Wahaha Group, a Chinese beverage company, has opened its first department store.
Waow Plaza in Hangzhou aims to provide “high-end yet affordable” European products to the domestic market.
Waow Plaza is said to have cost the company 1.7 billion yuan (US$273 million) to develop. The department store will mostly sell boutique brands that are popular in Europe but have not yet cracked the Chinese market, says Wahaha brand director Ren Weifeng.
He added that Wahaha intends to grow its retail business by either providing space for European brands or acting as intermediary between European companies and Chinese consumers.
Wahaha group chairman Zong Qinghou says he plans to open 100 department stores in three to five years across Chinese cities.
Guo Zengli, president of China Shopping Center Development Association, said that while opportunities await Wahaha, it will face challenges as several retail giants have set up shops in the market.
GB
