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Shanghai outshines peers as launch pad for international brands

By Shi Jing in Shanghai | China Daily | Updated: 2020-01-23 10:06
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Diners line up to order food at the first China branch of Canadian quick service restaurant chain Tim Hortons in Shanghai. [Photo by Wang Gang/For China Daily]

"The stores have largely enriched local consumption business models, meeting the increasing demand of local consumers. They have collectively grown into a new driving force of Shanghai's economic development by further stimulating consumption demand," she said.

According to the Shanghai municipal statistics bureau, the total retail sales revenue of consumer goods exceeded 1.2 trillion yuan ($173 billion) during the first 11 months of 2019, up 6.6 percent year-on-year. The retail amount of wholesale and retail industries in the city was more than 1.1 trillion yuan, up 6.9 percent from a year earlier.

In late 2017, Shanghai's Party secretary Li Qiang said that consumption, which is one of the major strengths of the city, should be further enhanced by introducing more prestigious domestic and international brands to debut new products in Shanghai.

In a visit to a department store in central Shanghai in May 2018, Li said brands that are in tune with the latest trends should be introduced to provide upgraded consumption experience and meet the demand of increasingly sophisticated consumers, especially the younger generation.

Sun Mingyang, vice-general manager of Shanghai Silk (Group) Brand Development Co Ltd, said that the domestic e-commerce giants' mapping in the offline retail sector has shown that it is becoming increasingly difficult to achieve rapid growth. Consumers on the other hand are no longer easily attracted by bargains offered online.

"The trend of upgraded consumption is quite noticeable. We can see that more and more consumers are returning to brick-and-mortar stores, especially those offering better experiences," she said.

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