On March 21, the Apple Store on Jing'an's retail street opened its doors. On the day of its opening, "Long queues before the opening of the Jing'an Temple Apple Store" became a trending topic on Weibo. Despite the growing popularity of online shopping and mobile internet, the Apple Store, which offers no discounts, stands as an anomaly among other retailers.
In the context of physical retail stores, the Jing'an store doesn't hold any special significance. It's merely the 57th Apple Store in Greater China and the eighth in Shanghai. Another Apple Store (Nanjing East Road) can even be found on the same street (Nanjing Road) to the east.
However, it also sets itself apart. In terms of size, the Jing'an store is second only to Apple's global flagship store on Fifth Avenue in New York, making it the second largest Apple retail store in the world and the largest in Asia. And most importantly for many Shanghainese, it sits opposite the city's most famous temple, Jing'an Temple.
To generate buzz for their new store, Apple designed promotional posters featuring the magnolia, Shanghai's city flower. Apple CEO Tim Cook arrived in Shanghai a day early and had a "chance" encounter with actor Zheng Kai. Finally, Cook himself attended the store's grand opening.
An Apple Store Infused with Shanghai's Essence
If the "three pieces" in Lujiazui, Pudong represent Shanghai's global face, then Jing'an Temple in Puxi is perhaps Shanghai's other face. Together, they form the foundation of Shanghai as an international metropolis—forward-thinking and yet rooted in local culture.
Jing'an Temple is a renowned ancient temple in the Jiangnan region, with its origins dating back to the Three Kingdoms period, though it was not known by its current name at the time. In 1008 AD during the reign of Emperor Zhenzong of the Northern Song dynasty, the temple was renamed Jing'an Temple.
Shanghai's local newspaper, Xinmin Evening News, describes the architectural style of Jing'an Temple as始终与海派都市的风格保持统一 (always aligned with the style of the cosmopolitan city). Even without entering the temple, visitors can appreciate the grandeur and golden splendor of Jing'an Temple, as evidenced by the pagoda's towering spire and the梵幢 (banner) outside the temple.
"The area around Jing'an Temple is always bustling with people throughout the year," says Ah Bian, a Shanghai native. "The temple itself doesn't actually attract that many visitors. The main reason for the high foot traffic is the surrounding department stores—Jiuguang, Jingpin, Réel, Kerry Centre, Shanghai Shopping Mall, etc.—and their upscale dining and shopping offerings. Just a few steps away is Henglong, which houses the Chinese headquarters of various luxury brands. However, in the past couple of years, the economic downturn has had some impact on Jing'an Temple, resulting in fewer visitors. Even IKEA, which occupied a prime location, has closed down."
While Nanjing Road is more well-known to most people, Nanjing West Road, where the Jing'an store is located, holds an equally high status among Shanghainese. In Ah Bian's opinion, Nanjing West Road is the premier luxury shopping street in East China, and when combined with the cultural significance of Jing'an Temple, it's no wonder that businesses would want to set up shop here.
The new store faces Jing'an Temple, but standing at the temple's main entrance, you might not immediately notice its presence. The store is located on the lower level of the plaza, and it's only when you stand directly above it that you realize, "Oh, there's an Apple Store here."
Nestled amidst the confines of its geography, the Jing'an store exudes a subtly distinct character compared to its Pudong counterpart. Upon stepping through its entrance, eight monumental silver pillars stand majestically, reminiscent of courthouse columns in their grandeur. However, these pillars were a pre-existing architectural feature of the building rather than an Apple-inspired addition.
Tim Cook's Shanghai Visit Reveals the Importance of Apple Stores
Cook's observations on the new Pudong store: "This Apple Store doesn't flaunt itself like other iconic Apple Stores, with no logo in the center of the main door. Instead, the nearby Jing'an Temple has become its 'landmark.'"
Media focus on Apple Store lines during new iPhone launches, seeking insights from these Apple enthusiasts about the device's potential success.
Apple Store's influence on other tech companies: Its store design and sales model have been widely imitated, but few have matched its essence. Not every company can afford the high costs associated with running such a store.
Building stores as brand icons: A key aspect of Apple Store's success. Memorable stores subtly enhance Apple's brand loyalty and drive sales.
Limited global presence: Apple's products are sold in almost every country, with over 2.2 billion active devices worldwide (Q4 2023), but only about 30 countries have Apple Stores.
Notable designs and locations: Some Apple Stores stand out for their exceptional designs or locations, such as Apple Marina Bay Sands in Singapore, the first ever Apple retail store on the water, and Apple Tower Theatre in Los Angeles.
Indicators of urban development: The presence of an Apple Store has become a sign of a city's international appeal and desirability. Shanghai's eight stores are the most among Asian cities, reflecting its economic significance in China and globally.
Lifecycles of Apple Stores: The unique nature of Apple Stores has led to interest in their history and evolution. In 2018, 9to5mac documented the past and present of 86 former Apple Store locations, humanizing these spaces.
Apple's preference for prime locations: 9to5mac noted that Apple tends to open stores in vibrant, desirable areas. If an area declines, the store may relocate.
Need for Increased Presence in China
Challenges faced by Apple in China in recent years.
Counterpoint Research: iPhone sales in China declined 24% year-over-year in the first six weeks of this year, falling from a market share of 19% in Q4 2023 to 15.7%.
Apple's Chinese rival, Huawei, saw a substantial sales increase of 64% during the same period, boosting its market share from 9.4% to 16.5%, surpassing Apple.
Apple's financial report: Total revenue for fiscal Q1 2024 (calendar Q4 2023) was $119.58 billion, a 2% increase year-over-year. Revenue in Greater China declined by 12.91% to $20.8 billion, the worst Q1 performance since 2020.
Apple CFO Luca Maestri: "We were not satisfied with the revenue performance in China. However, we continue to believe in the long-term opportunity in China."
Rare discount offer on Apple's website earlier this year, with some products marked down by over $1,000.
Cook's Shanghai visit included meetings with executives from three Apple suppliers: BYD, Lens Technology, and Changying Precision.
Cook: "I think there's no place more important for our supply chain than China."
While a single store has a limited direct revenue impact for Apple, the opening of an Apple Store is part of their larger strategy to strengthen their commitment to the Chinese market, amidst rumors of Apple shifting some production out of the country. By having a highly visible, localized presence in a store format, Apple can reinforce its brand identity and engage with customers on a local level.
However, Apple's Shanghai store opening also coincided with the company facing legal challenges. On March 21st (local time), the U.S. Department of Justice filed an antitrust lawsuit against Apple, alleging that the company has harmed consumers, developers, and competitors. Apple has responded, stating that the lawsuit is "deeply flawed on both factual and legal grounds" and that they will "vigorously defend" themselves.
Apple's stock price fell 4.1% on the same day, erasing approximately $113 billion in market value. The company's shares have declined by 11% year-to-date.
With these simultaneous challenges in two of their largest markets, Apple may be facing a more turbulent period ahead.
