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Victoria's Secret cracks the code to China's consumption

By WU YIYAO in Shanghai | chinadaily.com.cn | Updated: 2017-02-23 20:12

Thousands of consumers visited US lingerie giant Victoria's Secret's first full assortment store in China during its Shanghai opening on Thursday, one of the latest examples of how Chinese residents' consumption has expanded rapidly, said analysts.

A lingerie brand that attracts so much attention and sees quick growing revenue does not just mean the success of a single brand, said Cao Yaguang, analyst with Shanghai-based Hengle Retail Consultancy Ltd.

"It shows that Chinese consumers are attaching increasing importance on products which are conventionally not basic essentials of day-to-day life, and are willing to pay for what they believe are of good quality and design. Rising purchasing power of females is one of the major reasons behind this situation," said Cao.

Chen Yong, director of the Commission of Commerce for Huangpu district, said more fashion and design brands add to the glamour of a commercial complex, which benefits the overall retail market of a region.

"More varieties of products help to meet consumers' fast changing and expanding demands. Fashion and design are becoming economic growth pillars," said Chen.

"I came up to the store at 2pm and found out that some products of some popular colors and sizes were already out of stock. For young consumers, good design, good fabric and good quality are definitely winning our hearts and wallets," said Xu Miyun, a 22-year-old college student.

According to Victoria's Secret's parent company L Brands, another flagship store in Chengdu is opening soon. The Victoria's Secret models will show up in Shanghai and Chengdu in early March to meet consumers at campaign events, the company said.

The new stores in Shanghai and Chengdu offer a full range of brand products compared with the previous concept stores in China that only sold accessories.

Cao Chen contributed to the story

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