Beijing SKP, China’s Best Mall, Reports Strong Growth Despite COVID-19
What happened: Beijing SKP, which has dominated the shopping center revenue rankings in China since 2011, continues its momentum, achieving double-digit sales growth in 2020, although offline retail has been disrupted by the COVID-pandemic. 19. Its annual revenue is expected to reach $ 2.68 billion (RMB 17.5 billion), as revealed by the mall, registering a 15.13% year-on-year growth from 2.32 billion. last year (15.2 billion RMB).
Brands such as British designer label Self-Portrait and French luxury fragrance brand KILIAN launched their first stores in China in Beijing SKP in May and June respectively. In September, the French jewelry brand Boucheron, part of the Kering group, unveiled its first dessert shop in the world, Jardin d’Hiver. In the past two years, when an international luxury brand entered the Chinese market, 38% first launched in a mall, Beijing Group deputy general manager Hualian told local media. parent company of Beijing SKP). Beijing Daily.
Jing takes: Beijing SKP’s continued strong financial performance not only confirms China’s booming luxury market, but also sets a benchmark for retailers and brands looking to tap into this lucrative market. Its success is largely attributed to the strong purchasing power of local luxury buyers and the repatriation of Chinese consumption in the second half of the year.
Equally important, an innovative offline shopping experience allows the mall to resonate with younger generations. SKP-S, the sister building opposite the luxury mecca unveiled last December, ushered in an era of experiential shopping that blends art and technology. Taking advantage of this attractive approach, luxury houses such as Louis Vuitton, Prada and Moncler have launched pop-up stores and exclusive products in SKP-S.
Other large and high performing shopping centers such as Plaza 66 in Shanghai and Deji Plaza in Nanjing are also strongholds for luxury players. Yet department stores in emerging fashion capitals like Chengdu, Hangzhou, Chongqing and Wuhan are positioning themselves as crucial avenues for brands to connect with local shoppers. With so much competition, global luxury brands need to further segment regional markets and customize their strategies accordingly.
The Jing socket reports on major news and presents our editorial team’s analysis of key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debates arising on Chinese social media.