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    Second Tier Cities Become The New World, Attracting Various Developers And Retailers To Enter.

    2013/7/15 19:56:00 32

    RetailersDevelopersBrands

    < p > with the development of the shopping mall in the first tier cities and the improvement of the consumption level of the second tier cities and the realization of various supporting facilities, the second tier cities have become the new continent of the shopping center development boom, attracting various kinds of developers and retailers to enter.

    < /p >


    < p > the more and more shopping centers, the bigger and bigger they are.

    After completing a round of horse race enclosure, the shopping center will begin to integrate resources in the face of the pressure of vacancy rate.

    As a matter of fact, shopping centers in the first tier cities such as North, Guangzhou and Shenzhen have already begun to integrate, and the two or three line cities, which are considered to be in the enclosure stage, have quietly entered the adjustment period.

    < /p >


    < p > shopping center is a combination of commercial real estate and retail. Apart from having the ability to develop and operate commercial real estate, it is necessary to include the characteristics of the retail industry into its consideration. For example, the structure of the building should conform to the business needs of the selected retail formats, the tenants choose to follow the target consumer group characteristics, and the business focus is embodied in the experiential enjoyment of consumers.

    At present, the development of shopping centers is characterized by the increasing volume, the diffusion to the suburbs and the rapid rise of the two or three line cities.

    On the one hand, shopping centers adjust the strategy comprehensively and optimize assets in the first tier cities. On the other hand, they continue to make rapid progress in the two or three tier cities.

    < /p >


    < p > shopping center has a general trend of quantification.

    At present, the average volume of shopping centers in China's second tier cities is about 70 thousand square meters.

    In the first tier cities, shopping places are concentrated and rents continue to be high. At the same time, intercity traffic has gradually improved and private car ownership has increased rapidly, so that distance is no longer a major obstacle to shopping, and urban outskirts have become a new development space.

    "Improving the rental rate, optimizing the assets through adjusting the brand, layout and even format is already the direction for the shopping mall in the first tier cities." Lin Shisong, director of the retail real estate department of Southern China District, Jones Lang LaSalle, said in an interview that shopping centers often adjust their brand portfolios after an operation cycle because of their performance requirements.

    In fact, the growth momentum of shopping centers will gradually develop from development to focus on the functions of commercial operation and retail channels.

    The developers and operators of shopping centers are adjusting their business positioning, format combination, operation and management mode to adapt to the development pattern of shopping center and the change of consumption demand.

    < /p >


    A data provided by Jones Lang LaSalle shows that the "middle class" population will continue to rise as the main consumer of shopping centers in China in the future. This trend has also made the shopping centre's enthusiasm for the P race spread rapidly to the two or three tier cities.

    With the development of the shopping centers in the first tier cities and the improvement of the consumption level of the second tier cities and the realization of various supporting facilities, the second tier cities have become the new continent of the shopping center development boom, attracting various kinds of developers and retailers to enter.

    "From the enclosure to the adjustment, the shopping mall development model of the first tier cities will continue to be staged in the two or three tier cities," Lin Shisong said.

    Analysis of the industry, in the second tier cities, those poor location but huge volume of shopping center projects are facing increasing investment pressure, and is likely to usher in a round of mergers and acquisitions frenzy in the near future.

    < /p >


    < p > it is worth noting that shopping centers are experiencing changes in format adjustment.

    For a long time, the industry generally agreed that shopping, catering and entertainment were 5:2:3 formats. However, this proportion is being gradually broken, and the matching ratio of shopping, dining and entertainment is not uncommon at present.

    With the development of business, consumers pay more and more attention to the experience of shopping. View, dinner, KTV and so on have become the daily consumption items that consumers visit to the shopping center.

    Catering and entertainment enterprises have the advantages of short incubation period and rapid accumulation of large passenger flow. With the increasing enthusiasm of enterprises in shopping centers, catering and entertainment are often the quicker part of shopping center investment.

    < /p >


    < p > because of this, catering and entertainment formats show a strong ability to pay rent in various formats of shopping centers, and more and more attention has been paid to them.

    Jones Lang LaSalle's recent report said that catering and entertainment formats will continue to support the rental market of Guangzhou's retail real estate in 2013.

    "In view of retailers' concerns over the economic outlook, the growth of rental demand is expected to remain weak in the second half of the year," Lin Shisong said. "Catering and entertainment formats will continue to be an important source of demand for retail property".

    < /p >

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