Interview With Yang Jingyu, General Manager Of Shenzhen Ping'an Commercial Real Estate Investment Co., Ltd.

"2012 the third China shopping union Shopping Center retail channel conference"

The brilliant point of cooperation with shopping centers has aroused wide attention from readers.

This issue will focus on the topics related to the main stores, the main stores and shopping centers. It will help the shopping centers to develop operators and help fashion brands identify themselves.

Yang Jingyu, general manager of Shenzhen Ping'an commercial real estate investment Co., Ltd.

Wang Chuanhu, vice president of Li Hai Group

Lu Tingting, senior director of asset management division, Jiuzhou vision business management company

When it comes to shopping centers, it always refers to the main stores. It seems that the main store has become an indispensable functional element of shopping centers.

But with the continuous development and innovation of shopping centers and the diversification of consumer demand, some shopping centers are gradually adjusting the proportion of business formats, and the advantage of main stores gradually weakens. Many shopping malls begin to try to replace single department stores with a single location as a main store.

Although the difficulty of investment increased, the rent income and location fit were increased.

Going to the main store or becoming a form of Mall in the future may also become a necessary process for shopping centers to innovate.

Now, what is the role of the main store in the shopping center? What kind of shopping center has the condition of no main shop? How to make a risk judgement for the shopping center that goes to the main store?

The main store is the heart of the shopping center, and the most important renter. But with the continuous innovation of Mall, the malpractice of the main store is becoming increasingly prominent, mainly due to low rent contribution and long lease.

Yang Jingyu: first of all, from the perspective of shopping center, the role of the main store is to attract customers.

The rent of the main store is lower than that of the supporting tenants or even the main stores. It is precisely because the main store has a huge spillover effect.

Shopping centers should not only see the contribution of rents, but also see whether they can create sales and profits for other stores.

Another function is positioning and image.

Shopping center should define the level of customer group and commodity mix, and the main store will play a great role in these aspects.

For example, the main shopping center in the early suburbs of the city accounts for 50%-60% share, the more the new or immature business circle depends on the main store.

Yang Jingyu: first of all, the lease term is long. As the leasing conditions are negotiated under the initial conditions, the long term of the lease means that the long term rental growth is very low.

In addition, if the number of main shops is too large, the number of other shops will be reduced accordingly, that is, the degree of commodity richness will be greatly affected.

Wang Chuanhu: the biggest defect of the main store is that the rent contribution is relatively low and the lease term is relatively long, so the main shop's income on the whole estate is hard to balance.

As developers pay more and more attention to asset value and future value gains in business operations, the main stores will encounter difficulties and contradictions in the expansion process.

When there is a conflict between the main store and the shopping center, the main store should learn to abandon the inherent mode and cooperate with the developers in a flexible and flexible manner. At the same time, developers should also view the role and contribution of the main store from the perspective of business operation, so as to achieve a win-win situation.

Wang Chuanhu: the main store itself needs to adjust its mentality. The original main store is very strong, and its location, area and rent conditions are very subjective.

Now the main stores should learn to give up. In the choice of location, they should give up the inherent mode, and the area should also learn to narrow, and the increasing proportion of rent should be flexible.

For the main stores of the three or four tier cities, they can get together with developers at the early stage to obtain government land support from main stores, so developers have balanced space and room for development.

From the developer level, they should not only regard the main store as an appendage of the real estate, but should consider the issue of business operation from the perspective of the contribution of the property.

That is to say, developers need to know that the main store and main store investment are related to the operation level and capability of the shopping center itself. Only by achieving a win-win situation can developers better promote the development of shopping centers.

In short, both sides should consider each other's point of view and truly form a win-win situation. This is the path for the future growth of retail stores and real estate developers.

Lu Tingting: no matter what the state of the shopping center is, the developers should return to the "consumer who" level, then consider what the project positioning is, and whether it needs to introduce retail stores.

After considering these, I will talk about the cooperation between the two companies. I have two suggestions: first, we can not ignore the cost, but more importantly, consider its brand value, core customer capacity and the core role of the whole project. Two, in addition to the rental conditions, developers also need to conduct comprehensive accounting of the property.

Although going to the main store is the trend of the times, the shopping center must make a comprehensive assessment of itself. Only when it meets the requirements can we take the next main store.

At the same time, we should evaluate whether they can replace the function of the traditional main store.

Reporter: at present, the advantage of main stores in shopping centers is gradually weakening, and some shopping centers try to shop in main stores.

What are the presenting forms of sub stores?

Yang Jingyu: I think the following four conditions can be called "sub main store".

First, the area is significantly smaller than the main store, generally between 500 square meters - 1500 square meters; second, the combination of industry groups is concentrated on a single category or related commodity combination, product line or wide or deep, and some business combinations are similar to the traditional main store's "men's clothing shopping malls, women's wear shopping malls, footwear shopping malls, cosmetics stores" and so on; third, it can independently attract a certain type of customer layer, and deeply meet the relevant needs of this kind of customers.

Finally, it is obviously different from the traditional main shops, such as large cinema, ice skating rink, food garden and so on.

Compared with the traditional main store, the sub main store is able to replace the main store's functions with a series of main store combinations after the second main store is rich.

Reporter: in your opinion, what are the advantages of shopping centers going to main stores?

Yang Jingyu: the main advantage of the sub main store is that its area is smaller, and it is obviously smaller than the main department store. In fact, a group of related sub shop groups play a function of the traditional main store.

It's OK to go to the main store, but the function of the main shop is absolutely impossible, so this is a replacement of function and a prerequisite for the second main store.

Secondly, the sub main shops not only reduce the area obviously, but also shorten the tenancy period, because the chain store operation of sub main stores can create higher sales gross profit, and the negative rent is relatively higher. This is also a win-win result.

Moreover, the main store will be given at different stages.

The owner provided a strong adjustment flexibility.

On the other hand, if the location arrangement is dispersed into a group of main shops, the layout of the shopping center can be more flexible, and the shopping center passenger flow can be evenly guided and dispersed.

Reporter: what kind of shopping center has the conditions to go to the main store?

Yang Jingyu: when it comes to the shopping center of the main store, the withdrawal of Shanghai Heng Long Fu An department store is a typical example.

After the withdrawal of Fu An department store in Hang Lung Plaza, its commodity types and brand richness have stepped up.

Since then, the trend of going to main stores or sub stores has been everywhere.

These shopping centers have a common feature, most of them are regional shopping centers, concentrated in the first tier and second tier cities, and the business district is also quite mature, so it is not that any shopping center has the conditions to go to the main store.

There are general rules to go to the main store.

The shopping centers that go to the main store have obvious ladder levels in the area.

Most of them are located in the core business circle and the first tier business circle, and then the second tier cities have better shopping centers. Therefore, at the business level, they need a mature business circle.

At the project level, shopping centers in a shopping mall or New District in the suburbs are very difficult to shop.

On the one hand, there are few consumers in the business circle. The shopping center needs a traditional main shop that can attract tourists. Besides, for the sub main shops, the location is higher (quality and specialization), including the right place.

The demand for image positioning and follow-up services is very high, so the passenger flow is relatively higher than the traditional main department stores, so that only when the mature business circle adjusts two times will they have the conditions to go to the main store.

For example, for a mature shopping mall in the Mixc, the dependence on the main store is dispensable.

In short, the biggest prerequisite for going to the main store is: you have to find a group of main stores that can replace the main store functions, and the retail resources in the area are rich.

Yang Jingyu: first of all, for community shopping centers, the existence of main shops is still necessary. If we blindly go to the main shops, there will be great risks.

In addition, the biggest risk of going to the main store is weighted average rent. When we evaluate a shopping center, we will consider the average rental income, brand portfolio and so on.

The weighted average rent risk exists in almost every shopping center. The weighted average rent term means that "after all these years can be adjusted completely", the research shows that this value is generally controlled within 7.

The weighted average of Tianhe City in Guangzhou is 6.1 - 6.2, which is very good. It shows that it is a very strong shopping center. It has the ability to reduce the main shop area and control the main store cycle.

Therefore, the weighted average cycle should be controlled within 7, if more than 7 means that the shopping center in the market strength, bargaining power, growth potential and other aspects of the market in the region in the average level.

To go to the main store, there must be a condition to go to the main store. This condition should control its weighted average cycle when the shopping center relies on the main store in the early stage.

That is to say, under the premise of attracting the passenger flow by the main stores, the developers first control the tenancy, and the second control is the area, and the third control is the rent.

If the weighted average period exceeds 7, then the risk of developers going to the main store will be relatively large.