Shanghai Incentivizes Top Brands to Open First Asian Store in City
● The First in Shanghai initiatives will award 1 million renminbi to brands that pick Shanghai for their Asian retail debut.
LONDON — Despite China's challenging economic outlook, Shanghai is introducing a series of measures in the name of "First in Shanghai" to incentivize leading local and international brands to host major events and make Asian retail debuts in the city.
During a press conference held Thursday at the regenerated historic shopping compound Zhang Yuan, Zhu Min, director of the Shanghai Commission of Commerce, unveiled seven initiatives to accelerate the development of what's touted to be the "debut economy 2.0."
The "First in Shanghai" action plan aims to organize and promote product launches between March and May each year. It will also support brands to open their first stores in Shanghai, with a bonus of 1 million renminbi, or $137,875, for the first stores in Asia.
This year during the period, for example, the city has welcomed a Loewe landmark exhibition, China's first Supreme store, a Gucci pop-up and an Hermès reprised men's show, with a Louise Vuitton new collection reveal scheduled for next week.
"We'd like to invite more entrepreneurs to set up more first stores, flagship stores and experience stores in Shanghai, release more new trendy products, and jointly build a premiere economy with global influence," said Zhu, in front of representatives from companies including Kering, Hermès, L'Oréal, Icicle Group and Anta Sports.
Cai Jinqing, Greater China president of Kering Group, said at the conference: "Shanghai has always been one of Kering's most important cities. As the economic and commercial center of China, Shanghai has great market potential and we look forward to continuing to grow with the city."
"Shanghai has reached a level comparable to metropolises like Tokyo and Paris in terms of its scale and service standards. I'm full of confidence in the future development of Shanghai," said Cao Weiming, president of Hermès China, adding that the three Hermès stores in Shanghai are currently among the top 10 performers worldwide in terms of annual sales.
Xu Yang, chief brand officer at Anta, owner of Arc'teryx, used the occasion to reveal the debut of its first zero-carbon emission store on Wukang Road in Shanghai on April 22.
The Shanghai authorities said more than 4,500 brands held events for product launches in Shanghai between May 2018 and December 2023. Some 5,840 stores were opened in Shanghai in the period, with more than 80 of them being the first stores in Asia. In the first quarter of 2024, brands unveiled more than 450 new retail concepts in the city, up 55 percent year-over-year.