In the ever-changing retail environment, shifting consumer trends and market dynamics present luxury retailers with both opportunities and challenges. Following years of extraordinary growth, the luxury retail sector now finds itself in a slowdown as it comes up against an increasingly complex and volatile market. Facing an uncertain future, brands and retailers know they must prioritise targeted audience engagement, effective growth strategies and sustained performance improvements if they are to remain competitive over the long term.
Despite these market uncertainties, The Bicester Collection defied all odds to deliver its twenty-seventh consecutive year of double-digit growth in brand sales in 2023. Much of this success can be attributed to the company’s unique business model — but what are the secrets behind this sustained growth? How has the company adapted its business model for the Chinese market? And what innovations can The Bicester Collection bring to the evolving retail landscape at this critical junction for the industry?
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The fortunes of the global luxury goods market are closely tied to those of the travel retail sector. According to the 2023 Tourism Economic Impact Report by the World Travel & Tourism Council (WTTC), the resurgence of outbound tourism from China is driving growth in global tourism, while forecasts also suggest that China’s domestic tourism sector will reach US$3.9 trillion by 2032 as the country establishes itself as a leading destination for global tourism.
It’s against this backdrop that The Bicester Collection, home to a portfolio of 11 shopping Villages across Europe and China, closed its most successful year yet in 2023. Around 50 million guests visited the Villages in The Bicester Collection last year, representing another all-time high for the company, as footfall rose by 13.4% and brand sales were up 16% year-on-year. Despite the tough macro-environment, 2023 marked The Bicester Collection’s twenty-seventh consecutive year of double-digit-growth in brand sales since its founding in 1995. As the icing on the cake for a hugely successful year, The Bicester Collection also announced the opening of its first ever Village in the United States – Belmont Park Village – set to open in the New York metropolitan area later this year.
2023 was also a big year for its two Villages in China, with both Shanghai Village and Suzhou Village seeing high double-digit growth combined with year-on-year growth in brand sales. Performance during this year’s Spring Festival holiday shows that this momentum has continued well into 2024 too. Total sales at both Villages saw solid double-digit growth compared to the corresponding holiday period in 2023, along with double-digit increases in footfall that together underscore the appeal of the Villages as premier shopping destinations for swathes of consumers.
The secret to maintaining such enviable levels of growth amongst tougher market competition and changing consumer trends hinges upon The Bicester Collection’s focus on differentiation. This it achieves through a two-pronged approach revolving around a diverse brand selection that caters to consumers’ practical shopping needs coupled with an emotionally rewarding shopping experience that seeks to delight shoppers in unexpected ways.
“The Retailer Serving Retailers” Building a Strong Brand Portfolio
Today, Shanghai Village and Suzhou Village are home to around 400 global and local brands. Among this already exhaustive brand portfolio, Shanghai Village offers nearly 60 ‘first-stores’ (meaning a brand’s first store or particular type of store in a certain city or region), while Suzhou Village boasts more than 80. At the same time, top brands like lululemon and Max Mara continue to expand their presence at the Villages.
The Bicester Collection is also introducing more outdoor and classic luxury labels to its selection, as it expands its offerings for younger shoppers who increasingly prioritise outdoor activities and ‘quiet luxury’ styles. Alongside global bestsellers and established brands, the ‘Chuang x Yi’ platform run by the two Villages in China acts as a showcase for local designer brands and innovations in response to increasing demand for local designs from Chinese consumers.
The reason behind such brand investment lies in The Bicester Collection’s unique business model as “the retailer serving retailers”. Under this model, Village teams provide an array of services designed to support brand partners and enable Village boutiques to complement full-price channels while acting as a new source of customers for brands.
As Desirée Bollier, Chair and Global Chief Merchant for Value Retail Management – creator and operator of The Bicester Collection – puts it: “We work in partnership with our brands to craft environments that elevate brand equity while providing unforgettable experiences for our guests. Over the years, our Villages have evolved into a customer acquisition platform for our brands, drawing in discerning guests seeking distinctive destinations.”
This model has allowed The Bicester Collection to become the preferred partner for many brands looking to complement their full-price stores and attract new customers through their boutiques in the Villages. According to a study by a leading global strategy consulting firm, three out of four guests make their first luxury brand purchase during a visit to a Village in The Bicester Collection, with nearly a quarter of those going on to become full-price customers of the same brand.
The Bicester Collection also enjoys strong loyalty among high-net-worth individuals, reflecting its alignment with the industry’s focus on affluent customer segments. During the recent Spring Festival, sales from Private Clients increased by 36% year-on-year at Shanghai Village and by 26% at Suzhou Village. In Europe, the numbers paint a similar picture, with average annual spending from high-net-worth guests increasing by 34% compared to the previous year.
Travel + Retail: Creating Destinations with “Unreasonable Hospitality”
As products become increasingly abundant and accessible, consumers have come to place a premium on personalised, authentic and emotionally driven experiences.
“As consumers nowadays can acquire similar fashion pieces from different channels, the emphasis on experience often surpasses that of the actual products themselves, ” said Bollier. “Not only do they expect value and savings, they also seek emotional connections. Our destinations build our differentiation through a unique combination of ambiance, fashion, gastronomy, art, entertainment and hospitality.”
Each of the Villages in The Bicester Collection is meticulously designed as an experiential oasis fit for both shopping and travel. Suzhou Village for example, which first opened in 2014, draws inspiration from the travels of Marco Polo, blending European and Chinese styles into a unique experience that bridges Renaissance and Romanticism to conjure an atmosphere of classical elegance.
Shanghai Village, established in 2016, sits within the Shanghai International Tourism Resort, neighboring Shanghai Disney Resort. Recognized as a “National AAAA Tourist Attraction” in May 2019, the Village is centred on a series of crescent-shaped structures surrounded by lush greenery and ornate fountains along the lakeside. Inspired by 1920s Art Deco architecture from global cities like New York and Paris, the Village radiates sophistication, offering a destination where guests can relax in charming restaurants and cafes while enjoying picturesque lake views.
Over the course of nearly ten years operating in China, both Shanghai Village and Suzhou Village have continued to evolve their offerings. Today, the Villages place an emphasis on providing “unreasonable hospitality” – a concept originally coined by Will Guidara, the restauranter responsible for turning Eleven Madison Park in New York into one of the world’s most highly acclaimed and successful restaurants.
In China, this philosophy translates into a meticulously curated shopping experience with an uncompromising attention to detail and hospitality. Accredited Golden Keys concierges provide personalised services such as Hands-free Shopping, Valet Parking, pet amenities and access to children’s play areas, catering to a diverse selection of guest needs. The most discerning guests can even enjoy afternoon tea in the private, invitation-only space, The Apartment, as well as exclusive perks including front-row seats at fashion week and VIP access to top art exhibitions, all arranged by a dedicated Private Client Services team.
Local culture is also seamlessly integrated into the Shanghai Village and Suzhou Village experience through seasonal festivities and other cultural events. During occasions like the Spring Festival and other local retail holidays, both Villages curate diverse experiences that create vibrant event atmospheres through everything from traditional dragon parades to Michelin-starred food markets. The appeal of these festivals extends far and wide, and during the 2023 Spring Festival, both Villages saw increased traffic from non-local guests, with Shanghai Village experiencing a 30% rise and a 29% increase in first-time guests during the holiday period.
To Bollier, travel retail is more than just leisure: “Retail tourism plays a crucial role in infusing a vibrant economic upswing into local communities, accelerating the creation of jobs and fueling infrastructure expansion. Retail, travel and tourism are all intertwined and can work together to enhance the tourist’s journey. This collaborative mindset will ultimately be an equal win for the tourism industry and the traveller.”
Fusing travel and retail, The Bicester Collection has not only revolutionised traditional retail paradigms but also redefined the shopping experience in the process, cultivating a valuable and distinctive brand through a commitment to authentic localisation and innovation.
As The Bicester Collection celebrates a decade in China with Suzhou Village, and eight years with Shanghai Village, Bollier looks ahead to the company’s future in the market: “With China’s pivotal role in global luxury retail, our two Villages in China will be major contributors to the continued growth and success of The Bicester Collection.”