New Boutiques In Shanghai Read Like A “Who’s Who” Of Global Luxury Brands
Chanel's China-only "Take Away" handbag was designed for the Shanghai World Expo
The Financial Times has posted a good article on Shanghai’s ongoing luxury boom (covered extensively by Jing Daily), which has seen brands like Tiffany, Omega, Blancpain, Breguet, Louis Vuitton, and Ermenegildo Zegna opening lavish boutiques in the city since April alone. Although part of this was simply due to efforts by these brands to cash in on the millions of tourists who have poured into Shanghai for the Shanghai World Expo, major brands from around the world rightly see Shanghai as a city with long-term potential. While they’ll have to contend with the popularity of Hong Kong shopping trips and online retail, these brands — which see China as “the next Japan,” since the country should indeed surpass Japan to become the world’s largest luxury market within five years — see heavy investment and strong brand presence in China as a must.
From the article:
The article goes on to mention the special China-only items that have been designed by a number of top luxury brands:
Although this article covers similar ground to other articles that are perhaps wide-eyed in their bullishness (see our recent translation for Chinese views on the subject), it wraps up with a cogent point — as Chinese consumers become increasingly sophisticated and brand-loyal in coming years, China will no longer become a “dumping ground” for merchandise that can’t sell elsewhere. Rather, it’s going to be critical to communicate to Chinese shoppers that the items for sale at boutiques in their hometown are the same as those in London or New York. While they still might not buy them — put off as they may be by China’s stiff luxury tax — this will, theoretically, foster more solid brand loyalty that could pay off in the long term.