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Foreign Brands Cash in on Expo

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Qi's prediction was correct. Shiseido's China office has been receiving more than 10 calls a day asking where to buy its new perfume, which is also available outside the Japan Pavilion in the Expo Garden.

In contrast, Nokia's Expo editions, which are priced from 1,980 to 3,000 yuan, are currently out of stock.

"Some customers buy three or four phones at one time and order more," said Benjamin Jia, manager of the gift shop in the Finland Pavilion.

China is the second largest luxury goods consumer in the world and top international brands have opened flagship stores in Shanghai, the country's commercial hub.

In the first half of this year, 24 high-end brands established offices and opened flagship stores or additional outlets in Shanghai.

"The Expo can arouse the passion of shoppers. Compared to other cities, Shanghai usually has the widest selection of products," Qi said.

Business opportunities are not confined to designing special products. The French luxury brand Louis Vuitton is showcasing all of the products it previously displayed in World Expos at Plaza 66, a luxury shopping mall on Nanjing Road in Shanghai

The L'Oreal Group, another French company, is an official sponsor of the Expo and has participated in a variety of activities, including taking orphans to visit the France Pavilion.

Chinese brands are the missing element.

"Lack of innovation has resulted in the decline of China's local brands. Chinese corporations should seriously consider how to use this rare opportunity to pave the way for their future development," Qi said.

(China Daily July 27, 2010)

 

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