The Retail Industry Is Lifting The "Gold Rush" Of Commercial Real Estate.

In September 1st, WAL-MART China announced that its foundation for the development, construction and management of shopping centers in China was held in Zhuhai recently. The shopping center planned to invest 600 million yuan, with a building area of about 100 thousand square meters.

In September 10th, BBK group launched a global investment conference in Changsha, Changsha, with a capacity of 700 thousand square meters, and released a new member of BBK's commercial real estate product system, "Xintiandi".

According to the plan, the new hi-tech project will be opened in 13 years in the next two years, with a total construction area of 6 million 170 thousand square meters.

Earlier, the Yurun Group, which has multi sector businesses such as food, department stores and hotels, announced the completion of the 50 commercial complexes in 2015. In 2013, Hongxing commerce, the Hongxing group, which entered commercial real estate, said it would complete the construction of 100 Aegean Sea shopping centers in 2020; the IKEA Shopping Center Group invested 10 billion yuan to develop shopping centers in Beijing, Wuxi and Wuhan.

"Horse race enclosure"

5 billion yuan investment and 700 thousand square meters of volume, BBK Changsha Mei Xi new world is refreshing the new height of China's commercial real estate.

"Xintiandi" is a new member of BBK group's commercial real estate product system. It was officially released in Changsha, Hunan in September 10th.

BBK Group Chairman Wang fill said, "Xintiandi" brand positioning in the commercial complex above 200 thousand square meters.

Mei Xi Xintian is only one of 13 new horizons projects that are planned to open in the next two years.

Zhou Liang, President of BBK group's BBK Real Estate Co., Ltd., released at BBK's investment promotion conference. By May 2017, BBK will open 15 new world projects, across the 234 cities of central and southwest China, including Hunan, Jiangxi, Sichuan, Chongqing, Guangxi, Guizhou and Yunnan.

At present, the BBK group has completed its self built, self operated and self-supporting commercial complex, covering an area of more than 1 million square meters.

BBK also has the confidence and pattern of the leading enterprises.

One of the details is that BBK has chosen the release of Xintiandi in Wanda hotel.

Wang Tian said frankly, "the site" of the largest commercial real estate developer in China, BBK is to show its confidence in "benchmarking".

Wang Tian said that commercial real estate investment, a long time, the core financial cost is high, so the layout needs quick whip; Wanda is due to lack of rent and "passive intervention" of business, and BBK is the accumulation of commercial resources and operational strength, seize the opportunity is "water to canal".

In the future, BBK's commercial real estate project will keep the development speed of 5 projects opening each year.

Compared with BBK's confidence, WAL-MART, a foreign capital retailer, is equally ambitious for commercial real estate, but the pace is more cautious and low-key.

According to WAL-MART China's disclosure, WAL-MART announced its first shopping center started construction in Zhuhai with a simple foundation laying ceremony, and plans to invest 600 million yuan in a single figure, with a volume of 100 thousand square meters of community type small and medium-sized shopping centers.

Last September, the China Commercial Daily reporter learned from Pan Lijun, vice president of WAL-MART real estate investment and vice president of asset management, that WAL-MART's self investment and development shopping center project started in 2012. It plans to develop 4 shopping center assets packages in the first phase of the development cycle from 2 to 3 years.

Although the scale and speed of WAL-MART's investment and development shopping center are far less than that of local retailers, but because of WAL-MART's influence as the global retail leader, the first shopping center of China has launched a number of Chinese and foreign retailers in the panning significance of "gold rush" in China's commercial real estate.

Why have they entered commercial real estate?

In fact,

Zhuhai's investment and construction shopping center, from multinational retailers in China to national retail enterprises to regional retailers, it is difficult to find retailers without relevant real estate business.

Why retailers are keen on commercial real estate? The reason is very simple. The cash flow of retail industry is ample, but the profit is very thin. In the past two years, the price of land doubled, and the rent of commercial property also rose.

Wang Tian told the China Commercial Daily reporter that BBK's involvement in commercial real estate was forced out.

"BBK has made real estate because of business."

After truly entering the commercial real estate, Wang fill found that the extension of the company's retail business to the upstream property is not only a new huge profit, but also a platform for commercial real estate to enable BBK to integrate its own retail formats such as its supermarkets, department stores, electrical appliances, fast fashion clothes, dining, entertainment, leisure and so on, and realize the simultaneous expansion. After the Midwest region covers ten levels of complex projects, the scale effect of the integration of sand and towers is beginning to take shape. BBK can form an ecological closed-loop system in its own group.

And "doing ecology" has always been the highest level of enterprise business model. Nowadays, the development path of Vanke in Alibaba and real estate is not the same.

In the long-term strategic layout, commercial real estate has been seen as an accelerator for BBK's rapid growth.

As of 2013, BBK group has 400 retail stores, with annual sales volume of 23 billion yuan. Currently, the retail market share ranks first in Hunan and Guangxi, and Jiangxi ranks second.

Wang fill hopes that by 2020, high energy will become the NO.1 of the market share in the central and western regions of China, and the whole group's revenue will reach 100 billion yuan.

As of 2013, excluding Tmall, Jingdong and other online business enterprises, hundreds of millions of traditional commercial groups only Suning, Gome, big business, Huarun, Bailian five.

Obviously, BBK wants to catch up with the giants in six years and quadruple its performance. The investment in commercial real estate is faster and more potential than in the retail industry.

After 18 years in China, WAL-MART came late and entered commercial real estate for the first time. It is also a need to increase the new profit source resulting from the rapid rise in rents and the downturn in retail business.

Although WAL-MART China has been relying on Reform for 24.5% years in the past year, it has achieved a trend of growth of about 2015 in the past year. However, by the end of 2015, the proportion of about 25 stores in China, and the consumption situation under the declining trend, the food safety incidents exposed by the media, the sale of supermarkets, and the impact of electricity providers have all put a shadow on the future of WAL-MART, which relies heavily on the sale of retail stores.

Whether it is to boost corporate confidence or improve profitability, WAL-MART is in urgent need of new businesses to fight the recession.

As early as 2012, a survey conducted by China Chain Store Association showed that more than half of the domestic retail businesses were involved in commercial real estate, and the practice of subsidizing the retail industry has become a common practice.

Internationally, more than half of the world's commercial real estate developers are retail enterprises.

For WAL-MART, its investment in developing commercial real estate is also a China layout for speeding up Sam's member stores.

Last month, WAL-MART announced the establishment of a new one.

That is, WAL-MART Asia real estate leader Peter Sharp leads the real estate team to develop a shopping center with Sam member stores as the main store to support the expansion of Sam's member stores.

WAL-MART is a warehouse member supermarket with price competitiveness and differentiation competitiveness, but since WAL-MART has been playing the main shopping mall in China, Sam has only ten member stores, which is the fruit of speeding up the expansion of stores in the past three years.

Sam shop expansion is relatively unpleasant because of the difficulty of site selection, as well as WAL-MART's high requirements for property.

In the United States, Sam stores basically buy land and build themselves.

Therefore, in the face of the gradual saturation of the supermarket hypermarket format, the storage member stores as the vitality of the new format, as well as consumers prefer the "big box" format of the shopping center, which is mainly integrated experience, makes WAL-MART have to "turn" to link the pace of change in China's retail industry, and try to link its dominant business with the consumption hot spots.