WEEKLY WISDOM
“The grass is always greener where you water it.“
Why China’s Malls are the Next Hot Retail Properties
Shopping malls might be struggling to survive in developed markets, however in China they are set to see surging traffic.
An urbanization push and a growing middle class that are more likely to spend than save, mean malls – the crown jewel of retail centers – are ripe for investment, according to UBS. The bank said it has challenged “conventional wisdom” that Chinese shopping malls will see little success over the next decade.
China’s malls may have been aided by an unlikely hero: COVID. The pandemic put a ban on global travel forcing Chinese consumers to buy online or in domestic shops – or not buy at all.
That motivated international brands that relied on selling to Chinese tourists to open shops in China. This was supported by the Chinese government allowing its citizens access to duty-free shopping for local travel.
The unique appeal of brick-and-mortar retail in China; What property developers are doing
After months of surging retail sales it will be interesting to see what sells during Amazon’s Prime Day (starts today!).
E-COMMERCE
Prime Day kicked off today, June 21, and runs through June 22.
- The two-day event is open to Prime members in 20 nations in Europe, Asia, the Middle East, and the US.
- The shopping extravaganza will offer Prime members over 2 million deals across every category.
Netflix (USA) has launched an online store to sell limited-edition apparel, lifestyle merchandise and collectibles based on Stranger Things, Lupin and other of its popular shows, the company said.
- The online store offers a new source of revenue for Netflix and expands its product line beyond the items it sells through partners such as Target Inc and Walmart Inc.
Shinsegae (Korea) is the new owner of eBay Korea, which has been up for sale since last year.
- The sale of eBay Korea is expected to lead to major changes in the country’s e-commerce industry, helping one of the nation’s top bricks-and-mortar retailers to become the leading online store here.
- EBay Korea accounts for around 11 percent of eBay’s global sales.
PODCAST
Turning a Love of Fashion into a Business She Loves
Sometimes circumstances push you in a new direction – one that’s better and more fulfilling. Here’s how Lacee Swan pivoted from N.Y.-based fashion designer to illustrator and entrepreneur who works with leading brands, as well as creates her own merchandise.
RETAIL
Adidas (Germany) opens its first flagship in South Africa this week, promising an exclusive retail experience on par with the brand’s other flagship stores in New York, London, Paris, Dubai, Beijing and Tokyo.
Boohoo (UK) will reopen one Debenhams (UK) physical store, in a move to appease beauty brands that insist on having a physical presence, in addition to selling online.
- Before its collapse Debenhams had six million beauty shoppers and 1.4 million Beauty Club members.
- When it acquired the Debenhams brand, Boohoo closed all 134 stores and said it was planning to create a leading department store online selling its own brands, as well as those from third parties.
- Boohoo reported a record 32% rise in first quarter sales, reaching £486.1 million in the three months to May 31.
Shanghai retail leasing activity for Q1 of 2021 showed signs of the market’s continued strength, with the net absorption of space rising to a record 28,562 m², per CBRE data.
- New prime retail projects are being developed to meet the ongoing demand, especially from luxury brands.
Coach (USA) will expand its market presence in China’s third-tier or lower cities, as well as invest more heavily in online sales platforms during the country’s 14th Five-Year Plan (2021-25) period.
TECHNOLOGY
LMVH (France) is entering into a strategic partnership with Google Cloud to assist LVMH in developing new artificial intelligence and machine learning based solutions.
- Key aim is to better predict demand and optimise stocks.
- This is a further signal of how luxury brands are adopting mainstream marketing and sales tactics.
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