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Press Release for May 8, 2018 Media Briefing by Shanghai Municipal Government

May 10, 2018

The Information Office of Shanghai Municipality held a press conference today (May 8), during which Shang Yuying, director of the Shanghai Commerce Commission, briefed the media about the three-year action plan (2018-2020) on promoting the Shanghai Shopping brand and speeding up its development as a global consumption city. Liu Min, deputy director of the Shanghai Commerce Commission, Zhou Haiying, deputy district chief of Huangpu and Jingan districts, and Xin Yaqin, director of Pudong District Commerce Commission, were also present at the conference and took questions together from the reporters.

First, why should we develop and promote the Shanghai Shopping brand?

Shanghai is a city boosted by business and the city card is its developed business. The city is the biggest consumption city in China and the testing field and competitive arena for new retail, and has the world's top concentration level of global retailers and world famous brands. Consumption has become the stabilizing factor and ballast stone for the prosperity of the city's economy. Shanghai Party Secretary Li Qiang said that entering the new era, Shanghai should set up and make use of its strategic advantages to be a global city of excellence, push forward the high-quality development and create high-quality life. To achieve this, the city must firmly strive for excellence to further enhance its advantages and characteristics. To develop the Shanghai Shopping brand, we should set up a strategic advantage of business that is strongly supportive and irreplaceable, that matches with the construction of the global city of excellence, which can meet the public's satisfaction for high-quality life. Thus it is of great significance and is a glorious mission.

Second, how to promote the Shanghai Shopping brand?

The city's Party Secretary Li Qiang explained "promoting brands" as developing brands with specific measures and actions to make them more competitive and influential and better known to the world with high quality. Promoting the shopping brand is to set about the brand development with good consumer experience and great commodity abundance. To achieve this, Shanghai set up the three-year action plan on developing the Shanghai Shopping brand to pinpoint the main direction and make efforts focusing on the key points. The action plan can be summarized as "1358".

"1" is to stick to the one overall goal to build a global consumer market, to form the commercial civilization that match with a global city of excellence, and to develop to be an international consumption city with global influence.

Three new directions would be focused on, including the focus on consumer demand, the focus on creating new demand and the guidance of consumer demand and to enhance the role of consumption towards the economic development.

Shanghai shall grab the China International Import Expo as a strategic chance to ride the rising trend of consumption upgrade, to enhance the flexibility and adaptability of supply side structure and the efficiency and quality of supplies.

Shanghai will vigorously promote the development of new business models and new models to release consumer potential, and create a quality life. It also aims to bring together various kinds of high quality goods and services throughout the world to become a global market for new products, a trend indicator to lead the trend of international consumption, and a “shopping paradise” that everyone is longing for.

Shanghai will also lift the contribution of consumption to urban economic and social development. The initial aim is to enhance the proportion to 60 percent and social retail sales from outside of the city would make up more than 30 percent to total retail sales of consumer goods.

Secondly, the degree of innovation will also be improved, which includes the innovative consumer retail business models, rising retail formats and new technologies. The scale of emerging consumer consumption will also be expanded.

The third is to showcase the city's brand concentration on international and domestic famous brands. Shanghai aims to create two world-class shopping streets, 20 specialty commercial regions, and 50 famous time-honored brands and 100 well-known stores.

The fourth is to enhance the city’s trend setting ability in the fashion industry in terms of fashion brands, fashion designers, fashion designer and events to significantly improve to built the city into a new product premiere destination for new product launches and a global fashion center.

Fifthly, Shanghai would also pay more attention to consumers' satisfaction and the optimization of urban consumer's comprehensive environment. The overall shopping consumption environment would be come better, and the consumer experience would also be improved significantly.

A total of eight specific action plans will be put into place. Firstly it would launch a specific plan to guide new consumer trends, to encourage the development of innovative commercial retail formats, to upgrade commerce and trade technologies, to fine tune consumer shopping experience and build up a testing ground for new retail formats.

Secondly it would remodel commercial landmarks to reshape the image of the “China’s First Business Street Nanjing Road” and the “100-year-old Huaihai Road” through the upgrade of hardware and software standards, and to build 10 world-class landmark business districts such as Lujiazui and Yuyuan Business Street. Shanghai would build multi-level and differentiated regional commercial districts, and to create Shanghai-style commercial districts with distinctive features such as “Backstreet Economy”, “Night Shanghai” and “Women Street”.

Thirdly, Shanghai would launch the revival of time-honored brands and to bring a sense of urgency to the protection of old styles and old brands, while at the same time deepen the reform of time-honored state-owned enterprises, and build old-fashioned enterprise groups. Shanghai would continue to support time-honored brands to adopt new and innovative business model of innovation and help them to implement the “time-honored brands internet plus” plan and to increase the marketing efforts for these time-honored brands. Fourth, actions to accumulate consumer brands. The key point is to expand the influence of the China International Import Expo, aiming at attracting high-quality goods and services worldwide, gathering more international famous companies, product and service brands alongside domestic fashion designers and original designer brands. All these efforts will bolster Shanghai’s ambition into a global consumer goods hub, a place where global renowned brands first launch their products and operate their businesses, and also a place gathering originally designed brands worldwide.

Fifth, actions to “polish” Shanghai’s shopping name card. The key point is to make full use of existing shopping festivals, which will develop Shanghai’s shopping festival under themes of “shopping in Shanghai” and “lady’s Shanghai.” Meanwhile the city should expand the influence of Shanghai Fashion Week, which is expected to become the world’s fifth largest fashion week. These efforts will help foster shopping activities showing the city’s characteristics and increase the frequency of such activities. Sixth, actions to boost collaborations between business and cultural activities. The key point is to establish a mechanism bolstering collaborations among activities covering project development, audience sharing, standard development, platform interactions and publicity, which will enhance interactions among consumer industries and help develop shopping brands via various activities such as Shanghai Tourism Festival, Shanghai International Film Festival and ATP World Tour Masters 1000. Seventh, actions to globalize the “Shanghai shopping” brand. The key point is to enhance the development of the brand image of Shanghai shopping, which helps push the brand into the global competition. The city aims to develop into a global consumer goods hub, the place where global renowned brands first launch their products and operate their businesses, and also a place gathering originally designed brands worldwide. Eighth, actions to optimize consumers’ rights. The key point is to urge the development of a business credit and standard system, which helps protect consumers’ rights, optimize credit environment, improve the quality of business services and the development of quality standard systems. Meanwhile the policies to boost consumer market development, supervision systems to ensure better business environment, along with business models and production patterns will be upgraded to bolster the development of Shanghai shopping brand.

The action plan meanwhile has specified six measures to ensure the brand development, which involve the enhancement of the government’s leadership and financial support, the optimization of the city’s strategic plans, the improvement of human resource management, innovation systems and supervision and evaluation systems.

Third, keep on working to be ready for a “protracted war”

The development of “Shanghai shopping” brand is a long-term journey, which set “meeting people’s ever-growing needs for a better life” as the starting point and objective and is aimed at boosting high-quality development and high-quality life. Shanghai will stringently follow the deployment set by the Shanghai municipal party committee and government, which covers a clear roadmap, duty list and timetable. The government will encourage the public participations to help implement the tasks to develop the “Shanghai shopping” brand and especially to realize “the main three tasks” this year.

First, Shanghai is set to gather more latest consumer brands. For domestic and international famous brands, Shanghai has become a city to set up their stores and debut their products nationwide. It is also a city with many first stores and flagship stores in China. There were 1,265 brands which held the country’s first launching ceremony in Shanghai last year and 592 events for different kinds of launches. About 226 first stores have been set up in Shanghai last year.. In the first quarter of this year, there were 97 first stores nationwide (excluding 16 stores from Hong Kong, Macau and Taiwan). There are 50 stores located in Shanghai, accounting for more than half of the total. Compared with cities such as New York and Paris, there are not enough world-leading brands in Shanghai which hold world debut. Shanghai plans to hold a launching ceremony to build a global new product launch city at the end of May, attracting new brands and their latest products from home and abroad. During the event, a number of new products will be showcased in Shanghai, which allows more brands to gather in Shanghai. At the same time, the city will take fully advantage of China International Import Expo and introduce more goods and services. Shanghai will also introduce famous retailers and buyers in order to increase the richness and attractiveness of merchandise.

Second, the city will create a good shopping environment. Shanghai will actively adapt to consumer development trends such as online-offline, goods-services, and retail-experience. The city will optimize the business layout and lead the consumer trend. The city will strive to enhance its hardware and software level. In particular, Shanghai will turn itself into a place with world-renowned boutique, world-leading service, high-quality and comfortable shopping environment, excellent regulatory model. The city will create a consumer environment which is honest, trustworthy, service-strengthened, and convenient to attract global consumers.

Third, the city aims to achieve cost-effective shopping for consumers. The city will take the opportunity to further accelerate the development of free trade zone. The government will deepen the innovation and continuously break through the institutional bottlenecks to reduce circulation costs. The city will establish a monitoring mechanism to compare imported product prices from home and abroad. With the use of the mechanism, the government will guide pricing to ensure brand is reasonably priced. The price competitiveness of goods and services will be increased. At the same time, Shanghai will take the advantage as its annual air passenger throughput totaled more than 100 million people. The city will strive to attract more overseas consumption tax exemption policy. The city will add more duty-free shops at airports, terminals and other ports. Shanghai will also expand the scale of duty-free shops, set up demonstration area so that more and more tourists are willing to buy goods in Shanghai.

For world-class metropolises, they all have a common characteristic which is they are cities with consumers and shopping. In the new era towards a global city of excellence, Shanghai will use Xi Jinping’s ideology as a guideline. The city will actively respond to the development trend in the new era and adapt to consumption upgrade. Shanghai will gather more talent and deepen the opening-up and reform. The city will insist on urgency and responsibility to develop itself. The decisions made by the municipal party committee and the municipal government will be put in place. Aligned with the development of Shanghai services, Shanghai culture and Shanghai manufacturing, Shanghai shopping will fly higher, faster, and further!