How To Kill Beijing Huarun Multicolored City

Not long ago, Wanda paid a high salary for the ice skating manager of Beijing Huarun multicolored City, and asked him to take charge of the ice and snow experience that Wanda was developing.

The manager's performance last year at Huarun colorful city ice rink was the reason why Wanda paid a high salary. The ice area of Huarun colorful ice farm is 1800 square meters. In 2013, it gained 15 million 100 thousand yuan of business revenue, reached 150 thousand passengers, gross profit rate was more than 50%, and achieved profit in three years.

Huarun multicolored city is located in the outer suburbs of Wuhuan City, Beijing. In these areas, the rising housing market is gathering new consumption potential. The shopping center is in full swing.

Up to now, the performance of Huarun colorful city is good, which can be an inspiration to other shopping centers. But in fact, this high-end shopping center located in the outskirts of Beijing does not have a complete set of experience for reference.

"We didn't have much experience when we set up our own ice skating operations management team, but I know that doing ice rink and doing shopping malls is a good reason to let people continue to experience it." In June 2014, he was general manager of Huarun colorful project in Beijing, Zhu Lin told the first financial weekly.

The operation of Huarun multicolored city has many unique features. For example, the ice rink of shopping centers is usually rented to make profits. The main source of income of the colorful city ice rink is admission fees and membership training fees, of which membership consumption accounts for 80% of the total income.

There are more unpredictable difficulties in the operation of Huarun multicolored city. For example, it is not in the plan to run ice rink in a self run way. If it is not the original ice sheet operation team that has already signed up, it will be more stable to collect the rent. The members of the rink management team are temporarily removed from the project operation team.

All in all, Huarun's colorful city is not a case of how a high-end shopping center attacks, but a successful sample that has been gradually debugged in an uncertain environment. After all, for most of the high-end retail and catering brands, opening a shop outside Beijing's Fifth Ring Road is a matter of great determination.

In this concentric circle pattern, consumption levels do not descend in the order from the center to the periphery, but the main commercial centers are almost within the five rings.

In 2008, Wang Yuke, a business consultant at Huarun multicolored City, interviewed a targeted merchant in the city of colourful city. Most retail brands were not too interested in the shopping center that would be opened in the upper Qing River area. Wang Yuke is now a senior director of RET, a commercial real estate service provider.

In 2010, when the city started its business, the situation improved slightly. The fast fashion brands such as H&M, ZARA and Mango, which had several stores in downtown Beijing, began to improve their opening speed in the suburbs, and the multicolored city was also included in their consideration.

But they still dare not venture into the first phase of the colorful city project, which opened in June 2011 and the total volume is only 65 thousand square meters. "The first floor retail brand in western district is the positioning of sports and leisure, but this is only the option at that time. In fact, we hope to introduce a more fashionable fashion brand in the first phase. Wang Yuke said. Most fashion brands choose to maintain a wait-and-see view on remote unfamiliar areas. They should decide whether to join them after the opening of the city.

The conservative strategy of the brand is expected by Zhu Lin and Wang Yuke. In fact, they themselves are not sure whether it is feasible to set up a shopping center with high-end home life in this location.

In September 2005, Huarun made a plot of 310 thousand square meters in Qinghe town of Haidian District with 2 billion 565 million yuan. This was the largest residential block sold in Beijing at that time, and Huarun became the "king of land" in Beijing. According to the planning requirements, Huarun needs to build 550 thousand square meters of residential buildings, 100 thousand square meters of commercial financial projects and 20 thousand square meters of sports facilities.

The land that had been demolished was originally the three woollen mill of Qinghe, and most of its residents in the old residential areas were local workers in the wool mill. The five ring road that just opened to traffic was extended from the southern part of the block. The closed Expressway basically cut off its traffic connection with the city.

"The past four weeks are all old houses. There are no decent roads, no major urban roads, no Metro buses, poor infrastructure and public facilities, and a very low level of consumption for the surrounding residents." Zhu Lin remembered the first scene he saw in the Qinghe block. "Although it is a ground king project, many developers are not optimistic about this position." Zhu Lin recalled that, including in the Huarun premises, no one has discussed a confident plan.

Huarun has no experience in shopping centers. This year is exactly the first shopping center project of Huarun, which has been opened in the Mixc, Shenzhen for a year. The high-end mall, which is located in the urban company and the middle class, covers luxury and fashion brands, and provides food and entertainment places, has achieved 1 billion yuan of sales and 20 million passenger traffic this year. It has been regarded as a successful shopping center by the outside world.

However, the experience of a high-end shopping center in a city center has little reference to a "wasteland" away from the city centre.

If we follow the routine thinking of developers, we may adopt a more stable approach to digest this supporting commercial land, and build it into a shop, apartment or office building, which can be quickly distributed back and forth after sale, so as to balance the cash flow of the whole project, and at the same time, avoid the risk that the self-supporting shopping center needs to undertake in the camp.

But this is not in line with the idea of Huarun's central business developers. They pursue profit margins instead of high turnover rates.

It was at this time that Wang Yuke joined as a consultant. The biggest problem Huarun faced was the inaccuracy of people's needs. They have a preliminary plan to do self-sustaining business, but do not know if there is enough spending power there, there is no way to determine whether the project can be done, how big they can be and what they want to make, and whether they can attract businessmen.

At that time, the format of China's shopping center had just entered a fast developing channel. Similar to Shanghai Zhengda square, Beijing Xidan Joy City, and Shenzhen the Mixc, which combine food, entertainment and traditional retail together, while remodeling the shopping mode, people's consumption needs are highly integrated.

However, such shopping centers are usually located in the core business district or consumer area of the city, but no one has studied the adaptability of the suburbs and large residential areas.

One good news is that the new residential developments in the upper Qing River area are increasing rapidly, including the 550 thousand square meter residential project of Huarun, Oak Bay. Most of the new owners are IT white-collar workers who work in Zhongguancun or Shanghai Science and technology park. They will refresh the overall consumption level in the region. At the same time, a large part of the younger industry will buy a house here and then form a family.

At that time, Beijing had just emerged as a multi center state. In the suburbs, the Science Park in the western region already has a better business office function, and its living function is also increasing significantly, which has the potential to become a sub center of the city. Compared with the rapidly growing population, "the most scarce place is the place of consumption." Wang Yuke said. According to their research at that time, the population within 5 km of Qinghe block of Huarun will reach 200 thousand soon.

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This is an important bargaining chip of the 13 thousand square meters area that WAL-MART has been able to successfully join in, and the next phase of the project.

In order to cope with the family positioning and format planning of multicolored City, WAL-MART has abandoned the department store category and focused on providing daily products and fresh products.

At that time, the brand of Huarun, another shopping center in the Mixc, has become mature. It has brought Huarun's reputation of "focusing on quality" and "being good at management". Watsons, Starbucks, spicy and spicy attractions, Wang Xiang Garden and other brands have finally entered the first phase of multicolored City. As the main store of the first phase of Huarun multicolored City, the rink is also quite obvious for other consumption of shopping centers. In 2013, after the two phase of the project was fully opened, Beijing Huarun colorful city reached 11 million passengers throughout the year, with sales exceeding 600 million yuan. Among them, the western region sales accounted for 300 million yuan for two and a half years, an increase of about 50% over the same period last year.

The main store combination of WAL-MART + rink is a stable passenger flow for the first and a half years of operation. By the end of 2011, sales amounted to 100 million yuan from the opening half year, and sales exceeded 200 million yuan in 2012.

But the multicolored City phase is more like a community shopping center providing basic living services for the surrounding residents. Besides the residents in the Qinghe River area, not many people know the multicolored city. People who work in the Shanghai Science and technology park do not come here often. On the one hand, they consume too much for their purpose, do not use too much space and format for shopping. On the other hand, it is because the road between the office area and the colorful city is not completely clear.

Starbucks has gone through a period of downturn in multicolored city. Apart from the first coffee chain outside the capital airport, the company can only earn one thousand or two thousand yuan a day in the first few months, which is about 50 cups of coffee.

Until the end of 2011, the improvement of road conditions, coupled with the promotion of resources by the colorful city team, promoted Starbucks's performance gradually. But it really became a hustle and bustle of Starbucks, or in January 2013 after the opening of the two phase of the five colored city.

Liu Xue, who lived in Wei Gong Village, North Third Ring Road, knew the colorful city last spring. During that time, she lived in the boudoir of the city and began to invite her to the shopping mall with a more than 20 minute drive from her family.

"The Shuang an shopping mall near my home and the contemporary shopping mall are basically middle-aged and elderly brands. The only thing that suits Jin Yuan is Yansha." Liu Xue said that until she found the colorful city, she really found a suitable shopping mall for her age and preference. Now, Liu Xue basically goes to the multicolored city once every two or three weeks.

The change of Liu Xue's consumption destination confirms Wang Yuke's judgement in the early positioning and volume planning for multicolored city. In their early research, they found that the most common shopping destination for residents living in Qinghe district was far away from Xidan and Wangfujing, which meant that people in the whole northwest of Beijing did not have many excellent shopping places to choose from. "If multicolored city can do well in supporting brands and products, and scale up enough, it will be able to radiate further." Wang Yuke suggested to Huarun.

The volume reached 135 thousand square meters, including a complete retail, catering, cinemas and children's formats of colorful city after the two phase of opening, like Liu Xue lived in Zhongguancun, near the North Fourth Ring Road, willing to stride across the five rings of consumers gradually increased. According to the survey of the project management team of the colorful city, this group of people only accounted for 5% of all consumers during the first phase of opening up, but by October last year, the proportion had risen to 15%.

"Originally we thought that the core radiant circle of multicoloured city would be within 3 km radius, but according to the current statistics, consumers who live within 10 minutes of driving distance or within 20 yuan of taxi fare are our core customers." Zhu Lin said.

Zhu Lin also observed that even some of the companies on the upper science park would take a taxi to the colorful city and have a Starbucks. But this is usually accompanied by more activities in multicolored city - shopping, watching movies, eating and skating.

Liu Xue's 4 year old daughter took the colorful city as her playground, playing mud, dancing, skating, and going to Snoopy park. Even if she stays on the weekend for a whole day, she will not play the same kind. The four tier of the two phase of the multicolored city covers a wide range of children related projects ranging from toys, children's clothing, children's catering, training to amusement parks.

Highly integrated child formats are the clever places for shopping centres located in the regional household consumption. The amusement facilities make children forget and return, and also attract parents' investment without cost.

No ticket collection, only pass. consumption The Snoopy amusement park is always the most exciting place for small ticket exchange tickets. The 4500 square meter park is built on the roof of the two phase bus station. There are small rides, merry go rounds, mazes, slides and other amusement facilities built around Snoopy's image. At the weekend of comfort, even children would drag their parents to the front line of the park early in the morning.

According to Zhu Lin's view, the idea of making a Snoopy park on the roof comes from their inspection of the new city square in Sha Tin, Hongkong. This shopping mall with the same location as the multicoloured city is located in the suburb of a large residential community. It built a Snoopy park on the third floor of the outdoor plaza, and successfully added 3 million passenger trips in the first year. In recent years, this children's amusement program will still attract 1 million 500 thousand to 1 million 800 thousand passengers per year.

"The brand radiation range and influence of our project are not very large, but Snoopy park is the only one in Beijing, and its influence can drive the whole project brand." Zhu Lin said.

Although touches the rigid demand, Snoopy park's landing process is more difficult than he imagined. When they follow the operation of Sha Tin New City Square to find Snoopy's copyrighted party, the company says it only makes brand authorization and never participates in the construction and operation of the park. There is no company in the market that can do Snoopy Park operation and management.

As a result, similar to the way to manage the rink management team, Zhu Lin also asked several colleagues from the rink to be responsible for the construction of Snoopy park. It took them a year to work together with design companies to build a complete Snoopy park.

　　 Zhu Lin He said that Snoopy park would not be considered as a charging mode in the near future. "This allows customers to experience the value added of shopping in multicoloured City, and at the same time, it can increase customer retention time not just in paradise, but they will spend all day in colorful city."

This year, the multicolored city is expected to reach 500 thousand passenger trips in Snoopy Park, which can at least pull 100 million yuan in sales according to 200 yuan per ticket. The management team no longer needs to worry about the attraction of multicolored city brand as it did two years ago. In the past, they refused to have their brands rediscovered, hoping to enter this "rapidly growing" shopping mall in the suburbs.

"Multicolored city has been able to meet the daily consumption of people in this area. What we have to do is to let these people identify with our shopping malls and feel that our good things are part of their life - even if they just come for a walk after dinner." Zhu Lin said he hoped that the multicolored city would become a platform for their life extension and community life.

After becoming a shopping centre that attracts children first, the city is trying to put more effort into the adult business. The introduction of more clothing brands that young parents like is what he is doing. Compared with the first phase of the project opening stage, the brand resources he has grasped now can be much more leisurely.

Now, The multicolored City The team also needs to consider how to attract business people. With the overall rental of the colorful city office buildings and the ongoing expansion of the industrial parks, more business people will come to the multicolored city in their leisure time.

This fast-growing consumer group is likely to be a young mom and Dad, but their consumption needs are not the same under the working scenario: they need more private dining places besides family dining-room dining-room dining-room, and for those who go from town to town to colorful city, they need more Starbucks.

At the same time, the replica of multicoloured city in the whole country is spreading rapidly. Huarun is trying to digest the commercial land that "can't make the Mixc" with the product that seems to have solved the problem of "how to make a shopping center in the non core area".

A studio specializing in the design of multicolored city has been completed at Huarun land headquarters. At the same time, the specialized colourful city operation Department has also been set up in the business management department. They will refine the existing colorful urban management and control system, control process and marketing strategy, so as to manage more colorful city projects.

Replication is fast. Hefei multicolored city and Yuyao colorful city were opened in May and June respectively. In addition, according to Huarun's 2013 earnings report, there are 22 multicolored cities on the list of construction and construction.

After all, the multicolored city is a product specially designed to capture the market, and its adaptability and change will be stronger than that of the Mixc. Its replication will take a more similar route. Zhu Lin said.

The implication is that multicolored city will not be the next Wanda or the next great joy city.