BEIJING: As new brands become key in driving traffic to China’s urban commercial spaces, the sustained rise of the “first-store economy” has further stimulated consumer appetite.
First-store economy refers to a model in which various regions leverage their unique resources to attract domestic and international brands to open their first stores there.
It is seen as a major element in the debut economy, a consumption model where brands unveil new products or services to attract consumers and drive purchasing behaviour.
By clustering these stores through favourable policies and services, this economic model aims to foster business innovation, promote consumption upgrades and push local economic growth.
Currently, first stores have become one of the most significant channels for generating substantial foot traffic and empowering commercial complexes.
For instance, when Beijing’s Haidian Joy City opened its doors in December, nearly 30% of its stores were debut locations. On its opening day, the mall attracted over 216,000 visitors, with sales reaching about 17.8 million yuan.
“I find the concept of first stores quite special as they offer a completely new shopping experience. I am curious to see what’s inside, and this curiosity pushes me to visit and check it out,” said a consumer surnamed Yang.
According to data from Beijing’s bureau of commerce, about 900 first stores opened in the city in 2024, including both international and local brands.
As a major enabler of urban commercial development, the emerging business model not only attracts high quality projects such as first stores, flagship stores and concept stores, but also stimulates the emergence of new products and services.
“This in turn energises urban consumer activity and boosts industrial upgrades and economic growth,” said Lai Yang, executive vice-president of the Beijing Commerce Economy Association.
As more cities ramp up focus on this new economy, first stores are gradually expanding beyond the traditional first-tier metros like Beijing, Shanghai, Guangzhou and Shenzhen, to second and third-tier ones.
On Jan 1, multinational restaurant chain Domino’s Pizza unveiled its first store in Shijiazhuang, Hebei province, witnessing long queues on the opening day.
“In recent years, I’ve noticed an increasing number of international brands setting up stores in Shijiazhuang,” said a local customer surnamed Wang. “Now, I no longer need to travel to other cities for those brands. I can find everything here.”
Over 200 well-known brands have opened their first stores and flagship locations in Shijiazhuang during the past three years.
The first stores are primarily located in core commercial districts and shopping complexes, with a focus on food and retail sectors, said Ma Yongning, an official with Shijiazhuang’s bureau of commerce.
Similarly, hot pot chain Xiabu Xiabu also opened nine new stores in cities such as Beijing, Shanghai, Hangzhou, and Qingdao during the New Year’s Day holiday.
The company said it would continue to innovate and improve services during the “golden month” of January and leverage new stores for stronger growth momentum. — China Daily/ANN
