Cracking Down On China'S Dilemma In International Shopping Centres

The brand that has entered China's international department stores and shopping centers seems to be in a predicament.

Bangkok is sultry and humid at the end of May.

In such rainy weather, Mr. Shang Tai CEO Tos Chirathivat, the largest retail group in Thailand, announced for the first time Chinese media plans to enter the Chinese market in the next few years. "This year, we will realize 2 to 3 department stores or shopping centers in China, which are distributed in Hangzhou, Shenyang and Chengdu," Central Retail.

In the next few years, we will arrange China's market with an average annual opening speed of 3 to 4, mainly in the first tier and second tier cities.

Since Shang Tai opened its first shopping center in Hangzhou in May 1st last year, Shenyang, the second Chinese city to enter, is also expected to usher in the opening of this group's Shang Tai shopping center and first quality department stores this summer.

Meanwhile, Park Hotel Group from Singapore has also entered the two or three tier cities in China in recent years. They once said that Ying Wu's department store would quickly enter the two or three tier cities in China in recent years.

It is reported that in the next five years, Ying Wu department store plans to expand about 20 Ying Wu department stores in 10 two or three line cities, such as Tianjin, Hangzhou, Shenyang, Wuhan and Chengdu.

In May 25th, Guangzhou Taigu Hui started trial business, and more than 30 brand shops opened to the public.

The first commercial real estate project, known as "Hongkong Pacific Property Development and development in the mainland", is expected to open in September of this year.

Bai Jitu, chairman of Swire Group, told the media: "the property and real estate investment of the Swire Group in the mainland will be mainly concentrated in the retail industry. This is the area we are best at" Chris Pratt ".

And we found that retail spending is the most closely linked to GDP growth in the market. "

The implication is that today is the best time to enter China's retail industry.

Is the test water unsuccessful?

In the past few months, the traffic volume of Hangzhou the Mixc department store is not as good as that of the industry.

However, Wuxi's Ying Wu department store encountered another dilemma of the local people's "not much to see".

But the fact is not as optimistic as they expected.

Pan Jianwei, a local business designer in Hangzhou, told reporters that he did not know Hangzhou's location before.

Pan Jianwei said, "probably because it is located in Qianjiang New Town, usually we do not go too often."

This seems to be a microcosm of a practical problem facing many "aftermarket" international department stores in China.

"The department stores in mature downtown areas have become saturated, and the volume of passenger traffic in the new urban area can not achieve a hot shopping center in the short term.

Geographical location is indeed an important indicator for deciding the lifeblood and future of department stores.

But it is not easy for the Shang Tai Group to enter the downtown section of the downtown area not long ago when it entered the Chinese market.

But at the same time, Tos Chirathivat also said, "in this case, we will focus on the future development of the property.

The turnover of Hangzhou's Shang Tai Department in the first 3 quarters is not as ideal as expected, but because its Qianjiang new town is expected to become a focal point of the local government offices and become a new CBD of Hangzhou, I believe it will have a good development in the next few years.

Wuxi's Ying Wu department store is a Singapore department store brand with another dilemma.

Earlier, it was known as the "most noble and luxurious top shopping place", but it opened the door to Wuxi residents.

In this shopping mall, which is managed and inviting by the Singapore team, people have not seen many international brands and British marks.

"Since the second half of last year, large commercial retail giants in the world have poured into Wuxi and have opened new stores.

This is the second wave of overseas business investment launched in Wuxi after the late 90s of last century.

Huang Jianhua, deputy director of Wuxi economic and Trade Commission, said.

However, foreign shopping centers in China are facing more than just the impact of the world's large commercial retail giants, but also the competition of many mainland department stores.

During the opening of Ying Wu department store in Wuxi, many customers complained about the "clutter" layout in the shopping mall. The display design from the Singapore team did not capture the hearts of local consumers.

In the face of the phenomenon of "foreign" department stores and shopping centers such as Ying Wu department store stationed in domestic cities, "this is the time for retail giants to face the test."

If the international shopping center brand can not be localized, it will become "acclimatized" if it is combined with local consumption habits and cultural traditions in the sales mode and furnishings.

Professor Xu Hanwen, an expert on economics in Wuxi, said.

Way to overcome difficulties

Shang Tai Group is introducing new and personalized formats to China.

But experts Guo Zengli said that "seeking big" is not suitable for the Chinese market.

"The problem we are facing now is not too much shopping mall, but too many shopping centers."

Pan Jianwei said, "before I go out every weekend, it takes me ten minutes to think about which Shopping Mall to go.

Apart from their geographical location, the brands between them look very much the same. Just like in Nanjing West Road, Shanghai, you can find CHANEL in Hang Lung Plaza, and you can find GUCCI in Jinying department store. Their positioning is not much different.

Today, the homogenization of international shopping centers and department stores is becoming more and more intense. Especially in the second tier cities that are saturated with international shopping centers and department stores, Shang Tai believes that developing new and personalized formats is the solution.

"The first department store, which is about to open in Shenyang, is different from the traditional department store. It is a department store mainly selected by buyers.

Nearly half of the brand and merchandise here are selected and operated by buyers of first department stores from all over the world.

Even for the same brand, the goods displayed first and the brand are not quite the same in ordinary stores. They are usually the latest, commemorative, limited edition or special edition of cross-border cooperation with a designer.

We hope to promote this mode in China, so that Chinese consumers can see a new department store format.

Tos Chirathivat believes, "we also hope to change the commercial layout of Chinese shopping centers.

I often go to Beijing and Shanghai to explore the local shopping centers. In my view, Chinese shopping centers use too much space to display "fashion" and related products.

I think that the proportion of lifestyle should be increased in these shopping centers.

Americans are the guides and pioneers in department stores and shopping centers. Under the mature American model, Shopping Mall should have more room for lifestyle products, such as home appliances and living appliances.

The "bigger and bigger" shopping center seems to be the lock set by international operators.

In the face of the international shopping center brand's large volume of millions of square meters in Chinese cities, Guo Zengli, director of China shopping center industry information center, once told the media that "commercial real estate projects are divorced from the actual needs of the market and blindly pursue large volumes." it is bound to "artificially" push up investment quotas and extend the return cycle of funds. The basis for determining the volume of commercial real estate is very strict and professional. Developers should look at the volume problem from the perspective of consumption power and design the volume that suits future consumer market demand.