What: Luxury brands are opting for fewer but more spectacular flagship stores.

Why it is important: The monumental stores double as a tourist attraction and increase consumers’ perception of the intrinsic brand value due to their opulence.

Luxury stores need to increase their appeal to gain traffic and engagement all while holding on to the exclusive status. The supersized stores fully immerse customers into the brand and take the shopping experience to the next level. For example, in Dior’s Avenue Montaigne complex, there are several eateries, a museum and a hotel suite in addition to home beauty, and fine jewellery departments. The store is exceptional, and it is worth the visit for customers rather than placing online orders.

China is the prime location for many new projects of supersized stores such as Dior’s expansion in Shanghai’s Plaza 66, Fendi Casa in Shanghai’s 1788 Square Mall, and super mega flagships for Louis Vuitton, Dior, and Hermès in Taikoo Li Beijing. Brands in China are supposedly focused on the super-rich class due to the lack of growth in the middle class, as a wide percentage of revenues are generated from their very important customers.

Luxury brands are also investing in pop-ups, seasonal stores in top resort locations, and private stores.

Behold the super mega flagship store