Debuts by retailers and leisure brands jump 55%
A record number of 450 retailers and leisure brands made their first presence in Shanghai in the first quarter, jumping 55 percent from a year ago, according to the city's commerce commission.
An index tracking the vibrancy of debut stores and retail sentiment in the city rose 0.5 points in 2023 to 88.2, according to a joint study by the Shanghai Commerce Commission and the Shanghai Institute of Quality and Standardization.
The index tracks overall competitiveness, growth potential and impact for debut stores, and downtown districts Jing'an and Huangpu are leading other areas as trendier stores and brands are rushing to bustling business districts and popular neighborhoods to capture customers' attention.
Shanghai still remains attractive for international brands and their continuous investment in new retail formats would keep boosting the city's leading position as a major shopping destination, said Zino Helmlinger, head of Advisory & Transaction Services of Retail at CBRE Eastern China.
Food and beverage stores, and fashion apparel brands have been active in expanding their physical presence, keeping a stable rental demand for commercial property especially in core business districts, the property advisory consultancy pointed out.
The unveiling of new retail spaces in the North Bund area and Qiantan area during the rest of the year will also inject new momentum into the consumption market, Helmlinger noted.
Shanghai is an essential location for product research and innovation for both home and overseas brands.
The commerce commission also plans to fully leverage the geographical location and supply chain advantages to invite local and foreign brands to set up new shops and establish businesses in the city.
As a part of the "FIRST in Shanghai" series of activities, the Shanghai International Cosmetic Festival kicked off earlier this week and will run through mid May, and has attracted over two dozen beauty and skincare brands to launch new offerings.
In addition to product launch, Shanghai has also been regarded as an essential location for product research and innovation for both home and overseas brands.
Shanghai headquartered skincare brand Forest Cabin's latest facial essential oil will be unveiled next month, and responding to local demand is one of its recipes for success.
Its latest sun screen lotion which better suits Chinese skincare preferences was launched last month and recorded 20 million yuan in sales, with the company's total revenue jumping over 50 percent in the first quarter.
Combining latest skincare research results with Chinese demands is essential in adapting to market trends, said Shirley Xue, managing director for North East Asia at Beiersdorf AG.
Beiersdorf has located its second largest research center in Shanghai as it plans to respond to local demands faster, and it remains confident in the growth potential and market sentiment as China remains the fastest growing skincare market, Xue added.
Some of its local research results such as body lotions have already been brought to southeast Asian markets.
Other top beauty brands such as Helena Rubinstein, Lamer, CPB, Dior, and WHOO will also unveil their latest offerings through both physical and online channels in the next two weeks with discounts available at department stores.
