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'First-store economy' further fuels consumption in China

Xinhua | Updated: 2019-12-30 13:16
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Photo taken on Dec 25, 2019 shows the first store of the Canadian fast-food restaurant chain Tim Hortons in East China's Shanghai. [Photo/Xinhua]

Booming first-store economy

For businesses tapping into a new market, the first step matters. The location of their first appearance is not only determined by cash flow, but a combination of brand image, exposure and plans for the future.

China, with its huge proven consumption potential, has become the top choice for many overseas brands.

Christophe Caillaud, president of Liaigre Holdings, said it took the brand three years to prepare for the first showroom in China as it is a "brand setter," and would act as a channel to form lasting relationships with customers. "China's consumption upgrade is good news for us and we find the business environment here very friendly," said Caillaud.

Canadian fast-food restaurant chain Tim Hortons made its debut in China with its first store opened in downtown Shanghai in February this year. Ten months on, it has opened 32 branches and plans to further push its number of stores in China to 1,500 in the next decade.

"Compared with the per capita annual coffee consumption in European and American markets, the coffee market in China has huge potential to grow," said Lu Yongchen, CEO of Tim Hortons China. "The coffee market in Shanghai is comparatively mature in China. If we can succeed in Shanghai, our market prospects in China will be promising."

Statistics show the number of first stores opened in Shanghai reached 498 in the first half of 2019. The first-store economy will help the city further boost tourist spending and improve the business environment, according to Liu Min, deputy director of the Shanghai Municipal Commission of Commerce.

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