Taking a little stroll along Zhongshan Lu in Nanjing is all it takes to realise that Deji Plaza is pretty fancy. So fancy that the plush mall is in fact China’s number two shopping centre. Turns out it’s down to the mall itself plus Nanjing’s unique make up and location.
Deji opened it its first phase back in 2006. That was nice, to be sure, but nothing compared with what was to come. Deji Plaza Phase 2 opened in 2012 as the absolute epitome of luxury consumption.
Today, the shopping centre is a member of the elite club of malls that generate over ¥10 billion in annual sales.
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While Deji Phase 1 fought the competition relatively well, its performance was far from stellar. Intent on changing that, Phase 2 reserved two-floor flagship stores for brands such as Chanel, Cartier and Tiffany. As a result, these branches of the retail icons are superior to their stores in nearby Suzhou and Wuxi.
According to Jing Daily, home to all things luxury in China, there are three kinds of high-end shoppers in Nanjing. Unsurprisingly, there are the High Net Worth Individuals (HNWI) and the rising middle classes, but there are also students.
Nanjing draws local HNWIs, but also those from neighbouring cities such as Ma’anshan. They not only come to shop, but also to learn about luxury brands, having little in their home towns.
As capital of the country’s second richest province, Nanjing is home to many a regional or national company headquarters. Nanjing’s rising middle classes work in government, finance and technology, and are all fond of a trip to Deji Plaza.
When it comes to students, Nanjing boasts a large number of elite high schools. Those enrolled therein are knowledgeable about luxury brands and generously supported by their parents. It is also worth remembering that the student ratio in Nanjing is the highest in the country, at 10:1.
It all amounts to a perfect storm for Deji Plaza. Barring economic catastrophe, its place near the top of China’s retail landscape is all but assured for many years to come.
For those curious as to number 1… Beijing SKP, with yearly sales of ¥13.5 billion.
