The post-pandemic Chinese luxury retail market is characterized by increased competitiveness and economic uncertainties. Despite these challenges, China’s pivotal role in the global luxury retail sector remains undiminished. According to Savills’ latest Global Luxury Retail report, China accounted for 41% of global luxury store openings in 2023, though this is a slight decline from the previous year.
In this dynamic environment, Florentia Village, managed by RDM Asia, has demonstrated remarkable resilience, cementing its status as a leading player in the outlet sector.
By 2023, RDM Asia reported total revenue of $1.9 billion, and operated over 500,000 square meters of gross leasable area (GLA) for trading and more than 1,300 shops across China. Between 2017 and 2023, the Italian designer retail developer grew revenue 244% and visitor numbers 192%.
RDM Asia last month celebrated the grand opening of Phase III of Florentia Village Chengdu. Opened in December 2017, this outlet is located in Pidu District and boasts excellent transportation links. With the new expansion, Florentia Village Chengdu now has a total building area of over 120,000 square meters.
In this latest partnership interview, Jing Daily talks to Jacopo De Vena, Managing Director of Florentia Village and RDM Asia, exploring the company’s innovative “eco-retail-entertainment model,” its disruptive strategy in China and outlook.
Crafting experiences beyond outlets#
With over two decades of experience in outlet development, RDM Asia has significantly expanded in China over the past decade, covering most key cities and welcoming more than 25 million visitors with immersive experiences and diverse offerings. Florentia Village Beijing-Tianjin, the company’s first property in China, debuted in 2011.
“There were many operations, but the concept of a luxury outlet was not established in China,” says De Vena. “We can proudly say we brought the luxury outlet concept to China.”
In the competitive luxury retail sector, Florentia Village sets itself apart with an integrated eco-retail-entertainment model, transforming outlets into immersive lifestyle destinations.
“Now, the outlet is not just an outlet, but a place where you provide an experience to the consumer,” De Vena adds.
To elevate the customer experience, Florentia Village offers hospitality services such as hands-free shopping, pet strollers, and valet parking. Additionally, it hosts crossover events that blend fashion, art, and culture. Its membership rewards program provides benefits to over 5.3 million VIP members, including access to VIP areas.
Florentia Village’s extensive brand mix includes numerous international luxury brands and desirable sports labels, thanks to the company’s roots in the fashion and luxury industry.
“We have a very strong relationship with the brands,” De Vena adds. “We understand consumers’ needs and we always try to serve and fulfill their needs.”
Strategic expansion#
Thanks to a well-developed business model, Florentia Village continues to invest in high-potential regional markets, with Chengdu being a prime example. Featuring strong buying power and vibrant culture, the provincial capital of China’s southwestern Sichuan province has demonstrated its allure to leading luxury conglomerates.
Strategically located near major tourist attractions like Mount Qingcheng and Dujiangyan Scenic Area, Florentia Village Chengdu appeals to travelers and residents seeking weekend getaways.
“Since its opening, the village has proven highly popular with consumers, and it is believed that the addition of Phase III will make Florentia Village Chengdu an important landmark for tourism and shopping in Southwest China," De Vena said at the opening event.
Florentia Village has approached the regional market, known for its natural landscape and inclusive, dynamic fashion scene, with localized approaches, such as “locating the asset in an area where local people like to hang out, or to spend a weekend out,” and “building an environment in which [visitors] feel like they are in a park or a garden.”
Likewise, the developer of Florentia Village has tailored its offerings to diverse customer needs across different locations, adapting to local preferences and delivering targeted messages.
“There are significant differences between cities, from the climate to fashion trends. We have adapted our brand mix and structure according to the trends and needs of each city,” De Vena says.
Navigating China with agility#
Current consumer confidence and the resurgence of overseas shopping among Chinese shoppers pose challenges for luxury retailers. While China’s long-term fundamentals remain robust, near-term uncertainties persist. De Vena acknowledges that “the market has changed a lot and people are now spending their money more wisely.”
However, the company remains focused on strengthening its leadership in the luxury outlet industry. Maurizio Lupi, CEO of Florentia Village and RDM Asia, emphasizes the company’s efficiency and distinctiveness in China.
“Florentia Village has always been dedicated to forging omnichannel new retailing and perceives new retail as one of the most important prospects of future industry development,” Lupi says.
Both De Vena and Lupi highlight the company’s commitment to the Chinese market and its strategy to expand its footprint to meet growing leisure and shopping demand. “We will continue to introduce new brands and new categories into existing outlets to enhance the shopping experience and look for more potential locations,” Lupi adds.
The positive growth trajectory of RDM Asia and Florentia Village is underpinned by their agility and a diverse, open-minded company culture.
“As an international company, we achieve a strong, quality team by hiring across a diverse pool of candidates who have local and international experience,” Lupi tells Jing Daily.
Florentia Village’s continued success in China’s luxury retail market is a testament to its innovative strategies and unwavering commitment to providing exceptional consumer experiences. As the landscape evolves, Florentia Village and RDM Asia remain poised to adapt and thrive, setting new standards for luxury outlets worldwide.