People interact with performers after a puppet show at a shopping mall in Changsha, central China's Hunan Province, May 7, 2024. [Photo/Xinhua]

In May, when Luckin Coffee simultaneously launched four new outlets in Lhasa, the response from local customers was overwhelming, with some even lining up for an hour to purchase a cup of coffee during the rapidly growing domestic coffee chain's initial foray into the Xizang autonomous region.

Just a few months later, Quanjude, a Beijing-based restaurant chain famous for its roast duck, opened its first-ever establishment in the capital city of the autonomous region.

The inaugural day of the new branch in July saw a surge of eager customers flocking to the location to experience the delicacy.

Openings of first stores, launches, and exhibitions have proved to be a powerful draw for consumers, generating significant foot traffic and buzz around these new establishments and catalyzing greater consumption potential, analysts said.

The third plenary session of the 20th Central Committee of the Communist Party of China, which concluded last month, has placed a greater emphasis on actively promoting the debut economy.

The debut economy refers to a chain of economic activities undertaken by companies, starting from the initial unveiling of a product, service or technology, to its first-time exhibition, the establishment of the first physical location, the setting up of the first research facility, and culminating in the deployment of the company's headquarters.

The introduction of a flagship first store not only brings in crowds, but also elevates the overall appeal and atmosphere of the entire business area mall, said Li Mingtao, head of the research institute at the China International Electronic Commerce Center.

Consumers are drawn in by the novelty and the promise of a unique experience, which then translates into increased shopping time and spending across the broader consumption ecosystem, Li said.

China's retail shopping hubs like Shanghai and Beijing have unveiled a slew of measures to boost the debut economy, including support for high-quality international brands in opening their first Chinese stores, streamlining the procedures for approving new product launches and facilitating Customs clearance of imported debut products.

From May 2018 to December 2023, Shanghai witnessed the launch of over 4,500 debut activities by international and domestic brands and introduced a total of 5,840 first stores to the city — an average of 2.8 first stores per day, according to the municipal government.

In the first quarter of this year alone, Shanghai saw the opening of 450 first stores across the city, representing a 55 percent year-on-year increase.

Beijing is also making a strong case for itself in this dynamic debut economy, cumulatively attracting over 3,700 first stores within the past three years, said Piao Xuedong, director of the Beijing Municipal Commerce Bureau.

Notably, international brands form a significant proportion of these, underscoring the country's immense appeal as a prime destination for global enterprises seeking to expand their footprint, Piao added.

The sheer size of the Chinese market, with its population of over 1.4 billion, is a major draw for international brands looking to establish a stronghold in the world's second-largest economy, said Zhou Qingjie, a professor at the School of Economics at the Beijing Technology and Business University.

Moreover, the global flagship store debuts in China are attributable to the country's robust economic growth, rising consumer spending power and the government's continued efforts to open up the domestic market, Zhou added.

However, industry analysts warned that the initial hype and consumer curiosity can quickly dissipate if brands fail to sustain their innovative edge and deliver on the promise of high-quality, meaningful experiences.

Brands cannot afford to rest on the laurels of a successful first launch. They must continually evolve their offerings, refine their brand narratives and engage consumers in deeper, more meaningful ways to transform that initial traffic into lasting customer loyalty and retention, Zhou said.

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