SKP Beijing was the biggest and most productive retailer in China in 2019 with 15.2 billion yuan in revenue. This year, though affected by the COVID-19 pandemic and its consequences, the "king of department stores" in China has maintained double-digit sales growth and is expected to achieve sales of approximately 17.5 billion yuan throughout the year. 

SKP's robust growth against the trend is inseparable from people's strong demand for consumption. Thanks to China's "dual-circulation" development paradigm and the innovative practice of supply-side structural reforms, Beijing's fashion industry continues to grow. Numerous brands have opened their first stores in the capital, bringing new shopping experiences and fostering new growth areas of consumer spending.

Niche fragrance brand Kilian has opened a new pop-up boutique in SKP Beijing to display its brand history, artistic craftsmanship, creative inspiration, and classic works. 

In June this year, Kilian opened its flagship store on the first floor of SKP, marking the luxury French fragrance brand's debut in Beijing and China. According to a representative of the brand, the store's operation demonstrates that Beijing consumers have a strong demand for high-end fragrances.

Xie Dan, deputy-general manager of SKP, said that China has a huge domestic demand base. Chinese consumers contribute 35% to all global fashion consumption, but only a small portion of that total previously occurred in China before. On account of the pandemic, more customers are purchasing in the domestic market and China's successful curbing of the virus has fostered a favorable environment for department stores like SKP to grow. These reasons have enabled SKP to continue to achieve a double-digit sales growth this year.

Beijing has put forwarded many pro-consumption measures to further boost market vitality as consumer demand, held back by the COVID-19 epidemic, rebounds. In September this year, Beijing Municipal Commerce Bureau updated measures to encourage brands to set up their first flagship stores in the capital, under which international brands can receive a maximum of 5 million yuan in rent and decoration subsidies.

It is expected that with the upgrading of the business district and policy incentives, the "first store economy" will continue to fuel the capital's economy. 

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