International luxury retailers in the domestic market to the potential of commercial real estate developers to bring the opportunity. Luxury retailers settled in the business brought about by the agglomeration effect, you can easily solve the commercial real estate has been faced with investment problems, so when these retailers will look to the second and third tier cities, those “smell” keen commercial real estate developers will Development positions to the second and third tier cities to expand, in order to keep up with the pace of these retailers.
According to a report released by CB Richard Ellis, the word “second and third tier cities” is now more and more in the latest expansion plans for large retailers such as IKEA and Decathlon, and continues to be Gucci, Burberry and Zegna (Ermenegildo Zegna), Coach (Kouzi) and other international luxury brand stores to open a new target city.
By the global financial crisis, the international luxury goods market weakness. In 2009, luxury sales in Europe, Japan and the United States decreased by 8%, 10% and 16% respectively. In contrast, China’s sales growth has reached 12%. This development potential to bring the business opportunities are not limited to luxury goods, commercial developers have a step ahead. “Some of the second and third tier cities are very strong local spending power.”
Coach to recover the agency after the plan three years to increase 39 stores
To the handbag of the famous American luxury brand Coach from the agent Junsi Group hands to recover China’s retail business is from September 2008 began, until April 1, 2009 had just completed. Leaving only five retail outlets operating by third-party retailers.
Coach is anxious to control the Chinese market is not difficult to understand: on the one hand, the company has China as the United States and Japan after the third pillar; the other hand, the target consumer survey found that brand awareness in China only 8% And this ratio in the United States reached 72% in Japan is 63%.
Fully expanded after the expansion of Coach in China, in 2009, a net increase of four stores in 2010 plans a net increase of 15 in 2011, the goal of 20. Coach said Jun Si Group is still Coach to provide logistics, warehousing, technical assistance.
Armani opened 50 stores in China in 2008
2010 Burberry plans to open 10 stores in China
Burberry will take over the store’s management, the existing franchise stores have 15% of the shares. Burberry direct operation of 13 Hong Kong stores, a store in Macau and 19 stores in Taiwan, and plans to open 10 stores in China this year.