Luxury goods and a 'five-star supermarket' come to Shanghai

Coach and Hermes might be names more often seen on shanzhai bags and the arms of those just back from shopping trips to Hong Kong and Europe than on items in Shanghai stores, but that’s about to change. Coach recently released details about its upcoming first Shanghai locale, while Hermes announced the scoop on its new Chinese line and Thai supermarket chain Lotus jumped on the luxury bandwagon, publicizing its new five-star supermarket in Pudong.

Coach’s first mainland flagship store

Coach, one of the quintessential American luxury brands (and one of the most copied in China), recently announced plans to open its first Chinese mainland flagship store in Shanghai in April 2010.

Taking Chanel’s cue and avoiding luxury goods malls like Plaza 66, Coach’s two-floor, 650 square meter store will be located at Huaihai Zhong Lu and Songshan Lu. 

To ensure their waves are big enough to wash Shanghai fashionista their way, Coach will design a series of limited edition handbags especially for the new locale as well as take part in a Star Totes online auction. International celebrities will decorate Coach handbags for the event and proceeds will be donated to the Jackie Chan Charitable Foundation.

When you think “five-star,” usually words like “restaurant” or “hotel” come to mind -- not supermarket, until now.

Hermes in China

Hermes, one of the few luxury brands that is more or less China-free (their scarves are only produced in France), surprised luxury addicts with a suggestion that they will begin production of the company's first 'made in China' brand, Shang Xia. Maybe the Made in China commercial actually worked?

According to Women’s Wear Daily, Shang Xia will be lead by a designer from mainland China and be produced with Chinese materials. If Chinese-made goods needed a PR bump, having Hermes in your corner is a good start.

Unfortunately details about when the line will be released in China are not available.

Five-star food shopping

If in need of immediate luxury satisfaction, Lotus' new venuture might do the trick.

When you think five-star, you usually think of a restaurant or hotel. Now you can add supermarket to that list. Thai hypermarket chain Lotus, in a joint venture with Charoen Pokphand Group and British chain Tesco in China, opened its first five-star market in Pudong.

The store is a response to the demand from the increasing number of wealthy Shanghainese for more premium and imported goods, a welcome addition to local offerings in the wake of recent food scandals.

According to recent local media coverage, approximately 40 percent of the roughly 40,000 products in the new 11,800 sq m five-star supermarket in Pudong are imported.

Not satisfied with only reigning in Pudong, Lotus sees this store as a first step in capitalizing on the booming Chinese luxury consumption market. Jing Daily reports that, “as one of the larger foreign supermarket chains in China, with around 70 locations, Lotus is apparently eager to expand into the lucrative premium grocery market in first- and second-tier markets this year.”

Joe Zhou, chief operating officer and chief merchandize officer of Lotus, told Shanghai Daily, "Lotus will actively expand the presence of such premier supermarkets in first and second-tier cities to meet the rising consumer demand."