Shanghai is about to get its own premium outlet shopping mall.
To be located in central Pudong and adjacent to the Shanghai Disney Resort, Shanghai Village is expected to open at the end of 2015, the same time as the Disney resort.
Value Retail, the developer of premium outlet shopping villages in Europe and the yet-to-open Suzhou Village in China, is behind this latest venture — its second in China.
Unlike local Chinese outlet mall developers, Value Retail is known to emphasize luxury and offers upscale brands such as Armani, Coach, Seven For All Mankind, Agent Provocateur, Burberry, Gucci and Jimmy Choo at up to 50 percent off on past season’s surplus goods.
The company hopes to capitalize on Chinese consumers’ hunger for luxury brands and value, with these shopping villages becoming tourist destinations.
Although Suzhou Village will not open until the first half of 2014, the company is moving quickly on Shanghai Village. Scott Malkin, founder and chairman of Value Retail, tells WWD why, “The moment is a good one. The customer in China is rocketing forward. She is much better informed and demanding than any other emerging market, and I’ve been looking at emerging markets. She doesn’t want to see brands treated in a cheap way.” In addition, “The brands are asking us to do this. Thirdly, with Value Retail’s La Vallée Village located next to Disneyland Paris, we delivered the results Disney was looking for in Europe.”
Both Suzhou Village and Shanghai Village will be open air with pedestrian streets, yet with different architectural styles. “The first one overlooks these beautiful lakes in a bucolic setting. The other is part of a denser master plan setting integrated into the Disney complex.” Malkin expects Suzhou Village will initially generate sales of around $2,000 per square foot.
Through its Value Retail China subsidiary, Value Retail plans to develop outlet villages in Guangzhou, Hong Kong and Beijing. “We’re not racing to do 20 outlet villages in China but we are racing to do two or three,” Malkin said.
photo credit: value retail