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Jun
2015

City Report Shenyang

Shenyang is the capital of Liaoning Province and the largest city and transportation hub in Northeast China.At the core of Shenyang Economic Zone, it has a GDP of 501.7RMB billion 2010 which is approximately one-third the size of Shanghai’s. Known throughout China as the “home of machinery”, the city’s heavy industrial base and its competitive manufacturing capabilities have made it a favoured destination of firms in the industrial sector. Multinational businesses already established in Shenyang include General Motors, Coca Cola, BMW and Siemens.

 

Economy

Shenyang has a metropolitan population of over 25 million (slightly smaller than the Yangtze and Pearl River Delta regions), in 2010, the average salary in Shenyang was RMB 38,553 ($6,120) which is 76% of the average salary in Beijing and 82% of that in Shanghai. The total retail sales of consumer goods was 206.25 billion RMB with 18.3% growth rate in 2010 compared to 2009.

 

Government policy

Shenyang’s rising importance is evidenced by the growing presence of major multinational companies and to maintain this trend, the local government is also implementing measures to move the city’s production credentials further up the value chain, by facilitating the establishment of IT, electronic, finance and service sectors.

 

Luxury Retail Distribution

Shenyang also has one of the country’s greatest concentrations of luxury vendors and retail space, making it the third largest market for luxury goods in China. The city’s position as a premier shopping city indicates a strong future for the retail market, particularly on Taiyuan and Zhongjie Street, the city’s most popular shopping areas, and in the Golden Corridor area, the emerging luxury shopping district.

From luxury commercial development of Shenyang, there are four centralized luxury consumption areas: Taiyuan Street in the west, focusing on the New World Department Store and Zhongxing commercial buildings; Central Shenhe District, including several high-end stores around the City Plaza. Wulihe region in the south is mainly high-end department stores such as Shenyang Seibu; the fourth-largest area is concentrated near the Second North Road in Tiexi District, which is a focus for luxury car distribution.

The most popular department stores in Shenyang are the Zhongxing Commercial Building, the Happy Family store and the Commercial City department store, which are all located in the Taiyuan and Zhongjie Street areas and target mid to high-end shoppers. The Zhongxing Commercial Building is the most successful retail property in the city, with sales exceeding
2 billion RMB in each of the past five years.

Shenyang Zhuozhan Shopping mall

Opened in 2006, Shenyang Charter Shopping Centre lies at the core of the CBD commercial centre, which is in the middle of Shenyang’s landmark ‘golden corridor’. As a result of its fashion style Zhuozhan has gradually become a landmark of the city. The brands in Zhuozhan shopping mall include Louis Vuitton, Gucci, Dior, Audemars Piguet, Armani, Aquascutum, Balenciaga, Burberry, Bally, Bulgari, Chloe, Chanel, CK, Cartier, Celine, Dunhill, Zegna, Fendi, Givenchy, La Mer, Max Mara, Mont Blanc, Versace and Wedgwood.

The New World Department Store

Based in Nanjing Street it was the first luxury shopping mall in Shenyang, which has been introducing luxury brands since 1995. It has an elegant and stylish atmosphere and the first floor hosts more than 20 top international luxury brands, including Giorgio Armani and Ermenegildo Zegna.

The Zhongxing Commercial Building

As the department store with a long history, Zhongxing Commercial Building is seem as a reliable shopping location for the people of Shenyang. Within it are over 30 luxury brands making it popular for its fashion focus. Brands here include in Cartier, Burberry, Ralf Lauren, Givenchy, Coach, Vertu, Mont Blanc, Rolex and Emporio Armani

Maison Mode

Opened in 1994, Maison Mode lies in the Zhonghua Road commercial hub in Taiyuan Street, the main commercial centre in Shenyang. A stylish brand in its own right, Maison Mode can be found in various cities across China, each store having different characteristics. The Shenyang Maison has introduced many international brands, such as Bally, Givenchy, Salvatore Ferragamo, Omega, Piaget and Paul & Shark since its opening.

The MixC

Opened in 2011, the MixC in the Golden Corridor is emerging as one of the most prominent high-end retail schemes in Shenyang, attracting a number of luxury brands such as, Hermes, Fendi, Ermenegildo Zegna, Prada, Burberry, D&G, Miu Miu, Tod’s, Bulgari, Max Mara, Hugo Boss and Cartier.

 

Consumer attitudes

The watch sales performance in Shenyang is often ranked top in the nation, high-end consumers from surrounding cities, in addition to the local population are attracted to visit and spend on them. According to a China High-end Consumer Survey conducted by Dunn & Bradstreet, conspicuous consumption defines the style of Shenyang luxury consumers; they pay most attention to famous brands and the price of products.

Shenyang people are by nature of their location and historical influences considered ‘very solid characters’, with a sense of obligation and mutual affection. Around the city, thick gold necklaces can be seen in the downtown business district as people demonstrate their own economic strength. Typically consumers must choose well-known expensive brands, rather than less known yet expensive ones. These consumer characteristics will continue to make Shenyang a principal battlefield for all luxury brands over the coming years.

 

Editors view

Shenyang luxury consumption is among the nation’s top four.

According to the D&B China Luxury Report 2011 Shenyang has the fourth highest level of luxurysales in China following Beijing, Shanghai and Hangzhou.Statistics show that up to 2011,Shenyang had more resident luxury brands than other tier two cities in the North East such as Dalian, Harbin and Changchun. Location is probably a key advantage for the city and is why sales are so high. As the central city in northeast China, and the core city of Shenyang Economic Zone, the luxury goods radiation sphere of influence includes local consumers in addition to those from Anshan, Fushun, Benxi, Yingkou, Fuxin, Liaoyang, and Tieling cities.

In addition to its heavy industry, this part of China has rich natural oil reserves, so comparisons could be made to the gold rush in the USA. Many locals have become wealthy relatively quickly and need a means to spend money and show off their improved status. Their knowledge of luxury products is limited, so purchase decisions are principally made on recognition of brand names and price.


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