Domestic Retail Real Estate Competition Intensifies Into China'S Two Or Three Tier Cities

With the intensification of the competition pattern of domestic retail real estate, some enterprises with sharp smell have begun to aim at the two or three line cities and nuggets new value depression.

The retail real estate from the United States, chestnut tower, and Beijing Wangfujing department store (Group) Limited by Share Ltd (hereinafter referred to as Wangfujing department store) were founded two years ago as the CityOn shopping center. The two well-known group enterprises took the lead in the second tier cities Xi'an and Zhengzhou to start the gold digging step.

Speaking of the experience of marriage between Taboman and Wangfujing in Beijing, Zhang Guohua, managing director of the Asia China region of the tower, said: "since the establishment of the tower in 2005, it has been our plan to enter the Chinese mainland market.

Taboman's entry into the Chinese mainland is a great desire to cooperate with partners familiar with the local retail market. The Wangfujing department store is a well-known leading enterprise in this field in China, so it is very natural for us to walk together.

For the future cooperation with Taboman, East Jiasheng, President of Wangfujing department store in Beijing, told the China business newspaper: "Taboman and Beijing Wangfujing department store in China cooperate in the development of regional (cross regional) city shopping centers, which is a strategic cooperation.

For market choice, we all share the vision of China's two or three tier cities.

According to the monitoring data of China Electronic Commerce Research Center, in 2013, the scale of China's online retail market reached 1 trillion and 850 billion yuan, nearly four times that of 2010, and the total retail sales of social commodities increased from 3% to 8%.

In the face of the impact of online shopping, shopping centers have begun to pform their former rival stores into partners in the mode innovation, giving full play to the advantages of traditional department stores in the long-term understanding of China's retail market and consumers.

The first time that Taboman and the department store of Wangfujing have been working together is undoubtedly aiming at this development opportunity.

In Zhang Guohua's view, Taboman's development strategy coincides with the strategy of Wangfujing department store seeking pformation itself.

He said: "first choose partners, then choose projects, is the decision sequence of the company's entry into the Chinese market.

The main component of the shopping center is retail. This is what we follow.

The most important reason for department store cooperation.

After several years of research on shopping centers in Wangfujing department store, its understanding of shopping centers is constantly deepening.

"There is no shortage of shopping centers in China," he said.

The so-called boutique shopping center is not just a gathering place for luxury brands, but rather a place where consumers can have a better experience no matter from location, design, development, decoration, environment, category composition, brand mix and service.

So the cooperation between the United States and Wangfujing department store is precisely to play their respective advantages and create China's boutique shopping center.

Since 2014, retail brands have entered the two or three tier cities.

The layout of Taboman and Wangfujing department stores is aimed at the huge potential market of the two or three tier cities.

Speaking of why the layout cities are located in Xi'an and Zhengzhou, East Jiasheng said: "we choose two provincial capitals which belong to a large area, one is Xi'an, the other is Zhengzhou, where the development of shopping centers is relatively lagging behind. At the same time, the population is enough. It should be said that the market concentration is very strong. A Xi'an radiation is not only Xi'an, but also a Zhengzhou city is not only Zhengzhou, but the aggregation ability of these cities is very strong, basically it is the core of a large area."

According to the estimate of Jones Lang LaSalle,

After entering the two or three tier cities to meet the market demand, retailers will also choose their channels more carefully. Their concerns will focus more on the "soft" strength of the retail real estate companies besides location, traffic and the traditional "hard" indicators such as target groups within 5 kilometers.

Taboman, the 64 year old well-known retail real estate company, will be CityOn Hedi port.

In Xi'an and Zhengzhou landing "escort", and in all aspects of careful planning and design.

According to Mr. Zhang Guohua, according to the shopping experience of consumers, the basic design principle of CityOn Hedi shopping center is no column design, and this design concept that makes the consumer's sense of direction very clear is one of "details".

"Shopping centers can not simply sell goods, but rather multi-functional comprehensive experience, including cinemas, children's entertainment establishments and catering.

At the beginning, we learned more about North America's experience and less food and beverage. After studying the eating habits of Chinese consumers, we finally decided to increase the proportion of food and beverage.

In terms of brand choice, we do not pursue a lot of luxury brands, but are based on local market conditions, radiation ranges and actual development stages to match brands and service consumers.

Mr. Zhang Guohua told reporters.

For this time, the first joint venture between the tower company and the Chinese local department store leading enterprise Wangfujing, a commercial real estate expert who did not want to be named, pointed out: "how to introduce the more advanced international development mode and combine with the traditional retail real estate development ideas effectively requires a lot of skills.

In addition, the development of retail real estate is a factor that needs to be considered. At the same time, we must pay attention to the impact brought by some new technologies.

Only in this way can we maximize the profitability of commercial projects.