More than 8,400 brands have chosen Shanghai as the location for their first stores, and while the reasons behind each decision may vary, they all point to a shared recognition: the city's powerful appeal to brands from around the world.

The debuts include global, Asian and national firsts.

For international brands, launching their China stores in Shanghai offers a valuable testing ground for entering one of the world's largest consumer markets. A successful debut in the city is often seen as a strong indicator of the broader potential in China. For homegrown brands, meanwhile, establishing a presence in Shanghai provides a springboard for expanding beyond domestic markets and reaching global consumers.

"This marks a new stage in Shanghai's 'first-store economy', shifting from one-way brand introduction to a more dynamic exchange between global and Chinese brands," said Kelvin Li, managing director of East China at Cushman & Wakefield, a global real estate services firm.

"Many of the emerging Chinese brands we work with choose to open their global flagship or debut stores in Shanghai not simply to boost short-term sales. Their goal is to tap into the city's global fashion networks, supply chains and international media resources," Li noted.

Shanghai has become a window through which the world can discover the creativity and design capabilities of Chinese brands, Li added.

Zino Helmlinger, head of retail leasing at CBRE China, a United States-based commercial real estate services and investment firm, said there is a common saying in the industry: "If you haven't succeeded in Shanghai, you haven't succeeded in China."

"Shanghai is one of the most competitive but also rewarding retail markets in the world. The city functions as a living laboratory for new-to-market concepts. Across every segment, from fast fashion to ultraluxury, some of the best-performing stores globally are located right here," Helmlinger said.

The combination of consumer sophistication, a concentration of spending power, and a genuine appetite for discovery continue to draw both international and domestic brands to plant their flags in the city first, he said.

After expanding its presence in China to more than 1,300 stores, the Chinese-style gelato brand Ye Gelato opened its first global flagship store in Shanghai in early April. Originating in Beijing in 2011, the company seeks to serve the Chinese market with high standard, fresh products.

"China has become the world's largest and most dynamic market for freshly made ice cream. We want to first establish the standards, experience, and product strengths of Oriental gelato in Shanghai, build a solid foundation in the domestic market, and then gradually expand overseas," said Li Yan, head of brand operations for Ye Gelato in East China.

"Shanghai is China's financial center and a city known for its openness, inclusiveness and strong consumer purchasing power. Consumers here also have a higher level of awareness and appreciation of products such as coffee and ice cream," Li noted.

Whether Italian — or US-style products or Chinese ice cream brands, companies are all eager to open stores in Shanghai, which shows the market has been tested and validated, although competition is very intense, Li said.

Ye Gelato emphasizes natural ingredients, with the ice cream made fresh every day without artificial flavors or colorings. The vibrant colors of its products come entirely from natural ingredients.

"We were among the first brands in China to explore the premium freshly made ice cream segment. Our stores now span more than 140 cities nationwide, making us one of the leading brands in the sector," Li added.

The 400-plus-square-meter global flagship store in Xuhui district features six exclusive flavors created specifically for the store, including salted milk tea with milk skin (naipizi), sea salt caramel and Chinese torreya nut.

Li said the first-store economy is more than just a buzzword.

"We want this Shanghai global flagship store to become a benchmark for our stores nationwide. It is also a showcase to the world, showing that Chinese brands can create high-quality ice cream with unique Oriental characteristics," he said.

Japanese lifestyle brand Muji has long been an active player in Shanghai's first-store economy, using a variety of debut store formats to explore new retail concepts.

Its latest venture is an immersive scenario-based experience store that opened in late April at Zhang Yuan (also known as Zhangyuan Garden), the city's historic Shikumen (stone-framed gate) complex in Jing'an district.

"Unlike Muji's conventional stores, the Zhang Yuan experience store is designed to go beyond simply displaying and selling products. Instead, it places merchandise in settings that resemble everyday living spaces, allowing consumers to better understand the products through immersive environments, ingredient displays, interactive experiences and seasonal merchandising," said Wu Shu, board member and chief marketing officer of Muji China.

According to Wu, the store was created to explore a retail format that extends beyond the traditional store model and connects more naturally with urban neighborhoods and consumers' daily lives. "As expectations for brick-and-mortar retail continue to evolve, shoppers are increasingly looking for engaging experiences rather than simply a place to make purchases," Wu said.

By combining featured products, seasonal themes and interactive elements, Muji is looking to create a lifestyle destination that encourages repeat visits and offers something new with every season.

"Shanghai has also become one of Muji's key testing grounds for new retail formats, product launches and debut events, as we believe the city's consumers are highly receptive to new concepts, while its commercial spaces provide an ideal environment for retail innovation," Wu said.

In addition to the Zhang Yuan store, Muji has opened the world's first Muji diner, China's first Muji farm concept store and the country's first sustainability-themed concept store in Shanghai.

"Looking back at the last decade, it's fascinating to see how the 'entry point' for Asia has changed. It used to be that every brand went through Hong Kong to get to China. Today, international brands often go straight to Shanghai because the city's vibrancy and cosmopolitan appeal make it the ultimate proving ground," said Joey Chio, head of retail in the Asia-Pacific and China region for Savills, a United Kingdom-based property service provider.

As of the end of May 2026, Muji operated 1,463 stores worldwide. On the Chinese mainland, the brand added eight stores during the first three quarters of the current fiscal year, bringing its total to 430. The Chinese mainland business also posted growth in both revenue and profit.

Sales increased across all major product categories, led by household goods and food, contributing to the company's overall revenue and earnings growth. At the same time, Muji has continued to enhance the in-store shopping experience.

Shanghai has long been one of Muji's most important markets in China. The company established a wholly-owned subsidiary in the city in 2005 and opened its first store on the Chinese mainland on West Nanjing Road the same year.

When JD Mall opened its first Shanghai store in Qibao commercial area of Minhang district on June 12, the response was immediate. The retailer attracted more than 156,000 visitors and generated over 120 million yuan ($17.7 million) in sales during its first three days of operation.

The 50,000-sq-m "super experience" store, the company's 28th nationwide and first in Shanghai, introduced a new retail format combining differentiated product offerings with immersive, technology-enabled shopping experiences.

Home to more than 200 global brands and over 200,000 self-operated products, it is designed as a "third living space" for urban families, catering to shoppers of all ages with technology experiences, age-friendly facilities and one-stop shopping solutions.

"We're not simply putting products on display. Our goal is to create an immersive retail space that brings together innovative products, technology and experiential shopping," said Yu Yongzhuang, head of JD Mall in Shanghai area.

Yu said the store will set the benchmark for new locations while laying the groundwork for further expansion in Shanghai. "Given the size of the market, we believe Shanghai can support at least three such stores," Yu added.

The figures suggest that by offering immersive, experience-driven retail, the company has successfully converted its online traffic into considerable in-store sales.

With the theme of "tech-savvy shopping", the store primarily operates in categories such as home appliances, digital products, and home furnishings, providing a one-stop quality life solution with identical products and prices both online and offline.

Chio from Savills, said: "From a tactical perspective, the market is defined by a 'first-to-market' race; every business district and shopping mall is competing to host the next big concept."

Helmlinger from CBRE China believes Shanghai has become a laboratory for retail concept innovation, and what's exciting is how bold and experimental the market has become. Brands are no longer just opening stores — they are crafting experiences, and there is a healthy sense of competition to surprise and elevate.

On April 20, Henkel officially opened its first Vidal Sassoon Beauty training center for hairdressers — the first for the company in Asia — in Shanghai's Yangpu district, welcoming 24 students. The center's certification system is aligned with its London headquarters, allowing graduates to earn internationally recognized qualifications alongside China's nationally recognized vocational certification.

Rather than introducing a new product or retail concept, Vidal Sassoon Beauty chose to make its debut in China through professional training and talent development. By bringing its globally recognized salon education system, cutting techniques and haircare expertise to China, the company hopes to establish a new benchmark for education in the sector.

"Our goal is not to train a generation of imitators, but to nurture creators who can engage with the world on equal footing and enable Chinese hairstylists to develop their own voice on the global stage," said Pan Yun, general manager of Henkel Consumer Brands Professional in China, a business unit of German-based Henkel.

Founded in London in 1954, Vidal Sassoon entered the Chinese market in 1997. In 2024, Henkel's consumer brands business assumed full operational responsibility for the Vidal Sassoon brand in China. Throughout its history, the brand has continued to shape industry trends while inspiring new generations of hairstylists.

Since 2018, Shanghai has attracted a total of 8,472 first stores of various levels, including 1,093 in 2025 alone. Among the first stores opened last year across the city, 16.8 percent are Asia-first or global-first stores, according to the debut economy development report, the first of its kind to provide a systematic analysis of practices and policies related to the debut economy.

According to Helmlinger, the lesson for other cities is not simply to replicate Shanghai's policies, but to understand the underlying principles, which are: supporting innovation, reducing friction for investors, investing in the quality of the physical environment, and trusting that world-class brands will follow. "Shanghai has proved that model works," he said.

 

Source:China Daily