Note: Number of stores excludes outlet stores and stores in airport
Source: JLL Research

Yet, a large number of luxury brands are still absent from the Guangzhou market (see Figure 1). Meanwhile, luxury brands that are present in Guangzhou command rather low penetration rates (see Figure 2) and are largely clustered in one single mall, namely Taikoo Hui. As offline is still expected to be the preferred luxury sales channel in the future, despite brands’ online exploration, we expect more luxury brands to make their debut in Guangzhou, and existing ones with strong sales performance to consider setting up additional stores for deeper engagement.

The challenge, however, is that viable prime retail facilities are highly limited.

Vacancy in Taikoo Hui is limited, while there are few other suitable locations for expansion or entry. Guangzhou’s lack of proper shopping malls that are suitable for luxury brands' expansion is mainly for the following three reasons: