Shi Sheng Fa: Shopping Centres Will "Toss"

Shi Sheng Fa: currently Deputy General Manager of Shenzhen Ping'an commercial real estate investment Co., Ltd.

Over the past two years, with consumer preferences and

Shi Shengfa, deputy general manager of Shenzhen Ping'an commercial real estate Co., Ltd., from the strategic point of view, gives directions to the shopping center operators.

"In the process of choosing brand and brand, we will remember the two most important principles: first, the tenant (international brand or national chain brand) with high profitability, strong customer aggregation ability and low probability of default is the first choice for shopping centers.

However, it should be emphasized that if the introduction of the tenant is inconsistent with the overall positioning and tenant portfolio strategy, it is necessary to consider abandoning the quality tenant.

In October 26, 2011, CITIC City Square, which opened the era of Shenzhen shopping center, was officially renamed "

Shi Shengfa, deputy general manager of the new City Plaza, Shenzhen Ping An Commercial Real Estate Investment Co., Ltd., in an interview with the clothing Times reporter, believes that the pformation and adjustment is an important measure to maintain the best business performance and sustained competitive advantage of the shopping center. Learning to "toss up" and be good at "toss up" is also an essential quality of the shopping center operators.

Cycle adjustment seize the initiative

Making shopping centers is a fashion product. Adjusting and perfecting is a necessary process.

From the successful pformation of the new City Plaza, we can see that "changing" should be the rule of survival for the shopping center to maintain its sustainable advantages.

Fashion times: it is imperative to adjust the shopping center in large scale. The new city square is a forerunner.

In what circumstances do you think the shopping center will be better adjusted?

Shi Sheng Fa: in the retail industry, change is the only rule.

For shopping centres, adjustment is an important measure to maintain the best business performance and sustainable competitive advantage of shopping centers.

After a period of operation and management, the market environment of a shopping center is no longer what it used to be. The tenants are also at different stages of the life cycle, especially consumer preferences and fashion trends. These factors drive the operation managers of the shopping centers to adjust the shopping centers passively or actively.

Generally speaking, the shopping center needs to adjust more than 10% of its tenants every year. In 3 years -5, half of the tenants need to be adjusted. This is the result of a deep understanding of the shopping center and the target consumers. It is also an inevitable requirement for a shopping center to improve its business performance after a cycle of operation.

Clothing times: what problems should the shopping center need to pay attention to in the adjustment process?

Shi Sheng Fa: from the market point of view, to do shopping centers is to fashion products, fashion trends are constantly changing, so shopping centers have to constantly "toss", but this toss is not "blind", according to market changes and consumer demand changes in a timely and reasonable response.

The CITIC City Plaza, the predecessor of the new City Plaza, has been in operation for 10 years. In 2011, we adjusted the area of 80% tenants and the area of nearly 50 thousand square meters. By modifying the moving line and increasing the placement of escalators and tenants, the customers moved more smoothly, and the value of the shops in different locations was balanced.

At the same time, with the marketing strategy, the new City Plaza issued the first prepaid card of the whole shopping center, which is the result of our efforts over the past three years.

This prepaid card can be used by all tenants and all brand stores, including JUSCO, many international first-line and second-line brands, leisure bars, cinemas and parking lots.

At present, the market has a good response to the prepaid card, which is helpful to improve the sales performance of the tenant, and the actual effect is far beyond our expectations.

Through this large-scale adjustment, it can be said that it is a self redemption for the new city square, and it is also a magnificent turn.

As a whole, shopping center is a long-term business process. Under the changing market conditions, we believe that shopping centers should have room for adjustment in planning, construction, main store area, location arrangement and tenant tenancy arrangement.

Only in this way can we make room for the adjustment in the later stage and grasp the adjustment of the initiative so as to avoid paying more for the adjustment.

Fashion times: in addition to the new City Plaza, many shopping centers in Shenzhen, including COCO PARK and coastal city, are also readjusted. Meanwhile, more than 10 shopping centers will be available in Shenzhen in the next two years.

What new business changes do you expect to bring to Shenzhen if these large and deep commercial complexes enter the market?

Shi Sheng Fa: in the near future, many shopping centers will open in succession. It is hard to say that the shopping centers in Shenzhen have been overloaded. But from the total volume of commercial projects, Shenzhen's per capita commercial area is not low.

It is understood that the proportion of Shenzhen's opened shopping center through operation and management is not large. Some shopping centers are still in a state of balance or even loss.

Of course, this needs to be considered in conjunction with the development strategy of each shopping center.

I think that many different backgrounds of enterprises in Shenzhen enter the shopping center industry. We need to consider the resources of the enterprises, analyze the advantages and disadvantages of entering the industry, combine the operation of the single project shopping center with the development strategy of the company, so that the collocation of short term goals with long-term goals, individual goals and overall goals will be more clear.

In the future, shopping centers in Shenzhen will also develop towards a more rational, more precise and precise location.

I would also like to make some suggestions for the development of Shenzhen shopping center: first, we need to deeply analyze the location characteristics and business level of the project, select the appropriate shopping center product type, carry out accurate market positioning and tenant combination, and truly realize the differentiated operation in the same business circle.

In addition, in the market entry strategy, we should consider whether the establishment of a shopping center is to fill up the blank market or to plunder the same market. We need to make a close analysis of these problems so as to avoid confronting competition directly.

Integration of industries depends on grade characteristics.

The successful combination of industries does not depend on how comprehensive the varieties are, but whether the choice of the species matching is in line with the characteristics of the surrounding business circle, and whether it can achieve a win-win situation for the tenants and the shopping malls.

Based on this, the shopping center tenants need to be highly compatible.

Clothing times: differentiated competition in shopping malls is more reflected in the combination of commodity formats.

How do you think the shopping center should adjust the format combination to maximize the benefit?

Shi Shengfa: indeed, all types of shopping center tenant combinations should be positioned and tenant allocated according to the rank and characteristics of their business district.

The high end zone provides advanced goods and services, and the middle and low end areas should provide goods and services that meet the low and middle end characteristics. The specific level of the central area should provide the corresponding level of goods and services, which is a basic principle of the shopping center tenant combination.

In practice, shopping center practitioners often match the types of tenants, businesses and shopping centers, but in fact, tenants of every kind of industry will appear in different types of shopping centers.

Whether the tenant combination of shopping centers can appeal to customers is not how comprehensive they are, but whether they choose and configure a group of mutually beneficial tenants who serve specific markets.

In particular, for regional shopping centers, when choosing business types and brand tenants, they should mainly configure goods and services that meet the specific target market characteristics.

Clothing times: at present, the importance of shopping centers as retail channels has been gradually recognized by brands. How do you think brands and shopping centers should make two-way choice?

Shi Sheng Fa: in the shopping center, different types of tenants undertake different roles and functions. There are tenants who focus on contributing rent, there are mainly tenants who attract tourists, and also tenants with supplementary functions. Only the different types of tenants are properly allocated, can the overall effectiveness of shopping centers be maximized.

I think the tenants in the shopping center should reach a compatible state.

If there is no compatibility, the behavior of a tenant in a shopping center will be a mess of tenants.

Therefore, in the process of choosing brand and brand, we will remember the two most important principles: first, the tenant (international brand or national chain brand) with high profitability, strong customer aggregation ability and low probability of default is the first choice for shopping centers.

However, it should be emphasized that if the introduction of the tenant is inconsistent with the overall positioning and tenant combination strategy, it is necessary to consider abandoning the quality tenant, and quality does not necessarily represent appropriate.

Thirdly, the compatibility and complementarity should be emphasized among the tenants in the shopping center. The unrelated tenants will lose their value and significance when they enter the shopping mall.

Therefore, when choosing shopping centers and brands, shopping centers need to consider the relationship among tenants, positioning themes and overall interests, and weigh them in many ways to maximize the overall benefits.

Capital operation and resource accumulation

At the present stage, most of the local shopping centers are still in the basic operation stage, still lingering in the upper and middle reaches of the industrial chain, which is not mature related to the operation environment of the domestic commercial real estate.

In the future, how to enhance capital value and realize the full value chain operation of commercial real estate is a long-term topic that domestic shopping center practitioners should consider.

Fashion times: in the future, what kind of shopping center can win the hearts of consumers?

Shi Sheng Fa: in a mature, market competitive retail market, only those shopping centers with accurate positioning, distinctive features and obvious advantages can win more consumers' favor.

In the development trend, "one big and one small" is the main theme of the future.

"Big" refers to the large scale of commercial projects (which refers to the reasonable volume of radiation according to the business circle), and the complete function of goods and services to win consumers. "Small" refers to the small scale, mainly focusing on the convenience and speed of meeting the needs of consumers in a certain way.

Clothing times: you mentioned that the development of the local shopping center is in the operation stage, and in the next step, the shopping center should learn to raise capital value through capital operation.

How to understand it?

Shi Sheng Fa: this issue is a relatively new topic in recent two years.

Operation is the foundation of shopping center, and the value of property can not be reflected in poor operation, but operation is only reflected in the upper and middle stages of the value chain.

From the perspective of the entire value chain, the business performance and creation value of shopping centers are mainly realized through three ways: Investment Development (upstream), operation management (middle reaches), and capital operation (downstream).

They influence each other and form a complete value chain of shopping centers.

Especially in the lower reaches of the value chain, shopping centers create the most valuable link. They can make the shopping center truly implanted in financial attributes and achieve leapfrog development with the help of capital strength and win higher profits.

The market survival space of a single shopping center is limited, and the development of chain, scale and capitalization is an inevitable trend. Through mergers, acquisitions, adjustment, pformation or sale of the original shopping centers, the value of shopping center assets portfolio can be maximized, so that the value of shopping centers will ultimately be implemented in the capital operation system.

Clothing times: in your opinion, how to improve the value of capital in terms of the local shopping center?

Shi Shengfa: for domestic shopping centers, there is still a long way to go to enhance capital value.

First of all, the operation and management of shopping centers need to be strengthened and standardized management must be strengthened. In addition, we must attach great importance to partnership with retailers, and we must not focus on our own resources. Third, product strategy and business models should have their own characteristics and long-term plans.

Some shopping centers abroad are quite mature in terms of capital operation, such as Simon, Japan, AEON and Sai Tian, Australia. They are all operating on the basis of the complete industrial chain.

Domestic shopping center development operators can also learn from them.