The pragmatic marketing trend agency Urban Sublime offers you its ebook: 'Shanghai, The New Eldorado For Your Brand'. After 9 months of hard work spent on the ground in Shanghai, Urban Sublime has captured the best concepts and marketing practices through 11 strategic chapters. These address all the essential components (retail, digital, customer experience, visual merchandising, new ways of consumption) for an effective marketing strategy in the bustling Chinese market.

1. SHANGHAI
Trends / Retail / Marketing / Digital
THE NEW ELDORADO
FOR YOUR BRAND

2. What’s inside?
◆ Foreword …………………………………………………………………………..p 3
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//1. The Youth of Shanghai: who are the young?......………………………………...5
//2. Socio-Trending: a city that marches to its own beat……………………………13
//3. The Digital Boom: the WeChat phenomeon and other specifics......................20
//4. Retail: new types of in-store consumption……………….…….........................38
//5. Ecology and Well-Being: changing mentalities…..……....................................49
//6. Western Beauty: the current beauty standard………………………............59
//7. The Western Model: the most influential countries and cities……….…….66
//8. Case Study: Farine Bakery: the Western concept of the art of food.................75
//9. Merchandising: trends and observations…………………………………………87
//10. Let’s go outside: getting around in Shanghai…………………………………102
//11. Iconic Shanghai: becoming a world leader..………………..…………......….115
◆ Summary: what to remember..................................................................118
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◆ Contact: we’re here for you!.………………………...…............................122
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3. Foreword
◆ All the big brands are rushing to China, the Western world’s new Eldorado, but
many stumble due to a lack of experience and inadequate information. The
purpose of this guide is to bring you true facts about Chinese consumers and
their habits, to showcase the « best practices » as well as emerging trends and
influential movements in Shanghai. These will help you in the development of
your brand and business strategy in China, covering the full spectrum - from
the point of sales to digital.
!
◆ To prepare this guide, we spent over 9 months on the ground in Shanghai from
March 2014 to January 2015. Why choose Shanghai as an example? Because
it’s the largest city in China with a population of 23.5 million, and one of the
biggest cities in the world. Shanghai is also on an exceptional economic and
cultural dynamic. It is the Chinese city that acts as a benchmark for new
trends, concepts and innovations. It is therefore a ‘must be’ destination city for
today’s brands.
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4. Foreword
◆ We observed Shanghainese consumers as well as the youth of Shanghai, who you
will see live and behave very differently from their parent’s generation. We found and
researched the trends which are building and evolving brands. From all these
sources of inspiration, we have chosen, summarized and kept the best: the most
striking trends and observations to take into consideration and quickly include in
your strategy for China.
!
◆ Some observations and trends may not be pertinent to your particular line of
business, which is only normal. The goal through this guide is to present insights
which will help you, inspire you and renew your thinking in a disruptive manner and
bring the best examples emerging from Shanghai and China for your success
tomorrow. For a study of your business or a personalized collaboration, please
contact us: alex@urbansublime.com
Enjoy the read.
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5. // 1. THE YOUTH OF SHANGHAI
WHO ARE THE YOUNG?
5

6. # THE SPECIAL ONES
◆ YOUNG CHINESE BORN IN
THE 1980’s AND 1990’s
!
Today’s Chinese youth are seen
as the golden generation. The
new generation of students and
young professionals are much
more aware of their opportunities
and abilities in today’s society
thanks to the Internet. They are
more confident and demanding
than their parents or grand-
parents. Having grown up in a
quickly evolving society - an
economic boom and changing
mentalities – today’s young are
modifying attitudes in terms of
work, fashion, life and
consumerism. 6

7. // 2. SOCIO-TRENDING
A CITY THAT MARCHES TO ITS OWN BEAT
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8. # BACK IN TIME
◆ THE SHANGHAINESE DISCOVER
VINTAGE
!
Even as the city is overflowing with
innovations, vintage has appeared, apparently
for good. This trend shows that the
Shanghainese, like Westerners, are drawn
towards progress and the future, but at the
same time desire to reconnect with their roots
and a past which provides a sense of comfort
and authenticity in face of an uncertain future.
!
Expats tuned-in to this trend have literally
brought it in their suitcases. Some have even
opened actual boutiques. These stores use
WeChat to promote their latest products and
collections and to connect with the lively
vintage community of Shanghai.
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9. // 3. THE DIGITAL BOOM
THE WECHAT PHENOMENON AND OTHER SPECIFICS
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10. The digital revolution
◆ China is the country with the most internet users (632+ million in June 2014). These
numbers shed light on the business opportunities which account for millions of
dollars.
!
!
◆ Most internet users are connected through their mobile phones (527+ million, or
87% of internet users), which partially explains the exploding success of WeChat,
the instant messenger service owned by TenCent.
!
◆ The Chinese sector of e-commerce is the most dynamic in the the world. Just
about everything can be purchased online through numerous platforms
(TMALLcom, JD.com, Taobao, Yihaodian etc.). Online purchasing is more and more
common, especially among the young. E-commerce has even become a hobby in
China: a method to relieve the pressure of work for some, and for lower tier
consumers, the only form of entertainment.
!
◆ We have noticed a slight decline in the use of social networks (-7,4% compared to
last semester) due to the enforcement of repressive measures (recent
manifestations in Hong Kong) against Sina Weibo (the equivalent of Twitter in China)
and WeChat.
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11. # THE PHENOMENON WECHAT
◆ THE INESCAPABLE CHAT APP
!
Introduced by the local web giant Tencent,
WeChat is a phenomenon in Chinese
society.
!
It has become the ‘absolutely must have’
app on your smartphone. All the tasks of
daily life are done via WeChat:
communicating with friends, ordering a
taxi, buying products online.
!
A cheap copy of WhatsApp at the onset,
over time Wechat was perfected to the
point of taking over the famous American
app owned by Facebook. This is due to
the non-stop addition of new functions.
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12. # A FORM OF EXPRESSION
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◆ Like all Western social networks, WeChat is a platform on which people post
their daily acitivities, today’s youth being the most avid posters. The trend of
‘self-expression’ has only increased the phenomenon.
!
◆ It is a treasure for brands who are hungry for knowledge about what their young
consumers eat, what brands they buy, and where they like to hang out.

13. // 4. RETAIL
NEW TYPES OF IN-STORE CONSUMPTION
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14. # SENSORIAL DISCOVERY
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◆ SENSORIAL PLEASURE
!
The Chinese consumer is in a full discovery
phase. Each week new brands and products
are introduced to the market. These brands
are found online but also in stores.
!
An opportunity to touch, look at and feel.
Growing in popularity, this manner of
introducing products has made it difficult to
develop loyal customers. It is a tough battle
and every aspect related to a product is
tested: the packaging and merchandising
being hugely important.
!
Think about the sensorial impact and
personalization of your products geared to
the Chinese consumer. How can you surprise
them?

15. # POP-UP STORES
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◆ Many « pop-up stores » are emerging in Shanghai as well as brand specific
stands. These allow consumers who are on the lookout for the latest thing to
discover new brands.
Here is an Estee Lauder
stand at the entrance of
a shopping mall in the
Jinghan area of
Shanghai.
!
A Western model – a
beauty reference for local
Shanghainese women –
applies make up at the
entrance of the mall in
front of a captivated
audience.

16. // 5. ECOLOGY AND WELL-BEING
CHANGING MENTALITIES
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17. Awakening
◆ With the unstoppable economic growth combined with intensified urbanisation and
a general increase in the quality of life, the Chinese are little by little awakening to
their health and the environment.
!
◆ The regular pollution spikes in Shanghai serve only to reinforce those who criticize
the government and industrial giants regarding the matter. Despite the measures
taken by the government to control the problem, the Chinese population is
dissatisfied with what they consider to be insufficient progress.
!
◆ There are still very few awareness campaigns, but they will become more frequent
as the population becomes more sensitive to the problem – especially in top tier
cities.
!
◆ The environment as well as natural and artisanal products are therefore interesting
resources that could be exploited by foreign businesses who have an advantage in
this area over local Chinese brands.
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18. # NATURE IN THE CITY
◆ Skyscrapers blocking the sky, very little greenery and unbearable pollution at
times, Shanghai truly is an urban jungle.
!
◆ Brands give the Shanghainese consumer a chance to escape by means of
merchandising and ‘nature oriented’ communication campaigns.
!
◆ The most striking example is the boutique Central Central in Shanghai that
installed grassy pasture scenes in their storefront window.
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19. // 6. WESTERN BEAUTY
THE CURRENT BEAUTY STANDARD
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20. # BEAUTY CRITERIA
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Western aesthetics and design codes are still sought after by the Chinese
consumer and remain the beauty standard.
◆ As seen on
the left,
Western
beauty is still
the standard
for the
Chinese
population.
Foreign
brands can
exploit this
advantage –
with or
without the
common
cliches.
!

21. // 7. THE WESTERN MODEL
THE MOST INFLUENTIAL COUNTRIES AND CITIES
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22. # UNION JACK
◆ THE UNION JACK IS
EVERYWHERE
!
In the game of highlighting
and enhancing Western
countries, the Union Jack is
probably the most widely
used emblem.
!
On practically every street in
Shanghai, you will come
across a car, a scooter or
someone wearing a t-shirt
with this British icon.
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23. # THE BIG METROPOLISES
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◆ New York, Paris and London have a large presence in tier 1 cities across
China. In high profile brands, they have found a vehicle to convey their aura.
You can find their distinctive idiosyncracies in stores, merchandising and
advertising campaigns, as well as on clothing.
To engage with customers who are becoming more demanding, offer a more
original look shifted toward these big cities or imagine how your brand can portray
Shanghai as a city that can hold its own against these mega cities.

24. // 8. FARINE BAKERY
THE WESTERN CONCEPT OF THE ART OF FOOD
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25. # CASE STUDY: FARINE
◆ Clichés, notably those of France, are abundant in China. The affluent and
sophisticated population of Shanghai are no longer fooled anymore.
Immersed in a global culture they desire to engage in the most authentic and
refined experiences as possible.
!
◆ In this particular context, how does one transmit a modern image of France,
while preserving the classic French characteristics that are world-renowned?
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26. // 9. MERCHANDISING
TRENDS AND OBSERVATIONS
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27. What’s New?
◆ Shanghai has made tremendous progress in terms of in-store concepts,
merchandising and in creating a multi-sensorial experience for customers.
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◆ The city may not yet be on par with ‘world capitals’ such as New York, London,
Tokyo, Milan or Paris, but it is rapidly catching up.
!
◆ In terms of trends, Shanghai is a follower rather than a trendsetter city.
Nevertheless, things are changing rapidly and we were able to uncover some
strong merchandising trends unique to Shanghai.
!
◆ Of equal importance is the presence of global merchandising in Shanghai. Big
brands, like Nike, use global guidelines for their strategic merchandising, which
they alter only slightly according to key countries and cities.
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28. // 10. LET’S GO OUTSIDE
GETTING AROUND IN SHANGHAI
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29. # TESLA / UBER: ‘ECO CHIC’
◆ TESLA: THE ART OF
STANDING OUT
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When launching its latest
luxury sedan – the Model S –
in Shanghai, Tesla partnered
with Uber, the app for private
chauffeurs. Uber clients
could test drive the Model S
for 15 minutes around the
streets of Shanghai.
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There is no doubt that the Model S will be a success in the important cities of China,
due not only to its intrinsic qualities as an automobile, but also because it is a
prestigious status symbol. Owners of a Tesla will be viewed as chic and
sophisticated individuals who care about the environment, which is very important to
the well to do Chinese class who wish to stand out from the masses.
!

30. // 11 ICONIC SHANGHAI
BECOMING A WORLD LEADER
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31. # ICONIC SHANGHAI
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◆ With its newly acquired status as a bustling economic and cultural power house,
Shanghai has become a magnet for advertising. The biggest brands are now using
it more frequently as a new backdrop for their campaigns.
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◆ Luxury brands, which are often trend-setters, are not mistaken about Shanghai.
Yves Saint Laurent has just launched « Black Opium » with a multi-channel
campaign set in Shanghai destined only for the European market. It showcases the
city’s hotels, streets as well as the famous psychedelic tunnel on the Bund.
To view the campaign: http://bit.ly/1phsvm0

32. // 12. SUMMARY
WHAT TO REMEMBER
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33. // 13. CONTACT
WE ARE HERE FOR YOU!
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34. CONTACT
◆ Urban Sublime is a trend agency and marketing consultancy committed to
pragmatic innovation. Based in France and connected worldwide thanks to a
network of experts in New York, Milan, London, Berlin, Singapore, Shanghai and
Florence, we forecast and detect trends, innovations and emerging movements. We
can help you adapt your strategies and your customer relations in a pragmatic
manner according to evolving markets and consumer habits. In short, we can help
you become the best and ensure you remain the best.
!
!
Laetitia FAURE
CEO
laetitia@urbansublime.com
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◆ “Trending” is a one day workshop. It is a targeted analysis to help you integrate in a
pragmatic manner the trends of your business. Contact us!
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Alex Cortey
Senior Trend Analyst
alex@urbansublime.com