Shopping Mall: New Tricks In The Market

Hundreds of small stores in the middle of the shop, let shopping become Taobao holy land.

Bottom rent + water royalty, new generation of rent collection.

The pedestrian street has become the "conveyor belt" between the main shops.

Food and entertainment attract popularity and retail

Many industries coexist and become brothers in a ship.

"Wanda" "four dishes and one soup" business mode

Over the past more than 10 years, many modern retail formats have experienced rapid development in China from scratch and from small to large.

But this rapid development is based on a simple format and extensive expansion of shop expansion.

To date, this growth mode has been lacking in motivation.

Chen Yougang, global director of McKinsey Co, pointed out: "global strength."

The "new play" under the profit mode of domestic real estate giants

Real estate regulation policy issued in April to house

Hu Zaixin, marketing director of Poly Real Estate Group, said Pauli will fully sprint the commercial real estate sector.

In the next 3~5 years, the proportion of investment in commercial property will gradually increase to 30% of total investment.

Liu Xiaoguang, chairman of the first real estate company, said that in the next 3 years, the first investment is expected to invest 30 billion yuan and take the road of housing industry combination with industry.

In the next 5 to 10 years, the number of outlets in the first country will increase to 30.

Lingke, chairman of Jindi group, also said that the development and operation of commercial real estate will become an important strategic plan for the future.

According to the McKinsey Global Institute, China's consumption will increase to 39% of GDP without new measures to boost consumption, which is much lower than that of many other economies in the world.

COFCO, Huarun, Wanda and other large real estate groups are looking at the new preferences of Chinese consumers for the time spent in shopping centres, and the retail opportunities created by the acceleration of the fast fashion consumption boom.

In addition, China's per capita purchasing power has a very large growth space, which allows any new entrants to have the opportunity to increase the flow of people rather than distract the flow of people and increase the spending of individual consumers.

COFCO group store, rent + stream

COFCO, with "Joy City" as its brand, is building a "comprehensive service chain city complex" throughout the country.

At present, there are Beijing Xidan Joy City, Beijing Chaoyang Joy City, Shenyang Joy City, Tianjin Joy City, Shanghai Joy City is expected to open in 2011.

In addition, Beijing Andingmen Joy City is planning, Chengdu Joy City is also advancing.

COFCO announced that it will invest 70 billion yuan to build more than 20 joy cities in the whole country, and the joy city will become the largest commercial real estate complex in China.

The city of joy can be said to be China's most successful commercial retail companies in the past two years.

Since its opening in December 28, 2007, all its shops have been rented out in 5 and a half months.

It attracted 234 brands, of which 46 brands were the first to enter the Beijing market, and the other 58 brands chose it as the first stop to enter Xidan business circle.

Over the past 2 years, the daily sales volume of this monster has reached 10 million 500 thousand yuan, and the daily traffic volume has reached 200 thousand.

However, as a commercial form, Joy City is not a new invention. Its direct template is the the Mixc built by Huarun group in Shenzhen in the past 5 years.

This pattern first appeared in 1956, and Southdale, the first shopping mall in Minneapolis, has changed the way of shopping and retailing in the us forever.

By 2009, there were more than 50 thousand copies in the United States.

From the very beginning, the city has abandoned the practice of introducing a large main store, instead of relying on a number of medium-sized shops in the 800~1000 square meters instead of the main store's role (such as H&M, Adidas, etc.), and more stores are small shops in the area of 100 square meters.

In addition, the joy city does not leave behind the strength to organize various activities in the shopping mall, to find the best fit point for merchants, and to enable more businesses to cooperate with them through communication, so as to enhance the loyalty and participation of consumers to brands and shopping malls, and reach a close and tacit partnership with merchants.

Joy City is realizing the department store shopping center, using rent plus water rent strategy, currently 15% of the customers are paid on commission rent.

According to the insiders, this change shows that the development of shopping centers in mainland China may gradually replace traditional department stores.

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The "full service chain city complex" of joy city can be regarded as the best declaration of its ambitions in China: combining the functions of city life such as shopping, dining, entertainment, office, residence, exhibition, conference and so on in space, forming a full service chain for target customers, establishing a relationship of interdependence and mutual benefit among various parts, thus forming a multifunctional, efficient, complex and unified complex.

Huarun group the Mixc 40% retail +60% catering entertainment service industry

The quality commercial real estate brand made by Hongkong Huarun group started in December 9, 2004. It covers an area of 188 thousand square meters, which is equivalent to the area of 25 standard football fields. The commercial sensation caused by the opening of the business in December 9, 2004 was unprecedented.

Huarun Shenzhen the Mixc has 6 floors of commercial floor, nearly 300 different sizes, different functions of independent shops, set retail, catering, entertainment, leisure, culture, sports and many other elements as one.

The Mixc, Hangzhou, has introduced the new format of Thailand new department store, which is the first store in Central China's department store, and NOVO new concept small department store, which is popular among young people.

Huarun the Mixc draws on the successful experience of foreign shopping centers. The Mixc's tenant portfolio takes the form of main store + sub main store + specialized store.

According to industry experts, the Mixc's property types are quite different from traditional department stores. More than 90% of the traditional department stores are retail, but 40% of the Mixc's portfolio is retail, 20% is catering, 20% is entertainment, and 20% is large-scale sports, furniture supplies, banks, washing shops and other formats.

At the same time, business positioning must be consistent with the positioning of the project development stage. The Mixc's business positioning is "the Mixc sells a lifestyle and a family consumption place". After the family has finished watching the movie, the children can go skating, mother goes to the beauty shop, dad and dad go shopping, and then eat together at night. This positioning has successfully created the the Mixc's management brand through continuous efforts. In the stage of project development and investment, the positioning is "brand new architectural form, brand new consumption environment and new combination of formats", and the late business positioning is the continuation and development of the early positioning.

In the 2002, Huarun group made an in-depth market survey of the consumer market in Shenzhen when preparing for the "the Mixc" of the Shenzhen. It was found that the income level and average purchasing power of the residents in Shenzhen ranked first in the country. In 2002, Shenzhen's per capita GDP exceeded 4500 dollars, and the urban residents could receive 24940 yuan. The per capita consumption expenditure of the residents in the city was 18925 yuan, and every 18.5 households in Shenzhen had 18.5 cars, which had entered the popularization stage of car consumption. The average price of Shenzhen real estate reached 5533 yuan / square meter.

These data indicate that Shenzhen already has the economic and consumer base for developing high-end retail formats.

Wanda Group, Wanda Plaza, order business

Commercial real estate is the first pillar industry of Wanda Group.

Wanda Group has pioneered the new commercial mode of "order commercial real estate" in the whole country. After many years of development, Wanda Commercial real estate has developed from the first generation single store and the second generation combined store to the present third generation urban complex, and has become the absolute leading enterprise in the Chinese commercial real estate industry.

At present, 27 large-scale urban complex projects have been opened, and 41 urban complexes are planned to open in 2010. The total area of the property is 6 million square meters, and the annual rental income is more than 3 billion yuan.

Pan Tao, general manager of Wanda Group's commerce department, points out that the operation concept of Wanda Plaza can be classified into three characteristics: one is "four dishes and one soup".

"Four dishes" refers to the four buildings, which are the main shops of department stores and entertainment.

Wanda Plaza calls the pedestrian street the "soul tie". When walking streets connect several streets, it will put small shops in the pedestrian street. This is also the basic principle of American shopping, that is, from the main store to the main store, it will go through the pedestrian street.

The two is "two 70%".

Wanda from the north to Harbin, the southernmost to Nanning, from the first tier cities have been three line cities, forming a standard product of industrialization, summed up the concept of "two 70%", that is, in the combination of merchants and formats, we must ensure that 70% of the businesses to which cities can be welcomed by these 70% people, so as to ensure rapid replication.

70% of the consumers decided that Wanda had abandoned the part of the high-end and the lowest part. This is Wanda's strategic direction and the ideological foundation to ensure Wanda's rapid replication.

The three is the combination of formats.

Chinese consumers, including consumers in Asia, demand much more for food and entertainment, especially for catering, than in the US and Europe. In the US, a 200 thousand square meter shopping center can have 20~30 department stores, but the proportion of restaurants is very small.

According to the consumption characteristics of Chinese people, the law of Wanda Plaza's format is that retail accounts for only 60%, while catering and entertainment become non retail accounts for 30%.

According to Pan Tao, this goal has not yet been fully achieved. The two shopping centers recently opened are 65% to 35%.

If we maintain the momentum of Wanda Plaza and continue to flourish, we must achieve the standard of 60% to 40%.

If the proportion of non retail businesses can not be higher than 40%, the cost is to sacrifice rents.

As we all know, the rent in retail industry is generally higher than that in restaurants and entertainment, especially in exclusive stores.

So we can only "reluctantly give up", we must give up part of the area for fitness, entertainment, cinemas and other entertainment facilities, so as to effectively attract people to the shopping center for consumption and entertainment.

Foreign retail giant shopping center has become Nuggets "new world"

Carrefour's largest store in China, the red Pai Lou store in Wuhou District, Chengdu, opened in January 11th and fired the first shot of foreign-funded enterprises in the new year.

The store has 8000 square meters of Carrefour supermarket on the ground floor. The four floor is a shopping mall with an area of about 20 thousand square meters. It can accommodate nearly a hundred shops. There are no two shopping centers, including shopping, dining, entertainment and leisure.

It is understood that the French Carrefour in foreign stores, standard super, discount stores, convenience stores four formats occupy the market.

At present, there are only large stores and days' convenience stores in the domestic market, and Diya is two independent companies with Carrefour every day, but all belong to Carrefour, France.

Analysts in the industry believe that Carrefour's Beijing Zhongguancun store has cooperated with dozens of department stores, restaurants and hypermarkets, playing a comprehensive function of shopping centers.

Carrefour Chengdu store is a further test of the shopping center.

Carrefour's large-scale expansion of shops has aroused some local retailers' vigilance.

A local retailer, who does not want to be named, looks at Carrefour's massive increase in restaurants, shopping and leisure shops, which is equivalent to attracting more customers with supermarkets in the same way as shopping centers. Large scale store rental can also increase another income.

Other foreign retailers who entered the Chinese market later than Carrefour last year actively tested new formats.

In 2004, when TESCO group entered China through retail business, it began to purchase local self built commercial real estate projects in 2008.

Now, TESCO takes the development strategy of leasing real estate and commercial real estate in China, which is divided into TESCO retail companies and

TESCO real estate company operates.

As of today, TESCO has successfully owned more than 90 rental real estate stores in China (including 81 hypermarkets and 11 convenience stores in trial stage) and 3 Lifespace Ledu Hui shopping plaza.

TESCO's commercial real estate project in China, Lifespace Ledu Hui shopping plaza, is a brand new shopping center specially built for China by TESCO real estate company. It is an integrated shopping center integrating shopping, entertainment, dining and leisure. International architectural design, ample parking space, comfortable environment, rich commodities and intimate service provide consumers with a perfect one-stop shopping experience.

TESCO has a Lifespace Ledu Hui shopping plaza in Qingdao, Qinhuangdao and Fushun.

TESCO has announced 3 real estate projects in Southern China: Xiamen Wuyuan Bay, Fuzhou Pu Shang and Xiamen seven stars.

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IKEA announced that it will invest $1 billion 200 million to build a large regional shopping center in Daxing, Wuxi and Beijing, and change the format of a single IKEA home store.

Morgan Stanley, Blackstone and other funds have been financing, targeting the commercial property that is mainly shopping centers in mainland China.

The British real estate development and investment company, Gore Nuo group, has set up a $600 million fund to invest in Chinese shopping centers. It is looking for opportunities for real estate development in Shanghai.

Japan's largest retail group, AEON group, is also planning to build 2 to 3 Dream City shopping centers in Ji'nan and expand Ji'nan as a regional headquarters to the surrounding cities.

AEON dream city is the core business of the aeon group. There are 53 shops in Japan. It is the leading operator of the shopping center in Japan. It has set up a shopping mall in Beijing and Tianjin.

Nishio Tetsu, general manager of Wing Hang dream city (China) Business Management Co., Ltd. believes that the commercial era of Moore shopping mall in the suburbs will come in China.

Yang Qingsong, Deputy Secretary General of the China Chain Store Association, said that under the situation that the market tends to be saturated and the expansion space is limited, it is an inevitable trend for foreign retailers to enter shopping centers.

Retail businesses with better local development are also adopting multi format management mode.

For foreign retailers, they can make full use of their existing brand and channel resources in China to develop new formats.

Case interpretation

Hai Liang Plaza, new retail power of second tier cities in China

As a new landmark in Hohhot, Hai Liang Plaza is developing rapidly. It takes the lead of the city and the innovative retail development mode to lead Hohhot's retail industry to the forefront.

Hai Liang Department stores opened in November 28, 2009, and the commercial volume of 220 thousand square meters has shown a good upward trend after being tested and experienced by the market.

From the initial 1000 suppliers to 1500 now, the VIP member group has developed to 4.5 million households, and the brand lineup is also constantly improving and increasing.

Hai Liang Plaza, a versatile business format, aims to create a unique one-stop modern leisure and shopping center in Hohhot with the consumption pattern of buying, eating, playing, enjoying, living and learning.

Many formats converge on super popularity.

Hai Liang supermarket, which is located on the negative layer of Hai Liang Plaza, satisfies the daily needs of the public to the greatest extent with a large number of commodities, preferential prices and excellent services.

Hai Liang The Plaza Hotel, with a total area of more than 70 thousand square meters, provides high-end services with its elegant dining environment and five star service standards.

The happy school quality training hall and happy week social experience Museum, located on the 6 floor of Hai Liang Plaza, attract a large number of children from Qingcheng to learn and entertain.

In addition, the food and entertainment formats such as Hai Liang Plaza, gourmet city, Hengdian film and Television City, Liang Shi Bao fitness club, Sunshine Valley happy hour, video game city satisfy the needs of consumers to eat, drink, play and enjoy music.

A large underground parking lot that accommodates 7500 parking spaces makes customers feel the convenience of shopping.

Service item change service marketing

For department stores, goods are common and services are their own.

Today, with the increasing homogenization of goods, most goods are not unique to a department store, but the brand personality of each department store is inherent in the market.

Hai Liang Plaza is a sublimation of service, which regards service as a commodity.

Set up a number of humanized supporting functions such as free children, disabled rented cars, VIP lounge, mother and baby room, drinking water bar and so on. Love and umbrella, gift packaging and other intimate services are also popular among consumers. Shopping malls have launched many preferential services for VIP customers such as discount discounts, consumption points feedback, merchandise shopping, booking services and so on.

Hai Liang Plaza has continuously introduced its own characteristics in service, making the original project service become a kind of service marketing. It will take the high quality service as the main competitive power of the shopping mall, and win the trust of the market at the same time.

Extended reading

IKEA creates home and shopping center dual format mode

The IKEA group, which is familiar with the home market and is known by the domestic market, has announced that it will join the IKEA brand IKEA group, which is jointly invested by IKEA, to invest in 49% and 51% equity relations to build the IKEA IKEA shopping center.

At present, the IKEA shopping center in Wuxi and Beijing stores have entered the actual project planning stage.

In Europe, IKEA started with fashion and good quality, and targeted users around the middle class.

It claims to be able to maintain its operating margin at around 10% when it continues to offer discounted goods.

In the 2009 fiscal year, sales of IKEA's global stores slowed sharply, up only around 3%.

The home market in Europe and the United States has become increasingly saturated, while Japan and South Korea are not suitable for IKEA's low price strategy.

According to some analysts, when more foreign capital looked at China's commercial real estate, IKEA also realized that the rising space based on business circle was much more brilliant than that of simply opening a home store.

"China has increased steadily over the past ten years compared with the steady growth of consumer groups over the past two years, such as the subway and so on, which has been gradually formed in the past two years, and the middle class has gradually formed. This is the main consideration of the introduction of shopping centers in China."

IICG said Ding Hui, managing director of IKEA Shopping Centre (China) Management Co., Ltd., a wholly owned subsidiary of China.

At present, the two IKEA shopping centers that have been selected for construction are located in Daxing District, Beijing and Xishan Economic Development Zone, Jiangsu, with the investment amount of 500 million and 300 million US dollars respectively.

These shopping centers are mainly "IKEA household" as the main businesses, and then introduce department stores, supermarkets, home appliances, fashion brands, supporting restaurants, cinemas and so on.

The shopping center is making extensive contacts with WAL-MART, Carrefour, Da Yun FA, Bailian and other domestic and foreign supermarkets and department stores, attracting investment, and a total of 450 retail brands will be introduced.

According to Intel IKEA, its Beijing store has an area of about 200 thousand square meters, with a total of 7000 parking spaces.

According to public information, the shopping center project was last July 23rd in IKEA's 790 million yuan, and the total investment is expected to reach nearly 4 billion yuan.

However, the huge investment in Beijing shop is only the second stop of IKEA shopping center in China. According to the expectation, its store in Wuxi will start in Beijing shop half a year.

The traffic in this shopping mall is also very convenient. It has a subway and a lot of road traffic facilities. It takes only half an hour to get to the mall from downtown.

"Site selection of the South Fifth Ring Road in Beijing, when completed in 2014, the subway and all kinds of pport facilities have also been matched.

Wuxi shopping center is only half an hour driving from any corner of Wuxi. "

Ding Hui said that, like IKEA's overseas shopping centers, these centers aim to "regional shopping centers", hoping to radiate nearby urban areas.

According to Ding Hui, as the opening hours of two stores are approaching, it will be possible to adopt the "package" mode.

At present, IKEA has contacted with Carrefour, WAL-MART, Decathlon, Auchan and other brands, and has made clear cooperation intentions with some well-known brands.

Industry analysts believe that, because of the status and brand awareness of IKEA home in the domestic home market, IKEA group will not invest less in IKEA when it is involved in the shopping center format.

Ma Wenrui, a senior analyst at home industry, believes that IKEA is also facing potential risks on the eve of the new business model.

For example, can hundreds of businesses that can be relocated in shopping centers fight with IKEA to build up the business atmosphere of the entire business circle?

In addition, the location of shopping centers in Xihongmen, Daxing District, Beijing, how much popularity can also be questioned.

Business experts pointed out that for a long time, IKEA has always been a symbol of home stores, and has established a strong brand appeal in the minds of consumers.

IKEA as the main store, its influence will bring tourists to Intel IKEA shopping center, but if Intel IKEA can not create its own characteristics through its own brand and format combination, it will be difficult for consumers to form a brand awareness.

Before entering the domestic shopping center market, IKEA has already made a pre estimation of 80% of the store's format and brand before entering the investment stage.

This disguised "order mode" has been well received by many industry experts.

At the same time, inte IKEA will also package and operate several shopping centers at the same time, which will greatly increase the attractiveness of the brand.