Increasingly, incentives encourage 'first stores' to launch in Beijing

An increasing number of brands have chosen Beijing as the location for their first flagship stores in China in response to recent incentives offered by the capital, including providing subsidies to fuel the economy.

During the first six months of this year, 434 "first stores" have been set up in Beijing, double the number launched last year in the capital, according to data from the municipal government.

With the Universal Beijing Resort opening recently, it is expected that another group of first stores will make their debut in the city.

First stores refer to a brand's initial brick-and-mortar shop. In Beijing, they are usually located in popular business areas such as Sanlitun and Guomao, which is also known as the CBD(Central Business District).

More than 30 percent of 434 first stores launched in Beijing have chosen the CBD as their location.

FAO Schwarz, one of the world's oldest toy companies, opened its first store in the CBD's China World Mall in May 2019. Kidsland International Holdings, a Beijing-headquartered toy retailer, introduced the brand to China.

"The introduction of FAO reflects our confidence in the potential of the Chinese economy and market development in Beijing," said Zhong Mei, managing director of Kidsland China.

FAO has benefited from the capital's policies on first stores, including receiving 5 million yuan ($770,000) in subsidies from the municipal government.

"It has special meaning to companies like us, as it shows the government is serious about their commitment and is really providing concrete financial support, which we believe will be very important and helpful in boosting the economy," Zhong said.

"Beijing has been developing its shopping options, which looks promising."

According to a recent document issued by the Beijing Municipal Bureau of Commerce, international brands opening first stores in Beijing can receive subsidies of up to 5 million yuan, while domestic brands, including those from Hong Kong, Macao and Taiwan, can receive up to 2 million yuan.

Cao Xiang, executive director of China Nobleness International and founder of Choo Noble Art Interactive Cafe, said Beijing residents have huge consumption power, which led her to open the store in China World Mall.

"The mall has given us lots of support in space and branding," she said.

During the first half of the year, 87 first stores set up in Sanlitun, which is considered the capital's fashion center.

At the beginning of this year, Be Gallery, a multi-retail space displaying art works and offering photography services, opened its first store in Sanlitun, aiming to provide a premium space for art enthusiasts to visit while shopping.

Jiang Lin, co-founder of the brand headquartered in Shanghai, said the store in Beijing was opened with a totally new concept tailored for residents.

"The government's policies on first stores was a good incentive for us," he said. "The local government, as well as TaiKoo Li Santilun, has offered us lots of information, which has been very helpful."

At Be Gallery, products are presented as art exhibitions. Customers can purchase items such as candles, hair and skin care products and home accessories from all over the world.

Patrons can also take customized portrait photos at the photo studio Naive Blue, which is part of the Be Gallery space. "The store blends art and beauty, which we believe is the capital's fashion trend," Jiang said.