chains and international media resources,” Li noted. Shanghai has become a window through which the world can discover the creativity and design capabilities of Chinese brands, Li added. Zino Helmlinger, head of retail leasing at CBRE China said there is a common saying in the industry: “If you haven’t succeeded in Shanghai, you haven’t succeeded in China.” “Shanghai is one of the most competitive but also rewarding retail markets in the world. The city functions as a living laboratory for new-to-market concepts. Across every segment, from fast fashion to ultra-luxury, some of the best-performing stores globally are located right here,” Helmlinger said. The combination of consumer sophistication, a concentration of spending power, and a genuine appetite for discovery continue to draw both international and domestic brands to plant their flags in the city first, he said.
After expanding its presence in China to more than 1,300 stores, the Chinese-style gelato brand Ye Gelato opened its first global flagship store in Shanghai in early April. Originating in Beijing in 2011, the company seeks to serve the Chinese market with high standard, fresh products. “China has become the world’s largest and most dynamic market for freshly made ice cream. We want to first establish the standards, experience, and product strengths of Oriental gelato in Shanghai, build a solid foundation in the domestic market, and then gradually expand overseas,” said Li Yan, head of brand operations for Ye Gelato in East China. “Shanghai is China’s financial center and a city known for its openness, inclusiveness and strong consumer purchasing power. Consumers here also have a higher level of awareness and appreciation of products such as coffee and ice cream,” Li noted.
Whether Italian- or U.S.-style products or Chinese ice cream brands, companies are all eager to open stores in Shanghai, which shows the market has been tested and validated, although competition is very intense, Li said. “We were among the first brands in China to explore the premium freshly made ice cream segment. Our stores now span more than 140 cities nationwide, making us one of the leading brands in the sector,” Li added. The 400-plus-square-meter global flagship store in Xuhui district features six exclusive flavors created specifically for the store. Li said the first-store economy is more than just a buzzword. “We want this Shanghai global flagship store to become a benchmark for our stores nationwide. It is also a showcase to the world, showing that Chinese brands can create high-quality ice cream with unique Oriental characteristics,” he said.
Japanese lifestyle brand Muji has long been an active player in Shanghai’s first-store economy, using a variety of debut store formats to explore new retail concepts. Its latest venture is an immersive scenario-based experience store that opened in late April at Zhang Yuan, the city’s historic Shikumen (stone-framed gate) complex in Jing’an district. “Unlike Muji’s conventional stores, the Zhang Yuan experience store is designed to go beyond simply displaying and selling products. Instead, it places merchandise in settings that resemble everyday living spaces, allowing consumers to better understand the products through immersive environments, ingredient displays, interactive experiences and seasonal merchandising,” said Wu Shu, Board Member and Chief Marketing Officer of Muji China.
According to Wu, the store was created to explore a retail format that extends beyond the traditional store model and connects more naturally with urban neighborhoods and consumers’ daily lives. “As expectations for brick-and-mortar retail continue to evolve, shoppers are increasingly looking for engaging experiences rather than simply a place to make purchases,” Wu said. By combining featured products, seasonal themes and interactive elements, Muji is looking to create a lifestyle destination that encourages repeat visits and offers something new with every season. “Shanghai has also become one of Muji’s key testing grounds for new retail formats, product launches and debut events, as we believe the city’s consumers are highly receptive to new concepts, while its commercial spaces provide an ideal environment for retail innovation,” Wu said. In addition to the Zhang Yuan store, Muji has opened the world’s first Muji diner, China’s first Muji farm concept store and the country’s first sustainability-themed concept store in Shanghai, the China Daily reports.
