When opening a store in one of those tier-one shopping malls, do you typically do that with some sort of distributor partnership, or how does that work exactly? In the U.S., for example, you just work with the mall, pay a lease, and pretty much anyone can open a store. It sounds like it is different in China.

In this market, competition for the best mall locations is fierce. Many top shopping malls in China design their floor plans according to different retail brand categories. For example, the first floor is commonly reserved for luxury brands like Gucci, Louis Vuitton, and Chanel. The second floor might be dedicated to women's fashion, while the third floor could host light luxury and other fashion brands. The fourth or fifth floors often accommodate sports and outdoor brands.

When opening a store in one of those tier-one shopping malls, do you typically do that with some sort of distributor partnership, or how does that work exactly? In the U.S., for example, you just work with the mall, pay a lease, and pretty much anyone can open a store. It sounds like it is different in China.

More tier-one shopping malls are now creating more segregations due to the influx of sports and outdoor brands. As a result, mass sports brands like Nike, Adidas Originals, Fila, and ANTA are being moved to the fifth floor or even the B1 floor. Meanwhile, the best locations on the third or fourth floors are reserved for new brands like Lululemon and Salomon.