Shanghai's first-store economy blooms

Shanghai continues to cement its status as a global retail hub, with 128 first stores opened in the first two months of 2026.

These new stores go beyond mere transaction, emphasizing immersive environments that engage consumers emotionally.

The trend is evident in skincare brand Eve Lom's global debut of its emotional healing concept store in Grand Gateway 66 on April 5, offering customers a relaxing, garden-like environment designed to alleviate stress.

The store's manager said that in today's competitive beauty industry, brick-and-mortar outlets must serve as spaces for relaxation and rejuvenation, not just product sales.

Since proposing in 2018 to develop itself into a global hub for product debuts, Shanghai has spearheaded the "debut economy", with 8,472 first stores introduced to date. In 2025 alone, 1,093 first stores opened, with high-end first stores accounting for 16.8 percent.

Revanna, a fragrance brand from Saudi Arabia, chose Shanghai's Julu Road as the location for its first physical experience space in China in late January, offering shoppers an immersive olfactory journey.

Tan, a visitor from Suzhou of Jiangsu province, said, "My generation is willing to pay for the olfactory economy because scent can bring emotional value."

To foster a vibrant retail environment, Shanghai Municipal Commission of Commerce unveiled its latest policy incentives for debut economy on April 5, offering up to 1 million yuan ($145,782) in support for shopping malls and business areas to attract first stores and flagship stores.

Shanghai is set to welcome more flagship stores this year, including Unitree Robotics' first humanoid robot experience center in Aria at the Jiuguang Department Store in Jing'an district in late May.

In addition, German retailer Muller will open its first Asian store and Swiss watch company Carl F. Bucherer will open its first Chinese store in Shanghai later this year.