Chongqing - Savills' report on January 23 showed that Chongqing's retail sector, especially in luxury fragrances and beauty care, is diversifying and growing. It emphasizes the expansion of international and Chinese luxury perfume brands in the city, enhancing the brand matrix.

International fragrance brands such as Penhaligon's, Maison Margiela, and Helena Rubinstein have set up in Chongqing's key locations like IFS, MixC, and Shin Kong Place. MixC's fragrance corridor is being renovated to include luxury brands like BVLGARI, DIOR, and Burberry. Domestic brands RE CLASSIFIED and Scent Library are also entering Chongqing's expanding fragrance market.

MixC Chongqing is located in the Yangjiaping commercial area of Jiulongpo District, Chongqing. (Photo/Niko Wu)

The report also sheds light on the rising trends in personal care, where minimalist skincare, light beauty technologies, and hair care are gaining traction. New entrants in this segment include Face-Wash Cat, Genki Wash, and Vita Capelli, reflecting a growing consumer focus on personal wellness.

Sophy Pan, senior research manager at Savills Western China, points out that from 2020 to 2022, China's head washing and care market has shown steady expansion, driven by increasing consumer emphasis on hair health and high-frequency consumption patterns.

Sophy Pan is a senior research manager at Savills Western China. (Photo/Savills)

Chongqing's retail property sector welcomed four new shopping centers in 2023, adding about 371,000 square meters to its retail space, reaching a total of approximately 8 million square meters. MixC Chongqing North, InCity Chongqing, North Shore of Lijia Paradise Walk, and Beibei Wuyue Plaza are new additions.

In 2023, Chongqing's retail property sector expanded with four new shopping centers, adding around 371,000 square meters and bringing the total retail space to approximately 8 million square meters. (Graphic/ Vivian Yan)

The sports brand sector is experiencing a resurgence, marked by increasing demand and key openings such as the Arc'teryx flagship store, three new SALOMON stores, and Lululemon's expansion in Times Paradise Walk.

The city's commitment to fitness is evident with the construction of 10 sports parks and 100 pocket parks catering to all age groups' athletic and recreational needs.

Pan adds that leisure and entertainment categories in service industries have seen a rise in new store space, from 31% in 2021 to 40.3% in 2023. Integrating art exhibitions in shopping malls, such as the Claude Monet exhibition, joining hands with MixC Chongqing and TIME4ART, located at Chongqing Times Square, creates immersive social consumption spaces, attracting significant customer flow.

Formed in 1989, TIME4ART is a privately funded non-profit art educational organization in Manhattan Beach, California, United States.

TIME4ART presents an exhibition in Chongqing Times Square. (Photo/Chongqing Time Square)

Pan forecasts a promising future for Chongqing's retail property market, driven by its development as an international consumption center and various promotional efforts. These initiatives, focusing on smart homes, beauty, health, and cultural tourism, are expected to boost consumer spending and energize the market.

The warehousing and logistics market in 2023 is expanding with an additional 360,000 square meters. The fast growth of snack food retailers like Laiyifen and BESTORE, offering affordable and diverse products, is becoming a key growth driver in this sector and is expected to continue to boost demand for warehousing and logistics leasing in Chongqing.

"Looking forward, Chongqing's role as a national key manufacturing base, especially in the new energy vehicle (NEV) industry, is set to stimulate the warehousing and logistics market further," said Susan Chen, Associate Director of Industrial and Logistics Real Estate Services at Savills Western China.

Susan anticipates that various policies promoting the NEV industry will boost market share and export volume, leading to increased leasing demand in Chongqing's warehousing and logistics sector.