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First-class goods in second-tier cities as luxury goes local in China
['Casey Hall']
Zawya.com - All Regional News
"The fact that you have all these second-tier cities now in the top 10 (luxury sales) ranking - it's crazy if you think about it," said Zino Helmlinger, head of China retail at CBRE.
MALLS IN SECOND-TIER CITIES CLIMB LUXURY RANKSMalls in other second-tier cities - such as Changsha IFS, Wuhan Wushang and Hangzhou In77 - are also rising in luxury sales ranking, Helmlinger said.
Consumer confidence was stronger among young and middle-income shoppers in second-tier cities, where living costs are lower and local job security firmer, the research showed.
Many second-tier cities have also seen their middle-class population boosted by a net inflow of people from top-tier centres, Savills' Macdonald said.
"In the coming few years we're going to see many more second-tier cities rising, because that's where the money is."