As fears of a slowdown in the Chinese economy gain volume, some brands are becoming less enthusiastic about investing in stores in China. Jerry Clode, the Director of SMART, argues in his latest article that retail stores are vital to creating relationships with Chinese consumers – especially for aspirational brands.
Writing in Branding in Asia, Jerry explains that retail experience forms a fundamental part of Chinese consumers’ conversations about brands – face-to-face or online. Not having a strong retail presence in China is like introducing a ‘circuit breaker’ in terms of your brand’s adoption by Chinese consumers.
In the article, Jerry also shares how brands who invested in retail presence in developing 2nd tier cities such as Chengdu, have leapfrogged more traditional luxury brands in the terms of local perception of premium-ness. Read the full article from Branding in Asia here.