Retail / news
Chinese brands retune overseas expansion around store productivity and localisation
Chinese retailers are moving away from rapid overseas store openings in favour of store productivity, localisation and brand building, with Hong Kong and Southeast Asia identified as key growth markets in a Savills retail occupier report.
Competition and margin pressure at home are pushing Chinese retailers to reconsider how they grow outside the mainland, with expansion plans becoming more selective rather than purely pace-driven.
Under the revised approach, brands are reviewing underperforming locations, upgrading flagship stores and putting more investment into local operating capabilities, according to Savills' Inside Occupier Strategy - Retail report.
Hong Kong and Southeast Asia have emerged as the main markets for Chinese retailers seeking international growth. The push is also widening beyond food and beverage and value retail into fashion, jewellery, beauty and lifestyle categories.
Rather than competing chiefly on price, brands are leaning on design, cultural identity and customer experience to stand apart. Physical stores remain central to that effort, with outlets used as showrooms and social destinations that demonstrate product quality, engage shoppers and steer online audiences towards in-store purchases.
Southeast Asia offers Chinese brands a chance to broaden their customer base, supported by rising incomes, urbanisation and demand for affordable-premium products. Differences in consumer behaviour, regulations, purchasing power and logistics mean strategies still have to be tailored market by market.