Magic Capital has “new” 703 first stores this year! How many have you visited?

Put a cool patch on the tongue, and replace the shoelace with a new one with a contrasting color. The shoelace head can also be laser engraved with his initials… After 10 o’clock in the middle of the night, Xiao Mo was playing in the Nike Huaihai Trend Experience Store. I had so much fun that I “DIY” a pair of unique new shoes with the help of the clerk. On September 30 this year, Nike opened China’s first Nike Style retail concept store in Huaihai, TX. The digital experience is superimposed with personalized customization, attracting many young consumers to check in here.

In April and May of this year, affected by the epidemic, Shanghai’s business was stagnant for a time. However, after June 1, the first stores of various high-energy levels experienced explosive growth. In the first three quarters, 703 first stores were established, and the number continued to maintain nationwide. No. 1, including 7 first stores in the world or first in Asia . The resilient “first store economy” has become a “trump card” for Shanghai to accelerate the pace of building an international consumption center city.

01

“The Capital of the First Store” welcomes a new face

In the third quarter of this year, especially since the beginning of autumn in September, a large number of international brands and luxury brands have accelerated the pace of opening their first stores in Shanghai, and good news has frequently come from the “first store economy”:

As a new trendy retail landmark in Shanghai, TX Huaihai ushered in a batch of “new and peculiar” brand first stores in the third quarter. In addition to the first Nike Style retail concept store in China, which is open until 11 o’clock at night, there are also dark-style accessories blackheads. The first city lab flagship store, the first store of British designer brand Nuth in China, etc.

Jingan Kerry Center in Shanghai has introduced the first store of cococean in Shanghai, the first store of Japanese high-end makeup brand SUQQU in China, the city flagship store of the delicates brand remade with white T, and the first offline store of children’s sunglasses brand OLIVIO&CO. shop.

Shanghai’s key urban renewal project, Jincang Wenhua Plaza , welcomed four pioneering fashion design brands under otb, the fourth largest fashion group in Italy in August: maison margiela’s world’s largest flagship store, marni’s first concept flagship store in China, Jil Sander’s first flagship store in China and amiri’s first store in the Asia-Pacific region jointly settled, further enhancing the Shanghai luxury retail market.

Grasping the tail of “Golden Nine Silver Ten”, the new entry of Shanghai Suhewan Vientiane World and Shanghai Sky Vanke Plaza will continue to bring a wave of “first stores” to Shanghai. Among the more than 140 brands that have entered the Vientiane World in Suhewan, more than 70% are the first store in the country, the first in Shanghai, and the first in the region. Shanghai Sky Vanke Plaza ushered in as high as 75% of the regional first store rate and 80% of the sky custom stores. There are also high-end furniture and home furnishing brand FENDI Casa’s first flagship store in Asia, PRADA Prada’s first perfume and beauty store in China, and Vietnam’s first overseas flagship store of Central Plains Legend Coffee. They also chose Shanghai and landed in the Nanjing West Road business district.

02

Drive the recovery of the consumer market

In the third quarter of this year, with the gradual return of shopping malls to normal, and the launch of the third Shanghai “May 5th Shopping Festival”, the total retail sales of consumer goods in Shanghai has turned positive since July and rebounded in September.

The Municipal Commission of Commerce stated that, among them, the retail sales of improved and upgraded consumer goods have gradually recovered . In the first three quarters, the market demand for new energy vehicles, smartphones, gold and silver jewelry and cosmetics has recovered significantly. At the same time, new consumption is also booming. Online , the online shopping transaction volume increased by 3.1%, and offline, 703 first stores were added, continuing to lead the country in quantity.

“We observed the Shanghai retail property leasing market and found that some categories remained resilient and maintained their original store expansion plans, such as luxury goods , high-end skincare and fragrance brands , new energy vehicle showrooms and community supermarkets .” JLL Shanghai Retail Zhuang Liqi, director of the real estate department, said.

In addition, according to JLL’s latest review and outlook on the Shanghai real estate market in the third quarter, the catering industry, which was hit hard by the epidemic, saw a rapid recovery in the third quarter, especially the expansion of high-quality catering. In the third quarter, the catering industry accounted for about 45% of the new leased area.

The first store means traffic and attention, and represents the activity and consumption potential of the city’s commercial development. Industry insiders said that Shanghai is still the first choice for domestic and foreign brands to land, especially overseas brands will basically focus on the commercial complexes in the three core areas of Jing’an District, Huangpu District and Xuhui District . In recent years, Shanghai has promoted the consumption of secondary business districts through urban renewal. Xuhui District, Binjiang, Hengfu Historic Landscape Reserve, Qiantan and Daning have also become the target areas for retail brands’ first stores.

03

Bring new momentum to economic growth

Pay close attention to the “first store economy”. In recent years, Shanghai has vigorously encouraged domestic and foreign brands to launch global new products, launch their first brand stores, and set up corporate headquarters in Shanghai, so as to cultivate a first launch economy from ” first launch ” to ” first store ” to ” headquarters ” effect. Whether it is a foreign retail giant that has been rooted in Shanghai for a long time, or an overseas second- and third-tier brand that has entered China for the first time, it will be used as a bridgehead for brand development.

Relevant data shows that Shanghai is one of the ten most attractive retail destination markets in the world, and the concentration of international high-end well-known brands has exceeded 90% . As of the end of September this year, Shanghai has identified 877 regional headquarters of multinational companies, of which more than 70 are related to internationally renowned consumer brands, including L’Oreal, Shiseido, Kering, Richemont, Starbucks and Bulgari. The China International Import Expo, held in Shanghai for four consecutive years, introduced a total of 214,000 kinds of exhibits, released more than 1,500 items of new products, new technologies and new services, and brought a 365-day spillover effect.

On September 9, as one of the 12 benchmarking IPs of the 3rd Shanghai “May 5th Shopping Festival”, the “2022 Global New Product Launch Season” was officially launched, and the Shanghai International Beauty Festival, Shanghai Fashion Life Festival and Shanghai Fashion Customization Week Other themed events are being staged in turn. “Igo Shanghai” electronic consumer coupons are also helping consumption rebound. The overall write-off rate of 700 million yuan of consumer coupons in the first two rounds exceeds 80%, directly driving the consumption leverage ratio by about 4 times , effectively leveraging consumption replenishment, and making it a commercial brand Development in Shanghai provides confidence.

According to the analysis of the China Business Data Research Report, for the development of a city, the “first store economy” can promote the upgrading of urban consumption, stimulate the differentiated development of urban consumption, increase the vitality and influence of the city, and drive the growth of urban employment, taxation, and regional investment. At the same time, it will promote the gathering of high-level international brands and drive the development of related industries in the local area.

Gu Jun, director of the Shanghai Municipal Commission of Commerce, said that in the future, Shanghai will continue to increase the supply of system and policy innovation, accelerate the gathering of international and domestic brands and fashion elements, cultivate professional talents and institutions, and attract more domestic and foreign brands to debut in Shanghai. New products, the first store of the brand, the establishment of corporate headquarters, and the cultivation and expansion of the ecological chain of international consumption center cities from “first launch” to “first store” to “headquarters”, so as to further enhance the richness, fashion and experience of the “Shanghai Shopping” brand Spend.

Gold Coast Studio 

Author | Zhang Yuyun

Image | Interview provided by Jing’an, Shanghai

Editor | Lu Jiahui