Retail

China’s Retail Meltdown and Retail Real Estate

- Team Best Retail Consultants

The worldwide financial crisis is now affecting the retail sector in China.  After the Olympic Games, retail in Shanghai, Beijing and the coastal cities are down by 20-40% in same store sales. Surprisingly, inland cities are less affected, most stores are down by 10-20%.  The reasons are that the retail volume and base of inland cities are relatively low and more importantly also the delayed effect of the financial crisis in coastal cities spreads slowly to inland cities.

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Luxury Retail In China

- Team Best Retail Consultants

For newcomers, the first thing to understand about China is that it is not one market, but in fact every city and region is a different market.

The Chinese are new consumers of luxury goods and therefore not as sophisticated as consumers in mature luxury markets. Many western brands are already present in China, but as the average Chinese consumer is not as aware or knowledgeable about the history and style of each luxury brand, China is a battleground for media companies promoting brand awareness. As a result, the consumer is bombarded by media messages encouraging luxury spending.

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