Green shoots sprout in fashion landscape

Visitors to Taikoo Li Sanlitun, one of Beijing's leading fashion and lifestyle destinations, can hardly miss the shift underway this winter.

Three freshly opened stores — Dior, Tiffany & Co and Louis Vuitton — stand next to each other, creating a highlight for the Fashion Expo, which opened in December in the commercial complex.

The three freestanding buildings with bold, sculptural facades have emerged as new retail landmarks. The clustering of these high-profile luxury stores is more than an architectural upgrade. It is being read by industry experts as a signal that China's fashion and luxury market is recovering — and that global brands have strengthened their long-term confidence in the market.

Andrew Wu, president of LVMH Greater China, regards these recent new openings and investments in China's high-end retail sector as long-term commitments to the China market and confidence in its future growth.

"Especially true for the successful international luxury brands, there is a strong belief in long-term cultivation," he said."Our group as well as our industry have taken decades to develop our China businesses and serve Chinese consumers, and that does not change."

In the renewed Taikoo Li Sanlitun North, where the retail mix has just evolved, an array of flagships from toptier luxury houses — including Loro Piana and Rolex — is inviting contemporary fashion dialogues with the capital city's ancient courtyard heritage.

For example, the House of Dior is the work of famous French architect Christian de Portzamparc. The building houses the first "Monsieur Dior Restaurant" in China led by a Michelin three-star female chef.

The Maison Louis Vuitton store combines retail with the first Le Cafe Louis Vuitton in the city — the brand's third such cafe in China following ones in Chengdu, Sichuan province, and Shanghai.

Also close by is the Tiffany & Co flagship, Saint Laurent Rive Droite, Rolex, as well as Polene debuting its first store in China, and Lemaire making its first market entry in the northern China marketplace.

Since October, more than 38 luxury brands have opened or renovated their stores across the Chinese market, including Chanel, Boucheron and Ralph Lauren, said LuxCo Intelligence.

The top global brands' new openings, backed by far-reaching extravagant marketing events, have brought worldwide attention to China.

In the case of Louis Vuitton's ship-shaped "The Louis", which opened in Shanghai on June 25, that has become a social phenomenon with integration of brands, shops and restaurants, exciting the general public and reviving neighborhood retail. The destination has attracted domestic and international tourists alike, Wu said.

He credited China's rising influence in the international fashion industry to its large market scale and its youthful energy.

"China's younger generations since the turn of this century have been an enormous driving force to help in our industry expansion, from those born in the 1980s, to those born in the 1990s, and now to include those born after the year 2000 — each wave more fashion sophisticated than the previous," said Wu.

Young Chinese consumers are most sensitive to global trends and readily embrace new products, styles and aesthetics.

"Fashion needs participation by young people always, and young Chinese people are active participants, adding to our never-wavering confidence in our future with China." Wu said. "We grow together with China, also welcoming the China market to become more influential in the global industry."

That influence, many industry executives feel, is no longer just about purchasing power. As Chinese consumers mature, they become more discerning across both imported and domestic brands. Emotional value, cultural resonance and storytelling connection are all increasingly central to consumption.

According to a report by Bain & Company and Altagamma, the Italian luxury goods manufacturers' industry association, the expected stability and resilience of overall luxury spending this year masks far-reaching and significant structural shifts under the surface of the luxury marketplace as consumers increasingly choose experiences over buying new luxury possessions.

"After the shopping spree era, experiences and emotions have become the true engine of luxury growth," said Claudia D'Arpizio, senior partner at Bain & Co.

Domestic brands have also quickly gained popular appeal, such as leather goods brand Songmart, gold jewelry brand Laopu and collectibles toymaker Pop Mart. The impact of such a transformation on Chinese consumers has yet to be seen.

Over the past decade, China's retail sector has undergone a fundamental transformation. E-commerce platforms have pushed convenience to an extreme, reshaping consumer expectations around speed, price transparency and access.

While that efficiency is for purely transactional shopping, Wu said, "So-called 'new retail' is not just online, but also offline, demanding re-imagination for improved physical retail and innovations to create an experiential and socially connecting environment."

Taikoo Li Sanlitun has positioned itself not only as a shopping destination, but also as an urban space that relates to the young urban community in terms of fashion, food and culture.

This month, the complex unveiled a campaign "Fashion Expo", featuring a pair of sculptures "Travel Angel" for the landmark, created by Spanish artist Jaime Hayon.

The commercial complex has broadened its lifestyle offerings, including Feng Full, the first nationwide fusion-dining concept from heritage brand Lao Ding Feng. Emerging lifestyle brands such as Descente have also presented a trendy culture to attract more younger consumers.

"Since opening in 2008, Taikoo Li Sanlitun has witnessed China's evolution from a participant in global fashion to one of its key trendsetters," said CT Ma, general manager of Taikoo Li Sanlitun. "We hope to use Fashion Expo to bring together cutting-edge global fashion and multicultural experiences to create a more refined, trend-inspired lifestyle destination."