Shanghai Barbie House

As the financial crisis continues to take it’s toll, there appears to be certain markets that are completely insulated, but only at the very top-end of the luxury real estate markets - such as Barbie Doll Houses.

Mattel has just spent $30 million opening a “House of Barbie,” in Shanghai. The House of Barbie is the first Barbie flagship store and two new dolls, “Shanghai Barbie,” and her closest friend, “Cute Asian-looking Barbie friend no.233,” were created for the launch. 

The enormous 3,400 square meter store is at 550 Huai Hai Lu, one of Shanghai’s premier shopping areas. “We believe in Girls’ dreams,” is their current tagline, although I have a feeling that might have to go after more careful consideration. One has to assume that this store has been in the works for some time, and presumably pre-credit crunch.

We believe in Girls' Dreams

Photo credit 1
Photo Credit 2

When I first became aware of this store, I did wonder at the sense of 3,400 msq2 devoted entirely to Barbie dolls, but it turns out to be slightly more sophisticated than that. Whilst promoting the idea that what every girls’ dreams should be all about is - shopping, the store offers other facilities also, such as a the ability to be a fashion designer for the day and “create your own Barbie styles;” as well as a runway show from world-renowned designers; a full service spa and an opportunity to have your photo taken with Barbie. Not forgetting the shopping. Whether this idea will weather the current financial climate remains to be seen, but for any of you who might be interested in these things, here are a few photos of Shanghai Barbie and her friend. In fact Shanghai Barbie has an entire website about her. Sweet dreams…….

Shanghai Barbie

Shanghai Barbie's friend

As the dollars, euros and pounds continue to pour into China, a new breed has emerged. Wealthy, high-net-worth individuals with the desire and wherewithal to flaunt their wealth. China is rapidly becoming one of the largest consumers of high-end goods in the world. Estimates put China as the third largest luxury goods consumer, accounting for a minimum of 12% of the market, with Goldman Sachs suggesting that this will rise to around 30% by the year 2015.

No wonder then, that luxury retailers are flocking to the Chinese high streets and Malls, creating some of the most expensive retail real estate in the process.

Giorgio Armani was one of the first brands to enter the market, opening their  flagship store in 2004. Armani now have no less than 12 stores in Shanghai alone. Next to jump on the band wagon was Louis Vuitton, closely followed by Cartier, Hermes, Giorgio Armani, Prada, Gucci, Escada, Celine and Emmenengildo Zegna.

Luxury automobile manufacturers were the next group: Porsche, Ferrari, Bentley and Rolls Royce all opening new dealerships in China by 2005.

Indicators of the luxury retail rush are everywhere. Saks Fifth Avenue will open its first store in China in 2008, in Shanghai, under a licensing deal with Roosevelt China Investments Corp. Tiffany & Co. is set to unveil new stores this year in Beijing and Shanghai, both of which already have one Tiffany store each. New York City-based watch retailer Tourneau opened two stores in Shanghai in August, the first of 30 it plans to have in China within five years. Cartier operates 12 stores there now and has five more under construction. The company anticipates that 10 percent of its sales will be coming from China by 2012.

Ernst & Young published a report last year on the Chinese luxury market that says 13.5 percent of China’s consumers can afford luxury items. Most of these are between 20 and 40 years old and have a “spend now and worry later” attitude, the report says. The most active consumers are men.

Luxury department store Saks fifth avenue are also planning an entry into the Chinese market, but seem to be having trouble with the local sub licensee. Roosevelt China Investment Corp. recently announced that it has terminated its sublicense agreement with I.T. Ltd. "While we have terminated the arrangement with IT, we continue to seek an alliance with local market experts and remain committed to opening a licensed Saks Fifth Avenue store in Shanghai in 2009," said Tweed Roosevelt, Chairman of Roosevelt China Corp. Current plans are for the licensed Saks Fifth Avenue store to be situated in one of the most dramatic and historical buildings in China, the former Jardine-Matheson headquarters on the Bund. Plans call for the building to be fully renovated to its original grandeur with a flagship presence in the newly renovated Bund area. Saks Fifth Avenue is a part of Saks Incorporated.

"We are committed to bringing Saks Fifth Avenue, one of the world’s finest luxury department stores, to the burgeoning Chinese retail market,” said Mr. Roosevelt.

Napa Reserve recently opened a flagship store in Shanghai, selling premium Napa Valley wines. Shanghai is currently being described as the Manhattan of China, although one Napa valley wag on a recent trip described Shanghai as “New York on steroids.” Doesn’t bear thinking about.  
 
383 Weihai Lu,
Jing An
near Shimen Yi Lu

威海路383号
近石门一路

6340-0493