Shanghai leads nation, Asia in 'first-store economy' race

Ye Gelato's fresh flavor

After expanding its presence in China to more than 1,300 stores, the Chinese-style gelato brand Ye Gelato opened its first global flagship store in Shanghai in early April. Originating in Beijing in 2011, the company seeks to serve the Chinese market with high standard, fresh products.

"China has become the world's largest and most dynamic market for freshly made ice cream. We want to first establish the standards, experience, and product strengths of Oriental gelato in Shanghai, build a solid foundation in the domestic market, and then gradually expand overseas," said Li Yan, head of brand operations for Ye Gelato in East China.

"Shanghai is China's financial center and a city known for its openness, inclusiveness and strong consumer purchasing power. Consumers here also have a higher level of awareness and appreciation of products such as coffee and ice cream," Li noted.

Whether Italian — or US-style products or Chinese ice cream brands, companies are all eager to open stores in Shanghai, which shows the market has been tested and validated, although competition is very intense, Li said.

Ye Gelato emphasizes natural ingredients, with the ice cream made fresh every day without artificial flavors or colorings. The vibrant colors of its products come entirely from natural ingredients.

"We were among the first brands in China to explore the premium freshly made ice cream segment. Our stores now span more than 140 cities nationwide, making us one of the leading brands in the sector," Li added.

The 400-plus-square-meter global flagship store in Xuhui district features six exclusive flavors created specifically for the store, including salted milk tea with milk skin (naipizi), sea salt caramel and Chinese torreya nut.

Li said the first-store economy is more than just a buzzword.

"We want this Shanghai global flagship store to become a benchmark for our stores nationwide. It is also a showcase to the world, showing that Chinese brands can create high-quality ice cream with unique Oriental characteristics," he said.