Chengdu’s jam-packed mall indicative of the return of ‘revenge spending’
After nearly three years of Covid restrictions, Chinese consumers are now making up for their lost time by going on a spending spree.
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China has recently marked the Lunar New Year holiday after the relaxation of Covid restrictions. People have come out to enjoy the festive season, going back to their pre-Covid lifestyle and taking trips to make up for what they have missed over the past three years.
Official figures show that 308 million domestic trips were made between January 21 and January 27, representing a 23.1% year-on-year increase. The PMI (Purchasing Manager’s Index) for all sectors has increased beyond the break-even point. This improved economic climate has had a positive impact on consumer sentiment as well.
As a popular tourist destination, Sichuan Province welcomed the highest number of domestic travellers during the holiday, with 54 million visitors — largely recovering to near pre-pandemic levels of 2019.
As the capital city of Sichuan, Chengdu was even more alive when Chengdu IFS, one of the city’s most iconic landmarks, unveiled a grand festival-inspired installation, which added an extra layer of vibrancy to the scenic city.
The adorable panda installation is another huge tourist draw, thanks to its cultural relevance to the city and emotional connection between the historic city and visitors from all over the country.
During the week-long holiday, Chengdu IFS recorded a daily footfall that was around 80% higher than the same period a year ago. In total, the mall witnessed close to one million visitors. Foot traffic to the mall’s luxury stores noticeably increased, resulting in a marked rise in sales particularly for watches and jewellery brands.
By the end of 2022, a brand-new Cosmetics Zone was launched. It is populated with various luxury outlets such as the first Burberry Beauty and Chloé Perfume shops in Southwest China. Other renowned beauty brands such as Penhaligon's and Documents were also introduced to cater for the discerning tastes of the region’s increasingly sophisticated customers.
There was a significant surge in the number of visitors and purchases at the Cosmetics Zone, making it one of the most bustling spots in the mall during the holiday.
As exemplified by Chengdu IFS’ bustling scenes, China's tourism and consumption have seen an impressive resurgence. In fact, Chengdu is a major retail hub in Southwest China, driven not only by tourists but also by the residents who show some of the nation's highest levels of consumer optimism.
The KPMG China & DLG report suggests that Chengdu is one of the most popular destinations among local Chinese tourists. Additionally, Barclays notes that, after Beijing, Shanghai and Hangzhou, it has the highest density of luxury stores.
For almost ten years, Chengdu IFS has been home to more than 300 brands. Despite the opening of several other shopping malls in the proximity, luxury brands remain loyal to the mall and continue investing in their local retail stores there.
For example, LVMH's Loewe opened their third ‘CASA LOEWE’ flagship store in China this year in the mall. Graff had its first store unveiling in the Southwest region by making a presence in the mall, while Bulgari and Van Cleef & Arpels both gave their storefronts a makeover last year.
In addition to its existing line of luxury brands, the mall has brought in some more hip new fashion labels such as KIRSH, MAISON KITSUNE and Sacai.
Chengdu IFS offers customers an elevated experience beyond what traditional brick-and-mortar stores can provide. They collaborate with various brands and creators to curate interactive spaces that are designed to engage customers.
These include the TEAM WANG-designed ‘MUDANCE’ pop-up installation, Fendi’s luminous installation ‘FENDIDI’, and the ‘MELON-VERSE’ Immersive Interactive Art Exhibition, just to name a few.
Chengdu IFS is constantly looking for ways to further engage their customers, and they are now taking a multi-faceted approach by leveraging omni-channel marketing channels and privileged membership offerings. This strategy allows them to deliver personalised customer experiences, boost customer loyalty, and generate more revenue for tenants in the long run.
To reach high-net-worth customers, the mall has launched a new Vlog programme, ‘CHANNEL IFS’. This shopping guide features collabs with renowned international brands and VIPs to showcase the mall's fashion and culture leadership.
Over the past few years, Chengdu IFS has been constantly updating their online WeShop store on the WeChat platform to keep up with the latest trends. To draw more online shoppers, the mall has partnered with 200 brands to create special offerings, including 20% that consist of limited products, early-drop items, and exclusive collections specially prepared for holidays.
Despite the promising future of retail in China, the competition will remain fierce. Only those who play their cards right can stay relevant and thrive. Chengdu IFS is a trend-setting shopping mall that is poised to do just that.