What Is The Business Logic Of Shanghai K11'S Miracle Of Shopping Malls?

Behind such a carnival activity is the "Museum retail" strategy advocated by K11 founder Zheng Zhigang for many years.

Under the double influence of rising rents and declining consumer flow, most of them

Retail stores are in deep trouble in declining performance.

How can we tap the potential of real business and open up new bright spots, seize the hearts of young consumers, and create the world's first museum retail K11?

The Art Center once again aroused great concern from the industry.

According to the world clothing shoes and hats net, in January 2018, the Shanghai K11 shopping Art Center created a PINK LOVE event featuring the theme of "pink save the world", which triggered waves of topics and attracted more and more people of the millennial generation.

According to the relevant data, the exposure of the event is close to 200 million of the topic volume, not only pushing up the passenger traffic growth by 10%, but also increasing sales by 30%, and the membership is surging by 30 thousand.

The sales volume of many businesses has also set a new year's record. Taking Max Mara, Burberry and Sandro as an example, the sales volume of three brand stores increased by 66%, 30% and 36% respectively.

At the same time, the sales volume of main retail outlets and restaurants increased by more than 50%.

The sales of K11 Art Store By Kuriosity in the brand collection store rose by 90%.

In fact, the PINK LOVE pink storm is also the world's first shopping space with color theme and contemporary Chinese artists. When all shopping centers are introducing IP, Shanghai K11 shopping Art Center has long been the IP with huge traffic entrance.

According to the latest data, the average shopping volume of Shanghai K11 shopping center reaches 1 million per month.

Different from many offline business theme activities is only a flash in the pan. The PINK LOVE activity has been a great success from the creative plan, space design and artistic humanistic atmosphere.

Zheng Zhigang is the founder of K11.

Behind this is the concept of "Museum retailing", which has been praised by K11 founder Zheng Zhigang for many years.

Zheng Zhigang believes that K11 is a forward-looking brand and a platform for more young people and a more creative era.

Art, humanity and nature are the three most important elements of the K11 shopping center, and its real "integration" is the most valuable part of this ecosystem.

In this event, the K11 shopping Art Center of Shanghai extended the spirit of art and craftsmen, collaborated with the music brand ASIAN DOPE BOYS of avant-garde Chinese young artist Chen Tianzhuo to create the exclusive time limited spicy pink sensory interaction space Club Intimacy, which upgraded the pink with art and endowed the vigorous vitality of business activities.

The scene's fanatical and illusive visions make it another red holy place.

This super Shanghai super crazy super pink toilet is as mysterious as a pink puzzle.

Starting from image, sound, smell and light, it pforms into signals and quickly enters human senses, pforming the private experience of an ordinary shopping bathrooms space into a more intimate experience, a more physical space, thus becoming a space for drawing closer to body distance and sharing common sense experience.

During the event, whether it is clothing, home or catering, Shanghai K11 has selected many "powder" products, infiltrating into the art group with aesthetic brand concept, bringing a new artistic business experience to the public, and continuing to explode the pink force of PINK LOVE.

"Art is the DNA of K11, but business is also the essence". In an exclusive interview with the Oriental Morning Post reporter, the head of Shanghai K11 shopping Art Center explained.

There is a view that in Shanghai K11 shopping Art Center, luxury brands can be presented to customers, especially young people, through the concept of K11 and brand history.

It is learnt that Chanel will open the first Chanel arcade in Shanghai K11 shopping Art Center.

As a matter of fact, business and art are often regarded as opposites. Some analysts point out that business is often at the expense of high quality pursuits because of its inherent profitability. Once the two can not be better integrated or will become an art museum, it will lead to unclear positioning and many other problems.

The success of Shanghai K11 shopping center actually caters to the increasingly obvious trend of consumption upgrading.

According to a joint report by Boston consulting company and Alibaba, Chinese consumers will change from buying products to experiencing changes, and the contribution rate of service consumption to private consumption increments will increase to 51% in 2022.

The report further pointed out that experiential consumption has become a trend, resulting in the "experience life above" subdivision of customer groups.

Relevant data show that in 2017, more than 30 commercial projects were rebuilt, including department stores pformation, renaming and reopening, adjustment and upgrading, and so on, which was higher than that in 2016.

The pformation of the retail industry has become a general trend. But whether the pformation can really touch demand is a risk for retailers to consider.

{page_break}

However, the success of the K11 shopping Art Center is no accident. Since its establishment, it has been breaking the retail myth.

Zheng Zhigang's investigation of new world department store VIP in 2008 found that the high degree of convergence is the biggest obstacle to the development of the retail industry. In view of this pain point, he adopted the trinity of art, humanities and nature, and created the first K11 shopping Art Center in Hongkong in 2009 under the outbreak of the financial crisis and the depressed retail business in Hongkong.

According to the data released by K11 shopping Art Center, in the first year of the year, it was rewarded, and the turnover increased by 3 times in second years. The monthly traffic volume could be stabilized at more than 1 million passengers.

According to the analysis, with the theme as the theme and cross boundary as the way, the K11 shopping Art Center breaks away from the traditional shopping centers' assimilation drawbacks by creating three aspects: creative space, creating business connection points and social operation.

First of all, from the perspective of layout, Shanghai K11 shopping art center occupies 35% of the dining room and 65% of the other shopping centers.

The B3 layer is completely built for the art exhibition hall, which is open to the public. This seems to be the greatest potential revenue benefit for the industry.

K11's Monet theme exhibition attracted more than 260 thousand people, with a daily traffic volume of 6000, and its daily turnover increased by 20% during the exhibition.

Although other floors follow the regular layout from retail to catering, unlike traditional shopping centers, there are different art installations on each floor, arranged in different shops, or completely integrated into the display style.

More importantly, learn from the idea of flash shop, every time interval, the Shanghai K11 shopping Art Center refurbished art installations and shopping malls, and from media preheating to late tracking reports continuously increased exposure and created fresh feelings for consumers.

This year, the Shanghai K11 shopping Art Center has created a new borderless food and creative space TERMINAL 5, bringing together urban people from different fields and lives. In the unexpected food feast, we should slow down, listen to music, bump into different cultures and attitudes, and get more social fun in the free atmosphere.

In order to achieve the purpose of consumers, K11 will closely link entertainment, leisure and shopping, such as launching a time limited yoga experience in the art museum area, jointly offering baking courses and regular live band performances with the dessert workshop.

All kinds of entertainment activities are distributed in different shopping areas to maximize the duration of consumers' stay.

The idea that K11 insists on is to have the possibility of consumption as long as it stays.

The third step of K11 is to connect online and offline to attract consumers of K11 shopping Art Center.

Unlike the previous membership system that relies on the cumulative level of consumption, opening the official front page of K11 shows that the "community" plate is displayed separately, similar to the functions of online forums. Consumers can publish their own shopping experiences or discussions with different labels, such as art, food, fashion, etc., and part of the quota activities are also registered through the community.

Taking into account the growing influence of KOL on consumption, K11 set up the "Creative Star" sector separately, inviting creative vendors such as fashion bloggers, chefs, writers and so on. Consumers will be able to get the latest information from fashion, food, fitness and other aspects in time.

Insiders pointed out that the middle class is not only a digital standard in absolute sense, but also a comprehensive psychological and social experience. In this process, the most important need is also the greatest opportunity to upgrade the local market.

It is noteworthy that K11 as a classic case not only lies in improving the facilities environment, but also Zheng Zhigang's ambition to build a retail ecosystem for many years.

According to the American women's Wear Daily reported earlier, in 2017, Zheng Zhigang set up an investment fund C Ventures, covering fields covering art, media and fashion.

He said that C Ventures will link the global ecosystem of fashion, media and creative platform to infiltrate all aspects of the life of the younger generation.

In December last year, Zheng Zhigang's K11 Investment and hedge fund C Ventures joined the American fashion business Moda Operandi to further expand its millennial generation digital life platform matrix in recent years.

Referring to the motives of becoming a shareholder in Moda Operandi, Zheng Zhigang said in an interview that with the expansion of technology and the changing demand of the millennial generation, retail innovative business models are emerging.

It is worth noting that the Shanghai K11 shopping Art Center also introduces more new technology elements in the innovative cross-border layout. In 2018 3 to June, the famous American artist Betty Woodman's first solo exhibition in Asia and the first art gallery exhibition of Araye, Chinese artist Zhao Yang, will be presented at the Shanghai K11 Museum from 2018 to June, and will be combined with the interactive mode of artistic development independently developed by Zheng Zhigang. The virtual image of Zheng Zhigang will bring a new intelligent exhibition experience to the public, and this trend is expected to attract more young consumers' attention.

In the list of "best global innovation companies" published in 2018, the weathervane, which has been regarded as the annual commercial value and investment vane "fast company FastCompany", K11 shopping Art Center, together with Alibaba, Tencent and so on, has become China's Top 10. It has become the only 20 thousand and 180 innovation enterprise list that has opened up the new retail concept of non internet companies.

The unique charm of the K11 shopping art exhibition is continuing to win the attention of young people in China. In 2023, the K11 project will expand to 9 cities in China, including Beijing, Shenzhen, Shenyang, Wuhan, Ningbo, Tianjin, Shanghai, Guangzhou and Hongkong, and become a leader in the retail industry.

Some analysts say that in the difficult environment of retail industry, K11's trend is proving to the industry that consumers have not disappeared, but that they need to become younger. For retail development, meeting the changing needs of consumers is the essence of business.

Like K11, only by truly understanding consumers can we stand out in the fierce commercial competition environment.

More interesting reports, please pay attention to the world clothing shoes and hats net.