Where to locate your office in China

At the Skinny we are often asked why we chose Shanghai as our HQ. There are no shortage of interesting and dynamic cities in China, such as the innovation and tech mecca of Shenzhen, the creative and independent Chengdu, the raw and dramatic Chongqing, or the seafood and beachy hub of Qingdao. China Skinny’s founder Mark Tanner was originally based in Beijing, but recognised that Shanghai was the best city to base a business like ours.

For hundreds of years Shanghai has set the trends in China and has always been the quickest to incorporate foreign products into their lives. Even something as ubiquitous as glass can help tell this story. When Europeans first showcased this marvel in the 19th century Shanghainese were quick to commercialize it. Stained glass decorations, trendy spectacles and even grand plans to enclose main shopping streets for retail attractions all started in Shanghai.

In the years leading up to the Second World War, Shanghai was flying high. As most global cities floundered during the Great Depression, Shanghai had become an international boomtown, much like it did during the GFC eighty years later. With 3 million residents, it was one of the world’s largest cities, attracting adventurous folk from around the globe.

Although Europeans made up just 50,000 of Shanghai’s population in the 1930s, they controlled half the city due to inequitable treaties. With them, they brought alluring exotic goods not seen before in China. Although there wasn’t a one-eyed adoration of all things foreign, Shanghai’s international influences built an inherent openness to imported goods and created a sense of consumerism long before other parts of China.  

When China opened up again in 1979, it didn’t take long for Shanghai’s intrinsic consumeristic traits and openness to new and interesting products to return. It was also much easier for Shanghainese to travel and study abroad than other Chinese, further opening their minds to foreign wares and consumption. Since then, greater property appreciation and higher wages have helped fund the fix.

At the Skinny, we speak to consumers all over China. While there are refined consumers across China’s big cities, Shanghai’s consumers remain the most sophisticated and open to new brands and product innovations overall.

Shanghainese’ openness and willingness to spend has attracted more retailers and retail innovation than any other city. In the last three months of 2023 alone, eight new projects encompassing 587,000 square metres – over 100 football fields – of retail space were added into Shanghai’s retail space, bringing the total retail space to nearly 23 million square metres. China’s second largest retail market, Beijing, is around 16 million square metres. Every other Chinese city has less than 10 million square metres.

Shanghai’s quantity of retail is supported by its quality, with some of the most innovative spaces such as the recently-opened Panlong Tiandi, Longhua Hui and Louis Vuitton’s pop up at Fotografiska late last year. Countless brands have opened their national flagship store in the city, tapping into Shanghai as an aspirational centre that permeates across China through social media and domestic tourists.

This retail scene, coupled with Shanghainese’ sophistication and consumerism is why Shanghai is the city for most Chinese R&D centres from foreign brands. It’s why an international business cooperation zone was recently approved to be built in Shanghai. It is how China Skinny stays across many of China’s latest trends.

Even if the rampant consumerism and retail spectacle isn’t your thing, Shanghai is a lovely place to live. Wandering through the city, there are countless parks and plenty of hidden restaurants, cafes and holes in the walls to discover. Whilst some viewshafts are straight out of Bladerunner, others are intimate tree-lined streets filled with historic Chinese and European architecture.

Althought the wages and general cost of living in Shanghai are the highest in China, the city’s lifestyle, dynamism and opportunities attract many of the best and brightest - from a handful of the world’s most innovative chefs, to some of the most switched-on marketers -– of which we’ve managed to snag a few. Shanghai’s international flight connections also make it convenient for our clients and team to travel in and out of China.

But just don’t just take our word for it, there are more foreign businesses based in Shanghai than any other Chinese city. Together, foreign companies contribute a quarter of Shanghai’s GDP.

With that in mind, if you are looking to open an office in China, is Shanghai the best choice? If your business is consumer-related, there is a good chance that it is.

Nevertheless, although it is a great place for our HQ, we are the first to admit that Shanghai isn’t always the best city to launch products. Whilst sophisticated, premium products are often best received in Shanghai, many other cities are less contested and easier to break into for other products. We are fortunate to have team members from across China to ensure that we get many perspectives. When we work with clients, we evaluate the most appropriate locations to focus on, which aren’t always the cities you’d expect them to be.

So that is why the Skinny HQ is based in Shanghai. If you are based in Shanghai or visiting, please pop in at any time for a chat and a beverage. You are always welcome.