Chongqing - Chongqing's thriving consumer market and influx of young innovators are shaping its business future. Shawn Zhang, Senior Director at Savills Western China, said on March 4 that the city's improving business environment will attract more global brands, enriching young consumers' shopping and lifestyle choices.

Shawn Zhang, Senior Director of Retail Consultant at Savills Western China. (Photo/Savills)

According to the Savills Retail Trends 2025 report, a key retail trend is the rise of "Kidult" culture, which blends children's and adult entertainment. Brands like Disney, Lego, and Pop Mart are tapping into consumers' nostalgia and desire for fun. In Shanghai, IP-based grocery stores saw a 19% year-on-year increase, driven by sustained demand for these novelty products.

A Pop Mart store. (Photo/Savills)

The British plush toy brand Jellycat has gained popularity in China, often selling out its products. Currently, the brand sells through distributors but has yet to open any independent stores.

However, the recovery of overseas travel has led to a decline in domestic luxury consumption, shifting the market's focus to Very Important Customer (VIC) segments. Brands are adapting by enhancing the customer experience. 

For example, Chanel has revamped its stores and added exclusive salons for VIP clients, offering a more private and comfortable shopping experience. This trend toward exclusivity and customer engagement is growing among high-end retailers. In 2024, the brand debuted its new premium space at Chengdu IFS.

The Chengdu-Chongqing economic circle, a key economic engine in southwest China, has seen rapid retail market growth.  Zhang highlighted this region's numerous advantages, including a substantial consumer base, revitalized urban areas, and a high degree of openness, making it an ideal market for both local and foreign brands. As a result, Chengdu and Chongqing will attract many brands and foster new business models.

As the retail market evolves, the restaurant industry is adjusting as well. With consumers dining out less frequently and more cautiously, many restaurants are resizing their operations, reducing costs, and increasing efficiency. In Shanghai, the average size of F&B brands in shopping malls has decreased by 16% in the past year. At the same time, high-end restaurants are focusing more on affordable set menus and personal dining experiences to attract new customers.

Meanwhile, second-hand trading is gaining momentum, particularly among younger consumers. E-commerce platforms specializing in second-hand goods are expanding offline and adopting an omnichannel approach, increasing consumer trust and convenience by offering product inspections, returns, and other services.

According to the report, Bazaars have become a popular mall activity, offering a permanent experience through open spaces. Brands like Harmay and MUMO are incorporating themed bazaars, while platforms like Tmall and Xiaohongshu are experimenting with combining online content and offline experiences to create value links for brands and consumers.

A bazaar organized by Tmall Global in Zhuhai, Guangdong Province. (Photo/Savills)

Another factor contributing to the surge in retail growth is China's relaxed visa policy, which has led to a boom in inbound tourism. With increasing numbers of international visitors, shopping spending has risen sharply, boosting domestic commercial real estate and consumer brands. Popular global brands, like Pop Mart, the fast-growing toy company, are benefitting from this trend, with over 500 stores worldwide.

Looking ahead, Zhang predicts that as Chongqing continues to develop its business environment, more international brands will enter the city, enriching the local commercial landscape. This will enrich the commercial landscape and complement the Chengdu-Chongqing economic circle, extending influence to cities along the Yangtze River.