SHANGHAI - Cushman & Wakefield

0Cushman & Wakefield | 2018

SHANGHAICushman & Wakefield

Global Cities Retail Guide


SHANGHAIOVERVIEW

Shanghai has long been an oasis of international shopping. It is increasingly a global financial and economic centre and is the headquarters location for the majority of China’s retailers.

Retail sales for 2017 reached ¥1183.03 billion. With a population of just over 24 million and among the highest disposable incomes in China, Shanghai is the largest retail market in the country by retail sales.

Tourism also adds to the already high levels of purchasing power.

The current stock of shopping centres and department stores in Shanghai is roughly 16.16 million sqm.


EAST NANJING ROADEast Nanjing Road is a traditional mid-market retail area and one of the most popular pedestrian streets in China. The pedestrian area has 600,000 sqm of retail space and attracts tourists from all over China. The area has seen an increase in international fast fashion brands. Retail projects in this area have been under renovation from 2016, including No.1 Department Store, Oriental Department store and Shimao plaza.

SHANGHAIKEY RETAIL STREETS & AREAS

WEST NANJING ROADWest Nanjing Road is Shanghai’s main high-end retail street, where Hermes, Louis Vuitton, Prada, Chanel, Gucci and other high profile names can be found on the western side of the road. The eastern portion of the West Nanjing Road is emerging as a key fast fashion destination with H&M, Uniqlo, Gap and American Eagle present. HKRI Taikoo Hui Project opened in 2016, boasting 99,000 sqm and becoming the new destination of retail. CSI project in Wujiang Road plans to start renovation in October 2018.

MIDDLE HUAIHAI ROADMiddle Huaihai Road is home to an exciting mix of fast fashion and luxury brands and is popular with Shanghai fashion lovers, with the popular F&B area Xintiandi only blocks away. This area has welcomed major stores such as Apple, Dolce & Gabanna and Victoria’s Secret. K11 will launch a series of pop-up stores in 2018, including Coco Game Centre and Supreme.

XUJIAHUI Xujiahui is a mature retail submarket whose buildings are well-served by public transportation and connected by walkways, with a wide range of department stores and shopping centres including strong performer Grand Gateway 66. In recent years, Grand Gateway 66 has upgraded its tenant mix. New Project ITC developed by SunHongKai will join in Xujiahui in 2019. Xujiahui circle bridge will be completed at the end of 2018, which connects several shopping malls together, providing convenience for customers.

LUJIAZUILujiazui is Shanghai’s main financial centre, and as such the retail centres here tend to be more upscale. The area boasts two mega-malls, Super Brand Mall and IFC Mall. The IFC Mall is currently one of Shanghai’s most appreciated luxury malls, with anchor tenants such as Gucci, Bvlgari, and Cartier. A new high-end mall “L+Mall” will open in late 2018, with the anchor of Lafayette.


SHANGHAIMARKET OVERVIEW

KEY AREAS/STREETS/SHOPPING CENTRES

CONSUMER PROFILE MAJOR RETAILERS PRESENT

NEW ENTRANTS TYPICAL RENT FOR 200 SQM UNIT

RANGE OF UNIT SIZES

Najing East Road31.236390, 121.482423

International and domestic tourists

Zara, Uniqlo, Gap, Nike, Lily, Baleno, MetersBonwe, Bosideng, Lining, forever 21

Lego ¥50 - 97 per sqm/day 50 - 2,000

Najing West Road31.228306, 121.456130

Regional and domestic Chinese luxury consumers

Hermes, LV, Gucci, Prada, Cartier, Tiffany & Co., Omega, Rolex, Uniqlo, H&M, Sephora

Dyson, Iprimo, Atelier Cologne, StarbucksRoastery, Valextra, Natura Bisse

¥60 - 120 per sqm/day 80 - 1,500

Middle Huaihai Road31.221963, 121.470774

Mainly attracts local Shanghai professional workers and some international tourists

Dolce & Gabbana, Burbery, Coach, Gap, H&M, Adidas Flagpship

Gentle Monster, LineFriends ,Victoria’s Secret, Oppo Flagship ¥30 - 105 per sqm/day 100 - 3,000

Xujiahui31.194105, 121.438064

Local residents and workers, younger age groups and students

Gucci, Juicy Couture, Hugo Boss, Zara

ACBC, ITO, Qeelin, Pandora, Space NK, Tasaki ,Les Nereides ¥63 - 100 per sqm/day 150 - 800

Zhongshan Park31.219111, 121.416680

Targeting middle income residents in the west part of Shanghai.

i.t., CK Jeans, H&M, G-Star

Life Fitness, Nars, Refined City,Cos, Onitsukatiger, Boy London ¥29 – 50 per sqm/day 150 - 1,200

Wujiaochang31.300270, 121.514057

Targeting local residents living in the surrounding area.

H&M, Sephora, Uniqlo, Zara, C&A, Muji ,New Look

Massimo Dutti, Viviennewestwood, Harbor House, Pred perry

¥25 - 67 per sqm/day 80 - 800

Lujiazui31.238086, 121.501607

Wealthy financial centreworkers, residents from surrounding areas, and international and domestic tourists

Hermes, LV, Gucci, Prada, Chanel, Burberry, Dior, Giorgio Armani, Muji, H&M

Thom Browne,Christian Louboutin,Alice Olivia ,Tous

¥ 40 – 150 per sqm/day 100 - 500


HKRI TAIKOO HUIHKRI Taikoo Hui is a prime shopping mall in Nanjing West Road. It is home to various multinational and domestic tenants such as Chanel and Dyson. It is the first choice for new brands and concept stores entering into Shanghai like Starbucks Roastery.

PLAZA 66Plaza 66 is situated on Nanjing West Road. This shopping mall is focused on the luxury segment, with an impressive array of global luxury brands, such as Louis Vuitton, Prada, Chanel, and Hermes.

SHANGHAISHOPPING CENTRES

KERRY CENTREThe Kerry Centre is a premium shopping centre on Nanjing West Road targeting middle to high income consumers seeking trendy luxury fashion and innovative design brands. Key tenants include Burberry and Abercrombie & Fitch.

GRAND GATEWAYGrand Gateway 66 is the busiest shopping mall in Xujiahuiwith the greatest variety of brands, F&B and entertainment. Grand Gateway 66 is devoted to high end brands, and there is a significant waiting list of brands wanting to enter the project.

IAPMThe International APM Mall offers office, residential, and retail space on Huaihai Middle Road. The largest mall in that location, it provides a full product range in their IAPM location, the first store opened by the brand in China, and Givenchy has announced a new flagship store in the centre.

IFC MALLIFC Mall is the most luxurious mall in Shanghai. Unlike its major competitor Plaza 66 in Puxi area, IFC has a larger retail GLA allowing it to cover a more comprehensive range of categories, and a broader range of price points.

RAFFLES CITYRaffles City is one of the most popular fashion landmarks in Shanghai, targeting younger consumers. Raffles is targeted by many new mid to high international fashion brands entering the China market, including SamathaThavasa and Superdry.


SHANGHAIFOOD & BEVERAGE

KEY AREAS CONSUMER PROFILE FOOD & BEVERAGE OPERATORS

RENT FOR 350 SQM UNIT

Middle Huaihai Road (Xintiandi)

Office staff, local residents and expatriates.

Lady M,Kabb, Wagas, Element Fresh, Oyama Sushi

¥ 25 - 30 per sqm/day

The Bund Affluent local people and expatriates.

Jean Georges, Mr & Mrs Bund, Omakase, Jean Georges, M on the Bund


French Concession Affluent people both domestic and international.

Osteria, Lost Heaven, Pirata, Green and Safe


Nanjing East Road International and domestic tourists

Shendacheng, KFC, McDonald’s, Pizza Hut


Nanjing West Road Regional and domestic Chinese luxury consumers.

Seul & seul , Saigon Mama ,UMI,Starz Kicthen


Yu Garden International tourists and local residents.

Nanxiang Crab Soup Bun ,Local snacks

¥ 25 – 30 per sqm/day

Lujiazui

Wealthy financial center workers, residents from surrounding areas, and international and domestic tourists.

Lady M ,Morton’s, Jumbo Seafood


According to the 2017 China consumer report released by CBN Data, Shanghai ranks No.1 in the national index of F&B consuming power, and consumer tastes have diversified further.

F&B is becoming an important role in shopping centres which could take over 50% of the tenant mix. Michelin released 2016 Michelin Guide Shanghai, which raised new fine dining trends.


WE ARE

LEADING INNOVATINGTRUSTEDEXPERTSONE TEAMCLIENT FIRST CREATING OPPORTUNITIES

GLOBALNo warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and the same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals.

© 2018 Cushman & Wakefield LLP. All rights reserved.

ROBIN RAOHead of Retail, East ChinaCushman & Wakefield 42F, Tower 2, Plaza 66, 1366 Nanjing West Road, ShanghaiTel: +86 (0)21 2208 0230Mob: +86 [email protected]

WEIYING GUOManager, Retail Tenant Representation, ChinaCushman & WakefieldUnits 2606-2609, The Headquarters Building168 Xizang Zhong Lu, Shanghai, ChinaTel: +86 (0)21 2320 0816Mob: +86 139 1748 [email protected]

Documents

SHANGHAI - Cushman & Wakefield