by Alexandra de Kerros Boudkov Orloff Source: Global Times
According to the latest report on global retail industry released by the CB Richard Ellis, China has three cities-Hong Kong, Beijing and Shanghai-on the list of the world’s top 10 retail cities. Hong Kong ranked in the fifth, Beijing in the sixth and Shanghai in the eighth position. This is the first time for Shanghai to be hanging high on the top 10 list. According to the report, these cities were selected due to their attractiveness to luxurious brands.
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Chinese cities are attracting more and more international retailers, and are now competing with the current international retail center for the most attractive markets, the report said. “The Chinese market has began to challenge the conventional ones of international brands, and this can also reflect Chinese consumers’ continuous changes in demand and tastes,” Ma Xueming, board director of the research department of the CB, said.
According to the report, Hong Kong maintains its position as the world’s largest luxurious brands and fashion retail market. The report covers 47 luxury brand retailers, and Hong Kong attracts 90 percent of those brands. In Asia, Hong Kong is the largest retail market, followed by Beijing, Tokyo and Shanghai. All these four are included in the world’s top 10.
The Asian market (excluding Japan), made up 28 percent of LVMH 2009’s total revenues, which has made it the largest market for the firm in the world. The Chinese market contributed to a large part of the percentage. The Asia-Pacific market constituted of 13.8 percent of the luxury brand Richemont’s profits, while Europe contributed 3.5 percent. The company saw losses in the US and Japan markets.
Bryn Davies, CB Asia’s board director in client resources extension department and also a permanent representative of the European market, often gives suggestions to the retailers. He commented that “although for many European retailers the past year was a hard one, China was their first choice for those seeking global expansion.” “China’s large population and its growing affluence cannot be ignored, compared with the wealthy, but stagnant western market The growth and performance of those brands who have entered the Chinese market attract other retailers who have few or no stores in China,” he added. The report also showed that London is still the world’s largest retail city, attracting 56 percent of all retailers in the world, while it faces great challenges from Dubai, which attracts 55 percent.