Brand Strategies for Luxury Brands in Shanghai

By Daniel Kim

Luxury stores may appear closed at first glance—but in reality, their doors are open; they are simply designed to be hard to find.

This subtle barrier can be both physical and visual. For instance, when attempting to enter a Valentino store on Huaihai Zhong Road, the entrance featured a discreet handle and a noticeably heavy door. Even after managing to open it, there was a brief moment of hesitation—uncertainty about whether I was meant to enter at all.

Across Shanghai, many boutiques adopt this approach. Storefronts feel deliberately less welcoming, often concealing products rather than displaying them to passersby. This intentional opacity reinforces the exclusivity of premium offerings. For some, the ambiguity of entry can evoke a mix of hesitation and intrigue—where slight discomfort heightens curiosity and, in turn, desire.

Access, therefore, becomes a subtle signal of belonging. Only those who recognize how to enter—or feel confident enough to do so—cross the threshold. In this way, these spaces distinguish insiders from the general flow of urban pedestrians, transforming entry itself into a marker of status and cultural fluency.

This dynamic may particularly resonate with upper-middle-class Shanghainese consumers, for whom distinction is not only about wealth, but also about differentiating themselves through refined taste, cultural awareness, and the ability to navigate subtle social cues within an increasingly diverse urban environment.

In contrast to other luxury brands with exclusive storefronts, the Korean premium eyewear brand, Gentle Monster, draws the largest crowds on Huaihai Zhong Road through its striking art installations. The store was filled with visitors, many of whom queued to take photos in front of uncanny, gigantic sculptural faces. While such large-scale installations may compromise short-term in-store ROI, they create an immersive and highly shareable environment—significantly boosting brand visibility through continuous foot traffic and social media engagement.

Directly across the street, the Chinese bag brand, Songmont, adopts a markedly different strategy. By deliberately limiting the number of visitors allowed inside, the brand creates visible queues. As part of a new wave of Chinese consumer brands, Songmont emphasizes Chinese aesthetic heritage as a compelling alternative to Western luxury. The controlled in-store environment allows for more intimate, staff-assisted interactions, deepening engagement for those inside while simultaneously cultivating curiosity and desire among those waiting outside or peering in.

We are curious which strategy will resonate more with Chinese consumers.

For discovery and mass desirability: Gentle Monster likely has the edge. It scales attention quickly and thrives in a social-media-first ecosystem.

For depth and brand loyalty: Songmont’s model may prove more durable. It converts interest into emotional attachment and perceived value.

 

K-Fashion Keywords: Sporty Casual and Return of Classics

By Daniel Kim

In Seoul, it’s not just acceptable—but stylish—to wear a sporty mix-and-match outfit even when visiting upscale restaurants or wine bars. The sporty casual trend is booming, especially among MZ Koreans who express their healthy lifestyles through fashion. A good example: trendy early birds attend 7 a.m. “morning coffee club” parties, where they dance sober to music—sometimes right after a jog.

This fashion shift extends to the workplace as well. Formal suits are becoming rare. A neat polo shirt, chino pants, and loafers now qualify as appropriate office attire. Prioritizing work-life balance, many young professionals opt for active yet comfortable clothing, allowing a smooth transition between work, the gym, or a Pilates session during lunch or after hours.

Post-Covid, the conspicuous consumption of luxury brands has clearly declined among the youth. Instead, there’s a growing appreciation for quality and craftsmanship in the trend of old money aesthetics. Brands like Ralph Lauren and Brooks Brothers are being rediscovered by young men. Coach has successfully revamped its bags to appeal to women in their twenties. Meanwhile, many women are embracing a reserved, elegant femininity—known as the Demure look—fueling demand for minimalist luxury labels such as The Row and Lemaire. As a fast fashion brand, Cos is closing the gap with market leader Zara, thanks to the rising popularity of the Demure style.

Luxury Consumption in Korea: Family Strategy for Status Preservation

By Daniel Kim

In Kangnam, a daughter attending a top-tier university often borrows her mother’s classic Chanel bag to show off when meeting friends. When the mother buys a Gucci shirt, she will look for a style that she and her daughter both enjoy, so they can share it.

At the heart of luxury consumption in Korea lies a family’s strong desire to elevate their social status amid growing economic inequality. In fact, Koreans have long been accustomed to competition within a rigidly hierarchical society. From a young age, they strive fiercely to gain admission to prestigious universities. After graduation, they face another round of intense competition to land high-paying jobs at top companies such as Samsung and Hyundai.

Therefore, luxury consumption in Korea is often driven more by the desire to conform to norms and expectations tied to one’s social status, rather than by a pursuit of individual style. To navigate this landscape effectively, it is essential to comprehend the hierarchical positioning of different brands within the context of ever-changing trends.

For example, a successful engineer at Samsung takes the time to study the heritage and history of luxury brands in order to offer fashion advice to his wife. Rather than shopping for himself, he would be more inclined to invest in luxury items for his wife and daughter, finding a sense of achievement in the way the family is presented to others.

Compared to foreign nations, luxury consumption in Korea serves more as a way of blending into the appropriate status group subtly, rather than standing out through expressive individuality. As a result, overt logo displays are often avoided, while understated patterns and low-key brand codes are favored. For example, the patterned lining under the sleeves of Dior jackets gained popularity because it could be discreetly folded to reveal the brand only when desired.