Many International Light Luxury Brands Have Opened New Stores In Beijing.

In the first quarter of April 7th, the Beijing property report released by the state commercial real estate service and advisory body, CB Richard Ellis, in April 7th showed that many countries including Ted Beck (TedBaker), Kate Spade (KateSpade) and Loew Moschino (LoveMoschino) were in the first quarter of this year.

The opening of new stores in Beijing indicates that these brands are still valued by the Beijing market.

Statistics show that the total retail sales of consumer goods in Beijing increased by only 1% over the first two months of the year, which is far from the 10.2% growth rate of the total retail sales of consumer goods in China over the same period. At the same time, the growth of total retail sales of consumer goods in Beijing in the first two months was 6.8 percentage points lower than that in the same period in 2015.

In the face of this

Why does the luxury consumer brand choose a new store in Beijing? In this regard, Sun Zutian, deputy director of North China deputy director of the research department of the world bank, said in an interview with reporters that Beijing's role as a gateway city in China cannot be ignored.

Although Beijing's local consumption growth rate is falling, the growth rate of the whole Chinese consumer market has slowed down, but for the international luxury brands, the Chinese market is still an important market.

"For those luxury brands that have entered the Chinese market earlier, they may slow down the pace of opening stores.

But for the luxury brands who have entered the Chinese market late or have not yet entered the Chinese market, they will still choose the first tier cities such as Beijing and Shanghai.

Sun Zutian believes that this is the need for these brands to enhance brand communication.

In the future, the trend of light luxury brands in Beijing, Shanghai and other tier cities will not change.

However, Sun Zutian also pointed out that at present, retail brands are upgrading their existing stores to increase their concepts and enhance their consumption experience.

For example, Timberland's Beijing Chaoyang Joy City store was upgraded to the world's first shoe concept store; McDonald's Beijing Wangfujing store was upgraded to McDonald's smart restaurant.

Beijing Chaoyang Joy City store upgraded to Nike NikeKicksLounge.

This shows that all brands are paying attention to consumption experience.

For owners, there must be revolutionary changes in order to raise rents.

Statistics by CB Richard Ellis showed that in the first quarter of 2016, no new projects were completed in Beijing's retail property market, and the overall market remained stable.

The overall market vacancy rate remained unchanged at 4.8% last quarter.

Retailers of light luxury brands have steadily expanded.

Light restaurant tenants, such as Rong Xiao hall, Lukang Town, nice to meet you, etc. are also actively expanding in Beijing.

In some shopping centers after the recent adjustment and upgrading to achieve the increase in the rate of entry, it also raised the rental quotas, pushing the average rent of the first floor of the shopping center rose 0.9% to 36.7 yuan per square meter per day.

For the future market trend, Sun Zutian believes that most of the projects will be postponed to the end of the year, and only about 140 thousand square meters will be completed in the next six months.

The entry of new projects will cause a slight fluctuation in the low market vacancy rate, while the market rent will remain stable.

In addition, the retail property rents of Beijing's non core business circle have potential to increase.