Trends reshaping premium retail market

For Swire, the challenge is turning that market shift into a long-term competitive advantage.

Poraj-Wilczynski's immediate priority is delivering the company's pipeline on the Chinese mainland, including Taikoo Place Beijing, Taikoo Li Xi'an in Shaanxi province, and Taikoo Li in Sanya, Hainan province.

The expansion of Qiantan Taikoo Li in Shanghai alone will more than double its retail space to about 259,000 sq m by the end of this year.

But Poraj-Wilczynski said scale alone is no longer enough. "Customers are demanding much more from physical retail," he said. "Brands want places where they can tell their stories."

That philosophy has shaped Swire's approach of tailoring each development to its surrounding community rather than replicating a standard mall format.

Chengdu Taikoo Li is one example. Built around traditional architecture and public spaces, the development has become part of the city's lifestyle landscape, with cafes, restaurants and independent retailers benefiting from the traffic it generates.

"If the city feels it cannot live without your development," Poraj-Wilczynski said, "then you're doing a good job."

The tenant mix is also changing.

Luxury retail landlords, who have long valued European fashion houses, are now also embracing Chinese brands with strong brand identities and distinctive retail concepts.

Poraj-Wilczynski cited Songmont, Icicle, Laopu Gold and Pop Mart as examples of domestic brands creating experiences that attract consumers beyond their products.

Sportswear, outdoor lifestyles, wellness and premium dining are also becoming increasingly important traffic drivers, particularly among younger consumers who grew up with e-commerce but continue to seek social experiences offline.

Sanlitun reflects that evolution. Areas once dominated by luxury fashion now feature sportswear and outdoor brands, while international visitors increasingly view Chinese labels as destinations themselves.

Food and beverages have also become a key attraction.

"When people go out for a meal now, they want the highest quality, they want something new," Poraj-Wilczynski said. "It is that really premium physical experience that gets people into the malls."

Swire's largest mainland investment, Taikoo Place Beijing, scheduled to open in phases from late 2026, reflects a broader redefinition of commercial real estate. The project combines offices with retail, restaurants, green spaces and cultural venues.

"The office isn't just where people work anymore," Poraj-Wilczynski said. "People want somewhere they can meet clients, experience culture, exercise and then return to work."

Future investments in the Chinese mainland market will continue to focus on distinctive locations where developments can become integrated into the surrounding city, Poraj-Wilczynski said.

He pointed to Taikoo Li Xi'an, located opposite the Small Wild Goose Pagoda, as an example of how the company seeks to incorporate local heritage into modern retail.

"There is a huge amount of consideration for that local heritage and culture," he said. "It is something that we have the skill set to create something very unique."

For Swire, the future of China's retail market will not be measured simply by the amount of space developers build. It will depend on whether those spaces become places consumers choose to spend time — and return to.

wangzhuoqiong@chinadaily.com.cn