Insider’s guide to Beijing shopping

By Lauren Sherman

updated 3:43 p.m. ET July 16, 2008

The only thing more coveted than a gold medal next month might be a roadmap of Beijing's tourist-free shops.

Without one, shoppers are apt to be disappointed. High-end retailers like Louis Vuitton and Salvatore Ferragamo dot the landscape offering items that can be bought at home, and there are lots of counterfeits lurking.

Still, the city's burgeoning upper middle class knows where to look, and if you follow their lead, you'll come away with exceptional goodies.

The opening of the Comme des Garçons shop in the Xicheng District reflects the discerning desires of Beijing's upper middle class, which has new money to spend. The Chinese economy has grown more than 10 percent annually from 2001-2007, and there were a reported 415,000 millionaires at the end of that period—a 20.3 percent increase from 2006, according to Merrill Lynch  and Capgemini, which last released its annual World Wealth Report in June 2008.

"The presence of your big luxury brands is certainly strong," says Robert Cordero, style editor at the JC Report, an online fashion magazine. "But now, the Japanese avant-garde label Comme des Garcons and Belgian designer Martin Margiela have boutiques in the city."

These shops are must-visits for those who appreciate smaller, niche brands, but the top shop for the nouveau riche might be Lane Crawford, which is located in posh mall Seasons Place. The high-end department store opened its Beijing outpost in October 2007, and there is another rumored to be on the way. Along with venerable luxury labels, shoppers will find Rick Owens rock-n-roll-inspired leather jackets, RM by Roland Mouret structured dresses and sculptural looks from Costume National.

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Christine Low, show director for Beijing-based fashion events company ACT, says that bargain hunters should head to Gu Ba, which often stocks hip labels—both eastern and western—at reduced prices. Low, who has been living and working in Beijing since 2005, suggests stopping by the shop—with locations on the ground floor of Cofco Plaza and the 3.3 Building on Sanlitun Bar Street—a few times in order to find the best deals. And be prepared to do some digging, as the racks are flooded with clothes, some which are excellent deals, at times up to 90 percent  off, and others that are simply damaged goods.

"You need to be patient," she says. That's especially true if you want to score deep discounts on brands like 3.1 Phillip Lim, Marni and Catherine Malandrino.

If bazaar shopping appeals to you, Low suggests avoiding the famous silk market in the Xiushui District, which hawks a lot of fake Gucci and Hermes scarves instead of the authentic Chinese silk wares, for which it was once famous. "It isn't what it used to be," she says. Instead, head to the Panjiayuan Market in southeast Beijing. There you'll find booths filled with knick knacks, Chinese antiques, replicas and crafts such as jade jewelry, stone dinnerware and Chinese chess sets.

Lane Crawford Venerable high-brow department store Lane Crawford opened its Beijing outpost in October 2007; another is rumored to be on the way. Discerning shoppers will find Rick Owens leather jackets, RM by Roland Mouret structured dresses and sculptural looks from Costume National.

At the markets, bargaining is still encouraged. No need to feel shy about talking a vendor down in price: Most are trained to quote higher numbers for tourists, but they will eventually give you the price they believe you think the item is worth. In general, assume that prices in markets are much less than those in Europe. For example, if you'd expect to pay $200 for a vase in a Parisian market, offer $40 in Beijing.

That said, designer clothes and accessories will often be just as expensive, or even more so than in the West. A Louis Vuitton handbag, for example, will run about $200 more in Beijing because of taxes, and local designers are also charging higher prices. Patti Pao, trend tracker and founder of New York City-based retail consulting firm the Pao Principle, says she believes because the cost of production in China is increasing, the price of goods are as well.

"The Chinese have hired the best global designers and are investing more in quality," says Pao.

Things might be expensive, but if you love fashion, a great get is worth its weight in gold.

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