Chinese fashion retailer ENG is opening a second store in Shanghai's Youth Energy Center
Little more than two years since it opened, experiential concept store ENG has become one of Shanghai's must-see stores. More importantly, with its futuristic spaceship interior and buzzy atmosphere, the store has proven a hit with Chinese Gen Z consumers. According to Bain, Gen Z currently make up 13% of global luxury spending, but account for 23% of ENG's customers. In 2020, ENG generated RMB 8.9 million (USD 1.4 million) in turnover
For its opening, back in May 2019, ENG invited visual artists to transform the 500-square-metre floor space into a backdrop for British rapper Lancey Foux. The store hosted some other 20 events over the following seven months alone, driving an estimated 30% of monthly sales.
TX Mall, where the new store is located, includes exhibitions, restaurants and nightclubs and was created to target young Chinese consumers. It has quickly developed into a favourite destination for Gen Z. In a palette of silver, white and electric blue, ENG has a spacious shop floor featuring holographic projections and 24/7 vending machines mostly selling sneakers. The fashion offer, which includes Mugler, Ludovic de Saint Sernin, Martine Rose, Ottolinger, Telfar and Helmut Lang, is divided by brand rather than gender. The second floor of the store is a "playful area" where consumers can relax with books and archive magazines.
Despite their upbringing as digital natives, most Gen Zs like to shop in-store. According to the Vogue Business Index, 71% of Chinese Gen Zs inform their luxury purchase decisions in shopping malls, among the highest percentage globally. Compared with other Chinese age groups, Gen Z is the most highly committed to the physical retail experience.
Starting from scratch made it easier for ENG to shape itself around its young consumers. This is inevitably more challenging for luxury brands, which are likely to to preserve long-established traditional aspects of their marketing. ENG's futuristic aesthetic, for example, taps into Gen Z's fascination with Y2K fashion and digital landscapes, metaverses and gaming. Playful tech add-ons like holographic projections, QR codes and the store's vending machines further blur the line between online and offline experience.
Events are a well-known marketing play for brands to attract new consumers and launch new products. But ENG takes events to another level, making them a central part of the shopping experience, connecting with a generation that looks for emotional value and experiences to share with peers. Some of their most successful events have involved beloved local celebrities and popular international brands like Mugler and Misbhv. They often include the launch of exclusive pieces, limited-edition collaborations, access to the designers and exclusive brand content to be projected in-store.
Inside Shanghai's coolest concept store
Chinese fashion retailer ENG is opening a second store in Shanghai's Youth Energy Center (pictures)