The "McDonald's Theory"

Saturday, July 2, 2011
Hello again! I'm back with some brand new posts, but this one takes a little sidebar from style, and brings us more to the economics and marketing side of fashion. Don't worry though, I've got a fun nail oriented surprise for you tomorrow!

It's no secret that China's economy is growing rapidly, in fact, it is now the second largest economy in the world, lagging only behind the great United States. Recently, I had the incredible fortune of traveling to China, and what I saw fashion wise really surprised me. The typical pattern of luxury retail in cities like New York is destination, or the idea that the coty has one, maybe two stores in the entire city. Going to one of the stores is a "destination," basically you have to plan on stopping buy and buying things. In Beijing and Hong Kong, where I was, this is not the case.

Louis Vuitton at The Peninsula Arcade

There, luxury retailers such as Louis Vuitton, Burberry, or Cartier operate using a plan I have nicknamed the McDonald's Theory. Instead of having one location, they have like five, so you don't plan on buying a two thousand dollar Chanel bag, you just happen to bump into a boutique while you're out and drop two grand, like it's no big deal. 

The Peninsula Beijing

The hotel I stayed at in Beijing, The Peninsula, really epitomized this with its three story luxury shopping mall known as "The Peninsula Arcade." It features stores like Chanel, Salvatore Ferragamo, Gianfranco Ferre, Cartier, Bvlgari, Hermes, Louis Vuitton, Longchamp, Calvin Klein, Jean Paul Gaultier, Lanvin, and even a Tom Ford store that opened during my stay there.  It reallyjust proves how different the people's approach to luxury is, country by country.  

The Peninsula Arcade, with the Piaget store and the Tiffany & Co. store in the background

Truly a fashionistas gaming room, no?
More tomorrow, hope you're all having a fabulous summer!

Christina Anne


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