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    Create More Retail Space With Real Estate Developers As Fast Fashion

    2013/12/19 8:47:00 27

    Fast FashionFast Fashion BrandFast Fashion Market.

    < p > cooperation with commercial real estate has become a necessary part of "a href=" http://www.91se91.com/news/index_s.asp "fast fashion /a" to enter China's most consumptive potential city.

    < /p >


    < p > when you look at the number of fast fashion companies opening in Chinese cities, you will be surprised to find that after Shanghai and Beijing are Chengdu and Wuhan, the fifth place is Shenzhen, and Guangzhou is not even in the top ten.

    In the past two years, the number of fast fashion brands in the new first tier cities has far surpassed that of the north.

    < /p >


    "P", a consultancy CB Richard Ellis published in October this year, in the report on the evolution of China's retail industry, uses "sinking" to describe the trend of fast fashion brands in China.

    The so-called sinking pattern is from the development strategy of taking the first tier cities as the core to the new front-line and the two or three line cities.

    < /p >


    < p > this change is largely a result of changes in the expansion strategy of commercial real estate.

    Along with the gradual saturation of the core retail business circle of the first tier cities, the economy began to develop towards the mainland. Developers like the Wanda, Yintai and the Mixc have all shifted their focus to the second tier cities since 2009. They have created more choices for the fast fashion brands.

    < /p >


    < p > according to the statistics of the research department of the world bank, the average retail area of the second tier cities in the past three years is 2 million 700 thousand square meters per year, and it is expected to increase by 5 million square meters per year between 2013 and 2016.

    The average annual increase in the two cities of Beijing and Shanghai from 2011 to 2012 is only about half of that from 2009 to 2010, and most of them are in the vicinity of the city.

    < /p >


    < p > Guangzhou's new "a href=" http://www.91se91.com "retail > /a" has less space, which directly leads to fast fashion brands who want to enter the Guangzhou market. It is difficult to find suitable store locations.

    In the report, Jeff Kriwan, President of Gap China, revealed that they had been consulting with developers in Guangzhou for nearly two years and had not yet identified a store location.

    < /p >


    < p > Chengdu, which is characterized by business and travel consumption, has become a favorite city for developers and fast fashion brands. It is not surprising that the new line has become the first choice of major companies in recent years.

    At the same time, after the Chengdu local government launched the "Tianfu New Area" and "northern pformation" urban planning, developers continue to create new urban complexes and business circles in Chengdu.

    Wuhan, known as the "big site" city, is experiencing similar changes. In the past 3 years, several shopping malls have been added.

    < /p >


    What is more important than the creation of retail space is that these developers have brought the mature lifestyle in the first tier cities to the second tier cities. They have changed the shopping habits of local consumers through the one-stop shopping experience of shops, restaurants and cinemas, so that a large part of mainstream consumers have shifted from traditional department stores, supermarkets, pedestrian streets and roadside stores to shopping centers. P

    And some of the young people will naturally enter the more international, more fashionable and affordable a target= "_blank" href= "http://www.91se91.com/" > clothing "/a" brand.

    < /p >


    < p > "now I usually only go shopping in 3 places: Wanda Plaza in Hankou, Wuhan International Plaza and Han street."

    28 year old Wu Yang Luo Yang told the first financial weekly.

    His favorite brand is Zara.

    < /p >


    < p > 5 years ago, Luo Yang and his friends were always on a pedestrian street similar to Shanghai's Nanjing East Road, which was called Jianghan Road. Most of the brands he visited were local brands similar to Baleno's.

    Now he thinks the environment is too chaotic and the brand is too complicated.

    And the 3 places he mentioned are only ten years old. In the past two years, the newly built Fourth Street Wanda Plaza has just opened in the more high-end Han Street Pedestrian Street in Wuhan.

    < /p >


    < p > of course, the premise of all this is that the per capita disposable income of the second tier cities has improved rapidly in the past 5 years.

    According to the National Bureau of statistics, 10 new top tier GDP cities in Tianjin, Chengdu, Chongqing and other top ten cities in the past 5 years have an average annual growth of disposable income of 12.4%, while the total retail sales of consumer goods increase by 18.1% annually.

    When people get higher incomes, more developed consulting methods and more frequent business contacts, more people will travel to Beijing, Shanghai, Hongkong and abroad, and their awareness of international brands will increase rapidly.

    Kirwan said.

    < /p >


    < p > in order to attract Zara and H&M, which have been recognized by the first tier cities as the international fast fashion brands, the two or three tier cities often give rent concessions.

    On the other hand, the rental cost of second tier cities is also lower than that of the first tier cities, which largely reduces the investment of fast fashion companies in the second tier market expansion.

    In the second quarter of 2013, the average price of the first tier shops in the first tier cities was 45 yuan per square meter, while the new tier cities were only 25.6 yuan per square meter per day, according to data from the world bank Richard's report.

    < /p >


    < p > therefore, the fast fashion companies seeking expansion will often regard the matching real estate developers as a benchmark for entering a market.

    Wanda, as the fastest growing developer in the new front-line market, also has the largest number of fast fashion stores.

    According to World Bank Richard's statistics, as of June this year, there were 104 fast fashion stores stationed in Wanda Plaza, which is far higher than the 17 place in second place.

    < /p >


    The first entry into the Wuhan market in < p > Zara and H&M2010 is through the new Wanda Plaza located in Hankou's Lake Ling.

    On the day of Wanda's opening, the traffic volume reached 400 thousand, ZARA's first day sales exceeded 1 million yuan, and the first 3 days of H&M sales reached 3 million 400 thousand yuan.

    In Chengdu Taurus Wanda Plaza, which opened in December last year, there are 9 brands of fast fashion and similar brands, including Zara, H&M, UNIQLO, C&A and MUJI.

    < /p >


    < p > in order to ensure a good store location in the competition of the new first tier cities, fast fashion companies sometimes bind their plans for expansion in one market to a developer, signing a cooperation of 3 to 5 years at a time.

    < /p >


    "P > Gap did so in Hangzhou. It first entered Hangzhou in 2011. It was accompanied by the opening of West Lake store of Yintai department. After attracting a large number of tourists, Gap signed a long-term cooperation with Yintai. That's why Hangzhou is the largest city in Shanghai and Beijing, and both of them are flagship stores." Gap "

    < /p >


    < p > "when I talked with many real estate developers, it was interesting that the definition of the first tier cities was different. Some said that only Beijing and Shanghai, some said North and deep, and others said Chengdu and Chongqing.

    The distinction between first tier cities and second tier cities is gradually becoming blurred.

    Kirwan said.

    Therefore, in the expansion strategy of Gap, the definition and analysis of business circle is more important than the classification of cities.

    While commercial real estate developers continue to subvert traditional business circles and create new business circles, they are also the battleground of leading fast fashion a href= "http://www.91se91.com/news/index_f.asp" > brand "/a" expansion.

    < /p >

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