Four Ways To Rethink Luxury Retail Location
The surge in domestic luxury spending in China has placed extra pressure on retail location strategies. Shanghai is a prime example of a flourishing retail destination. According to CBRE Group, retail leasing activity in Shanghai for Q1 of 2021 showed no signs of COVID-19 fatigue, with net absorption rising to a record 28,562 m². Momentum also remains strong, with new retail projects underway in Shanghai’s riverside locations.
The blueprint for luxury brands deciding where to open shop revolves around finding a prominent and prestigious location: identify a high-status retail location to reinforce the brand’s positioning and, of course, connect with local luxury consumers. For example, a Diesel Hub concept store recently opened at the six-story Shanghai-based shopping mall Grand Gateway 66, which also houses luxury brands like Tesla and Bottega Veneta.
It is an effective and predictable principle for finding retail locations. However, the future challenge for luxury brands is to leverage their locations as competitive selling propositions while adding brand value in the process. In other words, to look at a retail location through a qualitative lens and beyond the traditional quantitative metrics of luxury footfall data.
Here, Jing Daily outlines four ways luxury executives can leverage location to stand out in an increasingly cluttered luxury retail space.
Luxury brands usually decide their locations based on where and how consumers choose to spend their leisure time, as luxury retail is a consequence of those spots. The K11 Art Malls in Hong Kong, Shanghai, Guangzhou, Wuhan, Shenyang, and Tianjin (with further mall openings planned) are destinations for appreciating art, such as with the retrospective exhibition of Georges Mathieu, currently at the K11 MUSEA.
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