Beijing Shopping Center Fell Into The Curse Of Brand Adjustment

"Opening soon (soon to open)", recently shopping, such signs are particularly numerous. The major shopping malls of the capital in July and August: Xinguang Tiandi, Jinbao Hui, Yintai department store center, contemporary, Beijing APM, Xinhua Department store and Zi he... Have entered the peak of brand adjustment. Who is reading the curse of brand adjustment?

　　 Three years of pain

Xin Guang Tian, Jinbao Hui, Yintai Center, Zi he and so on are opening up for third years because of their opening up, so they have to adapt to the new changes in the market.

For new shopping malls, in order to adapt to the positioning of the business circle, the intensity of adjustment in the first 3 years will be greater. There are just a few stores in Beijing before and after 2008, such as Xinguang Tiandi, Jinbao Hui, Yintai Center, Zi He Xin and so on. Since last year, up to now, they are undergoing substantial adjustment.

"Any shopping mall will enter the third year of operation, whether good or bad, it will be adjusted." Jinbao shopping center general manager Lu Yi introduced this is a convention, because before opening up, even if market research is done well, positioning is more accurate, but there is a gap between reality. Generally speaking, for a new shopping mall, 3 years is a market adaptation period. If it is made, it will be promoted; if it is not made, it will die out.

After 3 years of adjustment, the location of the new shopping mall will be more precise. For example, in Jinbao Street, luxury cars, high-end club clubs, photographic equipment, including many catering business catering, is very consistent with the characteristics of male consumption. Therefore, Jinbao Hui will push the male consumer goods in the second half of this year's brand adjustment.

　　 Change of positioning

Beijing APM, contemporary Shopping Mall And so on because of the change in positioning.

For old shopping malls, the adjustment of brand takes more consideration from the aspect of performance. China Shopping Mall Guo Zengli, director of the industry information center, introduced a normal adjustment every year, because the shopping mall had the last knock-out system, and some of the brands with the lowest sales results would be retreated, and some new brands would be introduced. However, this adjustment is relatively small and generally does not exceed 10%. If the old market has adjusted the brand to a large extent, that is the location has changed. This year is typical of Beijing APM, contemporary and so on.

Wang Yandan, deputy manager of APM rental in Beijing, said: "our positioning and direction is to have a mismatch with other shopping malls around the world, and become a high-end shopping mall for young people. Because the Wangfujing area, including some new projects, is basically high-end, and higher and higher. However, consumers will not buy luxury goods every day, mainly buying some consumer goods. We want to fill this gap. Wang Yandan said that in the future, the main shops will be concentrated in the paved streets of Wangfujing, the storefront will be cross storefront, the main clothing business, and fashion products, such as the fast fashion GAP flagship store that has been opened. At the same time, it will replace the original luxury stores such as watches and jewellery on the street. It is expected that all adjustments will be completed early next year. {page_break}

The positioning adjustment of Beijing APM is aimed at coping with fierce competition in the Wangfujing business circle. The adjustment of the contemporary shopping mall is a conscious subdivision of the market to avoid fierce competition with other channels. Yang Kaibin, director of the Department Store Business Department of the contemporary Shangcheng Commodity Operation Center, said that in recent years, the brand of the contemporary shopping mall has been constantly adjusted, and consumers can also notice that it is gradually moving towards the high-end. He believes that there are some high-end things, some high priced things, some shopping experience very strong things in the department store will continue to develop, and some relatively convenient, more commonly used, we all understand that there is no need to further understand its use of daily necessities, these online shopping channels, will certainly prevail in the future.

"Beginning in early June this year, Market Entering the layout adjustment stage, the interior decoration is now in progress and is expected to end at the end of August and formally unveiled in September. Gao Zhenfeng, Minister of clothing business of contemporary shopping mall, said.

At the beginning of 2010, the contemporary shopping mall began brewing the biggest brand category layout adjustment since its opening. The women's clothing was lowered from the original two and four floors to two and three floors. The men's clothing was raised from three to four, while the overall size of clothing and clothing products was expanded. Apart from brand positioning, the layout will also take into account consumer spending habits, making their shopping more convenient. In addition, the design of shopping routes is convenient for customers to fully read "goods".

For the contemporary shopping mall drastically adjusted, Gao Zhenfeng's explanation is that clothing products are developing rapidly, but in recent years, women's wear sales have maintained strong growth momentum. If the women's clothing is placed on the lower floor, the female customers who are easy to choose as the main consumer can choose a good product, and it can connect well with the sales of cosmetics and concentrate the consumption of women's clothing. Male consumption tends to be fixed, and the increase to four levels will not affect the overall benefit.

The contemporary shopping mall also introduces the design concept into the overall layout, through a number of brands with unique design style to better meet the personalized consumer demand of customers. Some of the high-end women's clothing brands that have developed rapidly in China have had an impact on international brands. For example, the brands introduced by Mars Phil and Liang Zi, such as the contemporary shopping mall, have resonated with female customers with their strong sense of design and fashion foresight.

In the process of adjustment, the contemporary shopping mall will add about 30 women's clothing brands, and will add some urban leisure brands and fashion products. In addition, the contemporary mall is committed to integrating every brand into its contemporary brand culture and fashion elements.

　　 Rent only theory

The reason for the adjustment of the above two brands is that the brand adjustment in Fuli square, Middle East Third Ring Road, Beijing, is entirely attributable to rent. Recently, Fuli Plaza is willing to terminate cooperation with the old merchants who have been accompanied by the company since its opening. This may also reveal the reasons for the frequent changes in the brand of Fuli Plaza for just 3 years. In fact, the theory of rentals is not the only criticism that developers are involved in the commercial real estate sector; the professional retail team has been interfered too much by the high level of real estate, and the lack of brand resources has also led to frequent setbacks in the operation of commercial real estate projects.

　　 After the opening of the business, the constant adjustment of Fuli Plaza continues to "toss".

Reporters visited Fuli Plaza to see that there are brand vacancy phenomena on many floors of shopping malls. A businessman said that the counters in Fuli Plaza would be "open to each other" every month.

However, the brand adjustment of Fuli Plaza is different from before. According to a person familiar with the situation, due to the willingness of new businesses to pay higher rents, Fuli square decided to "split up" from a high-end women's clothing brand that has been accompanied by the company since its opening.

Lee, who is responsible for the brand, said that 3 years ago, when Fuli Plaza opened, it was invited by the mall to come in. At that time, when preparing for the opening ceremony, Fuli square took a lot of trouble in order to get Ms. Lee's contact. In order to be able to cooperate, Fuli Plaza provides a certain rent discount for Ms. Li's brand.

Unlike the department store's operation mode of joint pooling, it is not difficult to understand how to cooperate with merchants who can get higher price codes for the shopping center projects that are maintained by rents. This may be the main idea of residential real estate developers, the consistent idea of operating real estate projects.

In the industry view, commercial real estate projects are different from pure real estate projects. For residential real estate projects, the first priority for developers after completing the project is to recover the cost of investment and to achieve higher sales as far as possible.

Compared with the characteristics of "one hammer sale" of residential real estate, it is difficult for developers to operate commercial projects to recover investment costs in a short time. Instead, they need to rely on long-term holding, and accelerate the appreciation rate of commercial real estate projects as far as possible through perfect commercial operation.

In fact, the brand rent payment should not be the sole basis for choosing the brand in the shopping mall. This is also the reason why many high-end department stores in China are willing to avoid rent for a long time in order to attract international luxury goods.

　 The only way of operation in the commercial field seems to be impracticable.

Lai Yang, Secretary General of Beijing Institute of business economics, believes that developers should not only rent their commercial real estate. In fact, in most cases, the revenue of a shopping mall does not depend entirely on rents, but on high quality business portfolios. For example, the proportion of leisure, retail formats, the combination of brand level, and the combination of supermarket department stores and other professional factors. Only a reasonable combination can appeal to consumers.

Some businesses, though low in rent, often attract consumers because of their brand and positioning advantages. Abandoning this part of the business, the mall may lose customers, which will outweigh the gains.

In addition, the profitability of a commercial real estate project depends on whether the project is successful or not, and whether the marketing plan is effective or not.