Brands are making headway in western China. Results of a 16-city survey by the Yangtze River Delta (YRD) Commercial Information Network show an average penetration rate of 40% for YRD cities, and Hangzhou and Shanghai rank equal first with an 88.7% penetration rate for first-line brands.
YRD cities have become trendsetters in stylish living and tasteful consumption. This has triggered the rapid development of urban commerce in the direction of branding and pushed the presence of international brands.
High-end brands have become new bright spots for retailers seeking to cater to consumer needs and increase their competitive edge.
A HKTDC survey covered 62 international first-line brands in the clothing and accessories, cosmetics, and watch and clock sectors which include such illustrious names as Armani, Burberry, Gucci and Versace.
These brands usually operate their own specialty stores or counters, with fewer than 50 outlets nationwide. Some luxury brands have less than 10 outlets. Compared with other parts of the country, the high concentration of international brands in the YRD is now quite conspicuous.
According to the survey, sales outlets of international first-line brands in the YRD account for 29.3% of their national average, with over 50% for some select brands.
Hangzhou has 55 of the 62 brands under survey. Hangzhou Mansion with 47 international brands is the most popular venue, followed by Intime with 20, Hangzhou Department Store with 13, Jiefang Department Store with 14, and Hubin International Boutique Compound with six.
Some international brands have more than one outlet in the city, including eight with outlets in two stores, six with outlets in three, seven with outlets in four stores and one with outlets in five.
The YRD is the cornerstone and springboard for international brands seeking to expand in the Mainland market whether historically or contemporaneously.
Shanghai, Hangzhou and Nanjing, with their excellent central location and huge influence, have the highest density of outlets for international brands.
The YRD has great consumer demand for international brands. On the one hand, it's a region with rapid economic development, high income and strong spending power. Also, since the whole region is open to outside culture and new trends, it's easier for international brands to tap and foster latent consumer demand.
On the one hand, a modern international city like Shanghai has great influence in China and even the whole world. On the other hand, important YRD cities like Hangzhou with obvious advantages in industries with local characteristics have given birth to huge consumer resources for tourism and commerce.
These are the elements which will generate opportunities for international brands to expand sales and provide them with a platform for publicity and promotion. |