Brand Strategy Focuses On Middle Economics Of Joy City

In November 22nd, all the top leaders of COFCO Land Holdings Limited (COFCO land) gathered in Shanghai to talk about the middle class economics of joy's city to the top 400 merchants of its next more than 200 brands.

By the end of 2013, COFCO landed successfully in the capital market of Hongkong, pushing the brand of joy city to the capital platform.

In September 2014, COFCO announced that it would purchase 6 major Joy City assets packages currently open at HK $12 billion 460 million.

To speed up the development of commercial property by leveraging the international capital market is a chess game for COFCO.

Brand strategy focus

COFCO currently has two real estate listing platforms, one is COFCO real estate based on housing, and the other is COFCO based land.

As an extension of the life chain of COFCO, the main brand of COFCO is the joy city.

"Happy city's target customer positioning is to adhere to the 18~35 year old emerging middle class."

Han Shi, general manager of COFCO land, said that all the reproduction and development of joy city will continue the original intention and maintain the brand positioning of youth, fashion, fashion and taste.

The reason for COFCO's decision is: 18 to 35 year old group of young people are more willing to accept new products, more willing to pay for value-added products, more willing to accept fresh brands, purchasing power and desire is very strong.

And they are the mainstay of the whole society's consumption.

Therefore, the joy city also represents the next step of the development direction of commercial real estate.

From 2007, we began to make projects, make trades, make brands, make layout, manage in 2011, do experience last year, and make innovations this year. The basic principle of COFCO's land holding is "we must be young people's lead and young people's favorite way."

Last year's experience has changed the proportion of several entertainment cities, from the past "532", that is, 50% retail 30% dining 20% leisure experience to "433", that is, retail 40%, dining 30%, leisure experience class 30%, increasing the experience of the whole Joy City.

According to Han Shi, at present, COFCO has opened six Joy City projects, including Xidan, Chaoyang, Tianjin, Shanghai, Shenyang and Yantai in Beijing.

In 1~10 months, the total sales volume of the six joy cities reached 7 billion 800 million yuan, up 18% over the same period last year.

This year, the total passenger volume is expected to exceed 110 million passengers, an increase of 10% over the same period last year and a total turnover of 10 billion yuan, up 20% over the same period last year.

Of course, an industry competition that can not be ignored is the driving force behind the innovation of COFCO.

And the impact of the electricity supplier, in March 8th of this year, Joy City Joint Ali, first mobile payment, Chaoyang Joy City and Shanghai Joy City as a pilot, to create "3 8 life festival".

Through the form of mobile payment, the joy city has actually integrated the resources on line and offline, hoping to win a win-win situation with the electricity supplier rather than oppose each other.

This is undoubtedly an effective exploration for the whole channel pformation of retail industry.

For the development of Joy City, another opportunity is coming this year.

In July 15th, the State Council SASAC announced that the central enterprises started the pilot work of "four reforms", and COFCO was chosen as a pilot enterprise for restructuring state-owned capital investment companies.

COFCO land is one of the main businesses of COFCO. It is a strategic business platform, and also a concrete landing of "building a comprehensive urban complex of service chains".

Among them, the "Joy City" brand of the urban complex is the core strategy of COFCO land, and will also become a strategic product of COFCO.

"In the future, in COFCO's strategic planning, we will concentrate resources and funds to develop the urban complex with joy city as its brand."

COFCO land chairman Zhou Zheng revealed that soon after that, COFCO holdings will also be renamed "Joy City Real Estate Limited" to realize the unity of the core brand and the company name. The development strategy based on the joy of city will be clearer, and it will also represent the commitment made by COFCO to the capital market.

How to ensure the success of a happy city project by seizing the new middle class.

Facing the competition of homogenization, what is the business innovative thinking of Joy City?

Business innovation is the core concept of this year's Joy City operation. The business innovation of joy city is divided into five dimensions: product innovation, service innovation, data innovation, marketing innovation and cultural innovation.

The innovation of products is regarded as the top priority.

Take Chengdu Joy City, which is about to open next year, for example. In the design of the product, it's fun to buy, play, play, and especially emphasize the concept of "play" and highlight the whole leisure elements from the design concept.

"People in Chengdu are willing to spend money, pursue trends, dare to try, and focus on experience.

Playing with love is the characteristic of its consumption.

Tian Weilong, general manager of Chengdu Joy City, said.

In addition, Chengdu's joy city is also the first place in the comprehensive layout of COFCO.

It is expected to open in December 25, 2015.

To catch 18 to 35 years old.

As a core customer group, Chengdu joy city tries to extend the core of Yue culture to every corner in various ways.

According to Tian Weilong, Chengdu Joy City is composed of shopping centers, office buildings and theme blocks.

The rental area is about 110 thousand square meters.

Chengdu's great joy city has created four major theme blocks, featuring a new lifestyle for the cultural connotation of the experience area, reflecting the 24 hour business economy.

On the ground floor, there are 2000 square meters of Chengdu characteristic popular dining.

Chengdu joy city adopts the new idea of customized investment, and strengthens theme stores, specialty stores and comprehensive stores.

"First of all, we need to clarify our needs, and choose suitable merchants to communicate with each other in depth.

To promote the operation and strengthen the concept of parks, we should use technology and humanization to promote happiness and romance in project promotion and operation, such as cartoon interesting service etiquette and so on.

The two phase of Shanghai Joy City is expected to open in December 19th next year.

This is the largest single investment project of COFCO, with a total investment of 15 billion yuan. The first phase of Shanghai Joy City is mainly located at 18~25 years old consumer group, while the two phase is extended to 35 years old.

The biggest highlight is a unique skyscraper.

The target group of Shanghai's Joy City aims at the new middle class. This group is "living like a heroine, eating like a Virgo, dressed like an artist, playing like an adventurer.

They have strong brand desire and are keen on fresh products and services. "

Unlike the general developers who make real estate and make different channels, the core of the joy city is to manage the traffic volume, and all the innovations mentioned above revolve around the subdivided consumer groups.

"Hangzhou joy city block has been taken, within 30 months must be opened, the timetable has been determined."

Zhou Zheng said.

In order to ensure the stability and speed of the development of replication, the company has completed the construction of unified and standardized work such as "Joy City Investment Model" and "Joy City commercial operation guidelines". It has provided operational guidelines for the rapid reproduction of joy city. On the other hand, it has constantly strengthened team building, established the joy city business school, launched the Golden rudder training course of training project general manager and training course of "golden seeds" for young managers, so as to lay a solid foundation for the future development of joy city.