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    Why High-End Mall Encountered Embarrassment In The Three Tier Cities?

    2012/4/11 17:33:00 21

    High End MallThree Tier CityHigh-End Clothing

    Shopping malls and shopping centers have always been high-end.

    clothing

    In recent years, the construction of shopping malls and shopping centers in various places is more than one wave. The competition between the second and second tier cities is fierce.

    brand

    The "cake" that has not yet been developed in the three line cities is coming in.

    In recent research in Suqian, Jiangsu, China Textile Co., Ltd. found that the Golden Eagle Shopping Mall and Baolong Plaza are the new commercial complexes that are catching up with the boom. Its planning and design and building volume are all in place as soon as possible, reaching the same specifications in a second tier city, but the market performance after opening up is poor.

    Market research shows that high-end

    Market

    In the city, it is an empty white spot, and the shopping environment is comfortable, the indoor area is spacious, the brand is numerous, but it is not popular.

    Businesses and shopping malls are very embarrassed. Why do they encounter such embarrassment? By combing shopping malls, merchants and consumers, we sort out some reasons.


    Shopping mall positioning advanced


    The brand is not enough for three lines.


    Baolong piazza is the largest comprehensive shopping and entertainment building in Suqian in recent two years. The investment in shopping malls has been very successful, but the phenomenon of subleasing has appeared in less than half a year.

    The conditions for developers to give merchants are excellent, with a one year rent free period, hoping to reduce the pressure of business climbs, and the property fee is almost preferential to no cost.


    The visiting businessmen in the survey gave us some answers.

    In the location of the elevator entrance of Baolong Plaza, a businessman wants to sublet, and the clothing brand is not well-known. He showed us the recent account books. The average daily sales in the past week were about 400 yuan.

    Obviously, brand awareness is not enough, clothing is not competitive, and the strength of merchants is not strong. These three things make shopkeepers unable to support for half a year.

    Baolong Plaza is located in the high-end shopping center, but there are three lines of products and even no brand products, and the whole market is out of tune.


    Other business operators also gave similar feedback. The location of shopping arcade is a high-end complex in the early stage of investment, but in fact the brand is mixed.

    The reason is that the consumption level of the city is low, the consumption habits have not yet been formed, and the second tier brands are limited. In order to reduce the pressure of investment and open business smoothly, the mall uses three line brand to fill the gap, and also hopes to bring people flow and accumulate popularity for the shopping malls.

    However, these brands do not have the strength to grow together with shopping malls, and become a "martyr".


    High-end brands worry about lack of popularity.


    Unwilling to enter the mall


    Ding manager of the Luo Men's brand men's clothing shop in Fu Dong Road, Suqian, has his own opinion on shopping malls.

    Ding manager has been in business here for 5~6 years. Luo Meng is a famous trademark in China. Only one store in Suqian, the shop area is 120 square meters, and the clothing price is 400~3000 yuan.

    In the past few years, the store rent was about 100000 yuan, which has risen in the past two years, and the annual rent is nearly about 300000 yuan.

    At present, the rental housing contract is flexible, the rental price is on the market, and the rental price in recent years has increased at an annual rate of 15%.

    Ding said that it was mainly accumulated in the past few years that some old customers could maintain the status quo.

    "If the rent goes up again, the business risk will increase, so we will consider entering the shopping mall from the street store."

    However, at present, she does not consider entering the shopping mall. She thinks that the opening of new shopping malls needs a training process. Now there is not enough popularity and business atmosphere. The company has studied the Golden Eagle Shopping Mall and Baolong Plaza, but later decided to wait for the mall to adjust its brand.


    Street shops still occupy the core position of sales.


    The street shops in Suqian are mainly concentrated in the sections of Municipal Government East Road, Chu street, happy road and Zhongshan Road. The high and low grade brands of clothing are embodied. The survey found that local consumers are still keen on the consumption pattern of street stores (see below).


    Consumers' interest in street level shops at the initial level is basically the same as those in the shopping malls, indicating that there is still room for improvement in Suqian's local commercial establishments, while some new high-end shopping malls fail to attract people effectively and get consumers' approval.


    Lords brand Suqian agent has stores in Sijiqing wholesale market and Baolong Plaza. He said that there was no street shop to make money at Baolong shop.


    Consumers react differently to the new mall.


    We randomly visited the public, Mr. Qian, at a street side store. He pointed out that about 100 thousand of the resident population in the radiation range of 10 kilometers from the center of the city, and the consumption group of the whole city of Suqian was relatively small.

    In recent years, large scale shopping malls in Suqian have been opened one after another, and the phenomenon of "wolf meat is too little" is serious. The development of shopping malls is based on the flow of people. Without people, there will be no market.


    The population of Suqian is relatively small. Most of the young people choose to go out to work. The consumer group is mainly middle-aged and elderly people. The demand for commodities is good and cheap, so the brand establishment of the old shopping mall is also positioned at the middle and low end.

    Young people mainly focus on street shops, because there are many kinds of goods on the street shops, and the storefront decoration is easy to attract people. The main consumer business circle is still on the road of happiness and municipal government.

    They are curious and fresh about Baolong square and Golden Eagle Shopping Mall, but they haven't formed consumption habits yet.

    For the price of goods, consumers generally feel that the prices of new shopping plaza products are higher and are not suitable for frequent consumption.

    Baolong Plaza and Golden Eagle Shopping Center are located in the middle and high-end, mainly facing civil servants, white-collar and business people. In the economically underdeveloped three tier cities, such consumer groups are relatively small.


    Shopping habits of different consumer groups are also a factor that can not attract people in the mall.

    Fu Mu brand agent high manager said, the old business circle, roadside shop's large traffic volume, popularity, business will be good.

    People will have a kind of inertia, they will habitually go shopping in concentrated places. People from towns and villages in Suqian will shop in the old business district, and rarely go to big stores that can not bargain. Although commercial concentration areas are denser and densely built, roadside snacks can be seen everywhere, giving people a warm and cordial feeling, and people are willing to shop in busy places.


    Summary: with the enlargement and increase of the volume of commercial complexes in the three tier cities, there is an increasing trend of commercial projects blindly invested in construction, and the field of clothing business circulation is no exception.

    More and more commercial investors are concentrating on three or even four line cities. Clothing is the main form of business in every project.

    However, the sales and operation of clothing brands need the necessary conditions, which is directly related to the maturity of the business circle, the purchasing power of consumers, the strength of the business operators, the expectations of the investment developers, and so on.

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