Report on cooperative development between shopping centers and Chain brand merchants in China 2014
The report is developed by Deloitte China Consumer Business industry, Real Estate industry, CRIC and China Chain Store & Franchise Association (CCFA).
Chinese shopping centers, from the appearance in 1980s to now, have been through the upgrading from department stores in early period to the fast development period led by the developers. Especially, in recent years, being the “oasis” of the macro control, shopping centers are experiencing fast development. Moreover, the changing consumer behavior and improving demand also drive its development. Currently, China has almost 3500 shopping centers. Accordingly to a survey, among 20 cities with the largest (by square meters) shopping centers under construction, 13 cities are in China. However, along with the fast expansion in quantity, shopping centers’ problems are accumulated for a long term including unclear positioning, serious homogenization, and low efficiency. In addition, these problems become worse in the background of depressed retail industry, sales distributed by E-commerce and mobile commerce, as well as fast changing consumer demand and consumption mode. Shopping centers are initiatively and passively seeking for the transition and striving for survival and grow in the transition.
Based on macro data of the industry, interviews of insiders as well as 331 questionnaires for shopping center developers, merchants and customers, the report analyzed the current status and trends of the industry. Furthermore, it explores the transformation direction of shopping centers mainly from three aspects.
First, there is no doubt that E-commerce and mobile commerce has reshaped consumers’ behavior so as to drive the change of traditional business mode. In result, seizing the opportunity to step into online and mobile business and finally achieving integration of online and offline has become the direction of transformation for shopping center developers and retailers.
Second, experience retailing and characteristics are major breakthroughs of the differentiated operation of shopping centers.
Third, emerging residential areas outside of the city center, accelerating of life pace and scarcity of the central business circle promote the development of community shopping centers.