Taiwan-based Shin Kong Mitsukoshi (SKM), a leading department store chain, yesterday announced it will open its first store outside Taiwan, in Beijing.

Shin Kong Place, covering 120,000 square meters, is the biggest of its kind in China in terms of size and is located in one of the busiest areas of Beijing, close to the World Trade Center.

Developed by Beijing Guohua Real Estate Co Ltd, Shin Kong Place is a 50-50 joint venture between SKM and Beijing Hualian, the sixth-largest player in the industry.

"Beijing is an enticing market because of the coming Olympics and that's why we decided to land here first," said Steven Wu, general manager of Hualian Shin Kong Department Store (Beijing) Co Ltd.

The group is said to be planning to expand into Chongqing also, but Wu refused to elaborate, emphasizing that SKM is currently giving top priority to developing Shin Kong Place's business by leveraging the strengths of both SKM and Hualian.

Starting out in 1991 in Taiwan, SKM has expanded into a network of 13 stores, with a 30 percent market share in Taiwan.

Competition in this particular segment has been heating up on the mainland. Taiwan-based Pacific Department Store has nine stores on the mainland, with one in Beijing. Malaysia-based Parkson has been expanding more aggressively. With more than 30 stores, it recently opened its third in Beijing around the East Fourth Ring Road.

Executives from SKM elaborated on the brands, especially international luxury brands, they plan to assemble at Shin Kong Place to make it stand out in a crowded market.

In all, 938 brands will feature in Shin Kong Place, covering everything from facials to garments, shoes, bags, and food. Some 61 percent of these will be international names. There will be 78 luxury brands. For 42, this will be the first appearance in China.

In terms of services, besides play area, SKM will offer a 139-square-meter beauty salon tailored for women and a 30-square-meter Men's Facial Product Area.

Source: China Daily