SKP Beijing, a luxury shopping center, is embracing a mix of technology, art and fashion to take on online rivals and attract younger customers.
In a digital age when many tech savvy Chinese consumers only shop online, SKP Beijing, the brick-and-mortar shopping center located outside the city's third ring road, sold goods worth 1.01 billion yuan ($145 million) in a single day in November last year. The record-breaking revenue was generated from more than 70,000 consumers.
In 2018, Beijing SKP's sales revenue climbed to 13.5 billion yuan, second globally only to Harrods in London. In China, Deji Plaza ranked second with revenue of 10 billion yuan.
Harrods in London, SKP in Beijing, Le Bon Marché in Paris, Selfridges and Liberty in London remain the top five most productive stores in the world in terms of estimated sales per feet, according to the Sybarite Report 2019－the Future of Luxury Retail. The report was conducted by Sybarite and GlobalData.
According to Joseph Robinson, GlobalData retail consulting director, "the highest ranked retailers are all benefiting from their pro-activity in investing in their stores, helping them to offer differentiation and unique shopping experiences.
"This is particularly important against the backdrop of the relentless rise of online penetration, and the increasing focus among luxury brands on going alone with standalone stores."
SKP Beijing ranked second globally, with annual retail sales per square foot hitting $1,997 in 2018, according to the report. Founded in 2007, SKP Beijing was previously known as Shin Kong Shopping Center with 50 percent stakes each held by Beijing Hualian Group and Shin Kong Mitsukushi group, with the latter in charge of management. In 2015, Beijing Hualian Group acquired the majority of the shares from Shin Kong and started to manage the store itself.
Ji Xiao'an, chairman of Beijing Hualian Group, said during an industry group research trip to Beijing SKP, that SKP's focus on retail, high-end products and services has cultivated a loyal group of consumers. SKP has accurately targeted its consumer group and designed a package of services based on their needs.
The shopping center has been able to ensure its consumers return through gifting and coupons rather than discounts or promotions.
Beijing SKP sells about 827 luxury brands including Hermes, Chanel, Louis Vuitton, Dior and Gucci, and has collaborated with 200 leading emerging designers.
The shopping mall has collaborated with leading global luxury houses to develop products only sold in SKP. About 38 percent of top global luxury brands have chosen SKP as their launch site.
