For Those Who Think Location is EVERYTHING

Wednesday, August 30, 2006 21:34
Posted in category Uncategorized
Any marketing 101 teacher will lecture a student on the 4 Ps of marketing: Price, Product, Promotion, and Distribution (placement), and many will say that the first three are more important than the last (after all a well priced product that has been promoted well should sell anywhere right ?) 

Well, if you are a global brand looking at Shanghai, maybe not….

While driving into the office, I notice that in a half kilometer stretch of Nanjing West Road’s South side there are 5-6 new stores in the process of opening… or should I say that there are 6 stores that recently shut down.

3 years ago when the area between Westgate mall to People’s Square was “local”.  From Maoming Road to the Portman was 5th avenue where LV, Bvlgari, and other super luxury brands set up shops in the Portman, Plaza 66, and CITIC shopping centers, but East of Maoming road it was a totally different set of conditions.

Facades were in a poor state, laundry hung out of the second floor windows, and the sidewalk attendants donned in their finest PJs when telling people to wait for the light to turn green before crossing the street. 

Then, it started, the crossing guards got new uniforms,  the bamboo exoskeletons began being raised, and the facades began to match.  It was a concerted effort that has spread to many areas of Shanghai now to make the city appear, and I emphasis appear, like any world-class metropolis.  Pretty soon, Nike was opening 2 stores, Nokia has their own space, and others were soon lighting fireworks and arranging lion dances to announce their flagship store grand openings.

However,as shown through a cab ride retail study of Shanghai , it appears that after 2 years the global brands have had a more difficult time that they thought on Shanghai’s miracle mile…


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One Response to “For Those Who Think Location is EVERYTHING”

  1. All Roads Lead To China » Fwoked: Lane Crawford to Shut Doors in Shanghai says:

    November 20th, 2006 at 8:39 am

    […] As we mentioned in our earlier posts about Nanjing road retail, location is everything. for foreign retailers who wish to find long term success in China, bringing foot traffic will always be an uphill battle, and as Lane Crawford’s experience shows, a block can make all the difference. […]