Shenzhen's first-shop economy thrives in H1

Writer: Han Ximin  |  Editor: Stephanie Yang  |  From: Shenzhen Daily  |  Updated: 2021-08-13

Shenzhen is trying to be the first choice among Chinese cities for global brands launching flagship stores in the country and a shop window of global brands, according to a recently released action plan on expanding consumption, improving consumption quality and creating new demands (2021-2023).

The plan put forward by the Shenzhen Municipal Commerce Bureau also stressed building local brands to enhance local products’ prestige and influence.

First-shop economy and brand economy are important indexes reflecting business innovation and influence of a city, and now play driving roles in stimulating consumption.

Since the beginning of this year, many international, national and regional brands like Wenheyou, Chanel, Boucheron and QQfamily have opened their flagship shops or boutique shops in the city, showing Shenzhen’s consumer market and first-store economy potential vitality.

“The population structure in which young people take a majority enables Shenzhen to be the first choice for some well-known brands to establish presence in South China market,” Zeng Li, supervisor with the research firm JLL South China, said.

Partial statistics from retail business data platform showed a total of 72 brands launched their flagship stores in Shenzhen from January to June. Among the shops, 13 were the brands’ first shops in the country, 25 were the first in South China and 34 were the first in Shenzhen. Statistics from the city’s commerce bureau also showed that 26 shopping centers introduced 97 flagship stores of well-known brands to Shenzhen in 2020. Of the 97 brands, 41 are in cosmetics and fashion business, and 39 engage in catering, including bakeries and beverages, which young people favor. It is estimated that Shenzhen will open 20 complexes with these new business modes and more feature brands will bring new experiences to local consumers in the second half of this year.

In 2020, in a move to be a central city of global consumption, Shenzhen unveiled measures to stimulate the development of first-shop economy to attract famous global brands to set up shops in Shenzhen.

Famous global brands that open their world’s first shops or flagship stores in Shenzhen will receive a reward of 1 million yuan (US$154,400). If the shop in Shenzhen is the first of its kind in China, or in South China, the brands will get a reward of 600,000 yuan or 300,000 yuan, respectively.

In April this year, the Shenzhen Municipal Commerce Bureau unveiled measures on building international consumption centers. Among the measures, the property owners that introduced first shops or flagship stores of famous brands at home and abroad will receive rewards of 500,000 yuan for a retail outlet and 200,000 yuan for a catering outlet. The reward for one property owner or operator will be no more than 3 million yuan a year. For product launching or shop launching activities of well-known Shenzhen brands, the government will give standard subsidies of 30 percent of the actual cost with a cap of 3 million yuan.