Shanghai leads nation, Asia in 'first-store economy' race

More than 8,400 brands have chosen Shanghai as the location for their first stores, and while the reasons behind each decision may vary, they all point to a shared recognition: the city's powerful appeal to brands from around the world.

The debuts include global, Asian and national firsts.

For international brands, launching their China stores in Shanghai offers a valuable testing ground for entering one of the world's largest consumer markets. A successful debut in the city is often seen as a strong indicator of the broader potential in China. For homegrown brands, meanwhile, establishing a presence in Shanghai provides a springboard for expanding beyond domestic markets and reaching global consumers.

"This marks a new stage in Shanghai's 'first-store economy', shifting from one-way brand introduction to a more dynamic exchange between global and Chinese brands," said Kelvin Li, managing director of East China at Cushman & Wakefield, a global real estate services firm.

"Many of the emerging Chinese brands we work with choose to open their global flagship or debut stores in Shanghai not simply to boost short-term sales. Their goal is to tap into the city's global fashion networks, supply chains and international media resources," Li noted.

Shanghai has become a window through which the world can discover the creativity and design capabilities of Chinese brands, Li added.

Zino Helmlinger, head of retail leasing at CBRE China, a United States-based commercial real estate services and investment firm, said there is a common saying in the industry: "If you haven't succeeded in Shanghai, you haven't succeeded in China."

"Shanghai is one of the most competitive but also rewarding retail markets in the world. The city functions as a living laboratory for new-to-market concepts. Across every segment, from fast fashion to ultraluxury, some of the best-performing stores globally are located right here," Helmlinger said.

The combination of consumer sophistication, a concentration of spending power, and a genuine appetite for discovery continue to draw both international and domestic brands to plant their flags in the city first, he said.