International Shopping Center China Dilemma

Bangkok is sultry and humid at the end of May. In such rainy weather Continuous In the weather, Shang Tai CEO Tos Chirathivat, the largest retail group in Thailand, announced their plan to enter the Chinese market in the next few years. "This year, we will open two to three department stores or shopping centers in China, and in the next few years, we will distribute the Chinese market by an average of three to four per year, mainly in the first tier and second tier cities," Central Retail said.

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 department store would quickly enter the two or three tier cities of China. It is reported that in the next five years, Ying Wu department store plans to expand twenty shops in ten two or three line cities, such as Tianjin, Hangzhou, Shenyang, Wuhan and Chengdu.

At the same time, in May 25th, Guangzhou's Taigu exchange trial business, the chairman of the Swire Group, white chart, said: "Swire Group's property and real estate investment in the mainland will mainly focus on the retail industry, which is our best area. 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.

But the fact is not as optimistic as they expected.

In the past few months, Hangzhou the Mixc Shang Tai Department Store passenger flow The volume is not as good as the expectations of the industry. Pan Jianwei, a local business designer in Hangzhou, said that he did not know where Hangzhou was located before. He said, "maybe it is because it is located in Qianjiang new town. We usually do not go there very often."

This seems to be a microcosm of a practical problem faced by many "latecomers" in China. Department stores in mature urban areas have become saturated, and the volume of passenger traffic in new urban areas 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 three 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 encountered 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 Singapore team Be responsible for In the shopping malls of management and investment, people did not see 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 that the layout of the shopping mall was "messy", and the display design from the Singapore team did not capture the hearts of local consumers. Facing the phenomenon of foreign domestic department stores and shopping centers stationed in domestic cities such as Ying Wu department store, "it is time for the retail giants to face the challenge. If the international shopping center brand can not be localized, the sales mode and furnishings will be integrated with local consumption habits and cultural traditions." Xu Hanwen, an expert on economics in Wuxi, said.

In today's growing competition between shopping centers and department stores, especially in the saturated second tier cities, the International Shopping Center believes that the development of new and personalized formats is the solution. Shang Tai Group intends to introduce such a format to China -- first department stores to get rid of difficulties. "The first department store opened in Shenyang is different from the traditional department store. It is a department store mainly selected by buyers. Nearly half of the brands and commodities are selected and operated by the first department store buyers from all over the world. Even for the same brand, the goods displayed before department stores are different from those sold in ordinary stores. They are usually the latest products, commemorative edition, limited edition or special edition of cross-border cooperation with a designer. We hope to put this pattern in practice. China To promote Chinese consumers to see a new department store format, Tos Chirathivat said that Shang Tai also wanted to change the commercial layout of Chinese shopping centers. "I often go to Beijing and Shanghai to investigate local shopping centers. In my view, Chinese shopping centers use too much space to display" fashion "and related products. I think the proportion of lifestyle in these shopping centers should be strengthened. 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.

However, "the problem we are facing now is not too much shopping mall, but too many shopping centers". Pan Jianwei said, "every weekend I spend ten minutes to think about which Shopping Mall to go. In addition to 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. At the same time, the "bigger and bigger" shopping center seems to be the lock set by international operators. In the face of the international shopping center's large volume of millions of square meters in Chinese cities, Guo Zengli, vice-chairman of the Asian Shopping Center Association, said: "commercial real estate projects are divorced from the actual needs of the market and blind pursuit of large volume. It is bound to artificially push up investment quotas and extend the return cycle of capital; the basis for determining the volume of commercial real estate is very strict and professional. Development Businessmen should look at the problem of body mass from the perspective of consumption power and design the volume that fit the needs of the future consumer market.