The First Ring: Roots
CHRONICLES
Chapter 1.12
China has a long and rich tradition of trade, rooted in the Silk Road and a network of trade routes that connected China with Central Asia and Europe. Cities such as Hong Kong, Shanghai, and Macau have become renowned for their commerce, which has had a significant impact on the spread of global trends and the evolution of retail.
One of the most famous examples of department stores in China is Lane Crawford, a historic institution that has played an important role in the history of luxury retail. Lane Crawford & Co. first opened in 1850 in a hosiery warehouse on the Queen's Road waterfront in Hong Kong.
In 1872, Lane Crawford expanded its presence in mainland China, opening its first store in Shanghai on Nanjing Road, one of the city's main commercial avenues, followed by additional openings in Guangzhou and Tianjin.
In 1907, Lane Crawford opened the first department store in Hong Kong, marking a major commercial innovation for the time. This event occurred during a period of rapid modernization and economic expansion in the city, which saw the emergence of new shopping malls and high-end retail stores.
Over time, Lane Crawford evolved, expanding its offerings to include clothing, accessories, cosmetics, and home products, becoming a benchmark in the luxury retail sector.
The company has experienced pivotal moments in its history, including a challenging period in 1945, when, after the end of World War II, Lane Crawford's stores were destroyed by Japanese troops. The company was later rebuilt thanks to entrepreneur A.W. Brown, who, with just $1,000 in cash, started to rebuild the business from scratch.
Today, Lane Crawford is recognized as a pioneer of luxury and fashion in China, with a strong commitment to sustainability. Among its recent initiatives, the company launched LUXARITY, a program that collects and resells used luxury goods to fund sustainable development projects.
Lane Crawford has also established partnerships with brands that promote sustainability, such as Gabriela Hearst, Stella McCartney, and Veja, and supports local talent through initiatives like the Support Local program and the Global Creative Callout, which helps discover and promote young global creatives.
In the landscape of department stores in China, Lane Crawford is not the only example. Another historic name is Shanghai No. 1, which opened in 1930 in Shanghai. These stores represent a blend of tradition and modernity, adapting to the new needs of Chinese consumers, who are increasingly focused on luxury, innovation, and the shopping experience.
Shanghai No. 1 (上海第一百货) is one of the historic department store chains in Shanghai and is regarded as a symbol of mass commerce and the commercial modernization of the city.
Opened in 1934, it initially served as a key destination for fashion and consumer goods shopping in Shanghai.
Over the years, it has evolved, adapting to the needs of a growing and increasingly diverse public. It has consistently focused on maximizing accessibility and meeting the demands of the local middle class. Located in a central area of Shanghai, it has strong ties to Cantonese and traditional Chinese retail culture but has also modernized over time.
Shanghai No. 1 serves a clientele that includes both middle-class and lower-middle-class consumers, offering a more affordable pricing structure compared to luxury or high-end brands.
Some of the most well-known Chinese department stores are:
Wanda Department Store (万达百货): Founded in 1988 and part of the Wanda Group, it is one of the largest and most widespread department store chains in China.
Yintai Department Store (银泰百货): Founded in 1996 in Hangzhou, Yintai is known for its selection of luxury brands and innovative shopping experiences.
Parkson (百盛): Founded in Shanghai in 1994, Parkson is a major department store chain with a significant presence in several Chinese cities.
Sears China (西尔斯): Although the Sears brand originates from the U.S., it has opened several stores in China. However, its development in the Chinese market has been complex and has not achieved the same level of success as in the West.
Lotte Mart (乐天玛特): Originally South Korean, Lotte Mart has a presence in China and offers a mix of food and non-food products, similar to department stores.
A special case is Macau, which has followed a different development path compared to Hong Kong, despite both having shared the same type of relationship with the Chinese government under the "one country, two systems" policy.
While Hong Kong has experienced significant growth in the department store sector, Macau has only recently witnessed the opening of new luxury department stores, such as Galeries Lafayette, which opened a branch in the new Treasure Island Resort World mall. This development is part of a broader plan to transform Macau into a high-end shopping destination, similar to what happened in Hong Kong.
With the economic development of recent years, even second-tier cities have seen department stores become focal points for urban development and the attraction of local consumers. During the economic boom of the 1990s and 2000s, many cities witnessed the construction of department stores as symbols of modernization and access to the global market.
China has also seen the evolution of the department store concept, which is no longer limited to just clothing or luxury goods. Today, many Chinese department stores have integrated experiences such as augmented reality, interactive technology, and social spaces in an effort to meet the demands of younger, more tech-savvy consumers, blending art with commerce.
The adoption of green and sustainable practices is becoming an increasingly important aspect for many department store chains in China, reflecting the growing environmental awareness of Chinese consumers, who are increasingly interested in ethical and responsible purchasing decisions.
To be continued...
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