But we heard a different voice, is there no one in the Shanghai shopping mall? Is the vacancy rate high? Some bloggers took those shots
"Is there a shortage of people at Hyatt Plaza? It's not that bad. Our store's customer flow has always been stable, and the popularity of the entire mall is still good. Although some shops are closed, new stores are constantly opening," said Zhang Zhao. He is the regional manager of Han Lichen, a company specializing in immersive experiential consumption. Han Lichen has opened three stores on the third floor of Mosaic Plaza on Nanjing East Road Pedestrian Street in Shanghai, including an immersive floating theater, a starry sky art museum, and a heartbreak museum. The reporter chose to visit on multiple working days and saw three stores lined with consumers waiting to enter, some even dragging suitcases. Zhang Zhao revealed that in the past two months, the daily average customer flow of the store has reached over a thousand people.
Consumers waiting for the experience
Throughout the entire Mosaic Plaza, there is a constant flow of passengers at entrances, exits, and escalators. The themed exhibition in the atrium attracts young people to stop, and there are often waiting queues at the entrance of popular restaurants. The brands facing the street mainly focus on sports and fashion, with people coming and going. Although some shops have set up fences, it shows that they have not been rented out yet; But there are also shops undergoing renovation, announcing that they are about to open.
The crowds in the mall are not "sluggish"
Seeing such a scenario does not lead to the conclusion that the economy is in a recession and shops are closing down. However, in some self media reports, Hyatt Plaza is one of the representatives of poorly managed shopping malls on Nanjing East Road Pedestrian Street.
For some time, there have been many posts or short videos on the Internet focusing on the Shanghai shopping mall, and there have frequently been enclosed shops, corridors with few passengers, and then there are keywords such as "massive closure" and "crisis". Are these all true?
"Perils abound everywhere"? Actually, self media is "preconceived"
"In almost any city, it is possible to capture scenes of a sparsely populated shopping mall; but similarly, it is also possible to capture scenes of crowds and crowded crowds. This is because the market pattern is that some shopping malls have good business while others have poor business. Several frontline practitioners believe that some online articles or short videos belong to the category of" theme first "and" preconceived ", deliberately selecting specific shopping malls or time periods to reflect the" crisis ".".
Some self media outlets refer to shopping malls as "empty", but in reality, there are many "internet celebrity stores" that often queue up
The insiders also said that in our media articles or videos, we often emphasize "shopping malls in the central city", which is either a lack of understanding of the business in Shanghai center or a deliberate neglect of the current situation of the most intense commercial competition in the central city of Shanghai
The commercial development in the central urban area started early and developed rapidly, but it also led to problems such as outdated facilities and difficulties in renovation.
For example, traditional commerce mainly focuses on "department stores", which, in layman's terms, means selling things. Some early commercial buildings not only lacked chimneys, but even elevators. Nowadays, the experience economy is becoming increasingly popular, but even if these commercial buildings want to introduce new formats such as catering and leisure entertainment, they are still constrained by hardware. If it is overturned and restarted, it means a large investment, which is not a small pressure on the operator. In this situation, it is not surprising for the owner or operator to press the "pause button" and consider the plan.
As long as the business format is suitable, the branch roads of the pedestrian street also have high popularity
The fierce commercial competition in the central urban area is an undeniable fact.
According to the 2022-2023 Development Report of Shanghai Shopping Centers by the Shanghai Shopping Center Association, Shanghai plans to open 45 new shopping centers with an area of over 30000 square meters and an area of over 3 million square meters in 2023, which is the highest in nearly three years. By the end of this year, it is expected that the total number of shopping centers over 30000 square meters in Shanghai will exceed 400. Roughly counting these 400 shopping centers, it will be found that they still exhibit the characteristics of more central urban areas, more central and inner rings, fewer suburbs, and fewer outer rings. It can be seen that shopping centers in the city center and traditional shopping malls not only face more fierce market competition, but also have a natural radius of service for people far smaller than suburban shopping malls.
Nanjing East Road Pedestrian Street has a large passenger flow, but it also faces problems such as fierce competition among shopping malls
Even in popular commercial streets like Nanjing East Road Pedestrian Street, location does not determine everything.
In addition to Mosaic Plaza, the adjacent Landmark Plaza and Metersbonwe flagship store are also typical examples of "poor management" frequently mentioned by self media, but they overlook the development process of these stores that have undergone multiple adjustments, both lively and quiet. It should be said that every round of operators has explored, but not all exploration leads to good results; Or, in other words, some formats may be popular among consumers at a certain period of time, but may also be phased out after a period of time.
Industry insiders have pointed out that the rise and fall of these shopping malls should be objectively viewed. "From the development and changes of pedestrian streets, the commercial operation of this section itself has bottlenecks, and there was once a saying of 'commercial Bermuda'. Therefore, there is no need to overly interpret the current situation of the Landmark Plaza and Metersbonwe flagship stores that have not yet been rented out. The current market environment is more complex, and whoever takes over must first think about 'what to do'. Temporary blank space is not scary, what is scary is hasty opening and then hastily closing."
"On/off" itself is a market norm and does not require excessive interpretation
Old and outdated formats are naturally phased out, while emerging formats are flourishing
"It is not advisable for self media to be 'preconceived' and choose to empty out physical commerce in some desolate scenes. However, it does not mean that old business models can remain unchanged. For many established shopping malls and even commercial streets, transformation is urgent. It is normal for those that cannot be changed or are unwilling to change to be eliminated by the market. Industry insiders do not hesitate to say that in the current consumer background, old business models have reached a time when they have to change.".
The Qipu Road clothing wholesale market and shops in the underground passage of Shanghai Railway Station mentioned by some self media belong to this category. Although they have concentrated a large number of small stores, providing consumers with the pleasure of "Taobao", in the new market environment, many stores, regardless of their business formats or service methods, can no longer keep up with the trend of the times.
Moreover, Qipu Road Clothing Wholesale Market and the underground passage of the railway station are located in the core area of Shanghai center's central urban area, which can be said to be the "facade" of Shanghai. In terms of storefront, traditional clothing and small commodity transactions are also not suitable. Their decline had already shown signs for several years.
"Every clothing store is similar," "prices are not as cheap as online shopping," and "the environment is not very good." These reviews on social media may reflect the market's expectations for the transformation of traditional business models from another perspective.
"I have heard of Qipu Road and know that it is adjacent to Suzhou River, but after watching social media sharing, I feel that the nearby 'Jinchao 8 Lane' has more Shanghai characteristics," said Song Xiaoli, a college student who came to Shanghai for summer tourism. Before setting out, she did a lot of "homework" online, and finally decided to make the Bund, Garden Bridge of Shanghai, Bund Source and Jinchao Lane 8 a "one-day tour of the Bund and Suzhou Creek" on the itinerary.
Just like the rise of Jinchao Lane 8 near Qipu Road, while old and old business models are gradually being phased out, new forces and new business models are flourishing, demonstrating new appeal.
The Jing'an Kerry Center has also been criticized by some self media for its low popularity and high vacancy rate, but white-collar workers working in the surrounding areas do not see it that way.
"The quality of the shops in the mall is very high, and I don't think there are too few people." "There are many 'internet celebrity' restaurants, and people often have to queue up." During street visits, many office workers also mentioned various activities held in the mall's South Square and Anyi Night Lane, such as jazz performances in spring, coffee culture week, global food festival in summer, outdoor fitness day... "
The interactive activities held by shopping malls are very popular among consumers
Ms. Qiao, who works in an office building next to the mall, said, "I come here not only on weekdays to consume, but also on weekends. Because lululemon in the mall organizes free yoga classes on weekends, many of us are office workers. In August, there was also a sports challenge here, and it felt great to have hundreds of people doing aerobics together!"
She shared a live video: the roads between the shopping malls were transformed into sports fields, with events such as aerobics, frisbee, dynamic bicycles, and mini football fields arranged in sequence. People of different ages and skin colors gathered here, sweating and laughing. Ms. Qiao commented, "Nowadays, business is not just about shopping, eating, and shopping, but about building a 'sense of connection' with content that others don't have - I never thought that a sportswear store would have a fitness classroom before. After experiencing it, I felt 'really fragrant' and naturally became a repeat customer of the business."
Behind Ms. Qiao's personal experience is the rapid development of the new business model of sports and fitness consumption.
The enthusiasm of consumers for sports has also heated up related products and services
Public information shows that the store she frequently visits is Lululemon's largest store in the Asia Pacific region, which only opened in March this year. The brand has also developed very fast in Shanghai - the first store of this sports brand that entered the Chinese market at the end of 2016 was in Shanghai, and later 17 stores were opened in Shanghai, not only the largest store in the Asia Pacific region, but also the first single family street store in China located in "wutong District". Along with sportswear, it is popular among young people, as well as the "in store fitness classes" brought by brands.
Sports and fitness services are equally popular throughout the city. At 10:00 am on August 5th, the Shanghai Sports Bureau, together with Meituan and Dianping, distributed 5 million yuan of sports consumption vouchers. Within 20 minutes, all the first batch of consumption vouchers were snatched. Since then, sports consumption in Shanghai has continued to heat up. Since July, the scale of sports and fitness consumption orders on the Meituan platform alone has increased by more than 180% compared to 2021.
Monitoring data "slaps the face" and self media smears
In terms of the overall trend of Shanghai's commerce, the results of multiple research institutions or third-party platforms show that the first store economy and experience economy are flourishing, and the market is generally improving. The vacancy rate in the retail industry, which has been bitten by some self media, is also continuing to decline, and self media is positively tarnishing the Shanghai commercial industry.
According to Cushman&Wakefield data, 1073 new first stores will be set up in Shanghai in 2022, and the new scale will continue to lead the country; From January to February 2023, 181 new first stores were added, and the characteristic commercial district has become an important carrier for the first store in Shanghai. As of the end of the second quarter of 2023, the overall vacancy rate of the mid to high end shopping center market in Shanghai has decreased by 0.5 percentage points month on month, currently at 9.6%, which is the lowest point in history since 2022, reflecting the strong recovery momentum of the Shanghai retail market. Cushman&Wakefield also predicted: "In view of the steady and sustainable development momentum of Shanghai's economy, the future of Shanghai's retail property market should remain optimistic in the next two years."
According to a report by CBRE, the vacancy rate of retail properties in Shanghai has continued to decline since the beginning of this year. Among them, the first quarter saw a month on month decrease of 0.3 percentage points, and the first floor rent of shopping centers stopped falling after three consecutive quarters of decline; In the second quarter, the vacancy rate decreased by 0.1 percentage points month on month, currently at 7.6%, and the rental trend for the first floor of shopping centers in the city remained stable. At the same time, the commercial demand in the city continues to rise, and the demand for catering, fashionable clothing, and jewelry accessories is eye-catching.
The continuous theme activities have greatly enhanced consumer enthusiasm. Since the beginning of this year, "China-Chic Four Seasons Wonderful Application", "National Fitness Day · Sports Publicity Week", "Road Life Festival" and other events have appeared in succession, accelerating the recovery of Shanghai's retail industry, which can be supported by a series of data——
According to Meituan data, from mid July to mid August this year, the year-on-year growth rate of service retail related orders in Shanghai reached 94.4%, ranking first among all provinces and cities in China. Among them, catering related orders increased by 43.4%, hotel and homestay orders increased by 105%, ticket and vacation orders increased by 170%, leisure and entertainment orders increased by 171%, and sports and fitness orders increased by 155%.
The first "Road Life Festival" of Xiaohongshu, which ended in mid August, covered a total of 37 roads and surrounding areas in Shanghai, attracting more than 400 brands and small shops, and more than 2 million citizens to participate in offline interactive experiences.
The old-fashioned themed event "May 5th Shopping Festival" also brings real gold and silver. According to data from the Consumer Market Big Data Laboratory, during the shopping festival, the daily average offline consumption in Shanghai was 7.13 billion yuan, an increase of 16.2% compared to the same period last year; According to big data monitoring in Shanghai, the daily average online retail sales in the city reached 4.77 billion yuan, an increase of 16.6% compared to the same period last year.
Small and niche sports such as archery are gradually emerging in Shanghai
"The commercial competition in Shanghai is very fierce, but as long as there is a unique service, there is a chance to break through," said Xiaoman, the manager of the MOHO store at Daoshun Archery Hall. MOHO is a new shopping mall that only opened at the end of last year, about 1 kilometer away from Nanjing West Road. It can be said that from its inception, it faced competition pressure from mature commercial districts; The Archery Museum started operating on January 1st, with a total area of only 180 square meters and a relatively small area. But in just over half a year, the store has achieved a balance of income and expenditure, with a slight surplus. "Even on weekdays, there are still over 10 customers; on weekends, it can reach 40 to 50." Xiaoman said that young people and many children came to try archery as a new sport, with a wide range of customer combinations, including couples, parent-child families, company team building, etc. "In short, although there is competitive pressure, there is more motivation to open a good store."
The reporter strolled around MOHO and found that the investment promotion in the mall had not yet been completely completed, but many stores were already like Daoshun, with high popularity: on weekdays, there were almost no empty seats in the consumption seating area of Nianhu Bookstore; In addition to archery, indoor surfing, dance classrooms, and other sports and fitness services are also very popular. There are even consumers wearing camping vehicles with equipment at the entrance of dance classrooms, hoping to dance on the same stage as their favorite instructors
Experience consumption such as dance and fitness has attracted a fixed consumer group
"We have stores all over the country, but the market atmosphere in Shanghai is the best. Consumers are willing to try new things and have strong purchasing power." said Long Haitao, the person in charge of Daoshun Archery Museum. In the past three years, only one store in Shanghai has not renewed its lease due to expiration, and the rest of the stores are operating normally. At present, the brand has 10 stores in Shanghai and is constantly expanding, with an expected doubling by the end of the year.
Analyzing the reasons why our business model has initially established a foothold in Shanghai, Long Haitao believes that this is the result of Shanghai's iterative commercial development. Some of their stores are located in large shopping centers, while others are located in community commercial complexes. "Although there are differences in the scale and positioning of the commercial complexes, overall, Shanghai's commerce has iterated from version 1.0 to version 3.0- version 1.0 is a traditional department store, version 2.0 is' retail+catering ', and version 3.0 is' retail+catering+experience'. The connotation of 'experience' is very rich, meaning more combinations, such as' business+sports', 'business+culture', and 'business+technology'... The space is too large, and the potential is infinite, it depends on how practitioners grasp it."
