City cultivating new market scenarios based on innovation, quality and a deep understanding of the latest trends

Shanghai, which embarked on a journey to become one of five international consumption hub cities in China in 2021, has made remarkable strides in the development of new consumption scenarios, new products, new business models, new services and new technologies.

Over the past three years, the city has emerged as a hub of the "debut economy" in China with more than 4,500 brands launching products and services in the city. In 2024, a total of 979 stores made their debuts, with 16.5 percent being the first stores in China of influential brands, according to official statistics.

The city is also implementing strategies to nurture fashion brands. This year, Shanghai Fashion Week has evolved into a renowned fashion gathering, with overseas brands representing more than 50 percent of the total brands showcased.

In 2023, the total retail sales of consumer goods in Shanghai hit 1.85 trillion yuan ($254.94 billion), an increase of 12.5 percent year-on-year.

Over the past three years, Shanghai has been developing a comprehensive consumption enhancement model that integrates business, tourism, cultural activities, sports and exhibitions to unleash the city's consumption potential.

In 2024, for instance, the city hosted a slew of consumption promotion events such as the Double Five Shopping Festival and the Shanghai Summer international consumption season from late April through October. During the events, concerts, music festivals, performances, cultural and art exhibitions and sports activities were held. Some of the most influential activities are the Shanghai Tourism Festival, Rolex Shanghai Masters and On the top of Pyramid: the Civilization of Ancient Egypt exhibition.

Baoshan district, the home to Shanghai Wusongkou International Cruise Terminal, is making efforts to promote the integrated development of cruise industry. The district, one of the key traditional manufacturing bases in Shanghai, has identified cruise economy as one of its six future industries.

According to the district officials, the Wusongkou cruise terminal handled 149 trips and served nearly 1.05 million guests in the first nine months of 2024.

On Jan 1, China's first domestically built cruise ship, the Adora Magic City, departed from the Wusongkou cruise terminal for its first commercial tour. In March, Switzerland-headquartered MSC Cruises relaunched its home port operation at Wusongkou cruise terminal along with its flagship MSC Bellissima. In April, Royal Caribbean's Spectrum of the Seas set sail from the Wusongkou cruise terminal, its home port.

With a keen focus on burgeoning opportunities, the district plans to broaden its industry chain by constructing the Shanghai International Cruise Tourism Resort in the area. Moreover, it will highlight the diverse history of Baoshan district, spanning business, education, urban development, and manufacturing, while also establishing modern business areas to cater to the preferences of younger generations.

In the realm of business, Shanghai, now entering a new era of consumption upgrades and transformation, will persist in showcasing its allure and serving as a cornerstone for fostering business growth.

Iconic fashion product

Over the past 30 years, Chinese women's fashion has changed dramatically, with Shanghai consistently serving as a benchmark reflecting the latest trends, said Linda Lin, president and shareholder of Max Mara JV China.

She was speaking during a visit to Max Mara's new two-story store located at the Shanghai Grand Gateway shopping mall.

This new store, which opened in June, was launched amid several measures introduced by the city government this year to boost retail consumption. It not only showcases the brand's iconic product lines but also offers a high-end shopping experience.

"We started designing this store last year as testament to our confidence in Chinese consumers. Max Mara is continually investing, and next year we plan to open 10 to 15 new stores nationwide, including those in Shanghai," Lin said.

Part of the new store's exterior wall features marble with a traditional Chinese ink painting style. Lin explained that while marble gives a cold and hard feeling, the clothes in the store are warm and soft. She said this design concept was intended to convey the characteristic of women being tough on the outside but soft on the inside.

In addition to this new store, Max Mara plans to launch many new projects for Shanghai consumers around 2026, which are already in preparation.

As one of Italy's largest fashion groups, Max Mara believes that fashion is about style, elegance, independence, and confidence — values that modern women strive for.

The high-end, ready-to-wear brand says it doesn't chase fashion trends but pursues quality. "I have always said that we aim to be timeless. Fashion shouldn't control you; you should control fashion.

"Clothing is the best business card for each individual's personality, and making people more confident through their attire is our ultimate goal," Lin said.

Max Mara Fashion Group has more than 300 stores in China, with more than 30 located in Shanghai. "Everyone knows that Shanghai has a large number of fashionable women in China, so the difference between consumers here and those in many other cities is their greater confidence and clearer understanding of what they want," she said.

When it comes to winning over consumers, Lin believes that a heartfelt and personalized service is the key, providing each customer with a distinctive shopping experience.

Max Mara's customer base is very broad, ranging in age from 20 to 60 and spanning various industries. "We value every customer's feedback and adjust our product lines in response to market demands, ensuring the brand consistently meets consumer expectations," Lin said.

Max Mara has been exploring the Chinese market for 25 years, during which it moved its headquarters from Beijing to Shanghai. "Shanghai's flexibility leads in China and even the world. This strategic move reflects the city's core position in the high-end retail and fashion consumption industry," Lin said.

Moreover, "we highly value the sustainable business environment that Shanghai offers," she added.

Shanghai is not only China's fashion capital but also a significant global consumer market. In the current economic climate, the presence of international brands in Shanghai is particularly crucial.

Max Mara's continued growth in China, especially its success in first-tier cities, demonstrates the group's confidence in the Shanghai market. "We hope that by deeply cultivating this market, we can further enhance the brand's competitiveness and influence, while better serving consumers in Shanghai and surrounding regions," Lin said.

She is confident about Shanghai's future role in high-end retail and fashion consumption in China. With the city's rapid development and internationalization, Shanghai will continue to attract global brands and consumers.

Max Mara will continue to participate in this process, promoting the exchange of Chinese and Italian culture and fashion, providing Chinese women with elegant and confident fashion choices, Lin said.

Long-term commitment

In 2006, ASICS, a Japanese sports gear developer, established its presence in Shanghai by setting up a trading company. In 2019, the ASICS Group headquarters strengthened the functions of the ASICS Greater China headquarters in Shanghai and launched a research and development center in the city with the aim of better serving the needs of local consumers.

"From a product design perspective, ASICS has innovated numerous new products by building upon existing footwear models to meet diverse requirements across various settings. The enhancement of the apparel line is underway, blending contemporary sports trends with outdoor settings and introducing products tailored to the preferences of Chinese consumers," said Calvin Gao, managing director of ASICS China.

China, along with Europe, North America and Japan, has become one of the group's four major global markets, according to Gao. China's consumption trends present a significant growth opportunity, and ASICS is actively responding to them through a combination of market expansion and localization.

So far, ASICS has cultivated a comprehensive product portfolio encompassing various series such as Performance Running, Core Performance Sports and Sport Style in China. This range caters to consumers' requirements across diverse scenarios, addressing both the demands of professional sports and the trends of contemporary lifestyles. "The brand will continue its dedication to fulfilling the diverse needs of consumers through this multi-category development approach," Gao said.

The brand is implementing strategies to gain a deeper understanding of the Chinese market and provide consumers with emotional value that extends beyond the product itself.

"Nowadays, consumers are no longer focusing on material abundance and enjoyment but are more inclined to pursue spiritual fulfillment and satisfaction," said Gao. "ASICS is committed to providing consumers with high-quality sports equipment and services and not only focuses on the functionality of the products but also on establishing an emotional connection with consumers and conveying positive attitudes and values," he said.

Continuous investment in performance enhancement and the local market is also a consistent pursuit of the brand in China.

"With its understanding of consumer preferences and market dynamics, ASICS will continue to innovate to provide sportswear that not only meets the basic wearing requirements but also enhances athletic performance and reduces the risk of injuries. By integrating cutting-edge technologies and materials into its designs, ASICS ensures that each piece of equipment or apparel contributes positively to the overall sports experience," said Gao.

"In the future, by harnessing the capabilities of our Shanghai headquarters and research center, we aim to delve deeper into the Chinese market, crafting products that better cater to consumer needs and beyond," Gao added.

Hospitality

In recent years, the hotel industry in Shanghai has experienced a fresh wave of service innovations, with a heightened focus on creativity, culture, social engagement and lifestyle offerings.

In September 2023, InterContinental Hotels Group unveiled the Kimpton Qiantan Shanghai. As the first Kimpton-branded hotel in the city, it embraces the emerging trends in Shanghai.

Crafted by the architectural company KPF and featuring interior design by Studio Carter, this boutique luxury hotel comprises 143 guest rooms that seamlessly blend chic Parisian and modern Shanghai elements into its design. This fusion of creativity and modern aesthetics, along with flexible space design, offers an immersive experience that allows guests to indulge in comfort with style. Its close proximity to renowned landmarks such as Qiantan Leisure Park, Taikoo Li, Oriental Sports Center and other commercial and leisure hubs positions it as the top choice for upscale business events, private gatherings and leisure getaways. "Kimpton is different from traditional luxury brands, it is more on lifestyle and a personalized service. It is also a new brand in China. I'm very happy and proud to be part of it, to grow with this brand together and create an exceptional experience for our guests," said Matthew Cooper, general manager of Kimpton Qiantan Shanghai.

Cooper highlighted that the inspiration for the design and concept of Kimpton Qiantan Shanghai stemmed from various distinctive facets of the city. These include the city's rich history as a crossroads of East and West cultures, the sophisticated preferences of local patrons for luxury, and their deep appreciation for authenticity and individuality.

"Shanghai's consumers, especially the younger generation, are increasingly seeking unique experiences rather than just products. Our hotel is designed to be an experience in itself, from the moment guests step in," said Cooper. "We view the Shanghai consumer market as one of the most exciting and challenging in the world. It's a market that demands innovation, quality and a deep understanding of both local and global trends."

In June, InterContinental Hotels Group signed an agreement to open a Kimpton-branded hotel in Fengxian district of Shanghai, and another one in Xuhui district in September, marking the expansion of the brand in Shanghai.

From left: Max Mara's new shop at Grand Gateway 66 in downtown Xuhui district in Shanghai. Kimpton Qiantan Shanghai, unveiled by InterContinental Hotels Group, is the first Kimpton-branded hotel in the city. ASICS' flagship store in Shanghai. CHINA DAILY