Cheap Goods Department Changed "Luxury Control"

Shopping malls and luxury stores

In January 18, 2011, the old friendship store was relocated in Putuo District, and the new friendship store no longer ran the previously flagship department stores. Instead, it focused on high-end gifts, handicrafts, antiques, jewellery and collectibles. Just a month ago, the Tianshan commercial building on Tianshan Road in Changning District was officially closed down. In the next two years, it will be pformed into a department store based on high-end brands.

From the former common market to high-end fashion Plaza, friendship store and Tianshan commercial building are not isolated cases in Shanghai.

The ordinary people who had been keen on shopping in the fair market gradually realized the bitterness of being isolated and abandoned in the new round of upgrading of Shanghai business circle.

"We are not opposed to the upgrading of the business circle, but we can not break away from the demand of the market. Now Shanghai's per capita disposable income is less than 3000 yuan per month. So many high-end shopping malls are for whom?" Zhu Lian Qing, director of the business research center of the Shanghai Academy of Social Sciences, said that the collective alignment of the high-end consumer groups virtually drove people out of the shopping malls.

Business circle upgrade to luxury line, the narrower the consumers go shopping, the narrower they are.

Last weekend, the Tianshan commercial building in Changning District was closed tightly, and the decoration of the interior was faint, which reminded people that there was no failure here.

"To tell you the truth, before the Tianshan commercial building business is very good, our family almost every day after dinner to stroll around."

Qin Jiayuan, who lives in the second village of Tianshan, recalls that 10 years ago, almost every family living nearby had to shop in the mall.

"After hearing that it is expensive to sell high-grade goods later, it is only a matter of great concern for the rich and the common people."

Qin Jiayuan said that he now favors visiting big supermarkets or buying clothes directly online.

Qin Jiayuan's voice reflects the dilemma of the upgrading of business circles. On the one hand, the upgrading of major business circles leads to a luxurious route. The consumer groups are narrowing and narrowing. On the other hand, the more and more shopping malls, the ordinary people dare not go in to buy things.

Since last year, luxury goods cluster of Shanghai state gold center and luxury flagship store in the east section of Huaihai middle road have been opened, and the "LV building" of Hongqiao commercial area is under construction.

"The biggest problem of Shanghai business circle is that it is high-end, ambitious, and even there are comparisons among different districts."

Zhu Lianqing, director of business research center of Shanghai Academy of Social Sciences, bluntly said.

High places, cold and high-end luxury goods are also lonely.

Tianshan commercial building is a typical example of the more high-end and more lonely shopping malls.

The Tianshan commercial building with "working class as the target consumer" opened in 1996. Based on this positioning, Tianshan commercial building was welcomed by the general public after its opening, and it was profitable after a year of operation.

Public data show that in 2003, Tianshan commercial building achieved sales of 1 billion 905 million yuan, with an annual profit of more than 2620 yuan.

This situation lasted until around 2005, when commercial manager Zheng Xiujuan made the "second take-off" positioning adjustment. In 2008, the new building on the west side of the original Tianshan commercial building was completed, and the two were integrated into one, officially renamed the "Chang Fang International Plaza".

But this pformation is much more difficult than expected.

"Tianshan commercial building after the decoration of a lot of people."

Qin Jiayuan, who lives in the neighborhood, occasionally visits the mall, but he often disappears. Qin Jiayuan told reporters that there were some infamous miscellaneous department stores in Tianshan commercial building, but the prices were far too high. "I once saw a shirt sold for 4000 yuan."

The decline of word of mouth directly brought economic losses. After two years of insisting, the Tianshan commercial building was forced to shut down and pform in December 31, 2010.

According to media reports, business profits before the closure of the business is only 1000, which shrank by nearly 50% compared with 2003.

Parity department store "

The story of Tianshan commercial building is not isolated in Shanghai from the old people's fair market to the future high-end fashion Plaza.

In April 15, 2008, Nanjing West Road's Shanghai time-honored Hongxiang department store closed down.

Hongxiang department store, which has a history of more than 90 years, was once the most popular fashion shop among the three sisters in Song Dynasty.

But with the late business embarrassment and the adjustment of Nanjing West Road's commercial layout, Hongxiang general store can't afford to send it to Marsha general store, also known as Martha's department store.

The Shanghai friendship store, founded in 1958, was once the most famous large-scale foreign-related store in Shanghai. After the relocation of its new site in 2011, the friendship store was also positioned as a high-end gift monopoly.

Lost in high-end stores

Even more startling adjustments are concentrated in Shanghai's former "number department store".

In the 50s of last century, a series of shopping malls from 100th to twelve department stores were built in Shanghai, which became an important part of people's life.

Today, the 12 department stores are almost completely annihilated, and only 4 of them are persistent.

Among them, the first department store in Nanjing East Road has long positioned the consumer group in young people under 30 years old, mainly in middle and high grade consumption; Ninth department stores and Hongkong capital jointly invested in the construction of Jiu Guang Department store, the location has also been upgraded; second, the department store's investment has been changed to two hundred Yongxin, although it still insists on the pro democracy route, but two hundred of Yongxin's brand shops are also gradually increasing.

How many of Shanghai's former parity department stores have been upgraded? The relevant departments of the city Department Store Association said that the specific figures were hard to count, but there must be many.

North Sichuan Road, once famous for its Huaihailu Road and Nanjing Road, began its overall upgrading plan in 2006.

Morning Post reporters visited in North Sichuan Road and found that the popularity of major shopping malls, including Paris's spring, was hard to name.

Even residents living near North Sichuan Road also said that once shopping, they would still go to Nanjing road or Cheap Road to purchase.

"It should be said that this kind of shopping malls upgrading is a normal phenomenon in the industry."

Famous fashion critics

Although the reason for changing shopping malls is reasonable, when a large number of department stores have been upgraded and adjusted, it is bound to affect the layout of the entire Shanghai business district.

In 2009, the outline of Shanghai commercial network layout plan (2009 -2020) was announced. The number of commercial centers at all levels in Shanghai will reach 145 in the future, and it will be found in all parts of Shanghai.

Morning Post reporter noted that almost all of the 12 municipal commercial centers located at the core of the entire commercial network layout are located in the "high-end consumption" field, including the new Hongqiao commercial center covering Tianshan commercial building.

In fact, before the "Outline" was published in 2009, the discussion on whether Shanghai business circle was saturated had long been raised.

Public figures show that in 1992, the retail business area in Shanghai was only 4 million 20 thousand square meters, and in 2006 it increased to 36 million square meters, with a population of 2 square meters or more.

There is a saturation crisis in the total volume, and it is bound to need different business circles to carry out differentiated operation. The outline also emphasizes that 145 commercial outlets in Shanghai are required to have their own characteristics, different locations, wide layout and Shanghai.

But the requirements of differentiated development are hard to implement.

Reporters learned that, including the new Hongqiao business center and the central business center and other business circles rising stars, have put forward the "high-end consumption" market positioning, and already positioned high-end Huaihailu Road, Nanjing road and other mature business circles, also in recent years continue to upgrade, eliminate the old brand business field, the introduction of international brands.

Although the prospects are unclear, the upgrading of business circles in various districts is still in hot progress.

A few days ago, Kate China announced that it would build second Raffles square in Shanghai city in Changning District. As an important part of the Zhongshan Park business district, Changning's Raffles Plaza covers an area of more than 60 thousand square meters, with a total investment of 9 billion 600 million yuan.

City Business Council: high-end business and community business "

Does the department store industry in Shanghai have the trend of becoming more and more high-end? Is the high-end business of Shanghai still more or less deficient? For this reason, the Municipal Commerce Commission and the district and Commerce Commission responsible person said that in order to maintain the traditional advantages of Shanghai's business, Shanghai will accelerate the development of community commerce and facilitate the daily life of the people at the same time, while focusing on the development of "national" business and "global" business at the municipal business center.

Shanghai business is facing more and more competitive pressure. Compared with the international metropolis, Shanghai still lags behind London, New York, Tokyo, Paris, Hongkong and other cities in the development of commercial centers, business operations and market environment conditions. Compared with domestic Beijing, Tianjin, Chongqing, Guangzhou, Hangzhou and other large cities, the leading edge in commercial facilities construction, new business format and business atmosphere construction is getting smaller and smaller, and some aspects have been surpassed.

Therefore, in order to further enhance the overall competitiveness of Shanghai's commercial sector, the city will focus on developing "nationwide" business and "global" business with the ability of gathering and radiating the domestic and foreign markets during the "12th Five-Year" period, and will continue to maintain and expand the leading edge in China.

Zhang Xinsheng, deputy director of the Municipal Commercial Commission, told reporters that during the "12th Five-Year" period, Shanghai's commercial development should take the construction of the international trade center as the main line. The construction and development of community commerce will also be one of the key points of the next stage of Shanghai's commercial development. We should improve the commercial facilities of the new large residential communities, arrange the commercial service outlets uniformly, and integrate into the scope of state-owned assets management, so as to support the commercial service enterprises to enter the large residential communities as soon as possible, and synchronize into the new large residential communities to carry out their operation and service activities.