With everyone shopping smarter and going digital in China, traditional retail is getting a major makeover. Lots of old-school department stores in cities have shut down, leaving people feeling nostalgic. But Beijing SKP, the so-called "King of Global Retail," is still crushing it with top sales, leaving everyone else in the dust.
Data shows that in 2023, Beijing SKP achieved sales of 26.5B Chinese Yuan, a 10.8% increase from 23.9B Yuan in 2022. Xi'an SKP recorded sales of 8B Yuan, slightly lower than the previous financial year's 9.5B Yuan. The newly opened Chengdu SKP generated 5.5B Yuan in sales, bringing the total sales of the three SKP locations to 40B Yuan.
This isn't just a lucky temporary success. Since 2011, SKP has been China's top-performing single-store retailer for ten years in a row, earning its "Retail King" title. In 2020, Beijing SKP even beat Harrods, the world-renowned luxury store from the UK, with its 17.7B Yuan (2.88B USD) in annual sales, becoming the champion among all global retailers. Meanwhile, however, over 110,000 out of 150,000 department stores in China have shut down - more than 70% have gone!
So, how has SKP achieved the highest single-store sales and sales per square meter globally?Some may attribute this to SKP's high-end positioning, given its location in one of the busiest CBD of Chaoyang, Beijing. However, back in the days when SKP was built, the district wasn't a glamorous downtown spot but was kind of a rural area in the middle of nowhere, next to a power plant and street food stalls. Therefore, building a world-class luxury department store in such a location literally required both bold vision and foresight.
The key always lies in luxury brands opening stores. To achieve this, SKP expanded the size of its ground-floor stores from 120-150 square meters to 200 square meters and adopted a double-layer flagship store design for brands. Every detail, from the exterior design to the corner setup, reflects SKP's thoughtful craftsmanship.
When Beijing SKP opened in 2007, it introduced 938 brands, including over 90 world-renowned names such as Prada, Fendi, and Gucci, with more than 40% being international brands making their debut in Beijing. "By bringing together so many high-end labels, SKP stood out from the very beginning. It's even becoming a landmark." commented Xia Lin, then Assistant Secretary of the China General Chamber of Commerce.
SKP's concept-store system is another key to its success. To attract luxury brands, SKP set upits own concept store and adopted a direct retail model. Unlike the usual franchise setup in China, SKP and big names like Galeries Lafayette and Lane Crawford use direct buying to keep sales per square meter sky-high.
In 2014, SKP established its own purchasing team. Buyers, based on their positioning and sales plans, place wholesale orders through brand and sales agent, independently planning sales and bearing profits and losses.
To stand out, SKP has to match its customers' unique style and tastes. That's where its "first store" strategy comes in. When big brands open their first store at SKP, it creates major buzz and draws in crowds. This has helped SKP attract tons of luxury brands that are new to China, making it a go-to spot for exclusive launches. In fact, SKP accounts for about 38% of all international brand debuts in China.
SKP also stands out by being the first to launch new products. Along with regular luxury items, SKP gets exclusive access to limited-edition and global launches each season. Some customers even say SKP gets Paris runway items faster than anyone else in China- if it's not at SKP, you won't find it anywhere across the country.
It is no exaggeration to say that SKP has witnessed and accompanied the rapid rise of China's affluent elite. Its clientele includes entrepreneurs, celebrities, politicians, and socialites who have been prominent in the public eye over the past decade. Data shows that the average age of luxury consumers has dropped from 48 to 34 and continues to trend younger. Today, consumer attitudes and habits are shifting, with increasing emphasis on brand individuality and immersive shopping experiences. The cultural significance and experiences embodied by luxury goods are being valued more than ever.
We are honored to have SKP as one of Sweekli's esteemed retail partners. We are dedicated to introducing exceptional international brands and products to SKP, assisting them in establishing their own retail stores or SKP Select showcases. If you are interested in exploring the boundless potential of your brand at SKP alongside Sweekli, please do not hesitate to contact us.