HONG KONG (AP) — British fashion chain Topshop opened its first Hong Kong outlet on Thursday, becoming the latest Western brand to brave the city's astronomical rents in a bid to crack the lucrative China market.
Topshop boss Philip Green cut the ribbon to the 1,300-square-meter (14,000-square-foot) shop with the help of Taiwanese actress Gwei Lun-mei.
Green said he wants to use the store, located in the city's central business district, as a "stepping stone" to mainland China. He's looking for possible locations in Beijing and Shanghai to open "flagship" stores.
Other foreign retailers that have launched recently in the Asian finance center include U.S. brands Abercrombie & Fitch, Tommy Bahama, Forever 21 and Victoria's Secret.
Foreign brands have been lining up to open showcase boutiques in Hong Kong as they try to get a share of the spending by the increasingly affluent consumers visiting from mainland China, the world's second biggest economy. The demand has helped drive up shop rents in Hong Kong, a former British colony that's now a special administrative region of China.
Hong Kong is a popular shopping destination for mainland Chinese because of low taxes and a reputation for authentic goods.
Green would not say how much the company, which already has stores in other Asian countries including Japan, Indonesia and Thailand, is paying for its new location, previously occupied by a Chinese-state owned chain selling arts and crafts and jade jewelry. He said the company had spent years looking.
"It's been hard as most retailers will tell you, finding the right location in Hong Kong, at a sort of sensible price. It's very, very tough. So this just came up, and fortunately we were able to put it together very quickly," he said.
Prime retail space cost $4,328 per square foot a month in the first three months of 2013, making it the world's priciest, according to commercial real estate firm CBRE. It said that was nearly 50 percent higher than New York and about four times as much as Paris or London.