Shanghai Fashion Center (SFC), the largest new-rising Outlets in China,

A: Good policy cultivating good industry & governmental support

As early as 2000, Shanghai Municipal Government proclaimed in the 11th Five-Year Plan to build Shanghai as the sixth fashion city in the world in the period from 2001-2010 to make it a new international fashion center. In 2004 on the occasion of 1st China Shanghai Fashion Conference, Shanghai Municipal Government expressed to accelerate the pace. The rise of Shanghai Fashion Center is the embodiment of the government’s policy of “four priorities and four centers”.

B: The Consumption Capacity in the area of Yangtze Delta.

The Yangtze Delta which includes Shanghai, Jiangsu Province and Zhejiang Province is the leading area with rapidest economy growth as well as the highest per capita with a quarter of GDP in China. The annual sales of consumer goods add up to over 1000 billion RMB in the 2006, and the spending on garments accounts for 14%. There are 40 million permanent resident populations in the adjacent cities and 4 million private cars which increasing with a rate of 40%. The people in this area have huge purchasing capacity and strong desire for consumption.

C: Consumption Capacity & Characteristics

Shanghai as the center of Yangtze Delta, it has flourishing and large-scale fashion market and great potential for development. There are 160 million pieces in 2005 and 178 million pieces of garment are been sold according to the statistics from Shanghai Municipal Statistics Bureau, which are possessed of a 10.9% increase compared to the same phase of last year. The total sales added up to 25 billion RMB. It is reported that Shanghai following the Hong Kong, is the second largest city with fashion consumption. Meanwhile, with the upgrading of consumption and the expansion of luxury goods, the most distinct and important feature for the Shanghai fashion brand is the trend to high-end. New distribution for the fashion industry like OUTLETS is prospering with each passing day. At present, top brand made up of 10% of the sales and the trend for this is extending.