Chongqing Coolest Boutique SND Ventures Into Department Store Format
SHANGHAI — Retailers are shifting retail strategies in post-lockdown China. Case in point: SND, a fashion boutique in the southwest region of China, is making big moves by expanding into the department store format.
WWD can exclusively reveal that the multibrand fashion retailer in Chongqing on Friday is launching the Super Normal Department, one of its biggest stores since it opened nine years ago.
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“I want this to be a fun and social space. It’s not about how much money we can make here. It’s more about trying out a new retail model, something that young people would be interested in,” said Will Zhang, the founder of SND.
Dubbed as the Southwest’s coolest designer concept store, sales at the retailer reached 5 million renminbi, or $705,950, in May 2020. Due to accelerated store openings, SND’s sales doubled in 2021 year-over-year. The company now counts 12 stores in first- and second-tier cities, including Chongqing, Shanghai, Guangzhou, Shenzhen, Guiyang and Sanya.
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The new store, located near a touristy part of town known as “the Chongqing Bund,” occupies the old French naval Barracks, which hosted a Louis Vuitton Bags & Trunks exhibition last March. The space includes three independent buildings and a courtyard garden, spanning 10,800 square feet. The space, minimal in design, was renovated by its longtime collaborator, Shanghai architecture studio Archive.
Initially occupied by eateries and bars, Super Normal Department is part of Changjiahui Shopping Park, an outdoor shopping center known for attracting tourists. Foot traffic was hit hard by the coronavirus pandemic, so the property developers, Hongkong Land, and China Merchants Shekou decided to rejuvenate the area with something that could attract local visitors. They tasked Zhang to revamp the historical site.
The project also became a chance for Zhang to experiment. SND will launch retail outposts for Guangzhou designer Wukou Su’s streetwear brand They Are and OK Center, as well as manage stores for the lifestyle boutique Tavn and a popular local coffee shop. SND, the fashion boutique, only occupies two floors of the main building.
“These kinds of brands find it hard to fit in at a shopping mall, let alone meet mall’s sales-per-square-foot standards,” Zhang said in explaining his brand choices. “And for creators like Su, he probably doesn’t like the atmosphere of a commercial mall.”
Super Normal Department will also be a testing ground for new retail categories.
SND Sight and Scent Room, the retailer’s perfume and book store, will mark the brand’s foray into art and culture. A gallery space will be managed by Su or the SND team, which will host monthly art shows. It could also be occupied by SND’s Hyper Market branch, which will introduce street style and sportswear-driven brands priced from 300 to 1,000 renminbi.
Zhang’s bet is that by carving out a space for culture and art, selling Gen Z-friendly streetwear, modestly priced fashionable homeware, candles and books, SND will draw in a new cohort of shoppers. “A lot of these brands are competitively priced to attract the general public, not just the fashion crowd,” Zhang said.
With a population of 32 million, Chongqing is the largest city in the Southwest, known for its spicy hotpot and rising rap scene. Chongqing is also one of the original “influencer cities,” a term that popped up in recent years to describe photogenic cities popular on Chinese social media.
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According to Douyin-owned data research company Ocean Engine, Chongqing had the highest activity rate among second- and third-tier cities in Douyin last year.
Chongqing’s GDP exceeded 639.8 billion renminbi, or $99.8 billion, in the first quarter of 2022, a 5.2 percent increase year-over-year. Chongqing was ranked seventh in China’s fashion consumption index published by China Chain Store & Franchise Association in 2021.
According to Zhang, 70 percent of SND’s clientele is young people who had experience studying abroad and have developed their own sense of style. They prefer European and Korean brands such as Marine Serre, Hyein Seo and Our Legacy. “The other 30 percent are the new middle class who prefer local brands such as Eenk and Immi, which are trendy but also work-friendly,” added Zhang.
SND grew in popularity as a boutique known for bringing brands like Y/Project, Raf Simons and Lemaire to the mountainous mega city. It quickly expanded to four shops, including two Concept Stores, one Stance Shop, and one pop-up store. Unlike Chengdu or Shanghai, where numerous fashion boutiques compete for customers’ attention and money, SND had a first-mover advantage in an easily overlooked market.
Guangzhou and Shenzhen have also become important markets for the retailer. A Shenzhen store opened two years ago, and a Guangzhou store opened last year.
“Shenzhen customers are willing to splurge on clothes. They don’t compare. They’ll buy anything,” said Zhang of the nouveau riche clientele. “But Guangzhou shoppers are different. They research and want the hottest new brands, local or global.”
Guangzhou has the highest percentage of male customers for SND, even more than Shanghai. “The men there really like to dress up. Avant-garde designers such as Rick Owens or Y/Project do best in Guangzhou.”
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SND also launched a Tmall store in 2018, which accounts for around 35 to 40 percent of sales.
SND is in full expansion mode. WWD can also exclusively reveal that the retailer is expanding in the Shanghai market, with two pop-up locations set to open in Puxi, the downtown part of traditional Shanghai.
The company s also planning a new store in Shenzhen this August. “We’ve had a pop-up in the city for two years. I think this is a good time to open an official store.”
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