New Trend Of Retail Industry In 2011 -- Street Department Stores

From Pacific department store to Xintiandi fashion, the department store industry in Shanghai has gone through a process from big to small, from many to fine.

In order to adapt to this process, the best way is to firmly control the property rights of shops and adjust them at any time.

L= Lee enters Hong Kong

B: the first fashionable shopping mall we saw in the mainland is similar to Pacific department store.

L: I have been in the mainland for ten years.

It should be said that every city has its own pace of development. In Shanghai, the overall taste of the city has increased a lot. The adjustment of urban function is obvious, and it is more and more mature and subdivided.

I feel that the tastes and purchasing power of Shanghai consumers have changed greatly, and the acceptance of various brands has improved.

B: from a professional perspective, what do you think are the main points of Shanghai?

L: the development of Nanjing road is very long. It is not easy to reform.

No matter whether Nanjing east road or Nanjing West Road is due to the property rights of the shops, it can not make greater reform.

Jingan Temple's Jiu Guang Department store was not opened to many people at the moment, but now it is full of people. Traffic is quite high. There are many new office buildings around it. Therefore, it can be sent to the front office first. Its positioning is very consistent with the requirements of the current consumers. This is very important.

Huaihai Road has opened many big flagship stores this year, so when we set up a new world fashion, we should take this into consideration. If we do this, we will have more integration and achieve more mismatches and complementary effects.

From the first, the two to the three, we are upgrading ourselves while changing.

Now the new shopping mall will not be too bad, because the city has this demand.

Moreover, the geographical location and traffic connections of various business circles are very good. No one had ever thought of this before -- this is a big change.

The smaller trend department store is now on the rise. It will be good for AMP to open the shopping mall in Huaihailu Road's original Xiangyang Road market.

Every business district has a high grade place, and the important thing is whether the city has such a purchasing power.

Ultimately, which wins, depends on the development below to see if there is any possibility of re layout.

Good business circles are constantly being adjusted.

The most important thing is to introduce modern.

B: why do you want to rent it or not?

L: take Xintiandi as an example, our shops are only rented and sold, so it is easy to control and adjust.

When we choose investment, we can make a fusion according to our requirements, so the shops do not need to compete for customers. This is our winning place.

In addition, there are some places to rent alone, but we have both shopping malls and blocks.

Once the shops are sold, it is difficult to be advanced, and the management is very difficult, and commercial value is also discounted.

At present, we do fashion in Xintiandi, and specially require designers of several designer shops to regularly accept personalized customization of customers in the shop, which is actually a relatively profitable service for them.

You see Hongkong and the world's more successful commercial cities, the property rights of shops are the concept of the entire business circle, not a shop concept.

Now, like Nanjing West Road, most of them are divided into one shopping mall.

B: do you mean that the form like Nanjing West Road Hang Lung Plaza has not caught up with the latest trend?

L: it's not that Hang Lung can't, but now department stores are more likely to succeed.

The current trend is to put large department stores on different planes.

Big shopping mall, sometimes restricted, their shop contracts are usually ten years and eight years, so you can hardly make adjustments based on the situation.

The contract for shops along the street is one year and two years.

The competitiveness and influence of a building is much smaller than that of a street, and a block business circle is more flexible in strategy.

B: so is there a similar business model similar to Xintiandi?

L: there must be some.

For example, Japan's June wood, it is an old city, where the houses are concentrated in many small shops, and not only simple shopping blocks, you can also sit down for a cup of coffee.

Japan's retail industry is leading in Asia, but Xintiandi's mode may be better than foreign countries, because you can hardly find such a large piece of land in the city centre in foreign countries.

B: you also mentioned the retail trade in Japan.

It seems that in Asia, the main practice of retailing is to buy real estate, cover shopping malls, and invest.

Why do we not have a buyer's retailer like Neiman Marcus, Macy 's, Saks Fifth Avenue?

L: I think this is determined by the maturity of the retail industry, and also depends on the profits that an industry can generate.

European and American life index is high, so the profit is also high.

If you only do retail in China, unless you do a lot, or open a lot of branches, you can't do well without scale effect.

The development time of China's retail industry is short, and the developers are mainly developing housing, and they have just started to focus on commercial real estate.

So China's retail industry has not yet reached this stage.

But on the other hand, the development of retail industry in Europe and the United States is not large enough.

Some European and American real estate companies have both shop property and shop management.

For example, Ruian's partner Redevco (European retail real estate investment company) is like this.

For Ruian, it is not our profession to do department stores. We really need to do it, because the structure, function, operation and real estate are different, and the pressure of funds is relatively large.

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B: you said that China's retail market has not yet reached that stage, but we also see that similar commercial forms such as Joyce and even Crawford have begun to appear in the first tier cities.

L: these business forms need more mature markets.

How many cities in China can sell such high-end stuff? In China, the success of stores is still more effective.

Look at some big shopping malls on Huaihai Road, which have been changed so many times over the years. Why? If done well, there is no need to change them.

This shows that the buying shop mode is still very difficult to play in China at present, and without scale, the cost of goods logistics will be very expensive.

Most Chinese want to buy high-end stuff. First of all, they go to the exclusive store to buy Louis Vuitton and go to Louis Vuitton.

Not only in the mainland, but also in Hongkong.

What is the natural defect of a large department store? A two story can be very upscale, but three floors and four floors? Are there so many high-end brands stationed? Underground? There are often only eating streets on the ground floor.

B: however, like Shanghai's Zhengda square, dragon dream and Hong Kong Plaza, although the area is large and some areas are hard to deal with, the popularity is still very strong.

Can their weakness be digested by such a large crowd?

L: I think this type of shopping mall should take this into account when positioning.

Some shops may not rent well, but they can bring people flow. How can we spend the flow of people in high rent areas? If you can do that, you will be unsuccessful.

Consumer psychology is very impulsive. It depends on how you guide your customers to help you achieve your business goals before going out.

People are lazy, the higher the more unwilling to go - so you see, the shops along the street are flat, the more convenient, the more commercial value.

Harbour City in Hongkong is very big, but the real business is only the first two levels.

Besides, the buildings in Harbour City are not tall, lengthwise and convenient for pportation.

Remember, the first floor is the most important place to make money.

So I think the most important thing is the balanced allocation. The key is to see the total income of the shopping mall.

Of course, in Japan, you can see more than a dozen large shopping malls, and there are eating areas in a very high area.

I think the development of China will also have such kind of shopping mall, but there are not so many brands and businesses to fill it.