Wahaha opens Waow Plaza (2)

Even some foreign suppliers, who also attended the ceremony, said they did not know some of the brands sold in the plaza, said Li, adding that most goods sold in Waow are priced moderately but still higher than average Hangzhou residents' expectations.

Taking a male suit as an example, he noted that high-end brands like Hermès, which are usually sold at 10,000 to 30,000 yuan in domestic markets, range on average from 8,000 to 9,000 yuan in Waow, while Hangzhou residents prefer a price under 3,000 yuan.

"The goods sold in Waow are not expensive, but prices will become my concern when it comes to unfamiliar brands," Wang Qing, a local resident who works in the building next to Waow, told the Global Times Thursday, adding that Waow is surrounded by blocks of office buildings, but the area is not popular for socializing or shopping.

Wahaha still has much work to do in promoting the European brands they are introducing, and Waow's bad location may greatly hinder its future operation, Yan Qiang, an analyst from Adfaith Management Consulting, told the Global Times Thursday.

Besides, as a successful domestic beverage giant just entering the domestic retail industry and intending to sell foreign products, the company may need a fairly long time to get used to this sector's pressures, which include high inventory, shipping costs and customs duties, Yan said.

He also noted that the fierce competition in the domestic retail sector has made it much harder for retailers to eke out a profit, clouding the future of Wahaha's retail business.

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