Luxury goods find 2nd tier cities

Shopping malls with super luxury stores have been common for years in Shanghai, Beijing and Guanzhou. But they are now popping up even in secondary and tertiary cities.

I spent a day this week in Changchun, the largest city in Jilin province, which is in northeast China’s former rust belt. And the hotel I stayed in was across from the new Zhuozhan Shopping Center, which was packed with luxury brand stores, like what you see in the photographs.

The multi-story Louis Vuitton store seemed almost as big as one of their big stores in Tokyo.

Some people are getting very rich in China’s provinces.

This story says China has risen to become the second largest market in the world, after Japan, for luxury goods.

Is it just me, or are there more Porsche SUVs on the streets of China these days? There certainly were plenty on the streets of Changchun.

No, it’s not just me. A cursory search finds this story about double-digit growth in China. Porsche, a luxury German sports car maker, has 19 outlets in China. 

Comments

[Jeff]

How is the story of poor children of Yi minority going?

[a gore]

how empty can a new mall get? Security guard, cleaning lady, shop keeper. There aren't any shoppers!

[lala land]

Don't know about the Porche, but the May issue of National Geography ranked China as first in the hottest markets for Rolls-Royce.

[A B]

The rush for "luxury goods" as a sign of status is something that will come, and then go.

Mind you, a bona fide market of considerable proportions will develop simply because of the number of people who could afford it.

Take a look at Japan, Hong kong, etc. and you will get a pretty good sense of what sort of a sustainable market is there.

[sunbin]

i saw bally & ferragamo shops in 2002 in changchun.

[China Law Blog]

Qingdao has a Ferrari dealer. Need I say more?

[XiaoBaiCai]

America remains the world's largest luxury market.
Japan is second, but China is expected to overtake it within five to 10 years.
If you cannot get a basic fact correct, how are we to believe what you say about Tibet, human rights violations, etc?

[Tim J]

XiaoBaiCai, Japan is the world's largest luxury market and China will soon overtake the U.S. Simply Google "world's largest luxury goods market" and you will see this reported in numerous places, including a recent Ernst & Young study. Do you know how to Google? Also, if you think my credibility is at stake, note that the link was to a Xinhua story.

[Phil]

The "new Zhuozhan Shopping Centre" is not that new. I recall that it opened around the same time as the Shangri-La hotel next door in 1996. Certainly the luxury shops have been there since 2000 when I moved to Changchun.