Developers Use O2O To Join The Three Or Four Tier Cities Of The Internet To Become The Main Battlefield Of Commercial Real Estate.

"The average area of shopping centers per second tier cities is larger than 0.6 square meters, while the three or four tier cities now have less than 0.1 square meters of per capita shopping centers."

Ouyang Jie, senior vice president of Xincheng Holding Group Co., Ltd. quoted data at the 2014 annual business conference.

Public data show that China's commercial real estate supply is huge. As of the end of 2013, 3450 shopping centers opened in the country, and in 2015, the number of commercial complexes is expected to exceed 4700. The scale of commercial complexes is 240 million square meters.

The average annual compound growth rate of shopping centers is over 32%.

It is reported that in the first half of 2014, 176 shopping centers were developed and 27 million square meters in 2015.

In 2015, the total number of shopping centers nationwide is expected to exceed 1.

But now

The location is still unbalanced.

Ouyang Jie, senior vice president of Xincheng Holding Group Co., Ltd. said, "according to the current statistics, the average area of shopping centers per second tier cities is already larger than 0.6 square meters, while the three or four tier cities now have less than 0.1 square meters of per capita shopping centers."

Ouyang Jie said, "the three or four tier cities are becoming the main battleground of commercial real estate."

In August of this year, Wanda Group, Baidu and Tencent signed a strategic cooperation agreement in Shenzhen. They announced that they jointly invested in Hongkong to establish Wanda e-commerce company, explore the O2O mode, and look forward to relying on Wanda's more than 100 Wanda Plaza and other offline businesses, and will become the largest O2O business platform in the future.

It has become a typical example of real estate developers, entity businesses and the Internet.

"The pressure of disorderly competition in China's current market is very great. To do the business of electricity supplier, we should learn the Internet thinking rather than enlarge the impact of e-commerce on real business to the limit."

Guo Zengli said, now that O2O has entered the mobile era, it means the possibility of relying on entities. With the wide use of smart phones, the strategy for the development of O2O, which relies on the entity business, can be more sustainable. The possibility of conducting the flow from the line to the line has already existed objectively.

Cai Yun, Secretary General of the commercial real estate Specialized Committee of the China Real Estate Association, said that under the current Internet environment, the real estate developers should first be a win-win cooperation between real estate developers and operators, and with commercial enterprises.

Yang Chuang, general manager of the new industry trend Department of Huachang securities, said that from the investor side, the industry with close ties with the Internet will get the opportunity.

"The core of O2O is the combination of online and offline. To really achieve this kind of consumption experience and shopping experience, the core is to create a very strong offline team."