Beijing's Sanlitun adds luxury flagships after revamp

After more than three years of renovation, Beijing's Sanlitun shopping district has unveiled a refreshed retail lineup that leans more heavily toward luxury — a move seen as a vote of confidence in the resilience and long-term potential of China's consumer market.

At a media event on Wednesday, Han Zhi, director of retail at Swire Properties, said the Chinese mainland has long been one of the company's strategic priorities in retail development. He added that the company remains confident in the vast potential and long-term value of China’s consumer market.

Headquartered in Hong Kong, Swire Properties entered the Beijing market in 2008 with its first retail project, Taikoo Li Sanlitun, an open-air retail space located in the east of the Chinese capital.

The northern section of the complex — the centerpiece of the latest round of upgrades — now features a prominent cluster of standalone luxury flagships. Tiffany & Co., Louis Vuitton, and Dior have opened stores there since late December. Nearby, a Hermès store is under construction and is expected to open this spring.

After more than three years of renovation, Beijing's Sanlitun shopping district has unveiled a refreshed retail lineup highlighted by new luxury flagships. [Photo provided by Taikoo Li Sanlitun]

Nearly 50 high-end brands and flagship stores have now established a presence in the northern area, according to CT Ma, general manager of Taikoo Li Sanlitun, significantly elevating the district's luxury profile.

The expansion comes as China's luxury market shows early signs of recovery after a slowdown in the second half of 2023, based on recent earnings releases from several global luxury groups.

Han said Swire Properties has been shifting from a traditional property-development model toward a more people-centered approach, transforming itself into a company that builds and nurtures commercial ecosystems, with the aim of redefining experiential retail for a new generation of Chinese consumers.

Ma added that the retail complex has adopted a strategy centered on global flagship stores and deeper emotional engagement with consumers, as brick-and-mortar retailers seek to compete more effectively with online shopping.

Over the past several years, Taikoo Li Sanlitun has introduced 171 "first stores" in Beijing, hosted 227 first launches, debut events, and exclusive showcases, and worked with brands to co-create more than 100 customized, themed retail spaces, according to a company press release.

Beyond Sanlitun, Swire Properties is developing Taikoo Place Beijing in the city's northeast. The mixed-use project, combining premium office towers with a retail space, represents the company's largest investment on the Chinese mainland to date.