Shanghai's homegrown brands attract global shoppers

This summer, international visitors were frequently seen lining up at flagship stores along Shanghai's commercial streets to purchase products from popular Chinese brands such as Songmont, Pane, and Tosummer.

He Yue, general manager of the Yongyuan Road block project, a trendy urban renewal landmark in the West Nanjing Road business circle, said that since this year, hundreds of international shoppers have visited the store daily, spending an average of nearly 3,000 yuan ($444.91) per person. The proportion of foreign visitors has grown to more than 35 percent from 20 percent early this year.

She added that some travel agencies have even capitalized on the growing interest among overseas visitors in Chinese brands by adding tech and fashion stores to popular Southeast Asian tourist itineraries.

Songmont, a bag brand established in 2013, has amassed nearly 600,000 followers on Instagram, with its gross merchandise value growing 340 percent year-on-year in May. The brand also has an annual repurchase rate of 42 percent.

Data from third-party consulting firm GoldForge showed that despite the brand's average product price rising from 1,600 yuan to 2,200 yuan over the past year, sales performed even better.

Hu Danting, senior director at the commercial real estate services firm CBRE, said these local brands succeed by blending minimalist design with oriental aesthetics.

Yan Han, vice-president of the Shanghai Institute of Industry Transition and Development, said that local products favored by foreign tourists have evolved from simple cultural tokens and cost-effective goods to innovative design brands.

She added that Shanghai attracts a large number of foreign visitors and hosts a high concentration of popular consumer brands, which lowers shopping costs for global visitors while giving local brands greater exposure to foreign shoppers.

Hu said that visa-free policies, expanded tax-refund services, and summer promotional seasons have reduced shopping costs and encouraged international consumers to extend their stays in the city.

Source: Shanghai Observer