(Yicai) April 11 -- Shanghai will grant up to CNY1 million (USD138,200) in subsidies to both Chinese and international businesses that choose the metropolis as the base to launch their new products, open their first flagship stores in Asia and hold their first exhibitions, the director of the Shanghai Municipal Commerce Commission said today.

Shanghai will also subsidize organizers of global product launches and first-time exhibitions with international influence, to the tune of 30 percent of the actual investment, up to a maximum of CNY1 million, Zhu Min said at the opening ceremony of this year’s ‘First in Shanghai’ event, which introduces new products to the world.

The subsidy will also apply to firms that establish businesses which specifically serving all of the above “First time” milestones, as well as creating the country’s first evaluation index systems or holding global communication promotions and industry summit forums in Shanghai, Zhu said at the event, which is held in the metropolis from March to May each year.

Additional support will be given to companies that open their first stores, hold their first shows and host their first exhibition during the event, Zhu said. Shanghai will also facilitate customs clearance for new products from overseas and foreign goods that will be displayed for the first time at exhibitions, and will fast-track approvals for launch events, he added.

Shanghai is a highly attractive launchpad for global brands, Zhu said. More than 4,500 international and Chinese brands launched new products in Shanghai between May 2018 and the end of last year. A total of 5,840 first stores were opened during the period, and more than 80 of these were their first shops in Asia.

"For most brands, the most important market in the world is China, with a share of more than 50 percent," said Cao Weiming, president of Hermès Greater China. In the past 10 years, Hermès' sales in China have more than quintupled. This would not be possible in any other market, he added.

After experiencing rapid growth, adjustments are normal, Cao said. Hermès is still very confident of the market potential in Shanghai and China.

Editors: Tang Shihua, Kim Taylor