Gaggenau, a German luxury kitchen appliance manufacturer owned by Munich-headquartered BSH Home Appliances Group, inaugurated a flagship store in Beijing on Tuesday, marking a notable step in expanding its presence in North China.

After launching its first flagship store in China in Shanghai in 2022, the German company plans to open its third store in Hangzhou, Zhejiang province, later this year, followed by a fourth in Shenzhen, Guangdong province, in 2026.

Executives of the company said that numerous opportunities stem from China's rising consumption upgrades and an optimized business environment driven by strong innovation and policy assistance.

Hubert de Haan, senior vice-president of BSH China, which has more than 10,000 employees across the country, said Gaggenau will continue to upgrade and launch new products in China over the next three years. The brand will introduce new appliances, combining technological innovation and new designs, this year.

By deepening channel partnerships and actively enhancing online engagement, Gaggenau aims to transcend traditional industry boundaries, and attract new customers and partners, said de Haan, who also is chief sales and marketing officer of BSH China.

Highlighting that China has demonstrated formidable and sustained innovation capabilities in breakthrough technologies, Peter Goetz, managing director of Gaggenau, said the country's investments in research and development, coupled with a robust talent pool and supportive policies, have created a conducive environment for technological advancement.

"We are confident that China will continue to lead in artificial intelligence and other cutting-edge technologies, driving industry progress and generating new opportunities for companies like Gaggenau," said Goetz, adding that the brand will launch next-generation flagship products to meet Chinese consumers' evolving expectations in the latter half of this year.

Stressing that China's trade-in policy and its enforcement will continue to contribute to the country's consumption growth, de Haan views this initiative positively, as it enhances market vitality and strengthens consumer confidence while also enabling more consumers to upgrade and experience premium home appliances.

Under the trade-in policy, more than 36 million consumers purchased over 56 million household appliances in 2024, driving sales worth 240 billion yuan ($33.21 billion), statistics from the Ministry of Commerce showed.

Meanwhile, about 60 million items of home improvement and kitchen and bathroom renovations were sold, and over 1.38 million electric bicycles were traded in for new ones.

The trade-in program has not only delivered significant economic benefits to consumers, but also created new growth opportunities for industries like home appliances and furniture, while strongly stimulating the overall consumer market, said Li Gang, director of the department of market operation and consumption promotion under the Ministry of Commerce.

Speaking at a news conference in Beijing on Monday, Li said that more efforts will be made to promote the development of service-based consumption and nurture diversified purchasing scenarios and new types of consumption to further stimulate buying sentiment and unleash consumption potential.