Chongqing - The Chongqing Municipal Commission of Commerce has recently introduced 15 new initiatives to boost its "first store economy," including offering incentives of up to 2 million yuan (USD 280,000) to enhance the city's retail sector.
The announcement, made at a press conference on January 3, underscores Chongqing's ambition to boost its international consumption level and to emerge as a global hub for consumer resources. The data reveals that the city has attracted over 1,800 distinguished brands, with 341 brand-first stores opening in the first three quarters of 2023, a 216% increase, closing in on Shanghai's lead.
Brand-first stores surged in the first three quarters of 2023. (Graphic/ Zheng Ran)
Central to these measures is a significant financial incentive scheme. Commercial entities introducing a brand's first store in Chongqing are eligible for up to 2 million yuan based on store ranking, economic influence, and other criteria. Moreover, third-party facilitators of these first stores can earn incentives up to 1 million yuan.
Aiming to attract leading brands by supporting the establishment of headquarters-type first stores in the city. Chongqing offers policy support to international and domestic head commercial operators, key brand first stores, and large-scale commercial projects meeting specific criteria.
Fashion is a significant focus of these measures. Influential fashion organizations, famous and designer brands, and high-end custom and trendy national brands are encouraged to launch new products in Chongqing. They can also organize fashion shows and international exhibitions, with the city providing financial incentives covering up to 30% of the total event costs, capped at 1 million yuan.
The indoor botanical garden of The Ring. (Photo/ Zheng Ran)
The initiative also prioritizes revitalizing "old" stores by providing financial incentives for new, directly managed stores larger than 200 square meters in business districts, neighborhoods, tourist attractions, industrial parks, and transportation hubs. Eligible stores, including flagship, concept, and custom stores, may receive up to 30% of their investment, up to a maximum of 1 million yuan.
The city is equally keen on expanding local brands. Local enterprises that open chain stores outside the city bringing innovation and cross-industry integration, can expect financial rewards based on their brand influence and the number of new stores, with a maximum incentive of 800,000 yuan.
Meanwhile, Chongqing encourages external chain management enterprises to establish global or regional headquarters in the city. For setting up direct stores, evaluations will be based on annual sales or store count, with incentives up to 20% of the investment, limited to a maximum of 1 million yuan.
These measures represent a significant leap towards transforming Chongqing into an international consumer center, showcasing the city's proactive approach to fostering a vibrant retail environment.