Shenzhen's first-store economy is off to a strong start this year with the accelerated opening of first stores and debuts of new well-known brands.
The "first store" term refers to the first brick-and-mortar store set up by a brand in a certain geographically defined market, which could be a city, province, country, region, continent, or the world.
The "first store" economy, which has been growing over the last few years in China, is now becoming a key driver of the retail market. It is a type of real economy measured by the launch of leading industrial and fashion brands that open their first stores in specific areas.
When the Uniway shopping mall opened to the public in Qianhai on Jan. 11, a total of 130 brands, including 50 regional first stores, had settled in the 80,000-square-meter commercial complex. Among them were prestigious sports brands like NIKE, Adidas, New Balance, ANTA, and LI NING, as well as the first stores in China or South China of brands including Le Pissenlit, ONE SMILE BBQ, and The HAPPY MONK.
The subsequent day saw the grand opening of Costco's first South China outlet in Longhua District, which garnered an impressive membership count of 140,000 in Shenzhen on the opening day. Its first-day sales also set new records for Costco in China.
Shenzhen's consumer market has become more diverse with the evolution of new modes of consumption and innovative business models. Leading high-end shopping areas like the MixC Shenzhen Bay now host international luxury giants like GUCCI, Louis Vuitton, Hermès, Burberry, Prada, BVLGARI, Cartier, Fendi, Celine, Tiffany & Co., Bottega Veneta, and Miu Miu.
The city has also seen new types of products, such as smart home appliances and electronics, quickly penetrate the Shenzhen market.
JD.com announced March 15 the opening of its flagship store in the Huaqiangbei area of Futian District, marking a significant step in its strategy to bolster its omnichannel offerings.
This 10,000-square-meter store symbolizes a major milestone in JD.com's physical retail expansion within the Guangdong-Hong Kong-Macao Greater Bay Area, and the company plans to speed up the opening of an additional four to six JD malls in Bao'an, Nanshan, and Longhua over the next two to three years.
Huang Jun, executive deputy director of the Shenzhen Retail Business Association, commented that Shenzhen's consumer market is on the path to recovery and prosperity, with many innovative business models yielding successful outcomes.
Official statistics reveal that the city saw the launch of 427 international and domestic first stores in 2023, marking a 33% increase from 2022. Of these, 74 were first-ever stores in China and 122 in South China. The number of first stores in South China that emerged in 2023 rose by 38% year over year, highlighting Shenzhen's growing appeal as a prime location for brand expansion into the South China market.
In pursuit of becoming a globally influential consumption hub, Shenzhen is set to inaugurate new commercial centers covering 1.62 million square meters in 2024, nearly doubling the capacity created in 2023, according to the city's commerce bureau.