'First-store economy' further fuels consumption in China
New stores, new attempts
Putting the first store in China's first-tier cities such as Beijing and Shanghai used to be a common practice. But now inland second-and third-tier cities have become new investment hotspots.
Southwest China's Chengdu, for example, welcomed 435 first stores in the first 11 months this year, more than double the number from last year.
Among them are New York-based contemporary brand Blancore and Dior, which set up a pop-up store in the heart of a traditional temple in Chengdu to launch the pre-fall 2019 men's collection by Kim Jones.
To woo more brands to set up their first stores, many Chinese cities have rolled out preferential measures.
Beijing opened a "green channel" to facilitate businesses to set up their first stores in the city, providing necessary financial support to cover rent and renovations.
Chengdu published a guideline in April, vowing to lure 200 new first stores every year by 2021. In September, east China's city of Nanjing rolled out multiple measures to provide rental support and preferential policies for companies opening their first stores in the city.
In July, LEGO Group opened its 100th retail brand store on the Chinese mainland in Xi'an, the first certified store in northwest China, in a move to expand its footprint in the country's inland and lower-tier cities.
Paul Huang, general manager of LEGO China, said LEGO's next step is to further tap into the Chinese market. "We're confident in the development of our business in China," said Huang.
More brands have joined the wave of launching first stores in China. This year, Shanghai alone has ushered in the first flagship theme shop in China of Belgian comic series "The Adventures of Tintin," and the first YG PLACE of YG Entertainment in China. Soon, a Naruto World theme park and China's first Smurfs Theme Park will also be settled in Shanghai.
"As consumption's share of China's GDP continues to grow, the first-store economy will play a more prominent role in boosting local consumption, enhancing vitality and contributing to China's high-quality development," said Yang Chang, an analyst with Zhongtai Securities.
