The secret Chinese luxury market that’s a retailer’s heaven

Just behind Beijing and Shanghai is this seemingly unassuming city of almost 11M

New York Weekend Edition /
Feb.February 24, 2018 11:00 AM

Sino Ocean Taikoo Li mall in Chengdu (Credit from back Baycrest – Wikipedia user – CC-BY-SA-2.5; Pixabay)

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


Related Articles

arrow_forward_ios
Illustration of Mayor Eric Adams (Getty; Illustration by Kevin Rebong for The Real Deal)
Oh, rats! Eric Adams contests summons for infestation
Oh, rats! Eric Adams contests summons for infestation
Brookfield's Bruce Flatt with 1100 Newark Turnpike (Loopnet, Brookfield)
Brookfield buys CSX industrial site in Northern New Jersey for $67M
Brookfield buys CSX industrial site in Northern New Jersey for $67M
SL Green's Marc Holliday and Daniel Boulud with One Madison Avenue (Getty, SL Green)
Daniel Boulud lands at SL Green’s One Madison Avenue
Daniel Boulud lands at SL Green’s One Madison Avenue
(Getty)
Strong November hiring reported in real estate industries
Strong November hiring reported in real estate industries
198 Scholes Street, 65 Kent Avenue, 506 DeKalb Avenue and 11 Gunther Place (Illustration by the Real Deal with Getty, Google Maps)
Avi Philipson deal to acquire All Year portfolio is back on
Avi Philipson deal to acquire All Year portfolio is back on
Rihanna with 8000 Mall Walk (Getty, Visit West Chester NY)
Rihanna’s Savage X Fenty heads to Yonkers
Rihanna’s Savage X Fenty heads to Yonkers
From left: McSam Hotel Group's Sam Chang and SL Green's Marc Holliday with 711 Seventh Avenue  (Getty, Google Mpas, SL Green)
Times Square hotel developer sues neighbors over delayed demolition
Times Square hotel developer sues neighbors over delayed demolition
Why real estate shoppers are bagging grocery-anchored plazas
Why real estate shoppers are bagging grocery-anchored plazas
Why real estate shoppers are bagging grocery-anchored plazas
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...