Will The Outlets Market Be Popular?

In recent years, the market of the outlets of the second tier cities has gradually become saturated. Under this background, more investors began to plan for the layout of the 345 tier cities.

Recently, Oteri J (China) Co., Ltd. announced that it invested 5 billion yuan to build Tianshui otrice international town project in Tianshui, Gansu. The industry generally believes that the sinking market has both opportunities and problems.

At present, the market competition of the outlets is becoming more and more intense. The group with many years of experience in high-end department stores or luxury goods and the developers with real estate backgrounds are in the market of the outlets of the second tier cities.

Reporter survey found that only in Beijing has included the first Oteri J, Chait Oteri J, Yansha otles and other strong commercial projects.

In fact, not only the first tier cities, but also fierce competition in the second tier cities. Reporters learned that in the first half of last year, three Oteri J opened in Ji'nan, Shandong, and the two neighboring Ott RIS were less than 6 kilometers away. According to industry figures, because of the limited radiometric radius of the outlets, the number of Oteri J in the second tier cities like Ji'nan is two, and not more than three.

As the market of oorlies in a second tier city has gradually become saturated, investors are eyeing the sinking market. Chen Yabo, President of the Chinese ole club, said that the emergence of Oteri J is a symbol of the city's commercial maturity, so if we look at it from this angle, Oteri J will have certain investment value in three or four or even four or five line cities.

At the same time, with the increasing consumption capacity of the residents and the increasingly innovative consumption formats, the sinking market is becoming increasingly active. McKinsey data predicted that in the next ten years, the proportion of the middle class and the affluent society in China's urban families will rise significantly, or 81% in 2022. Among them, the middle class from the three or four tier cities will become the largest group with the largest increase in proportion, which will also become an important contribution group to China's consumption upgrading.

There is a view that the middle class is the main group of consumption of Oteri J, and it is an opportunity to enter the sinking market at this time.

But the reporter noted that in some sinking markets, the list of big business investment is not enough, and the phenomenon of commodity passing season is serious. Vip.com, glamour and so on, which are specially sold for sale, are widely welcomed by users in the sinking market. This will inevitably lead to a diversion of outlets.

"Although the sinking market is highly expected, its overall market space is relatively small, and the corresponding population base, consumption power base and brand sinking state are relatively weak." Chen Yabo said that the three or four line City outlets could not copy the second line model.

From the planning of Tianshui otrice international town project, in addition to providing shopping experience for consumers, the project also joins business, education, hotels, theme parks and other formats, and makes Oteri J a comfortable shopping experience town. It encourages consumers to buy more goods and generate more consumption.

In addition, from the perspective of the overall development of Oteri J in China, there are relatively few projects for large professional chain outlets to enter the three or four tier cities in real terms. Most of them are involved in the transformation of oris or department stores in the three or four tier cities, or in the field of commercial real estate investment.

In the industry view, if there is no professional development and operation experience, orter will be very difficult to do.

Chen Yabo said that due to the shortcomings of all factors in the three or four tier cities, the first thing to do is to do well in the business projects. What kinds of outlets can be done, why people provide services, and how brands cooperate with them, these can not copy the business model of a second tier city.