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    How Can Chengdu's Southern Business Break?

    2015/6/3 10:23:00 26

    ChengduChengnan BusinessShopping Center

    Luo Yuan, the senior assistant director of the first Davies research department and Consultant Consultant Department, is facing the current situation of the South extension line. The market supply of the southern extension line is expanding continuously, which makes the market competition for the retail market more intense.

    In addition to the huge pressure on investment, new market entry projects also face competition from existing department stores and shopping centers to actively adjust their formats to attract consumers.

    Luo Yuanjun bluntly said that the difficulties in the existence of the southern city business are mainly two points: first, the serious imbalance between supply and demand, and the continuous opening of the southern city business, but the vacancy rate has been rising. Many projects have already withdrawn from the market because of the poor operation. Two, the commercial homogenization of the south of the city is very serious, and the retail brands of some shopping malls are quite repetitive, and some businesses are now stereotyped and clearly positioned, and the status quo is hard to change.

    I believe we have the same confusion about the southern city business: why is there so much business in the southern city of Commerce? Why do we have a continuous business? Luo Yuan said that although Chengnan in the short term, it is difficult to solve the problem of commercial surplus, but Chengnan is the core of the development of Chengdu. Some of the projects have been settled in early, and are also optimistic about the long-term development of Chengnan in the future.

    According to the relevant survey, the majority of people living in the south of the city are 80 and 90, and this group has strong consumption desire and strong spending power. In the long run, Luo Yuanjun is optimistic about the development of Chengnan.

    In addition, apart from the overall market environment, Luo Yuanjun believes that developers have many breakthroughs in their own areas: how to make a project and how to do a project, including when to enter the market, what brands to import, how to adjust and pform, and how to manage and operate later.

    Take the department store industry as a matter of fact, in recent years, we often discuss the problem of how the department store is affected by online shopping. But Luo Yuanjun thinks that in some areas, because the newly opened shopping center does provide better services, it occupies the market share of the department stores which originally had regional advantages or had relatively fixed customers.

    But if department stores do better management of single products and do more meticulous service, they will be able to occupy a place in the market.

    In retail, not all ways allow customers to maximize the value of retail products, such as how big the impact of electricity providers on retail sales is.

    In fact, for high value-added products, online shopping is difficult for customers to experience the characteristics of goods and brand services of customers one hundred percent.

    An example we are familiar with is Ito's hall. We can see that many brands are unique to them.

    There are plenty of space for department stores to do well. There is a lot of room for improvement in China's department stores worldwide.

    Department stores and shopping centers are all "carriers", and products and services are really sold to consumers.

    Like the food and beverage industry, it provides food, which is used to complete the consumption process in the carrier. It is fundamental to buy something, eat this meal, see whether the movie is happy or not, or provide a different experience.

    Whether for department stores or shopping centers, better fit the market demand is the most fundamental.

    When we discuss the differentiation, we can start from two aspects. First, we should choose the senior tenants in the same format instead of the new tenants.

    In depth understanding of tenant demand and its performance in the region, it is very important to see whether the location is reasonable through data. On the other hand, the project can search for brand innovation or operation mode crossover in the same category, and it is easier to stand out in differentiation.


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