How Ningbo Hankyu Achieved 4 Billion in Sales: The Secrets Behind Its Success

As Japanese department stores quietly exited China, Ningbo Hankyu, boasting an annual revenue exceeding 4 billion yuan, has emerged as almost the sole “beacon of hope” for Japanese retail facilities in the country.Exterior: Fully adhering to Japanese planning logic, Ningbo Hankyu’s new design, along with modifications inspired by Osaka Hankyu Umeda Main Store, were all crafted by the Japanese designer, Mr. Akira Kajiwara. The B1 supermarket and dining area, meanwhile, were executed by the Funaba Shanghai branch.What makes it truly remarkable is not just the designer, but the store’s willingness to trust and implement his creative vision. By addressing architectural flaws through thoughtful planning, Ningbo Hankyu overcame its biggest structural challenge: the first floor being split by a municipal road, which robbed the space of its most attractive and feature-defining customer gathering area. To solve this issue, the designer adopted a solution highly praised at Osaka Hankyu Umeda Main Store: the creation of a multi-story scenic atrium.

The scenic atrium spans three floors, located within the 4th to 6th-floor public space known as the “Celebration Plaza.” Equipped with a spherical wooden canopy and grand staircases, this design not only creates an expansive, theater-like atmosphere but also effectively utilizes the large steps to attract foot traffic. Additionally, by using this space as the main venue for annual holiday celebrations, consumer engagement is greatly enhanced, while the project’s visibility and buzz in Ningbo are significantly increased.

Enhancing core customer reach through consistency: At Osaka Hankyu Umeda Main Store, annual revenues consistently rank second in Japan. Its core clientele primarily comes from the affluent Kansai region, including historically established “old-money families.” These customers have extremely high expectations for the retail environment, seeking a sense of luxury. However, luxury is not merely “marble walls”; its essence lies in consistency. Ningbo Hankyu demonstrates this particularly well: the design style, visual elements, and color coordination all reflect a unified approach. The overall spatial environment does not compromise due to store formats, categories, or leasing demands—the design is coherent, and details remain consistent.

Enhancing service capabilities through facilities: Almost all customer facilities at Ningbo Hankyu mirror those at Osaka Hankyu Umeda Main Store. Passenger elevators adopt the same high-capacity design, and even the floor display panels are identical, facilitating quick customer navigation. Restrooms and nursing rooms largely feature Japanese-imported equipment, especially fully automatic toilets and child seating—amenities that many who have studied Japanese retail facilities remember vividly. At Ningbo Hankyu, these are implemented nearly one-to-one, demonstrating generous investment in facilities.

Precisely balancing Chinese-Japanese collaboration with local characteristics: Dynamic tenant mix and flagship store effect. In 2024, Ningbo Hankyu continuously adjusted its offerings, with a particular focus on flagship store impact. In the first three quarters alone, the number of new flagship stores reached the annual peak; in the third quarter, nearly 30 high-quality first-in-China stores were introduced. Beyond its traditional retail brands, the project successfully introduced food and beverage brands such as JingXiangYu, JiushiYe, WOW Soon, T9Tea, and RAPL freshly baked apple pies. Over the course of the year, more than 130 brands were adjusted or introduced. The continuous addition of new brands not only enriches Ningbo Hankyu’s tenant mix but also allows it to respond more rapidly to local Chinese consumer demands. As brand strength continues to rise, Ningbo Hankyu’s appeal to customers steadily increases.

The true “core technology” of Japanese retail: The first wave of Japanese retail facilities entering China primarily focused on products. Ito-Kin’s fashion, McCawell’s original Panasonic TVs, and even Ito-Yokado’s red bean ice desserts were once genuine product champions. However, with the growth of e-commerce in China and the evolution of consumer trends, the appeal of Japanese products to Chinese consumers has gradually declined.The biggest difference between Ningbo Hankyu and its Japanese peers lies in this: from its very opening, it introduced the “foreign merchant service” model of Japanese high-end department stores (essentially the domestic equivalent of a VIP customer service department) into China and successfully localized it.

First, compared with Japanese products themselves, the foreign merchant service is the true “core technology” of Japanese retail.
Second, when other Japanese retailers entered China, the country had relatively few affluent or wealthy consumers, and their purchasing power and consumer awareness often did not align with the services offered by foreign merchants.Thus, when Ningbo Hankyu opened in 2021, its foreign merchant service arrived at a perfectly “timed and positioned” opportunity. In terms of general services, Ningbo Hankyu maintains the same service standards as its Japanese counterpart. This includes well-trained staff, the same daily opening ceremonies as Osaka Hankyu Umeda Main Store, and brand-specific welcoming gestures.