Explore The Relationship Between The Street Store And The Future Business

In the recent inventory of the head items, we found that some street stores with low brand potential have also received tickets to the shopping center.

Is this merely a forced response to vacancy rates? Or is there a more essential business law behind it.

In the business cycle of ebb and flow, we can still see the change and reincarnation of consumption ecology from the shops on the street.

In this issue, we explore the essential attributes of brands and shopping centers in their life cycle, and explore the relationship between street stores and future business.

01、 Nearly 20% of first stores "come from the streets" What are the trends in the first tier shopping malls?

In this business cycle, we have once again observed the attention of first-line shopping centers to "street stores".

After Sanlitun and Wangjing, the huluwa family, known as "Beijing zuimei hot pot", further explored the non block store mode and settled in Chaoyang Joy City.

In May, the sailing crab opened its first store in China in Xintiandi, Shanghai. Different from the delicacy of the online shop, Baoling crab has a rough street style in store style, food presentation and dining environment.

Founded in early 2018, o'mills Bakery & Bistro on Yongjia Road, Shanghai, has won many fans' welcome with its fashionable brunch. O'mills entered Jingan Kerry Center in August this year and opened its first shopping mall.

If the real business after the epidemic is about the competition of "hematopoietic capacity", then it seems that brands and formats that can survive and live well from the street without relying on the flow of shopping malls seem to be the flow source of the vitality of the city.

According to the statistics of RET China commercial real estate research center, about 17.8% of the first stores in Beijing and Shanghai came from street stores.

There are three main types of street side stores, including the first store.

One is the time-honored brand. In addition to neiliansheng, Beijing heshenghui has introduced traditional Beijing flavor Er street stores, such as Liji Xiandou cake, Wudaokou Zao cake king, jingtianhong fried cake, etc.

The second is "street sense" as the core content of the Internet brand. For example, there are ancient desserts coming out of the hutongs beside the Yonghe palace, and coffee shop brands such as manners and metal hands, which have a stable flow in urban alleys.

Third, it comes from the street side stores introduced into China from abroad, such as Superfly, which focuses on Sichuan snacks but combines Chinese and Western street culture, Maison kitsun é, a little fox coffee with French aesthetics and Japanese feelings.

Of course, "mall shopping" doesn't mean that shopping centers are lowering their positioning. From the above cases, we can see that if a brand wants to enter the shopping center, it still needs to have a high brand potential and a brand positioning matching with the shopping mall.

02、 Today's Street store Is it the house, shake shack, lululemon?

In fact, "shopping malls" is not only a phenomenon this year, but also a trend that has occurred frequently but not received enough attention in the past two years. Only from the perspective of "standing in the future and looking at the present", can we effectively judge the long-term development logic of street stores.

In 2019, as a benchmark of "Rural Revitalization", Yuanjia village, with an annual turnover of more than 1 billion, has also entered the shopping center. Taking the local architectural features of Guanzhong as the prototype, "Yuanjiacun city experience shop" provides authentic Guanzhong cuisine with red brick walls and woven mats as its top, and sometimes supplemented with traditional objects with a strong sense of age.

Yuanjiacun Guanzhong impression experience place, Yintai City, Qujiang

In Xi'an, Yuanjia village has basically completed the layout of the city's commercial complex. Saige International Shopping Center, Qujiang Yintai City, wanhecheng shopping center, Oriental Yixiang City, shazhichuan outlets store and Vientiane Hui v-life have settled in.

Super Wen and you have a similar idea. In the 15000 square meters of expansion in the second phase of 2019, its Changsha store has restored one of the oldest streets in Changsha, "forever Street", which is composed of 20 individual catering households from Changsha Street.

Dongguashan sausage, super wenheyou Changsha Hisense Plaza store

So, from a longer-term point of view, can street stores entering the shopping center today become the main force in the future?

It has to be said that if we still follow the path of "into mall movement 1.0" in the last decade, the answer is likely to be No.

In the domestic market environment, shopping malls provide traffic, and the on-site brand cash flow is a long-standing market "tacit understanding". Looking back to the incremental era, it can be found that the most important goal for brand merchants to enter shopping centers is often passenger flow, which relies on the flow pool to attract customers and reduce the cost of self built brands to attract customers in the street shop mode.

In terms of specific performance, catering increasingly emphasizes the "convenience of prefabricated dishes" rather than "on-the-spot ingenuity". The focus is often on the turnover rate and store efficiency, not necessarily the customer experience; retail brands will display "full range of products" as far as possible to obtain the most sales possibilities and cash opportunities, rather than the most unique brand experience.

At present, such a model has proved to be inefficient and unsustainable.

For example, whether it is a high-speed city or a sinking market, the typical "large volume" main stores are no longer the mainstream, but become the "large flow" main tenants with many fans and followers; the first batch of domestic brands growing up with domestic shopping malls are still difficult to replace foreign brands.

In contrast, although the development of foreign commercial real estate has a longer history, the overall market has always maintained the environmental basis for brand unicorn.

Shake shack was originally just a hot dog stand in Madison Square in New York City. After three years of operation, it turned into a real restaurant in 2004, and hamburger was added to its menu since then.

Starting from a small corner bookstore in Meifang City, Osaka in 1983, makoya followed the trend of "bookstore + coffee" in Japan at that time and introduced it to Starbucks in 2003. Since then, it has become a bookstore for * * to implement the "life proposal" and its business model.

Lululemon started as a yoga studio, relying on the community operation model to achieve effective customers, and then transformed into an independent store, with a market value of more than $40 billion.

Lululemon experience store, Lincoln Park, New York

The mutual empowerment of brand and shopping center needs to be based on the same goal. One of the most important points is to focus on the growth direction of traffic.

Most of the international brands in the past 20 years have established their own traffic outside the shopping center, and fully verified their flow stickiness and liquidity efficiency.

03、 "Future perspective" of traffic operation Real business needs "cycle management"

In order to understand how the brand establishes the flow and flow stickiness, it still needs to go deep into the historical roots.

Commercial real estate has its life cycle, so does the brand. In order to find the essential change in the operation cycle of the shopping center, we need to find two kinds of paths in the business cycle.

Michelle Chevalier believes that there are different stages in the development of French brands, such as the period of decline and the stage of brand development.

One of the core reasons why domestic commercial real estate has been able to achieve rapid development in the past few years is that international brands have entered a period of maturity and recession, and the domestic market has become the growth space at this stage.

Taking Zara as an example, relying on the interpretation skills of popular trends and rapid supply chain response, Zara entered a period of rapid growth in the 1990s, and achieved global distribution within 20 years, and then entered the mature stage.

To a large extent, the domestic commercial market is the end of Zara's regional expansion, but it can also enjoy the dividend after the full precipitation and optimization of the business model.

Similarly, gucci carried out a large-scale brand reconstruction in the early 1990s. Through bold product segmentation and image transformation, gucci switched from the traditional brand value of high-quality technology to the fashion field in a short time, and then continued to create a lot of wealth in the following mature period.

At the end of maturity, gucci chose a brand reconstruction strategy different from that of 20 years ago - not to rebuild its image, but to develop into a multi brand group. The merger and acquisition of Balenciaga, bottege Veneta and other brands is the performance of this strategy, and this kind of unrelated store expansion strategy can hardly bring any gain to the domestic real business.

It can be considered that with the passage of time, the international mature brand will be more and more a double-edged sword for domestic entity commerce. The life cycle of brands determines that they may no longer play their past value in future business.

Therefore, shopping centers need to operate with the logic of "cycle management".

One of the most important is how to identify the emerging and potential brands.

04、 What kind of Street store can be "red" Focus on the four core elements of brand from birth to growth So, back to the present, how should we judge and screen the future possibilities of street stores?

For very early brands, the founder may be the most important factor. Chanel, Christian Dior, Yves Saint Laurent, Salvatore ferra * * and Giorgio Armani are the same.

Brand creators must express new ideas, capture a large number of consumers and prove their commercial feasibility at a specific time point in a certain period.

Brands with long-term vitality tend to keep close relationship with the founders in the birth period, which is one of the reasons why brands often use the names of the founders. Even if it is a brand born in Japan, it may be so. Kawabata Kawabata is one of them. Such as apple, Microsoft and other technology field brand, also often make people recall the founder of the enterprise first. Even after the death of the founder, his legacy can still be used or given new meaning by later generations.

Just as the starting point of a business project is very important, the genes formed at the beginning of a brand also have a profound influence.

In the growth period, the brand should show its potential in three other aspects

One is the adaptability of regional expansion.

What can limit the brand expansion is not the concept characteristics of the brand, but the specificity of its "functionality". In catering, for example, taste can become a key functional limitation.

For shopping centers, even if they are oriented to "small groups", whether they come from the street or not, their current expansion possibilities should be considered. For example, China's ancient shops have existed for a long time, and they are basically distributed on the street, but the consumption tide of medieval times did not gradually form until nearly a year or two.

The second is the level of new product development.

Brand growth depends on multi line product development. Its business logic is that the cost of brand building is usually very high. If consumers can be loyal to the brand, then multi product line is an investment sharing practice. Whether this logic can be reused is also very important for street stores.

As a result, the "cross-border" play has reached a hot spot at present. However, commercial real estate must pay attention to whether the new products are consistent with the old products and maintain a high level of conceptualization.

In terms of the former, if the street store can only provide innovation with "lack of main line", the result may be counterproductive; for the latter, the street brand with "lifestyle concept" as the core may have better sustainable growth ability than the brand with "authentic material" as the core.

The third is the optimization ability of internal process, and the digital operation ability should be emphasized at present.

The digitalization of brand is becoming more and more popular. The optimization of enterprise process is not only the standardization of production and management, but also the digital process of business, supply chain, marketing and so on. For example, the membership system and the operation of new media have become the focus of brand and shopping center.

However, as mentioned above, "optimization of internal processes" does not mean the formation of the strongest flow liquidity. The on-site brands need to cooperate with shopping centers to implement traffic operation measures. Even if the street side stores enter the shopping center, they should maintain and continue to improve their ability to obtain customers independently.

Generally speaking, shopping centers need to comprehensively study and judge street stores from four aspects, namely, the founder, regional expansion ability, new product development level and internal process optimization ability. Furthermore, these criteria can also be applied to the understanding and selection of other brands in shopping centers.

-Summary-

Like the social culture, the naturally formed street shops often have their own characteristics and vitality, from which we can tap and cultivate the vitality of the original power.

Innovation is the eternal proposition of the real business. In the larger business cycle, the real business understands the street stores, judges and uses its innovation power to realize its counter cyclical operation.