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The secret Chinese luxury market that’s a retailer’s heaven
Just behind Beijing and Shanghai is this seemingly unassuming city of almost 11M
Chengdu’s malls are among the top performing outlets in China, behind only Beijing and Shanghai, and, despite having only the eighth largest GDP in the country, the city’s luxury market has surpassed Hong Kong.
According to Jing Daily, 60 percent of shoppers purchasing high-end products are local and 80 percent are buying for themselves — a noted difference in consumer habits compared to larger cities like Hong Kong.
“Luxury goods are almost necessities,” said Chengdu resident, Jingyi Hu, to Jing Daily. “College students with little or no disposable income would purchase a luxury item on monthly installments.”
The result shows in retailers’ booming performances: Swire Properties’ mall in the city, Sino Ocean Taikoo Li, has reportedly logged “double-digit” growth since 2014 when it opened, while the mall Chengdu IFS increased revenues by 17 percent in one year between 2015 and 2016.
Considering those figures, it’s no surprise that Armani Group, Fairmont Hotels & Resorts and Victoria’s Secret have announced plans to buy into real estate in the luxury shopping haven. [Jing Daily] — Erin Hudson