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Chengdu to create shopping heaven for global consumers

(China Daily) Updated: 2015-12-31 10:18

When consumers think of famous shopping destinations, they often think of New York, Paris or Hong Kong. They soon might be adding Chengdu to that list.

A large hub city in western China, Chengdu plans to transform itself into an international shopping paradise.

According to the city’s plan, the added value of Chengdu’s service sector will reach 900 billion yuan ($139.6 billion) in 2020, the annual retail sales of consumer goods in the city are forecast to reach 850 billion yuan. The amount of mobile payment users among the city's population will account for 50 percent, and the income generated by tourists' shopping activities will take as much as 30 percent of the total tourism revenue.

City officials also expect Chengdu to take a lead in the country in introducing the international brands, cultivating local brands, and upgrading the time-honored brands.

Behind the development plan is the city’s need to boost consumption and its ambition to regain its historical status as one of the country’s most prosperous commercial hubs.

With a history dating back more than 3,000 years, Chengdu was a first-tier city in China before the existence of Hong Kong, Shanghai or Guangzhou. It was one of the richest cities in the upper reaches of the Yangtze River and the starting point of the South Silk Road, which predates the more-famous ancient Silk Road and crossed Yunnan province into Burma, through to India, and ended in what is now the Middle East.

The city also invented the world’s earliest paper currency: jiaozi.

Since China’s reform and opening-up in the late 1970s, inland cities have been slower to develop economically than cities on the east coast. But after the introduction of the Western Development Strategy in 2000, Chengdu has risen to become one of the most dynamic cities in China.

The city is home to 268 Fortune Global 500 companies, and its economic growth has consistently takes the lead nationwide. Despite the continuing downturn in the global economy, its GDP passed 1 trillion yuan last year, up 8.9 per cent on the previous year.

The city set up the general goal for its 13th Five Year Plan (2016-2020) on Dec 4. according to the plan, Chengdu is to build into a comprehensive well-off society with high standards, a core growth pole of western China, and an international regional center by 2020. Its GDP is expected to triple that in 2010, and the residents’ income is to double.

Development strategies

To upgrade the shopping environment and draw more visitors, the city has been introducing high-end shopping and tourism projects, as well as international brands from home and abroad.

With a proposed investment of 55 billion yuan, construction on the Wanda Cultural Tourism City started in September in Dujiangyan, Chengdu. According to Wang Jianlin, chairman of Wanda Group, China’s largest private property developer, the project will create 30,000 jobs, be able to host 30 million visitors and generate revenue of 5 billion yuan annually when it opens for business by the end of 2018.

Wharf Holdings, a listed property and infrastructure company based in Hong Kong, opened Chengdu IFS in the city’s downtown in January last year. Chengdu IFS, which comprises a large shopping mall, office towers, a residential complex and a hotel, has brought about 300 brands specializing in luxury goods, jewellery and fashion to the Sichuan provincial capital.

Sino-Ocean Taikoo Li Chengdu, a new 100,000-square-meter shopping center developed by Sino-Ocean Land and Swire Properties in the city's downtown area, is a combination of ancient buildings and streets, traditional and modern architectural style, and international fashion and lifestyle brands.

It boasts more than 100 top international fashion brands including Gucci, Cartier and Ralph Lauren, and lifestyle brands like Fangsuo bookstore, the Beast Shop, and Michelin Star restaurant.

Including Sino-Ocean Taikoo Li Chengdu and Chengdu IFS, the city's central business district has attracted more than 400 international first-and second-line brands and nearly 600 regional flagship stores, ranking first in the central and western regions.

In the meantime, Chengdu will promote the development of the logistics, tourism, finance, culture, exhibition, catering, and health care sectors to complement and provide services for the shopping boom, according to the plan.

Taking advantage of its rich cultural and natural resources, Chengdu will develop a series of famous local product brands, cultural projects, and international activities.

The city also plans to implement a tax-refund policy that will allow overseas tourists to apply for rebates on purchased goods when they leave the city.

Unique advantages

Chengdu has many advantages to help build itself into a shopping paradise. It is home to the remains of the Jinsha civilization that dates back more than 3,000 years. With the world’s largest giant panda breeding and research center, it is a paradise for panda lovers.

It is also home to the Qingcheng Mountains and the Dujiangyan irrigation system. Qingcheng has long been recognized as the birthplace of Taoism, China's ancient indigenous religion, while Dujiangyan is considered to be the oldest functioning water-control project in the world.

Named by UNESCO as a “city of gastronomy,” Chengdu is known for its spicy and diverse cuisine. Many famous Chinese dishes, including mapo tofu and kungpao chicken, come from Chengdu.

The city was named one of the "52 places to go in 2015" by The New York Times.

The MasterCard 2015 Global Destination Cities Index, released in early July, placed the city in its top-10 list of must-see Chinese cities.

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