Amid shifting dynamics in China's retail sector, several foreign and Hong Kong brands are closing physical stores on the mainland. High-profile closures include those of Lane Crawford, Ikea, Triumph, Zara Home, and Zara. German lingerie maker Triumph Group International had closed all its bricks-and-mortar stores on the mainland as of December 31.
China's mainland retail sector is undergoing significant changes, posing challenges for foreign and Hong Kong brands. According to the South China Morning Post, high-profile store closures include those of luxury department store Lane Crawford, home goods giant Ikea, lingerie brand Triumph, Zara Home, and Zara. These closures reflect evolving market dynamics.
An analysis from consulting firm Bain & Company notes: “Compared with emerging mainland retailers, Hong Kong and foreign brands often remain under a ‘selling on the mainland’ phase, rather than a ‘creating for the mainland’ phase.” This suggests many international brands have yet to fully adapt to localization needs.
Specifically, German lingerie maker Triumph Group International had closed all of its bricks-and-mortar stores on the mainland as of December 31. Other brands like Dior and Louis Vuitton, while not fully exiting, are adjusting strategies by shifting toward online platforms such as Alibaba's Tmall.
Key cities involved include Shenzhen, Guangzhou, Shanghai, Beijing, and Chengdu, where these retail transformations are evident. The closure of Hong Kong brand Lane Crawford is particularly noteworthy, highlighting pressures on cross-border retail.
This trend may signal a shift in China's consumer market toward localization and digitalization, requiring international retailers to reassess their mainland positioning.
