Chinese lifestyle brand Shang Xia will open a store on Tmall in March, spiking talk of reconciliation between the counterfeit goods-plagued Alibaba – who owns Tmall – and luxury goods brands. The Hermes-backed brand is preparing to enter the e-commerce arena via Tmall and will directly manage the store, according to an interview with Shang Xia artistic director and chief executive officer, Jiang Qiong Er. “I think Tmall is a quite mature platform. You will get major traffic,” Jiang said in an interview with WWD. “I think it’s great to start with an established platform.” The e-tail venture follows a rollercoaster month for Alibaba. The group was blacklisted in December 2016 by the U.S. for the alleged sale of counterfeit goods via its Taobao marketplace, China’s most popular consumer-to-consumer shopping website. Shang Xia opened its first store in Shanghai in 2010 and has a store in Beijing that opened in late 2012. Shang Xia opened it first store outside of China in 2013, in Paris. The brand’s current flagship store is located in Shanghai, a three-storey maison in Shanghai’s Xin Tian Di neighbourhood at 233 Huaihai Middle Road, which it christened in 2013.
Under a franchise deal, California chain Fatburger is about to establish a presence in Beijing. Known for its made-to-order burgers, shakes and fries, the brand has signed a franchise development contract with Beijing Haisiyamei Restaurant Management, which has committed to build more than 15 Fatburger China restaurants in Beijing. This follows the launch of the burger brand in Shanghai, at Sinan Mansions in Huangpu, about to be followed by outlets at BFC and Shanghai Tower. In the capital city, the first Fatburger China outlet will be at the Grand Summit Beijing, to be followed by another at Gemdale Plaza Beijing Fatburger is aiming to take its all-American dining experience to new territories worldwide, and has opened in 32 countries. It has just launched in the Philippines and has agreements in place for a further 350-plus locations internationally. “Sharing core values with key partners is crucial to the growth of the Fatburger brand throughout the world, and we are certain Beijing Haisiyamei Restaurant Management will successfully introduce our menu to new fans,” says Fatburger CEO Andy Wiederhorn. Fatburger is a fast-casual restaurant serving burgers crafted specifically for each customer. It started its foray in Asia with its parent, Fog Cutter Capital Group, signing a deal with Puji Capital in Shanghai with the aim of expanding across China, Taiwan and Singapore.
Emigration from China is now the lowest the country has seen in five years and 90 percent of Chinese millionaires are more confident in the nation's economic development, according to a new report from Hurun. The report, Chinese Luxury Consumer Survey and Hurun Best of the Best Awards 2017, shows that Apple, Cartier, Chanel and L.V. Moutai are the top five gifts for the Chinese New Year. Real estate moves into the most popular spot for favored investment because of the booming housing market in China. China saw poor stock performance last year, but 64 percent believe there will be a stable rise in price for real estate within the next two years. After a steady increase in emigration since 2013, this year 44.5 percent of consumers are not considering leaving the country, which is a record breaker in the last few years. However, more than half of citizens are considering leaving. Wealthy Chinese consumers have a very high travel rate, with an average of 8 days a month away on business, as well as 10 days for vacation. The super wealthy take an average of 15 days for vacation and both go abroad 3.4 times a year. Chinese ink painting and watch collections are some of the top collection investments this year, and the hobby as a whole is on the rise. Individuals interested in collecting rose five percent this year. As per sports, jogging, golf and swimming maintain their position as the sport of interest for men and yoga for women. Respondents of Hurun’s survey showed that the highest expenses for wealthy consumers are travel, luxury goods and children’s education. This year children’s education beat out luxury goods for second place. Travel is the number activity for leisure among Chinese affluent. Average travel time per month increased by three days this year. Wealthy Chinese individuals’ philanthropic donations rose 50 percent year over year in 2016, according to other research from Hurun Report. Hurun’s rankings of China’s 100 most generous philanthropists found that the top Chinese donors were most apt to support education and disaster relief, with half of the list giving funds to causes in those two categories. Almost one in seven individuals who made the list are new to the rankings, showing a diverse, large audience for institutions that rely on the deep pockets of ultra-high-net-worth individuals for funding. High-net-worth individuals from China highly favor the United States for real estate purchases, with a positive sentiment shared across 66 percent of the demographic. Another recent white paper from Hurun revealed that almost half of high net worth Chinese individuals put stock into overseas investments with 75 percent of total investments. Wealthy Chinese consumers are also highly interested in Australia, Canada, the UK and Japan to place their top investments overseas.
China's investment in property development gained steam in 2016, as investors continued to start new projects amid surging house prices, official data showed Friday. Investment in real estate development grew 6.9 percent year on year in 2016, 1.1 percentage points faster than in the first three quarters, and 5.9 percentage points faster than a year earlier, according to the National Bureau of Statistics (NBS). Factoring in price changes, property investment increased 7.5 percent year on year, the NBS said. For residential properties, investment rose 6.4 percent year on year, and the floor space of new residential construction expanded 8.7 percent year on year. Housing sales maintained steady growth. In terms of floor area, property sales jumped 22.5 percent, while in terms of value, sales rose 34.8 percent. By the end of December, 695.4 million square meters of property remained unsold in China, down 3.2 percent year on year. China's property market has become increasingly diversified, with major cities reporting record prices and smaller cities struggling to reduce inventory. The split picture means the government must strike a balance between curbing asset bubbles in big cities and boosting sales in smaller cities. The Chinese government has been trying to wean the economy off sizzling property development to make it more sustainable. The Central Economic Work Conference at the end of last year set the tone for the real estate market in 2017: stable and healthy development. "Houses are built to be lived in, not for speculation," said a statement issued after the conference. The country will establish a market-oriented long-term mechanism that can curb real estate bubbles and prevent erratic fluctuations. The government will use land, investment, lawmaking, fiscal policy and financial instruments to achieve its aim, according to the statement.
Fulllink Shopping Mall Developer: Beijing Fulllink Property Development Limited. GBA: 30,000m2
China World Shopping Mall Developer: China World Trade Center GBA: 60,000m2
Capital Times Square Developer: Beijing Capital New Times Square Development Co., Ltd GBA: 120,000 sq.m
LE MALL Developer: BWCSC GBA: 290,000m2
Yitian Holiday Plaza Developer: Shenzhen YITIAN Real Estate Group Co., Ltd. GBA: 135,800 m2
Seasons Place Developer: Financial Street Holding Co., LTD GBA: 89,000m2