Index Introduction1st level market outlet problems2nd and 3rd level market outlet problemsSolutionConclusionIntroductionWith 1.3 billion inhabitants, China has formed a huge market for its local dealers. And in recent decades of openness and internationalization, the country is experiencing a new constellation of consumer spending patterns, living standards and shopping tastes, bringing more challenges than ever to retail. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Before 2002, the channel was not at all popular in China until it first set foot in Beijing in 2002. Since then, there has been a sharp increase in the number of outlets in China. The opening of outlets began in major cities such as Beijing, Shanghai and Guangzhou, and then expanded over the years to second- or third-tier cities such as Chengdu, Wuhan, Suzhou and Qingdao. The number of outlets in second-tier cities has now occupied the majority of the total number of outlets in China. Point-of-sale markets face fierce challenges in the shadow of e-commerce, many online retailers such as JD.com and Alibaba Group are offering luxury products at a discounted price, some even offer free shipping worldwide, attracting many Chinese consumers to buy luxury goods online. It is believed that end markets can no longer rely on low prices as their sole business strategy. Indeed, it is becoming critical for outlet developers to recreate new strategies and be proactive in engaging shoppers from store planning design to management and promotions. Given the lower cost of land, most of the outlets are located in the suburban area. They are strategically placed near airports, theme parks or scenic spots. Most are designed in a semi-open space and spacious area, mainly serving middle-income and price-sensitive buyers. Some successful outlets engage consumers by bringing a cultural flavor through their architectural design, such as Florentia Village, some include a wide range of facilities such as a children's playground, fountains and a wide range of food and drink choices. Stores in Japan, the United States and Europe has already entered a mature market, with the United States having over 200 stores across the country and over 160 shopping centers in Europe. In Japan, local fashion brands and limited-release luxury products attract many tourists and young people to shop at outlets every year. In China, many of the successful outlets are developed by multinational developers and local conglomerate companies such as RDM, Bailian and Capital Grand, which have an experienced management team and developers. However, the outlet market in China is not yet fully developed, and many second- and third-tier cities are waiting for outlets to be introduced to the market. China can refer to examples of successful overseas outlets on how to apply them to its local market. Issues of Tier 1 Market Outlets There are many successful outlets operating in cities including Beijing, Shanghai and Tianjin, given the government's favorable urban development policies in the cities. Shanghai Outlet Plaza located in Qingpu, Shanghai, is one of the government's CBD projects, which has now become a well-known outlet for both locals and tourists. Stores located in first-tier cities benefit from tapping into middle- to upper-income consumers and tourists. But on the other hand, these outlets copestiff competition from outlets in major cities around the world, including Japan, Hong Kong and the United States, given their price and the country's currency may become more competitive than China's. As airline ticket options are becoming fewer and fewer Nowadays they are expensive, consumers who can afford to travel will prefer to purchase luxury goods from foreign countries, given the better conditions and wider range of brands and product choices. Another popular option for consumers is through "Daigou", which is quite popular in China in recent years, where a foreign personal shopper purchases on behalf of consumers from outlets in foreign countries. There is no doubt that top-tier luxury brands are the main attraction for consumers visiting retail outlets. Many luxury brands tend to value a long-term relationship with a specific outlet developer such as Prada, Bottega Veneta, Fendi and Bvlgari's relationship with RDM. These international brands also set restrictions on the distance between their major retail stores and outlet stores, meaning that outlet stores cannot be built near the city level where the retail store was located. Similarly, in China, the established ratio of retail stores to outlets is four to one in a city. This has made competition between end markets for tenants even more competitive. Some developers will lure these brands to set up outlets in their malls by offering free rent or even free renovation fees to attract consumers and the entry of other brands. Outlet problems in the 2nd and 3rd tier market The government's openness and support plan in the second and third tier cities are crucial to the outlet developers as the economic infrastructure is the basis to support the retail sector retail, particularly for outlets located in suburban areas. The government initiative - Greater Bay Area aims to bring the southern part of the cities for trade and exchange closer to an increase in consumers and visitors throughout the region. Under the HK-Zhuhai-Macao Bridge and Express Rail Link, transportation routes and travel between cities will become easier. Consumers in second- and third-tier cities are mainly composed of low- and middle-income groups. This consumer group is most attracted to leisure products, such as sports brands and mid-priced clothing. Therefore, brands such as Nike, Adidas, Gap, and Converse have become more popular than the top-tier luxury brands in the market. Seeing the success and popularity of outlets, some developers attempt to get a piece of the action by expanding into the outlet business; While others see the outlet concept as a solution to reposition their position in the retail market, especially those who are struggling with the performance of existing shopping centers have sought to adopt the same outlet model in mature markets. However, many of these developers had attempted bankruptcy due to lack of experience in running an outlet business. With unregulated management of the stores, some tenants sell counterfeit products, which has had a devastating impact on the mall's reputation and the trust of its consumers. As a result, there are cases where outlet malls are closed after a short period of time. SolutionBrands, cleanliness and convenience have always been top concerns for consumers when shopping in a physical store. But today you can expect the list to continue and continue to evolve in the coming years. The reason behind the change is