Will A New Wave Of "Store Store" Disappear In The Future?

In the next 5 years, 1/3 will be eliminated in China's commodity trading market, and 1/3 will be pformed into an experiential shopping center with zero and zero. And 1/3 will successfully connect online and offline.

"Go shopping in the mall on weekends, walk tired, have tea, eat a meal, and watch a movie in the afternoon."

Once upon a time, this model was highly praised and even became a classic model of commercial real estate, which was copied by many cities.

However, as more and more homogeneous shopping malls appear, many shopping malls are deserted and even have to close down.

It is understood that in August 27th, Qingdao sunshine department store closed, August 31st Chongqing the Mixc Parkson Shopping Center closed, September 1st, Dalian Jiu Guang Department store closed......

These closed department stores and shopping centers are a microcosm of the closing trend of China's physical commodity trading market.

In September 5th, the Chinese Academy of Social Sciences Financial Strategy Research Institute and the Social Science Literature Publishing House published the blue book on Circulation: China business development report (2016~2017) (hereinafter referred to as the "blue book"), pointed out that in the next 5 years, China's commodity trading market will be eliminated by 1/3, 1/3 will be pformed into an experiential shopping center with zero and zero, and 1/3 will successfully connect online and offline.

As a matter of fact, many entities have already run difficulties due to the impact of the Internet and the rapid rise in the rent of commercial shops.

Hong Tao, director of the Institute of Business Economics of Beijing Technology and Business University, told reporters that the closure of physical stores is a manifestation of industrial restructuring.

In twenty-first Century, the economic report learned that the reasons behind the closure of physical shops are complex. Some are related to the local government's "fast drying" commercial real estate complex, resulting in serious excess.

The gate of Baisheng shopping center in the Mixc, Kowloon Po, Chongqing is closed.

The center has been operating for more than two years and has just been closed by the end of August.

And 5 months ago, Chongqing's Daping Baisheng also suffered the same fate.

"No popularity, no shut down."

In September 5th, a person who was catering to the restaurant in the Mixc said to reporters.

These shopping centres are not the only ones that are closed.

According to the data provided by Hong Tao, from 2012 to 2015, 138 stores in the country were closed, 262 supermarkets were closed, and 6209 of the sports brand shops were closed.

As for clothing stores, 9464 were closed during the same period.

An important reason for the closure of physical stores is that with the rapid development of the Internet, online shopping is booming, and even many residents shop online to see goods. Online shopping orders are facing serious challenges from online shopping stores.

Wang Xuefeng, Assistant Research Fellow of the Financial Strategy Research Institute of the Chinese Academy of Social Sciences, believes that Internet sales are very good now, and the network retail giants represented by Alibaba and vip.com have already formed.

They are more active in the M & a market, but they are less integrated with the entity retailing industry.

Therefore, on the whole, the impact of online retailing on physical retailing is mainly the impact effect, and the driving role of integration has not yet appeared.

Another reason is that the contradiction between increasing supply and relatively limited demand is becoming increasingly prominent. The surplus of physical shops represented by shopping centers is becoming more and more serious.

For example, Beijing's people's University, a business area around a mile or so near Shuang Yu Shu, has shopping locations such as super market, WAL-MART, (3) Carrefour, Lotte Mart, Metro, Auchan, Shuang an shopping arcade, Huayu shopping center and so on.

The shopping center in Chengdu is 3 million 200 thousand square meters in size, second only to Shanghai in China, and more than 30 times the area of shopping mall in Paris.

According to the blue book data, at present, there are nearly 4000 shopping centers in China, and 3 times as many as in the United States.

In addition, according to the China shopping center industry consulting center, there will be 7000 shopping centers open from now to 2025, when there will be more than 1 shopping centers in the mainland of China.

Another fundamental reason is that many physical shops are "fragile failure" because of their serious homogenization and lack of core competitiveness.

Take the highly respected commercial real estate model as an example.

Jing Linbo, director of the Chinese social science evaluation center of the Chinese Academy of Social Sciences, believes that this mode of commercial real estate has defeated itself.

"Commercial products should collect, customize or design their own products, and grasp the whole value chain, but now the Department Store attendants are not the people of the mall, the representatives of the manufacturers, distorting the essence of the business."

Jing Linbo said.

He admitted that the commercial entity shop is now besieged by the electricity supplier. The most fundamental reason is not that the electricity supplier is too strong, but the entity store itself has not done it well.

"Business entities in the US, Japan and other countries are not as weak as China, and they are meticulous in their services.

It is the hard business of the real business that determines its own decline.

According to the blue book, more commercial shops will also be closed down in the future.

The blue book points out that in the next 5 years, 1/3 will be eliminated in China's commodity trading market, and 1/3 will be pformed into an experiential shopping center with zero and zero. And 1/3 will successfully connect online and offline.

The basis for making this judgement is that there is a serious surplus of physical shops at present, and a lot of them are being built.

The data show that the average shopping center in Japan and Korea is about 1 square meters, and that in Hongkong is about 1.5 square meters. However, the number of shopping centers in some two or three line cities in mainland China has reached or exceeded 2 square meters.

China accounted for 13 of the top 20 largest shopping centres in the world.

Among them, the shopping centers in Shanghai, Chengdu and Shenzhen are 3 million 300 thousand square meters, 3 million 200 thousand square meters and 2 million 600 thousand square meters, and are among the top three in the world.

A city like Huizhou has fewer than 1 million 500 thousand people in the urban area. Over the next 3 years, more than 11 shopping centers are open, and the total area is expected to exceed 1 million 200 thousand square meters.

Predictably, as the competition intensifies, the prospects of these shopping centres after opening up are not optimistic.

Despite the increasingly fierce competition, there is bound to be a physical store that can survive.

So how can physical shops break through?

The above report suggests that department stores should encourage exploration of traditional profit models.

In order to enhance the right to speak and enhance the profitability of enterprises, we should buy and sell some brands and styles of hot brands.

At the same time, we must integrate the offline and offline lines and carry out comprehensive process reengineering to achieve full channel retail.

The report also suggests that local governments should scientifically plan and develop commercial real estate to prevent the development of shopping centers, Oteri J, urban complexes and even e-commerce industrial parks.

We must adjust measures to local conditions, scientifically design and rational layout, and maintain the moderate coordination and stability of commercial facilities. We must avoid "rushing to the top" in a rush to the mass, and prevent the "wind up and cloud collapse" style of mass destruction.

Jing Linbo believes that physical stores will still exist, but must.

Aim at customers and make good positioning.

"The suggestion is that these entities business pactions market must determine who the customer is, what can be provided to the customers, and how to implement differential competition. It is not a 100 store side, but more importantly, it should have experience, that is value-added services."

"Only by improving the quality of goods and services, customers will be willing to pay for differentiated and high-quality products around the ultimate experience of customers, and constantly meet the needs of customers."

Jing Linbo said.

Hong Tao believed that the state should do well.

For example, we should reduce the cost of entity shops.

Now housing prices are rising faster, and the cost of rents in many shopping malls and department stores is very high. For example, 1 years rent per square meter in Beijing Wangfujing area is over 28 thousand.

He pointed out that many shops are closed by rent.

Without paying taxes, there is an unfair competition with the physical shops.

"It is recommended that the physical stores should accelerate their pformation and not pursue sales, but seek profits.

To change the extensive mode of the past, intensive operation can be combined with online pactions, WeChat and other pactions to promote the use of big data to provide facilitation services.

He said.