How Do Physical Shopping Centers Do Business For Young People?

According to the World Clothing, Shoes and Hats Network, Shopping Mall Suddenly there was an aquarium, which was very novel a few years ago. But now it is not too much for any new things to appear in the shopping center. The shopping center is no longer just a destination for "buying and buying". You can socialize, read, exercise, and walk children here. It is more like a gathering place for lifestyle.

CBRE, a well-known real estate service and investment company, released the 2016 China Urban Shopping Center Development Index Report at the "2017 China Shopping Center and Experience Consumption Summit", which shows that shopping centers are increasingly popular with Chinese consumers by virtue of rich formats, diverse experiences and comfortable environment, China has become the most active market for shopping center construction in the world.

Xie Chen, head and senior director of CBRE China Research Department, believes that retail in China market After several years of slow development, and real business may usher in a turning point in 2017. In the next six months, it is expected that China's shopping center development index will further rise by 7.5 to 71.7, 21.7 higher than the boom and bust line, indicating that shopping center owners have strong confidence in the retail and consumer markets.

The spiritual consumption of paying for feeling, knowledge and thought is rising, and shopping centers are also becoming carriers of spiritual consumption.

　　 Young people's business

People born between 1984 and 2000 are called "Millennials". They were born almost at the same time as computers and grew up with the Internet. But today, when e-commerce is popular, they are the main customers of offline shopping centers.

With the proportion of fashion brands, offline stores are the most popular purchase channel for young people.

Wu Zhengmei, Vice President of Jiangsu Jingfeng Investment Holding Group, is a senior accountant and good at speaking with data. According to her research, offline brand stores are the most popular shopping mode for post-80s and post-90s generation, accounting for 24.2% of the purchase frequency of fashion brands through different channels; The second is to find friends to go abroad for purchasing, accounting for 22.1%; The third is brand Official website, accounting for 18.3%; Domestic e-commerce, purchase agency websites and shopping guide websites instead rank behind. In addition, from the satisfaction survey, physical stores are the place with the highest satisfaction, accounting for 38.3%; The second is to buy abroad, accounting for 27.5%.

In Wu Zhengmei's perception, the post-80s and post-90s "should be said not to be one generation, but another kind of people". Their typical characteristics are that they hate stereotypical things, like fresh and exciting things, don't care what others think, as long as they like it.

Shopping centers are businesses that rely on customer flow. Wu Zhengmei introduced that a shopping center with an area of 100000 square meters needs 30000 visitors every day to ensure sound development, and it is calculated that there should be 1 million visitors every month. Most shopping centers are regional, so it is extremely important to analyze how to increase the frequency of visitors in the face of consumers within the radiation range.

Wu Zhengmei's survey shows that 51.2% of post-80s and post-90s consumers visit physical stores 1-2 times a month, and 25.1% of consumers visit physical stores 1-2 times a week. Female consumers visit physical stores more frequently than men. Operators should consider what business types and services to match the reception capacity of shopping centers.

CBRE's research found that the millennials spent 37% of their income on leisure and entertainment consumption, spending 9 days a month watching movies, parties and attending activities. In other words, entertainment consumption and social attributes are two important labels in their user profiles.

Xie Chen believes that China is entering a middle class society. As of 2015, the number of middle class people in China has exceeded 100 million, which has become the country with the largest number of middle class people in the world. In the next four to five years, the proportion of upper middle class families (with an annual income of 120000 to 260000 yuan) will increase significantly. Only by entering the upper middle class can the consumption structure of families change qualitatively, from daily consumption to enjoyment consumption.

"What is the combination of shopping mall formats, what is the brand positioning and in which cities, are all issues that need to be reconsidered," Xie Chen said.

　　 The rise of spiritual consumption

"Shopping centers are born on the basis of department stores. Department stores are the ultimate in goods and categories, and customers consume money. In shopping centers, time is consumed, and others are associated consumption. If there is no experience, no customer's stay time, shopping centers are difficult to survive." said Zhou Peng, general manager of Joy City Real Estate.

It is not easy for consumers to be willing to "Kill Time". Consumers' demand for shopping centers has shifted from commodity purchase to lifestyle pursuit, and the operators of shopping centers have to follow the trend. In the past two years, operators have generally increased the proportion of experience businesses, whether for long-term planning or short-term financial returns.

CBRE's research shows that from 2013 to 2015, the proportion of fashion and beauty businesses in shopping centers was between 55% and 60%, while from 2016 to the first quarter of 2017, the proportion of these businesses dropped to 45%~50%. Accordingly, catering, leisure and entertainment, and life service businesses have increased by about 5 points.

"When we look at experiential consumption, we find that consumers are extremely new and tired of the old. Young consumers need to give themselves a strong reason to go to the shopping center, and they hope that every time they go to the shopping center, they will be new." Xie Chen said that this led the shopping center to constantly make brand adjustments, introducing new elements, creating scenes A lot of energy is invested in reshaping the scene.

Xie Chen has the impression that the theme and format of the shopping center have been changing constantly in the past four or five years. From catering at the beginning to cinema, parent-child education and entertainment, it has recently become a bookstore, sports hall and mini KTV. The shopping center is more and more like a carrier, and its function is not limited to "shopping", but more like a life center.

Wei Jianping, general manager of Shanghai Jing'an Joy City and Changfeng Joy City, believes that middle class consumers have more demand for lifestyle management than commodity demand. Joy City also strives to let consumers have in-depth consumption experience in its business. For example, the Ferris wheel of Shanghai Jing'an Joy City is a scene for young couples to create emotional exchanges, through which more commodity consumption scenes can be brought. When young consumers come to shopping centers, commodity purchase is no longer their main purpose.

The survey of Joy City shows that 70% of the consumers who visit the shopping center do not take shopping as the direct purpose, but 80% of them will have shopping behavior. "These consumption are not directly generated by commodities, but by scenes and social environment," said Wei Jianping.

Since it is a life center, the shopping center has gradually become a place for family collective activities, and children can not be ignored in driving the flow of passengers. Yu Xiaochen, general manager of the marketing department of Wanda Children's Entertainment Co., Ltd., said that three years ago, the proportion of parents accompanying their children to the shopping center was not particularly high, 0.8:1 from Monday to Friday, and 1.3:1 on holidays. But now, the proportion of working days has reached 1.7:1, and that of holidays has reached 2.6:1. 3、 The proportion of fourth tier cities is higher, even reaching 3:1 on holidays. "It can be said that children are the engine of family passenger flow. Where there are children, there must be parents."

Yu Xiaochen believes that "small hands holding large hands" only brings adults to the shopping center, but "big hands holding small hands" should be the focus of the operator. After all, it is the parents who pay the bill. We need to consider how to provide good services for children, so that parents can also enjoy spiritual relaxation and pleasure.

　　 Based on market prospect planning

The upgrading of the industry and the change of the concept are also important factors to guide customers' shopping habits. Wu Tiemin, general manager of Deji Plaza, believes that shopping malls need positioning, and brands also need positioning. The success of a mall or a brand does not depend on the number of stores opened, but on the accurate positioning. This high-end shopping center, located at Xinjiekou, Nanjing, used to be a piece of property that suppliers owed rent, owners fled, and was generally not favored more than a decade ago. After taking over, Deji Plaza has achieved the second place in the sales of single shopping centers nationwide in 10 years.

Wu Tiemin believes that the investment attraction of shopping centers is first of all planning, which does not depend on past performance, but comes from the judgment of the market in the next three to five years. A trend analysis once mentioned that the first floor of the shopping center should focus on cosmetics and luxury, but Deji did so several years ago.

Consumption in China is getting younger and younger. A cosmetics counter of Chanel and Dior has a monthly sales volume of nearly 3 million yuan, and a cosmetics counter of YSL can reach 2.5 million yuan. In addition, taking the jewelry market as an example, nine out of ten young people now know Tiffany, Cartier and BVGARI, which has changed the demand of young people for wedding diamond rings in the future to some extent.

Wu Tiemin said that the newly developed post-90s and post-00s accounted for more than 40% of sales, which is a consumption force that cannot be ignored and represents a young consumption trend.

Advance planning is inseparable from insight into consumer needs. In 2014, Tokyo, Japan opened a new shopping center called "Ge Lin Lin", which is only 37000 square meters. However, only 13 days after its opening, it attracted 1 million passengers. Wu Tiemin learned that the shopping center spent more than half a year before planning and attracting investment, and made a comprehensive survey of the business type, customer groups and community characteristics within a 5 square kilometer radius. Finally, it was found that most of the nearby senior apartment residents were 30-40 years old and children raising families with strong spending power, so they built a roof garden on the top floor of the mall. Many mothers would choose to relax here after picking up their children from school.

In addition, an accurate understanding of the essence of the brand is also required when attracting investment. In April this year, Deji Plaza introduced the popular online brand Taoyuan Village. Some people think that this is just a shop selling soybean milk fried dough sticks, but Wu Tiemin is more willing to regard soybean milk fried dough sticks as a kind of culture. At this time, customers are no longer buying goods, but cultural and experiential.

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