Why Did K11 Become The NO.1 Of Shanghai Shopping Center?

At present Shanghai The first shopping centre in the commercial real estate industry is Hongkong K11. As the three generation of the wealthy generation of Hong Kong capital trader, Hongkong rich Zheng Yutong's grandson, the founder of K11 Zheng Zhigang's works, indeed extraordinary. It caused a sensation in the Shanghai market. Data show that in the public comment network Shanghai comprehensive shopping malls rankings, K11 in popularity and word of mouth evaluation of the two individual are top of the list.

In 2013, the Shanghai K11 art shopping center, which was refurbished and renovated, has already been heard in the mainland circle. The author investigated K11 several times and got different results every time. It is difficult to define whether K11 is a subversive innovation or a micro innovation. However, K11 is now an innovative template for Shanghai shopping mall.

In a word, the core concept of K11's success is cross-border. Zheng Zhigang, a trader, has long been rooted in the art world, and his crossover thinking has defeated all the best players in the traditional business circles. TMT industry has a saying worth learning, "modern enterprises are not afraid of no competitors, even if they did not find their competitors."

The core of K11's success is that Zheng Zhigang did not regard K11 shopping center as a shopping mall, but a modern urban Museum. He gave a new definition to K11 products, that is, the museum retail industry, thus becoming a new lifestyle center for modern Shanghai people.

Today, I recommend to you a long story from a global entrepreneur, who deeply interprets the operation mode and operation state of K11. There are many internal revelations, which is worth learning from.

K11's new world

Content guide: K11 turned out to overturn people's awareness of shopping centers, so Zheng Yutong's grandson came to the surface.

"Impressionist Mont Monet Exhibition" on the last day of the exhibition in China, tickets have become hard to get. In June 15th, this scene did not take place in the art gallery, but appeared at the K11 shopping center in Huaihailu Road, Shanghai commercial center. A large number of "cattle" have been gathered in the two floors of the K11. They are selling tickets at a high price, while the Monet gate at the three floor of the ground has already lined up dozens of meters long.

In fact, the exhibition has been burning for three months. Since the launch of the Monet Exhibition Co sponsored by Paris's mondin Monet Museum, the Shanghai Tian Xie cultural transmission and the K11 art foundation, the number of people attending the exhibition has exceeded 300 thousand times, with a maximum of 6000 people per day. On weekends and holidays, the exhibition hall must also carry out limited current flow. Queuing time often takes up to two hours. Someone flew from Shenyang to Shanghai just to see Monet's true story of lotus. For a while, he went to K11 to see Monet's exhibition, and whether he had seen it as an index to test whether a person is enough "tide".

All this made Zheng Zhigang, the founder of K11, overjoyed. Zheng also has an identity as executive director of Zheng Yutong's eldest grandson and new world group, one of the four largest families in Hongkong. However, he has been playing down this family label. His business card or official personal profile is only introduced by the founder and chairman of the K11 arts foundation. Zheng, 35 years old, born with a rich family and admirable wealth, now sits on more than $16 billion of family assets and is not willing to stop. He founded the first K11 shopping center in Tsim Sha Tsui in Hongkong in 2009, and then spent three years building Shanghai K11, which was officially unveiled in June 2013.

K11 has attracted much attention since its advent. Not only because of its differentiated status in the art shopping center, it has caused a lot of shock in the retail industry, and has become an object of competition among major commercial real estate projects. Zheng Zhigang's plan is to invest $1 billion in 2018 and build 19 K11 commercial projects in Beijing, Shanghai, Guangzhou, Wuhan, Tianjin, Shenyang and Guiyang to build more than 1 million 600 thousand square meters of shopping centers.

space

Moving the art gallery to the shopping center seems to have injected fresh blood into a stagnant retailing industry. In Zheng Zhigang's eyes, K11 is not a shopping mall in the ordinary sense, because there are many things people can do besides shopping. For example, you can go directly to the three floor of the art space to enjoy a contemporary art exhibition; go to the two floor of the ABC Cooking to learn baking; the last sketch class or pottery lesson, occasionally can meet the interesting decorations sold in the creative market; the upstairs floor will be able to meet the band's performance, though this band may not be known; if you go to the four floor dining room, you can also play a table football. At the first sight of K11, the director of the Museum of art in monmonde Monet, Paris, used the term "contemporary space" to describe it. This description is in the heart of Zheng Zhigang. "Some of the world's most famous museums also involve retail, which is a question of perspective. It depends on how you look at it. You must take it as a department store. I can't affect you. " Zheng Zhigang said to Global Entrepreneur.

The art forms, including Monet, were all incorporated into Zheng Zhigang's MuseumRetail. The Museum of modern art in the United States, Le Louvre Museum in France and British Museum in the United Kingdom are the same. In addition to museum exhibitions, incidental souvenirs and cafes can also generate operating income. Inspired by this, Zheng Zhigang has a prototype of the original K11, a museum retailing format that combines commerce and art.

Integrating art into business, Zheng Zhigang can be regarded as the leader in the industry. In the K11 shopping center of Hongkong, 13 sets of art worth HK $20 million have been displayed for a long time. There are 18 new local art windows on each floor. The sales of Hongkong K11 doubled in the first three years, and now it still maintains a growth rate of over 20%. The monthly traffic volume is more than 1 million passengers. At present, it has 28 thousand VIP stores and more than 10000 Art Alliance members, which is significantly higher than the average retail level in Hongkong.

Inspired by K11 in Hongkong, Zheng Zhigang quickly launched the layout of the mainland. Shanghai K11 is renovated from the former Hong Kong New World building, occupying the advantage of Huaihailu Road's core business district. Its shopping center shopping area is 38 thousand square meters, and the office building area is 81 thousand square meters. The project cost more than 400 million yuan, and it is estimated that the cost will be recovered in five to six years. There are about 15 pieces of art displayed in the shopping mall, and the butterfly, the famous sculptor Sui Jianguo, is inlaid on the outside of the building. "This is my respect for art, my direction and vision. You can see it as soon as you enter the door. If it is a very innocent person, when I come in from the main entrance, the first thing I can see is not the shops on either side, but the building and the butterfly Sui Jianguo gave me. Zheng Zhigang said.

K11's next project in Shenyang covers an area of up to 250 thousand to 260 thousand square meters. Today, shopping centers have been built and investment is being conducted. The highlight is a more than 10000 square meter Art Plaza and shopping malls with different theme zoning. The biggest difficulty of this project is that most of the art shopping centers are small and sophisticated, and this project should be large and complete, so it is necessary to divide the subjects in the form of partition. The cost of pre decoration and the cost of later operation will be very high. Moreover, the artistic atmosphere of Shanghai K11 and Hongkong K11 is not necessarily suited to Shenyang's local consumption habits. But K11 also shows that although shopping centers in every city have the same DNA, it is not a direct replication mode. K11 seems confident that the project is still a fertile land to be developed for Shenyang.

K11's artistic DNA comes from Zheng Zhigang's good artistic attainments. Unlike most family business successors, taking business as their professional learning direction, Zheng Zhigang chose to study East Asian literature while studying at Harvard University. After graduation, he went to the Kyoto research center of Stanford University, Japan for a year. On weekdays, he loved opera and painting, and he was also a director of the National Museum foundation of China, a trustee of Royal College of Art, a member of the Asia Pacific acquisition Committee of TATE, etc. Embracing the passion for art, he also set up the K11 Art Foundation (K11 K11) to foster artistic talents, promote K11 art space workshop, K11 Artist Village project and Art Village in Guiyang and Beijing.

In addition to being a foundation, non-commercial and non profit making to support these art villages, Zheng has been thinking about how to give artists more space to realize their potential and allow them to interact with artists. K11 art shopping center is the platform to realize this idea. At the same time, compared with museums or art galleries, shopping centers are more conducive to the realization of art education for the masses. "Art education is also lacking in China, especially the general public and the younger generation." Zheng Zhigang said.

In planning the concept of "Museum retailing", Zheng Zhigang and his team have been asking people what parts they like museums and museums. For example, museums often give people a sense of distance, and how to avoid this cold tone. The colors of wood and marble of buildings are colored by gold and other warm colors. Background music is also tailored to convey a warm and warm feeling. The art K11 wants to do is the art of the masses, and bringing art into the crowd is their goal. Hongkong K11 is located in Tsim Sha Tsui, and its underground art space is connected with Tsim Sha Tsui MTR station. As a transfer station of Hongkong metro, people in the way can see the exhibition on display in K11 by glass. It feels like art is not too far away from us. This has also been passed down in Shanghai K11. In June 28, 2013, Shanghai K11 opened. Unlike other celebrations, the performance is arranged on the dazzling stage, and all K11 activities are interspersed in the shopping center. You can meet directly from the subway, the Tall Male Model in the show. Before you go to the coffee shop, you can catch an actor who is singing opera with passion.

business

In the seventh China Commercial Real Estate Development Summit Forum, there are still some people questioning Zheng Zhigang's K11. Some people think this is just a gimmick over the actual sales results show, it still has no way to escape the electricity business attack under the decline of physical retail. However, it still uses a series of data to prove its value. First of all, after the renovation of Shanghai K11, the rental of the shops increased by 70%, and the office rents increased by 30%. Then, the average volume of people's traffic has increased to 1 million times since the trial operation in January. According to the statistics of RET, Rui Yide, a commercial real estate agency, 30% of the 100 major shopping centers in Shanghai were dismal, accounting for 30%, of which 10% were in the quagmire and were on the verge of Dead shopping. Compared with those shopping centers, K11 is a different sight.

It is not just the K11 family that thinks of creating commercial space with art. Located in Beijing, Qiao Fu grass is also a very artistic theme shopping center. The eight year old art and fashion landmark also placed many artworks in the shopping center and opened an art gallery. It uses the unique metal glass cover and inflatable pad to connect the four tower buildings by a Pyramid shape. The Pyramid structure also created a non-traditional large scale public space from the two levels of the underground to the sixteen level super high court. The sculpture of Spanish surrealist Daly is the most popular art here. From the volume of shopping malls to the level of devotion to art, the 56 thousand square meter overseas Chinese lawn is no less inferior to K11.

Despite the same shopping center as the theme of art, the two have slightly different choices in artistic themes. Qiao Fu's lawn pays more attention to the famous masterpieces, while K11 focuses on contemporary artists, including some young artists who have not yet become famous. Compared with the professional gallery atmosphere created by Qiao Fu and the design sense of large mechanical devices, a pillows named "trace" in K11 public space are very approachable, which turn the works of art into practical objects and allow shoppers to rest at this place.

K11 set its DNA as art, culture and environmental protection. It is eager to stand out from a unique position in the retail sector. But how can art and retail be perfectly integrated? How can art bring its own stream of people and transform art into actual sales? Zheng Zhigang's answer is: "do not focus solely on business figures. What China needs most now is content and software, hardware is no better, and no way to win the respect of others, so that software and content can achieve sustainable development. If we look at the problem from the perspective of business data, you will not be able to innovate. It is impossible to achieve sustainable development.

The software and content mentioned by Zheng Fanfu are the K11's control over the artistic context and the most difficult part for other competitors to imitate. For example, how can K11 communicate with artists? How to establish their own artistic alliances? How can artists participate in shopping centers? K11 has strong backstage support. K11 art foundation, founded in 2010, is one of them. The huge resource base of artists has provided reserves for the display of their shopping centers, and has also contributed to the acquisition of more international resources. At the beginning of 2014, the K11 Arts Foundation Annual Meeting and the PALAIS DE TOKYO of Paris signed a three year cooperation plan, which included a number of art exchange activities. The PALAIS cooperation program included a number of arts exchange activities. Tokyo palace is the largest contemporary art gallery in Europe, located in the heart of Paris, between Eiffel Tower and Champs Elysees street.

Although many shopping centers follow the example of K11, they never imitate the essence. The urban ranch located on the three floor of K11 is well received, especially a few small pigs in the farm. The 8 main Trojan horses created by K11 and Mathis Mara, such as Max Mara, have also received much attention from the DOLCE&GABBANA. These concepts are copied and imitated at different levels by other shopping centers, but they are always pointless and fail to produce the same value. "Because this is DNA of K11, it is created by itself, has its label, others are just imitation, not created by the enthusiasm of the founder." Chen Lilin, director of RET Ruby commercial service, told Global Entrepreneur.

K11 positioned its own consumer groups in 25 to 45 years of age, a relatively mature consumer group in shopping. They are usually younger and are fond of fresh things. Careful people will find that people who visit K11 are generally more avant-garde in dress, or they are simply defined as literary youth or fashion pioneers. K11 did a lot of research before and after the opening of the business. They found that consumers used to use Logo products to represent their identities. People who came to K11 were not. Their style of dressing, food, afternoon tea, and meeting with friends were their own labels. These combined factors determine who they are. In other words, what K11 wants to do is create a kind of atmosphere To create a sense of belonging, so that they feel that visiting K11 represents themselves.

This is precisely what the previous shopping malls and department stores could not give consumers, because they lacked the soul and their own personality tags, and put all the international brands and fashion brands into similar boxes. The distinction between different department stores has become smaller and smaller. The same brand, the same goods and the same way of display have made shopping a dull thing. Zheng Zhigang's K11 is trying to change the situation. It wants customers to have surprises everywhere when they go shopping. It even customize the smell of exclusive fragrance, like the hotel, which is close to vanilla flavor and is a kind of "hormone" that can stimulate consumers' interest in shopping.

K11 has become one of the most expensive rental properties on Huaihai Road. "One layer of K11 is not its profit point. This layer is luxury goods, with the main points of deduction, only a dozen or so of the bottom part, but the one or two level of the underground is its main profit point, which can reach more than thirty or forty yuan. To a large extent, it is driven by the three floors of the underground and the mass flow of the subway. Chen Lilin told Global Entrepreneur. At the same time, K11 as a brand has also promoted the commercial value of brand office buildings and hotels. In Guangzhou, for example, the K11 above Zhou Dafu center is an office building surrounded by hotels. According to Zheng Zhigang, these properties have gained value.

Shanghai K11 has become a benchmark project, which has helped it gain a number of advantages in other cities. Whether the government's efforts to promote, landing policy, or get the lot and land prices can be relatively ideal conditions. "Why do many brands do poorly? Because your brand has no value and no details. You don't have the kind of persistence and enthusiasm that you don't have from your heart." Zheng Zhigang so interpreted his experience in building K11 brand. It is the commercial logic of K11 to transform the cost of putting art into the value added of land so as to achieve return on investment. This is also the essential difference between shopping centers and department stores. One is the developers who rely on rents to earn profits, and the other is retailers who make money through sales.

　 　 details

In addition, K11 can create business income through art. Take the Monet exhibition as an example, the 55 works exhibited include 40 Monet authentic works and 12 works of Impressionist painters such as Renoir. Monet's works include not only his Giverny garden series, but also her late works "Japanese Bridge", with a sum of 6 billion 400 million yuan. Its revenue includes not only tickets, but nearly 800 kinds of derivatives, and almost all customers who visit the Monet show will go to the Monet art store next door to buy souvenirs. According to K11 statistics, its daily turnover increased by 20% during Monet's exhibition.

Wasting some public space can create experience value. Chen Lilin believes that the three floor of K11 is an art space rather than a rental space. First, in order to increase the consumption of customers and increase the platform effect, the two is to create a ticket business income. Because of the three levels of underground, the cost of transformation is high. If the overall rental rate of return is not high, and it will be used as an exhibition hall of experience, it will avoid defects and create value.

As a transformation project, K11 itself has some defects. For example, horseshoe shaped design is not conducive to its line planning, and the shortage of the third floor and the four floor also adds to the design. Careful observation will show that the signs on the third floor and the four floor of some restaurants are erected vertically, not in order to enhance the sense of design, but to avoid the defects of the height.

Such details are also reflected in the parking lot of K11. Because K11 is connected to the subway, there are no underground parking lots, and customers often need to park around the upper floors. Although it will bring a little trouble to customers, a colorful parking lot can make people feel the same. The scheme of this color parking lot is put forward by a colleague from K11's investment promotion department. In one discussion, he pointed out why there are only black, white and grey colors in the parking lot. Why should the parking lot give a dull impression? If the color changed into pink or pink blue will make parking a fun thing. Actually, it is not difficult to achieve this, and it has no effect on cost. The key is whether K11 has the courage to break this tradition.

This is what K11 is pursuing. These ideas come from K11 Shanghai team's weekday observation. They will brainstorm regularly and share information. Chen Jianhao, general manager of Shanghai K11, said his colleagues were very young and a very "gossip" team. In his view, the spirit of "Eight Diagrams" gave birth to unlimited inspiration for life, giving K11 the creativity. For the founder of Zheng Zhigang, he even sought breakthroughs in the attitude of family entrepreneurs. "The most schizophrenic and the most crazy people can create the latest things. He can think about problems from different angles, look at life, see the world and see the society. It takes artists' minds to create something. But some people are very creative, but they have no executive power. They are separated from the society in terms of business or sustainability. And I am not divorced from society. I am very honest. I am very sensitive to business and numbers. But if only numbers are too boring. Zheng said.

Zheng Zhigang, like Zheng Yutong, has the habit of visiting a shop. He will pay attention to every detail, including materials and all processes. "Some people will say too thin, but for me, this is the basic skill, the basic skills are not good, it can not go too far, retail is like this, so is life." Zheng said. The color of the background plate is white. Whether the power cord of the sign is exposed or not, the beat of the background music is 1/4 beat or 1/16 beat. These details are subject to his personal inspection.

The brand selection for investment promotion is also very particular. 20% of K11 in Shanghai is brand new, and this ratio needs to be controlled within a certain range, because it is necessary to ensure that there is enough resources to help new brands be recognized and accepted by the public. Brand needs to match K11's ideas in art design, culture and environmental protection. For example, the polar food next to the urban farm is the concept of an organic restaurant. It looks natural and integrated with the farm.

Good developers target consumers directly. In the past, the trend of brand selection by developers has been gradually reversed to brand developers. Only when the shopping center has enough obvious labels to provide a clear-cut platform, merchants will be willing to choose to enter. Merchants themselves are very difficult to attract people, but developers should create sense of experience to embody the advantages under the line. "I will screen my tenant and public space, and must unite. His concept must be with us. This is a win-win mode." Zheng Zhigang said.

Even the luxury brands such as Burberry and Mara have to agree with K11 to make it different from other MaxMara stores. For example, bolberry, in K11, follows the flagship store style in Regent Street in London and provides a specific fund for K11. The brand owner of MaxMara Mara even personally designs the image for K11 shop. The product not only covers the whole range of brand products, but also introduces the exquisite wedding dress series, and has a customized series specially designed for K11, which becomes a selling point.

At the opening ceremony of the opening ceremony of Max Mara, three pieces of artwork made by three Chinese artists with 101801 coats of classic coats were displayed. This project is originated from K11 and Mara's exchange of artists. Mara's artistic connotation is often neglected. In fact, Mara, born in Reggio Emilia of Italy Town, has a museum of contemporary art, which has made an outstanding contribution to contemporary art. This coincides with K11. This form of deep cooperation also helps Mara to better disseminate his brand connotation.

The brand distribution of each layer also concealed the University's question. Take the three cafes, which are distributed on the two floor, the basement level and the two underground level, for example, K11 spends a lot of time studying the consumers on each floor. The two floors of the ground are connected with the subway station. The crowd is relatively young and the purchasing power is weak. Here is a chain coffee brand, Costa, while the ground floor is a gathering place for the tide people. They are often interested in new and interesting things. The price of the floor consumption is slightly improved. The catering brand Baker&Spice of Wagas is more suitable for this place. The two floor is connected with luxury goods. It represents a more high-end consumption habit. People who buy luxury goods often choose to drink a cup of afternoon tea here. Even if the price of the COVA restaurant in Italy is high, consumers will not mind.

In retrospect, K11 was born in doubt and satire. In the commercial center, a museum of 3000 square meters is considered by many to be a ticket for rich children. It is considered to be a commercial speculation by art, but Zheng Zhigang has hardly appeared in any media. "When I started doing this, many people criticized me. Many people said I was crazy. Do they ask me to understand art? Do they understand business? I don't explain it because my personality is like this. I ignore you, because I know what I want and what my vision is. " After a year, Zheng Zhigang finally handed over a satisfactory transcript, especially the sensational effect of Monet's exhibition, which brought a lot of attention and continued popularity to K11. Now he can take a finished product to you, and explain to you what is museum art, what is the innovation of shopping center, and what is the promotion of Chinese contemporary art. In a short span of a year, K11 became a trend gathering place and became a pioneer. Many people began to plagiarize its concept.

Zheng Zhigang calls himself a perfectionist and has a paranoid pursuit for every detail. Although he has a baby face, he is often told by his friends that spiritual age exceeds appearance. "In your opinion, we are like a whirlwind, but for me, my heart is very calm. I see a lot of things, high tide, low tide can be seen. My face is a lie. " Zheng Zhigang looked at the picture of a polar bear in the K11 reception hall calmly.