Yahoo Sports Chanel Arrives in Lower-tier Cities in China with Zhengzhou Opening
LONDON — Following high local anticipation since hoarding went up, Chanel earlier this month unveiled its 9,050-square-foot store at David Plaza, the first high-end luxury mall in Zhengzhou, the provincial capital of Henan.
Designed by the brand’s long-term collaborator, architect Peter Marino, the ground-floor location offers ready-to-wear, handbags, shoes, costume jewelry and eyewear, along with a selection of watches and fine jewelry pieces from the Coco Crush, Camélia and Comète collections.
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The brand’s first store in the region of central China has seen long lines forming daily outside the store since its opening, according to posts on Xiaohongshu.
One user said the store is busy even at night, as big spenders in neighboring cities such as Wuhan, where Chanel is not available, are traveling to Zhengzhou by high-speed train to shop. Another user said she was told by the sales associate that the store comes with the biggest shoe area in mainland China.
The black and white Christmas tree adorned with Chanel logos and clovers at the entrance was an instant hit among shoppers.
Zhengzhou might not be a familiar name that pops up often in Western media, but the city with 12.6 million population remains one of the most economically important cities in inland China. It is a key industrial and trade hub with more than 100 million people living around it. It is the 16th wealthiest city in China in terms of nominal GDP.
According to Raymond Cao, general manager at David Plaza, the local wealthy customer “is eager to be educated by luxury labels. We are a market of over 100 million people, there’s a lot of potential.”
“The opening has been very received, pretty much at the same level as what they have expected,” he said.
He added that for the first half of 2023, footfall at David Plaza increased 47 percent compared to the same time last year. Retail sales jumped 60 percent, driven by luxury sales.
Chanel is catching up steadily with its peers in terms of embracing China’s expansive lower-tier city market. Compared to Chanel’s 18 locations, Hermès operates 33 stores across mainland China.
In an interview with WWD earlier this year, Bruno Pavlovsky, president of fashion and president of Chanel SAS, said the Zhengzhou location choice reflects the company’s unwavering and steady approach to retail.
“We will expand, but at our pace, which means not too fast,” said Pavlovsky.
The brand operates stores in first-tier cities Beijing, Shanghai, Shenzhen and Guangzhou, as well as major regional hubs like Chengdu, Nanjing, Shenyang, Dalian, Xi’an, Hangzhou and Harbin. It is set to open two more stores in Chengdu, and one more in Nanjing next year.
Navigating through China’s tough economic headwinds, the brand has been betting on big spenders. In 2023, the brand rolled out two VIP salons, or Chanel Les Salons Privés, in Guangzhou and Shenzen, and recently expanded its VIP salon in Shanghai’s Plaza 66. It operates one VIP salon in Beijing and one in Hangzhou as well. It’s understood that the Guangzhou and Hangzhou ones are not permanent locations.
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