Shanghai a springboard for world's luxury labels
- Source: Global Times
- [10:46 June 12 2010]
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Shoppers browse the Louis Vuitton flagship store in the International Financial Center in Liujiazui, which opened on April 29. Photo: CFP
By Li Xiang
International luxury labels are increasing their presence in Shanghai in the hope that the World Expo 2010 will spread awareness of their brands through the country.
Shanghai ranked eighth on a list of the world's top 10 retail cities in a report released last weekend by US-based property management firm CB Richard Ellis, behind Hong Kong at fifth place and Beijing at sixth place.
However, in the eyes of luxury brands, Shanghai's primary importance in the Chinese market is to serve as a springboard for their wares to the rest of China.
"Shanghai is more like a window through which people can get an introduction to luxury brands, the labels do not have to earn bundles of money here," Chu Sheng, head of the Cartier store in the International Financial Center (IFC) in Lujiazui that opened in May, told the Global Times Friday.
The IFC has become a hotspot for big labels. "A total of 40 luxury brands have opened or will open new stores here," a member of staff at the IFC's management company surnamed Wang told the Global Times. "Tiffany just opened its 288 square-meter store here on Wednesday," she added.
As well as its IFC location, Cartier also opened a store at Hong Kong Plaza on Huaihai Road Middle in May, and renovated its store at Plaza 66 on Nanjing Road West. Louis Vuitton also opened stores in the IFC and Lippo Plaza, both on April 28. Christian Dior opened a store on the Bund in May, when they also displayed their 2011 collection at a show in a make-shift venue on the city's historic riverfront.
Chu's claim that Shanghai's luxury stores serve to promote sales, if not in the city itself, then further afield, was born out when the Global Times spoke to people queuing outside the Louis Vuitton store at Plaza 66 before it opened Friday morning. "I am here to check out the latest collection, although my daughter will make the purchase when she goes to France, where it is much cheaper," a local resident in her 50s surnamed Yu said.
Within the next five years, Chinese consumers' annual spending on luxury goods will hit $14 billion to dethrone Japan as the world's biggest market for luxury goods, according to a report released by the Chinese Academy of Social Sciences in May. China is currently the world's second-largest luxury goods market, spending $9.4 billion in 2009, accounting for 27.5 percent of the world's luxury goods consumption.
