The Shortage Of Large Brands In Shanghai Commercial Body

In Shanghai, China's largest economic city, the sense of oversupply of commercial facilities is growing.

Over the next few years, the added area of commercial facilities is considered to be significantly larger than 4 million square meters, with a total area equivalent to 100 Tokyo dome size.

Most of them are developed as shopping centers, and there will be an increase in the number of shopping centres where there are not enough merchants to enter.

The completed landmark building Shanghai Center

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Lujiazui is full of skyscrapers in the future.

In the corner of Lujiazui, the construction of Shanghai Center Tower, the tallest building in China, is under way.

The building is expected to be completed in 2015 with a structural height of 580 meters.

After building the accessories such as thimble antenna, its height will reach 632 meters, becoming the tallest tower in the world, the "Tokyo tree" (634 meters) skyscraper.

It is now possible to reach the top 121 storeys of Shanghai Center Tower by high-speed elevator manufactured by MITSUBISHI electric.

The construction of the building has officially entered the stage of interior decoration.

The manager said with great enthusiasm, "besides the offices and hotels, some commercial facilities will also be located."

After completion, Shanghai Center Tower will become a new landmark in Shanghai.

Among them, five floors and two underground floors are commercial facilities with a total area of over 60 thousand square meters.

By the end of 2016, the total number of new commercial facilities in Shanghai will reach 3 million 300 thousand square meters, according to CBRE, a US real estate information service.

From 2000 to 2013, the annual average supply area of commercial facilities in Shanghai was 325 thousand and 671 square meters.

But in the 3 years from 2013 to 2016, this figure will reach 1 million 122 thousand and 876 square meters, and is expected to expand to about 3.4 times.

The development activities are mostly the suburbs with relatively abundant land resources.

For example, the development of new Hongqiao business district.

The business district is guarding the two "empty" and "land" gates of Hongqiao airport and Hongqiao railway station in Western Shanghai.

It is said that by 2016, the supply area of commercial facilities in this area will reach more than 600 thousand square meters.

In the center of Shanghai, there are nearly 300 thousand square meters of development plan that is located in Nanjing West Road, which is similar to the Ginza in Tokyo.

According to CBRE's survey, 90% of the new commercial facilities in Shanghai are shopping center type (SC).

The developers believe that shopping centers with cinemas and gourmet streets can attract more guests than department stores selling clothing, jewelry and cosmetics.

In the background of slow growth of consumption caused by economic slowdown, accelerating the construction of commercial facilities will bring more intensity to people.

Sense.

CBRE also pointed out that some development plans may be postponed.

In China, the "ghost city" has emerged as the center of local cities, with no buyers building.

In the future, there may also be commercial facilities everywhere.

Department stores pform into shopping centers

More attention is paid to shopping centres than real estate developers.

Facing the fierce competition, the department store industry also hopes to protect itself by pforming into shopping centers.

For example, Beijing Wangfujing department store group.

The group started its business in Beijing, which is located in the head office of the company. It is a very famous company, but its revenue decreased in the first half of 2014. 1~6.

The company said it would invest more energy in the construction of shopping centers and hypermarkets in the future.

As the first plan, two new commercial facilities are expected to open in the first half of 2015 in Luoyang, Henan and Leshan, Sichuan.

The overall environment of the department store industry is so grim that even Wangfujing companies are looking for it.

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Sales are hard to grow because of the intensification of competition.

At the same time, the increase in personnel costs and store rentals has a direct impact on profits.

For example, Yintai business group, which takes Zhejiang Province as its center, has a 30% decrease in profit in the 1~6 months of 2014.

Staff costs increased by 25.8%, and operating costs such as rent and lighting, gas and other fuel costs also rose by 20.8%.

On the other hand, the expansion of online shopping can not be ignored.

The expansion of China's online shopping market is so obvious that in 2013, online shopping accounted for 8% of China's total retail sales, forcing the department store industry to take corresponding measures.

In this year, Yintai accepted the injection of about $700 million from the Alibaba.

Yintai's entity store is integrated with Alibaba's online shopping business to promote consumption growth.

In response, foreign consulting firms pointed out that "the main reason for the low performance of Chinese department stores is the lack of differentiation in brand introduction and service."

Whether developing shopping centers or online shopping, if we can not show their advantages, we will not be able to change the situation of fierce competition.