China's outlets business is on a growth trajectory that is similar to that in the US. This market is expected to grow in the coming years, and may not be hampered by the growth in e-commerce or m-commerce in that country. After a massive round of funding by L Capital Asia and Warburg Pincus, Vito Xu, Chairman of Sasseur Cayman Holding Ltd, a Chinese developer and operator of outlet malls, lists out the company's expansion plans, strengths as a business unit, and the strong growth in the outlets industry of China with Fibre2Fashion.
Which brands apply outlet retailing the most aggressively in China?
Mild luxury brands, sports, jeans and fashion brands, and women's fashion brands are among those which apply outlet retailing the most aggressively in China.
Which of your ambitious future plans will the L Capital Asia funding facilitate?
L Capital Asia invests in lifestyle consumption commerce across Asia, adopting a 'triple A' strategy aimed at the aspirational, affordable and alternative segments. It focuses on select sectors of lifestyle consumption which benefits from the growing discretionary consumption in Asian markets. The new investment by L Capital Asia and Warburg Pincus will provide us with both - financial power and valuable industry insight to support our growth. It will provide our tenants a better service and our customers a not only pleasant shopping experience, but also cultural and spiritual enjoyment.
What is the combination of 'art and commerce' that you promise shoppers in your outlet malls? How does it differentiate Sasseur from its competitors in China?
Sasseur is a leading operator and developer of innovative, lifestyle-focused outlets malls in China, with a strong emphasis on the combination of art and business. With 25 years of experience in international trade and business, Sasseur introduced the unique 'art commerce' model with the combination of 'modern commerce + scarce eco-system + regional culture' and core values of art, technology and branding. Art environment, abundant merchandise, interesting promotion and PR events are the key points which make Sasseur stand out against competitors. What's more, each Sasseur Art Plaza focuses on combination with a scarce eco-system. For instance, Nanjing Sasseur Art Plaza is inspired by the ancient city wall of Nanjing and is close to the Shangqinghua Wetland Park; Hefei Sasseur Art Plaza is located at a lakeside and has its own yacht wharf; Bishan Sasseur Art Plaza is located at a mountain and has a nature hot spring. Compared to a foreigner player, Sasseur Outlets Art Plaza has a larger volume. Most Sasseur Outlets Art Plazas have 200,000-300,000 sq m, whereas foreigner players have around 50,000-60,000 sq m. We have more entertainment, food and beverage, kids' yard, etc. We strive to deliver a lifestyle.
What are the trends in terms of outlet malls in China currently? What new can be expected in the years ahead?
The current trends in terms of outlets malls in China are:
Rapid growth
High-end and low-quality outlets, all in the market
Chain-store trend
Attempt to open outlets by some department stores or shopping malls
Develop in tier 2 and tier 3 cities
Future trends
Market reaches its saturation point
Chain stores and local famous brands - the key players
Clear target customers
Which are the new geographical areas that you are looking at for new outlets? What is the target set for 2015?
The Nanjing Sasseur Art Plaza opened in January 2015. The Hefei Sasseur Art Plaza will open In October this year. The Kunming and Guiyang Sasseur Art Plaza will open pilot zones in the second half of 2015.
The US leads the outlets industry all over the world. How do you rate the Chinese outlets industry in comparison to the US outlets industry?
Outlets in the US are mature. China's outlets' business follows the trends in the US. Currently, China's outlets' business is developing rapidly. China is the biggest luxury goods consumption market. There is a huge space for outlets, since customers' demand and market development is poised to grow, especially for high-end outlets.
China is set to emerge as the world's largest m-commerce market in 2015. How is this set to affect brick-and-mortar stores?
We believe outlets' experiential consumption, combination with environment and discount of products will not be replaced by e-commerce. Outlets and e-commerce will develop side by side.
Is Sasseur coming up with omnichannel plans? If you already have or plan to, kindly share details.
We have stores in Wechat, the most popular social media in China. We have omnichannel plans in progress.
Published on: 13/02/2015
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.
