US brand Victoria’s Secret has opened its first flagship store in China as it taps into the growing appetites of mainland women for high-end lingerie.
Fronted by an iconic pink glass facade, the four-storey, 2,500 square meter Victoria’s Secret store opened its doors on Thursday in Huaihai Road, one of Shanghai’s most upscale shopping streets.
The new shop, which is the first to sell the brand’s full range of products attracted thousands of visitors on the opening day. Previously, Victoria’s Secret had only operated concept stores in China, selling accessories.
“Chinese women are now ready for more sophisticated bras,” said Pascal Martin, a partner with OC&C Strategy Consultants.
As Chinese women have increasingly adopted western fashion trends and brands, many locally-owned bra offerings at the cheaper end of the spectrum and paying little heed to design and brand appeal have popped up.
The US lingerie giant, which entered China in 2015, has unveiled an aggressive expansion plan in the fast-growing Chinese market.
Besides launching another flagship store in Chengdu in southwest Sichuan Province soon, Victoria’s Secret will move its high-profile annual fashion show to Shanghai at the end of this year.
The retailer will charge mainland customers between 300 and 600 yuan (US$44 -87) for a bra, a little higher than in the US.
Joey Chio, senior associate director of Savills Shanghai Retail, which helped Victoria’s Secret select the location for its new store, said the opening of the flagship shop would satisfy Chinese women’s “desire to keep up with the forefront of international fashion”.
Luxury lingerie and high quality functional products are becoming increasingly popular among Chinese women, and a more frequent topic of discussion on social media.
The female underwear market in China is expected to have a retail value of US$25 billion by 2017 – double that of the United States – and will grow to US$33 billion by 2020, according to Euromonitor.
Top Italian luxury lingerie maker La Perla, which has eight stores in China, said it planned additional outlets in Chengdu and Chongqing and aims to open a men’s store in Beijing.
Canadian yoga brand Lululemon entered the Chinese market by opening its first shop in Shanghai last December.
The penetration rate of the bra sector in China is still under 10 per cent, compared with around 40 per cent in the US and 20 per cent in Japan, Martin said. Most of the bra brands currently in China are still focusing on the traditional department store channel rather than malls, indicating opportunities for brands like Victoria’s Secret, he added.