As the capital of Sichuan Province and the gateway to China’s western hinterland, Chengdu has been a magnet for foreign and domestic investment. It boasts one of the fastest economic growth rates of any major city in China, with GDP expanding by 8.9% to RMB1trillion in 2014. The same year also saw Chengdu’s retail sales grow by 12% to RMB 305.3 billion.
A wide range of international retailers target Chengdu as their first choice when entering China’s second-tier cities. Department stores such as Pacific Department Store, Far East Department Store, Ito Yokado, Isetan, Chicony and Central Department Store have all opened stores in Chengdu, and the market is also home to a full range of luxury and mid-market fashion brands.
On the back of a thriving economy and robust retail sales, shopping mall development has accelerated in recent years, attracting internationally renowned developers such as CapitaLand, Kardan Land, Tishman Speyer and Wharf Holdings. Through the remainder of 2015, Chengdu will see shopping mall completions in excess of 1.5 million sq.m, which will bring more choice to consumers, but at the same time will also lead to the demise of some poorly conceived and managed schemes.
Chengdu is also a popular destination for tourists, with its world-famous pandas attracting visitors from all over China and across the world, bringing in over RMB 166 billion in tourism revenue in 2014.
 |    XINNANTIANDIXinnantiandi is an emerging retail submarket and close to some of Chengdu’s most affluent residential communities, with Galleria, Chengdu’s first international shopping mall, as well as IKEA and Decathlon. Retailers and brands include the likes of H&M, Uniqlo, Zara, Sephora, Basic House, Starbucks and Subway. With the opening of Capitaland’s Tianfu Mall in 2014, the area saw an increase of roughly 141,000sq.m of retail GFA. |
| CHUNXI ROADChunxi Road is the most prominent shopping district of Chengdu, targeting both domestic and foreign high-end consumers. The area is transitioning from department stores to shopping malls, consolidating Chunxi Road’s dominant position in the Chengdu retail market with huge projects such as Wharf’s International Finance Square. Retailers such as Zara, H&M, Mango, Lacoste, Miss Sixty, Coach and Starbucks are represented. |
| YANSHIKOUYanshikou is home to some of Chengdu’s best-known high-end shopping malls and department stores such as Yanlord Landmark Plaza, Renhe Spring Department Store and Maison Mode, as well as some popular mid-market projects such as Hong Kong New World Department Store and Fortune Centre. Retailers and brands in this area include Louis Vuitton, Prada, Tod’s, Hugo Boss, Loewe, Mikimoto, Burberry, Dunhill, Canali, Rolex, Dior, Levi’s and Scofield. |
| TIANFU NEW TOWNMuch of Chengdu’s future supply is concentrated in Tianfu New Town in south Chengdu. This includes some of the biggest development projects in Chengdu such as New Century Global Center, anchored by a 78,000 square metre Lotte Department Store, and Aux Plaza, anchored by a 48,000 sq.m Rainbow Department Store. Of the 1,700,000sq.m of floor space in the center, nearly 400,000 will be devoted to shopping. |
 | International Finance CenterThe International Finance Center is located on popular intersection of Hongxing and Dacisi roads in the heart of of Chengdu. With a 15-meter tall outdoor panda sculture affixed to the building’s exterior, designed to raise awareness of the protection of pandas, the development’s shopping mall attracts both domestic and foreign tourists. The mall’s 210,000sq.m of rental space include luxury tenants such as Armani, Burberry, Chanel, Dior, Louis Vuitton, Prada, and Salvatore Ferragmo. The development also has office, hotel, and residential space. |
| Galleria ChengduLocated in Xinnantiandi, Galleria Chengdu is the city’s first international shopping mall. Targeting domestic tourists and local consumers, the shopping mall offers mid-market shopping and dining options. Tenants include Jack Jones, Vero Moda, Levi’s, Zara, Uniqlo, and H&M. |
| SHOPPING CENTER TO WATCH OUT FOR | |
|---|---|
| Center Name | Sino-ocean taikoo li chengdu |
| Total Size | 250,000 |
| - Retail GLA | 100,000 |
| Leisure/Entertainment GLA | - |
| Opening Date | In phases, starting late 2014 |
| Consumer Profile | Domestics and foreign tourists, high end consumers |
| Anchor Tenants | Gucci, Cartier, Hermés, Ralph Lauren, Chloé, Din Tai Fung, Tasty, KABB, Wagas, Palace Cinema |
| Description | Close to the historical Daci Temple and popular Chunxi Road shopping area, the project incorporates retail, F&B, offices, hotels, and apartments. The complex will be connected to the Chunxi Road metro station, which offers access to metro lines 2 and 3. |
| MARKET OVERVIEW | |||||
|---|---|---|---|---|---|
| KEY AREAS | CONSUMER PROFILE | FOOD & BEVERAGE OPERATOR INCLUDING | NEW ENTRANTS | TYPICAL RENT FOR UNIT OF 200 SQM | RANGE OF UNIT SIZES |
| Chunxi Road | Domestics and foreign tourists, high end consumers | Zara, H&M, Lacoste, Coach, Michael Kors, CKJ, DKNY Jeans, Armani Jeans, Jack and Jones, Uniqlo | Kate Spade, UGG,Gap | ¥40-67 /sqm/day | 10-1,000 sqm |
| Yanshikou | Domestic tourists, consumers from Chengdu and surrounding suburbs | Louis Vuitton, Prada, Tod’s, Hugo Boss, Loewe, Mikimoto, Burberry, Dunhill, Canali, Rolex, Dior, Levi’s, Scofield | Miu Miu, Alldressedup, Stuart Weitzman | ¥18-33 /sqm/day | 10-1,000 sqm |
| Luomashi | Consumers within the region, middle market | H&M, Uniqlo, Hotwind, ONLY, Vero Moda, Mango | Teenie Weenie | ¥5-7/sqm/day | 10-1,000 sqm |
| Jianshe Road | Cpnsumers within the region | Lee, Yellow Earth, ONLY, Jack Jones, Basic House, Mind Bridge | Uniqlo, Starbucks, Costa | ¥6-10 /sqm/day | 10-400 sqm |
| Shuangqiaozi | Mass market, mid-high market | Cerruti 1881,Hugo Boss Giada, Coach, Lacoste, Miss Sixty, Tommy Hilfiger, Hotwind, Gant, Uniqlo | Broadway Cinema, Vivienne Westwood, Ole’, Costa, Pacific Coffee | ¥14-18 /sqm/day | 100-2,500 sqm |
| Xinnantiandi | Local residents in surrounding areas | H&M, Uniqlo, Zara, Sephora, Calvin Klein, Jack and Jones, Teenie Weenie, ONLY | Golden Jaguar, Minnetonka | ¥7-20 /sqm/day | 100-2,000 sqm |
| Wanda Jinhua Area | Cpnsumers within the region | Guess, Tommy Hilfiger, Lacoste, CK, Prich, Levis, ONLY, Orchirly, Zara, Uniqlo | N/A | ¥10-17/sqm/day | 100-3,000 sqm |
| Shawan | Local residents and university students | Uniqlo, Five Plus, Teenie Weenie, Vero Moda, Ochirly | N/A | ¥7-13 /sqm/day | 100-700 sqm |
| Guanghua | Consumers within the region and west Chengdu | Hugo Boss, Dunhill, Emporio Armani, mia mia, DKNY, EP | N/A | ¥8-12 /sqm/day | 100-1,000 sqm |
| Zongbei | Cpnsumers within the region | Ermenegildo Zegna, Vertu, BMW Lifestyle, St. Dupont, Calvin Klein, Gant, Bernini, Scofield, Ecco | N/A | ¥10-12 /sqm/day | 80-600 sqm |
Data as of May 2015. *Rent is based on net area.
Named a City of Gastronomy, a rare title, by UNESCO in 2011, Chengdu cuisine is a major sub-style of Sichuan cuisine, best known for its pungent spicy flavors.
Local people have a reputation of enjoying a laid-back lifestyle, evidenced by numerous teahouses and pubs all over the city. Lan Kwai Fong Group, a Hong Kong-based developer, unveiled a 40,000 square metre F&B, shopping and entertainment district in Chengdu in 2010, the first of its kind in Mainland China. The area has operators including Starbucks, Haagen-Dazs, Gangkimdo, Rose Restaurant and Lei Garden.
Jinli and Kuan Zhai Lane are two traditional Chinese style shopping areas with a wide variety of teahouses, restaurants and bars. Both are very popular with tourists, with Jinli’s pedestrian street offering small shops and local vendors, and Kuan Zhai Lane a destination for formal dining.
Yipintianxia at Yangxixian offers a wide variety of Szechuan cuisine, with restaurants including Daronghe, Hongxing Restaurant and Laofangzi. While Sichuan food dominates the Chengdu market, there are signs of market tastes becoming broader with major chains from across China such as Din Tai Fung, Wang Steak and Huang Ji Huang active. At the same time, the market for international food is growing with major brands including Grappa’s, Peter’s Tex Mex Grill and Chisosanmai.
According to Chengdu Bureau of Statistics, Chengdu F&B retail sales totaled RMB7.28 billion in 2014, up 6.5% from the previous year.
| MARKET OVERVIEW | |||
|---|---|---|---|
| KEY AREAS | CONSUMER PROFILE | FOOD & BEVERAGE OPERATOR INCLUDING | RENT FOR 350 SQM UNIT |
| East Music Park | Young trendy people, students | Panda, MINILIVE, Chengdu Impression Banjo by Jersey Pottery, La Cappanina, Shaun Rankin | ¥2-4 /sqm/day |
| Yipintianxia | Families, business people | Old House, Beijing Roasted Ducks, Daronghe | ¥3-6 /sqm/day |
| Kuanzhai Lane | Affluent locals, tourists, business consumption, government consumption | White Night, Walden, Rouran Shiguang, Gebizi, Damiao | ¥4-7/sqm/day |
| Jinli | Affluent locals, tourists | Lianhua Fudi, Sifangjie Bar, Red Yellow Orange Green | ¥7-9 /sqm/day |
| Lan Kwai Fong | Affluent locals, tourists, business consumption | Gangkimdo, Lei Garden, Rose Restaurant, Starbucks | ¥6-9/sqm/day |
| City Centre | White collar workers, domestic tourists | Starbucks, Jincuihe ,Pankoo, Häagen-Dazs | ¥5-7/sqm/day |
Data as of May 2015
Chengdu Contacts
THEODORE KNIPFING
Head of Retail Tenant Representation, ChinaUnits 2606-2609, The Headquarters Building
168 Xizang Zhong Lu, Shanghai, China
Tel: +86 (0)21 2320 0808
Mob: +86 186 1695 0300
SARA GOUGARTY
Director, Retail Tenant Representation, ChinaUnits 2606-2609, The Headquarters Building
168 Xizang Zhong Lu, Shanghai, China
Tel: +86 (0)21 2320 0843
Mob: +86 137 6110 4593
WEIYING GUO
Manager, Retail Tenant Representation, ChinaUnits 2606-2609, The Headquarters Building
168 Xizang Zhong Lu, Shanghai, China
Tel: +86 (0)21 2320 0816
Mob: +86 139 1748 1947
