Luxury Brands Are Racing Eastward All The Way.

As the economy recovers, retailers focus again on emerging markets in the Middle East and the Asia Pacific region, where luxury shopping centers sprang up and attracted famous brands such as Christian Louboutin, Jimmy Choo, Manolo Blahnik and Stuart Weitzman.

Retailers and real estate consultants have said that now is the best time to expand their business in these areas. Unlike mature American markets, wealth is rapidly accumulating in these emerging markets, and people's enthusiasm for luxury goods is rising.

Not only that, experts say, but now is the best time to use these resources.

"If you are looking for opportunities to expand your business, now is undoubtedly the best opportunity."

Kazuko Morgan, executive vice president of Real Estate Company Cushman &Wakefield, said.

Take Shanghai as an example, according to the prediction of Knight Frank China, 9 million 300 thousand square feet of commercial space will be sold by the end of 2010, and the figure will be 8 million 700 thousand square feet in 2011.

According to Cushman &Wakefield, the price of high-end shops in Shanghai increased by 17% in the second quarter of 2010, and the annual rental price is about $262 per square foot. The company expects to continue to grow 50% next year.

However, for most international metropolis, the price is not high.

Take Paris and New York, for example, the price of shops in Champs Elysees in Paris is 1256 dollars per square foot per year, and if they want to own their own shops on Fifth Avenue in New York, they also have to pay 1250 dollars per square foot for rent.

"In the current situation, China's retail market as an investment tool has greater potential than other markets in the world."

Andrew Weir, the managing partner of China's KPMG, said in a recent report by the company.

"Despite the global economic crisis, retail sales in China are still growing at a rate of two digits. At the same time, the retail industry in many other markets has experienced an awkward situation of stagnation."

Take the newly built Shanghai gold center mall as an example, more than 1 million 100 thousand square feet of commercial space has been leased to luxury brand retailers, including Bally, Salvatore Ferragamo, Louis Vuitton, Chanel, Herm s, Gucci and Prada.

Among the many dealers, about 15% of the luxury brands are making their debut in China.

"Chinese consumers have very strong purchasing power.

International retailers have achieved good sales results here.

Regina Yang, director of research and consulting at Knight Frank China, said she also said that among many products, Chinese consumers are most keen on buying footwear and bags, followed by watches and jewelry.

Prada Group's chief operating officer, Sebastian Suhl, said that the Prada and Miu Miu stores in Shanghai's gold center have already achieved good sales results.

"This shopping mall is very luxurious, very suitable for luxury brands to enter."

From the Far East to the Middle East, more and faster expansion.

Not only in China, the retail giants are also looking for business opportunities in the Middle East, where accessories retail is the dominant market.

Last month, Christian Louboutin opened its first branch store in the United Arab Emirates, which is located at Mall of the Emirates Fashion Dome in Dubai.

Earlier this year, the designer had opened his own branch in the Lebanese capital of Beirut and Jeddah, Saudi Arabia, and plans to open another 5 branches in the Middle East by the end of 2013.

"The Middle East is our business strategy area. This market has a huge demand for footwear and bags, which is in line with our goal of opening more retail stores.

Business in the Middle East accounts for 3% of our global business. We believe that in two years, this figure will double. "

Christian Louboutin's chief operating officer, Alexis Mourot, said he also said the company plans to add 15 new stores next year.

Meanwhile, the shopping center Westfield Sydney, which has been built for 1 million 200 thousand US dollars, has attracted brands like Aldo and Stuart Weitzman.

Westfield Sydney is located in Pitt Street shopping plaza. According to Colliers International of real estate company, the rental of this plaza rose to the highest level in the world last year, reaching 71%, an average of 748.5 US dollars per square foot.

Nathan Clark, National Retail Director at Collier, said there is still room for expansion in the luxury brand market in the region.

"With the improvement of the credit market, the confidence of retailers is growing rapidly.

They have a strong balance sheet and are now ready to expand their market.

In the past, entering these markets is no easy task at the same time, it is also a high investment. "

He said.

Weitzman said in an interview with Footwear News that he decided to open his own branch in Sydney because the brand had "unexpected achievements" in Melbourne.

"Not only that, Westfield is also the main owner of Australia. These factors have laid the foundation for our success."

Weitzman also said that the brand will open its own boutique in Beijing IFC within a year.

Singapore is also a high-profile market this year. The coastal Bay Sands Resort has 800 thousand square feet of retail outlets.

It is worth mentioning that the flagship store of Louis Vuitton will be located at The Shoppes, the resort. Its shape will be built into an independent glass venue, and it looks as if the whole store will float on the surface of the bay.

In addition, at least more than ten shoe brands will be located in this business district, including Jimmy Choo, Manolo Blahnik and Bally.

Joshua Schulman, chief executive of Jimmy Choo, said that the shopping center, which will be built in the coastal bay Jinsha holiday village, will "bring people a whole new shopping experience".

"This business district will attract customers from China and even other Asian countries and regions," he said.

There are many high-end luxury brands in the littoral Bay Jinsha resort, and people are looking forward to this shopping center.

Manolo Blahnik recently opened a new store in The Shoppes, which is modeled on Chinese bird cage.

And the company extended the business of expanding the global market to Blahnik Kristina Blahnik, who was responsible for store planning and other issues.

"The Middle East market is relatively new to us. It has only developed for less than ten years, and now its sales performance is amazing, and there is a trend of continuous growth.

Russia is also a rapidly growing market, and Singapore is more familiar to us. "

Blahnik said.

In addition, the brand recently opened a boutique in Dubai Mall. The company plans to open another branch in Tsum department store in Moscow. "As a global brand, you have to seize the opportunity in these major cities. The demand in these markets is very large and there is growth trend," Blahnik said.