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Community business originates in the US. in 1950s. In those days, with the spread of family cars and the new developed highways out of town, many citizens moved to the country, and then the community business appeared mainly as the format of shopping mall for those who lived in the countryside. Community business in China has just started with the traditional shops along the street. With the development of real estate, especially the mature of the commercial real estate, the community business made a huge progress. Let’s analyze the forms of it bellow. What forms does community business consist of ? Actually, due to the difference of scale, formats combination, region characters and so on, the intensity of external operation will be different. According to this , it can be divided to 3 grades-extravert type, middle type and introversive type 1. Extravert type of community business:Under the premise of satisfying local residences, it could attract a mass of customers outside. It is the community business type with highest intensity among the three. The business mass is lager in ususal. 2. Middle type of community business: Base on the local residences, it could also serve the external customer group. It has some features of extravert type. 3. Introversive type of community business:It only considers the local customer group in program, and the scale is in the limitation of consumption degree. How to distinguish the 3 types of community business is the first question of analysis. We should be clear the regarding factors in the classification. Which factor impact the classification of community business? Own factor is the factor in relative control in the early planning. To those community business in operation, they radically determine the property, and should be mainly thought over. Many critical factors should be comprehensively considered in the classification of business community. They may be divided into two kinds: own factors and other key factors. The former mainly includes commercial scale, format proportion, and business distribution form; the latter contains the emissive power of community business, the relationship between business and residence, the relationship between business and population in the core commercial area and so on. Commercial scaleis one of the basic factors to determine the type of community business. To some extent, it decides the property of community business and is proportional to external operation intensity as well. Format combinationalso results in external property intensity of community business in a certain extent. The same commercial size with different format combination leads to different external radical intensity. Business distribution formis the key factor to impact the property of community business as well. Different business distribution form causes different commercial property. Among other important factors, depart from the proportion between commercial area and residential area can do relevant quantitative research, other factors are difficult to do distinct quantification. Therefore, we can make a basic judgement on the property of community business. How to decide the types of community business? Extravert type, middle type and introversive type of community business are just relative concepts. The ultimate goal of merchants is to strive for profit maximization. The site selection is also in its own strict standards. In actual operation, introversive type of community business attracts a certain amount of external customer group in some cases. 1.Outline of commercial terms on 3 types of community business Extravert type of community business situation outline No large brand supermarket in 1.5-2km radius of core business area, permanent resident population more than 100000, main city road perfect future of regional planning and development tendency, sufficient display panels facing the main road, smooth population channel and other allowable conditions exist. That could bring in large comprehensive supermarket. The other example is permanent resident population less than large comprehensive supermarket need. In this situation, the main formats combination of brand community standard supermarket and larger catering can be chose. The two case above are both extravert type of community business. Middle type of community business situation outline Middle type of community business base on the local customer group gives consideration of customers around. General acquirement: main road, good transportation system, some display panels may limited by population, less commercial atmosphere or intense competition, common market prospect,permanent resident populationin 1.5-2km radius of core business area enough for brand supermarket. Introversive type of community business situation outline Introversive type of community business basicly only satisfy local customers in the planning. Generally speaking, the competition with similar business is intensive. Less signal consumption group, no good display panel, risk avoidance of developers may exist. The main shop of introversive type of community business is community standard supermarket or convenient supermarket.
According to the news issued on the website of Ministry of Commerce of the People's Republic of China on July 4th, a press conference themed "Retail and distribution Promoting Economic Development" would be held on that day. Yao Jian, spokesman of Ministry of Commerce of the People's Republic of China introduced that in five years the total retail consumption amount in China has increased at an average annual growth rate of 16.3%. The retail scale almost doubles from 2008 to 2012, and now the retail scale of China is at the second place around the world. At the same time, retail workers increased to 60,000,000 from 45,000,000 in 2008. The retail industry occupies 9.7% of the whole GDP in 2012. Yao said that in five years, China has expanded the domestic demand and changed the economic policies. Service industry and retail industry have been developing quickly. The markets at both urban and rural area are prosperous. The prosperous markets have a big effect on leading the production, promoting the consumption and creating new jobs. Retail industry has become an important force to push the society forward. The retail scale enlarges and retail contribution increases. For five years, the retail industry has increasing at an average growth rate of 16.3%. Now the retail scale in China is very big. The retail types are rich too. In recent years, the retail types are multiple. The combination of different business types is very quick. Along with the transformation of the traditional department store, many big one-stop shopping centers emerge. Specialty stores, chain stores develop quickly. The traditional business combined with the modern business satisfies the multiple consumption demands. With the development of information technology and the application of computers, the operation and management of shopping centers have been raised to a very high level. In five years, the online shopping scale has increased from 13,000,000 Yuan to 131,000,000 Yuan, almost ten times than before. The retail organization has been promoted greatly. According to the statistics of China Chain Store & Franchise Association, the retail scale of Top100 chain stores in China has increased to 1.9 trillion Yuan. At the end of 2004, the transition period of WTO is over. The retail industry was opened for foreign companies. More and more foreign capitals are attracted to the retail industry. Yao introduced that the "Twelve-five Plan" pointed out clearly that the service industry should be pushed forward. English.mallchina.net All rights reserved.
An intensive urbanization survey is being done by the Ministry of Housing and Urban-Rural Development of the People's Republic of China (MOHURD). It is reported that at the second half of June, many panels of MOHURD went to the east, middle and west of China to do surveys on urbanization. On June 19th, Li Xiaolong, deputy inspector of Urban-Rual Planning Department, and Li Xiaojiang, dean of China Academy of Urban Planning went to Weifang, a city of Shandong province to do a research on urbanization. On June 20th, deputy dean of China Academy of Urban Planning led a panel to Tianshui, Gansu province to do a survey on urbanization too. It is reported that the conferences on urbanization which has been put off for a time will be held this year. Details on urbanization will be issued too. Urbanization is long term development strategy of China. Researches and surveys are being done at different places. MOHURD is a primary department to make surveys on urbanization. On June 21st and 22nd, Sun Anjun, deputy director of Urban-Rual Planning Department led a group to Zhoukou, Henan province to make a survey on local urbanization. According to the local officers, the urbanization process is very fast in recent years. After the introduction of local officers, the panel raised many suggestions and advices. Many problems were under discussion, especially the usage of collective land. On June 20th, deputy dean of China Academy of Urban Planning went to Gangu county, Gansu province. The panel made a detailed search on the local situations. Though Gangu county is a poor county at the west of China, it has a rich historic background and fine traffic condition. The county has fine industry structures. The panel thought that the urbanization of the county was practical. According to the analyses of Chen Huai, an ex-director of MOHUR, the urbanization of China is not only constructing towns and cities. The urbanization should cooperate with the process of reformation. Urbanization should break the old systems and realize modernization. Big, middle and small cities should develop together and harmoniously. A relevant people told the reporter that from the survey track of MOHURD, we could see that the perspective of the ministry was to comprehend the differences of different places. Weifang and Zhoukou are third tier cities. Third tier cities have more farmers and the number of third tier cities is more than first and second tier cities. All over the country are encomiastic about urbanization. The surveys of MOHURD are to comprehend the factual situations. Only by knowing the factual situations, can the reasonable polices and plans be formulated. The first problem of urbanization is to make a long term programming. Li Tie, a director of MOHURD says that the urbanization is not attracting investment. It is a kind of reformation. English.mallchina.net All rights reserved.
On May 26th, China Institute for Development Planning at Tsinghua University released a report on the development of China commercial real estate. The report said that commercial real estate had generally expanded to second tier and third tier cities. Those cities have become the main battle field of real estate companies. Business market in big cities is saturated. Under this circumstance, suburb of big cities and small city take the advantage and arise quickly. Those real estate companies try to hold the fine investment opportunity, and make a good fortune. According to statistics, the main form of the business layout in third tier cities is mixed-use. Those famous big real estate developers have a big perspective of the whole Sichuan province. China Resources Land Limited, Jinke Group and Green Land Group have entered second tier cities of Sichuan. On May 30th, China Resources Land Limited signed a contract with Luzhou government. The total investment of the contract is about 35 billion Yuan. The contract includes many projects in different industries. China Resources Land Limited will invest 3 billion Yuan to develop city mixed-use which includes regional shopping center and apartment together. China Resources Retail also will develop superstores and shopping centers at the city. In recent years, China Resources Land Limited has built many business projects at second tier and third tier cities. Though the real estate market in second tier cities of the province is hot, the future of third tier cities is unclear. Deyang Poli City and Mianyang Wanda Plaza are regarded as a model. To develop projects at third tier cities has become a strategy of many real estate companies. In April, 2012, Green Land chose Nanchong to built one of the biggest city mixed-uses in China. The total investment is 8 billion Yuan. In June, 2012, Jinke Group chose Neijiang as its first stop. Feng Tao, president of Sichuan Jinke expressed that in ten years, Jinke would develop projects in over 30 second tier and third tier cities. The new built city mixed-uses are huge and multifunctional. They are regarded as the business landmark of the city. With more and more city mixed-uses are constructed, many inside-players say that the mixed-use time is coming. Though city mixed-uses can push the economy forward, it is also a challenge to the consumption ability of the city. A city with three hundred thousand to four hundred thousand populations will maintain a shopping center with 100,000 square meters business area. However, only from 2011 to 2013, in three years, commercial real estate increased too quickly to adapt to the economic situation of those cities. Though city mixed-uses in third tier and fourth tier cities seem prosperous, they are lack of professional ability. Qiu KE, a professor of Southwestern University of Finance and Economics, said that surplus development may comprise risks. English.mallchina.net All rights reserved
Since 2011, there has been a hot commercial real estate upsurge. The hot surge appears simultaneously with the property purchase restriction policies. This is not coincidence. Due to the restriction policies, real estate developers have to transfer to commercial real estate industry which is not restricted by the policies. Along with more and more commercial real estate developers come into the industry, more bubbles emerge. The bubbles are mainly shown in three aspects. The first is at the sale period. On the one hand, the stock is too much, and on the other hand, the potential supply is huge. The second is at leasing period. Leasing is hard. The occupancy ratio is low. The third is at operation period. The return ratio is low for real estate developers. According to the data of the media, it is estimated that the new increasing commercial real estate area will exceed 79,000,000 square meters in 2012 and 2013. By the end of 2013, the grand total of commercial real estate area will reach 250,000,000 square meters. Even without considering the potential supply, the existing commercial properties have had the problem of leasing. We can take Wanda as an example. Wanda is typical current assets. By the end of 2012, the grand total of business area is about 12,900,000 square meters, while the rent return ratio is very low. The rent income of Wanda in 2011 is 3.46 billion Yuan, and in 2012 is 5.207 billion Yuan. The rent income is only 3.68% of its total assets. According to the survey of Rand Consultation, the rent income ratio of listed commercial real estate companies is from 3% of its total assets to 5%. It is difficult to count the total stock area. If commercial real estate can’t be leased, the company will hold it themselves. The property will be vacant. It is reported that average the vacancy rate in second tier cities is about 10.5% in 2012. While in first tier cities, the rate is 7.9%. Among second tier cities, Shengyan and Chengdu have a serious situation. The vacancy rate respectively is 17% and 16.2%. Among first tier cities, the vacancy rate in Guangzhou increases very fast. In 2011, the rate is only 4%, but in 2012, the rate increases to 10.2%. What is worse is that the bubbles do not weaken the commercial real estate investment upsurge. It is reported that there are more than 100 city mixed-uses under construction. In Guizhou, another 100 mixed-uses will be built in five years. It can be predicted that the commercial real estate stock and vacancy rate will increase further. A fierce competition is unavoidable. An expert from American says that if there were economical bubbles, they would be at commercial real estate industry. If the bubbles broke, they would influence the whole market. However, some commercial real estate developers have upgraded or transferred to other industries. The whole commercial real estate industry needs research and exploration. English.mallchina.net All rights reserved
Shopping centers, commercial mixed-uses, and commercial real estate etc., though they have different names, the form of them is almost the same. Shopping centers are the main parts. The subsidiary parts include department stores, catering, leisure, and entertainment and. The business center is multifunctional. This kind of business came into being in 1960s in Europe and America. They are called shopping malls. In China the various shopping malls are getting warm. In some places, they are overlabored real estate projects. Since the national property market regulation polices are put into effect, many real estate investors are seeking for the new increasing point. The investment turns to commercial real estate. This is signal. Do the cities need so many commerce mixed-uses? Will the big commerce mixed-uses become new economic bubbles under the circumstance that the traditional retail is affected by electronic commerce? Do the big mixed-uses need accurate business positions? What kind of cities is suitable to develop commercial real estate projects? At a recent real estate saloon, an inside-player showed his ambition. He would invest eight to ten commercial real estate projects this year. On the one hand, city mixed-uses change the traditional business setup, but on the other hand, many commercial real estate projects are shelved. The bubbles are being further fermented. Commercial real estate projects need creation and precise business position. On January 21st, Beijing Capital Land spent five billion Yuan obtaining three pieces of land at Beijing Lize business district. The group declared that the project will be a high level city mixed-use including office buildings, commerce, hotels and apartments together. At the same day, Li Aiqing, president of Beijing State-owned Assets Management Co., Ltd. said that the reformation of Longfusi project would start. With the progress of urbanization in China, the newly demanded commercial real estate is between 15,000,000 and 20,000,000 square meters. For some real estate developers, five years ago, everyone asked what is commercial real estate? At present everyone talks about who haven't developed commercial estate? However, the fact is that many commercial real estate projects have few visitors. Do we need so many commercial real estate projects? Real estate is rich, but the commerce is rare. It is a ordinary problem to put the real estate before the commerce. Many commercial real estate developers are not professional. Many commercial real estate projects build first and lease later. After completion, many problems spring up. Many projects are useless supply. It is important to find the right direction from the bubble prosperity. Community commerce may be a better way. We can take Wanda as an example. In the last ten years, the group made a big success. The model of anchor commerce attracting customers and small stores balancing current nearly becomes the industry model. However, the Wanda model can not be duplicated everywhere. The diversification development is also a good choice. Only innovation can give the industry a bright future. English.mallchina.net All rights reserved
When most commercial real estate projects don't know what course to take to cope with the impact of Electronic Commerce (EC), the first community commercial real estate project in Shanghai, Pudong Zendai Thumb Plaza forwardly to meet the challenge of EC. From zero this Friday, any consumers who take a fancy of any commodities can place an order and pay by cell phones. Consumers can choose to go to the brick and mortar store or choose the express delivery to pick up the commodities. Online price is cheaper. The software "Zendai Time" has been online. On this platform, users can browse, choose and pay. All the process can be done online. This means Zendai Thumb Plaza can be opened for business 24 hours a day and seven days a week. Zhang Yong, vice manager of Zendai Group, who take charge of the operation and management of Thumb Plaza says that traditional business is under the impact of EC, and Thumb Plaza will meet the challenge actively. In fact, the impact of EC to traditional business mainly began in 2012. The sales promotion of T-Mall reached 19.1 Billion Yuan. The number equals to one quarter of the turnover of Gome, and 2.36 times as much as the turnover of McDonalds in 2011. When the time of EC comes quickly and rapidly, retail industry is the first to be affected. The once problem of business type combination becomes an advantage to meet the impact of EC. Catering, entertainment and leisure are experiential consumption. They can not be replaced by EC. Wang Yonglin, secretary of China Commercial Real Estate confederation says that if anyone wants a cup of coffee outside with a friend, the traditional business will continue to serve the customers. Zendai Thumb Plaza has opened for eight years. It is a mature commercial real estate projects. However, Thumb Plaza still faces some problems. The rent is high and the brand competition advantage is weakened. Therefore, a creative way to activate its vigor is in urgency. "Zendai Time" is not only a way to cope with the challenge of EC, also a requirement of itself. For consumers, "Zendai Time" is only software. But for the Thumb Plaza, The software means a future. Usually, the traditional business use discount and sales promotion to attract customers. The price war actually overdraws the purchasing power in advance. The discount effect will decrease. But with the online of "Zendai Time", the discount and sale promotion can be distributed to every month, every week, even ever hour. In this way the pressure of stock can be alleviated. What is more important is that when consumer come to the store to pick up the goods, a second consumption is possible. As for the future of "Zendai Time", we can wait and see. English.mallchina.net All rights reserved
Recently, Anhui statistical bureau released a survey report about real estate market of the province. Real estate developers don't have a strong confidence. The supply and marketing of commercial real estate is also unbalanced. Besides, the demand of housing has changed. All these factors bring uncertainty to the real estate market. At the first quarter of this year, the real estate market becomes warm. The investment and sale both take a favorable turn. However, there are some problems existing in the real estate market. Since the first round of house controlling in 2011, real estate market was in a downturn. From the second quarter of 2012, housing transactions are in a upturn. In the march of this year, real estate market enters a hot season. In the first quarter of this year, the whole sale area of the whole province is 12,927,000 square meters. The increasing rate is 42% over levels of a year ago. The development structure of residential housing continues to be optimized. Small apartment less than 90 square meters increases quickly. As the housing sale is in a upturn, the capital chain of real estate developers is improved. In the first quarter, real estate companies made a collection of 32.35 billion Yuan, increasing 104%. Personal mortgage is 19.23 billion Yuan, increasing 62.6%. At the first quarter, new building area of the province is about 21,308,000 square meters, decreasing 4.7&. Residential housing area is 15,694,000 square meters, increasing 0.2%. But office building area is 562,000 square meters, decreasing 20.8%. The decrease of new building area shows the cautious attitude of real estate developers under the circumstance of housing control and regulation. This brings uncertainty to real estate market. A table housing price is under pressure. At the first quarter, commercial real estate investment increases 34.3%, but the sale area decreases 17.6%. The quick increase of commercial real estate may cause risks. Experts from statistical bureau express that the central government has shown the determination and confidence to control the real estate market. As for the future trend of the market, it depends on the execution of government polices and local regulations. Taking the housing price into consideration, the warm market will stimulate the development of real estate. Besides, some government projects also will be started. At the same time, the transaction of new houses still keeps at a high level. Except the factor of second-hand house taxes, many drifting house buyers may enter the market in turns. The new house market may become hot. To promote the peaceful and healthy development of real estate market, experts suggest the market expectation be stable. Reasonable consumption is demanded to direct consumers. In this way a fine and stable real estate market can be expected. English.mallchina.net All rights reserved
On April 25th, the second Wanda Plaza project was started. The project is located at Aojiang Township, Pingyang. The project is planned to be completed in 20 months, and will be opened for business at the end of December next year. The local government declares that the project will propel the urbanization process. Since the news was released that Wanda Plaza would be located at Aojiang, the project has been a hot topic for the people at Aojiang and around. Can "city within city" change people's life style and change a city? Recently, the urbanization process in China is accelerated. Many cities take city mixed-use or "city within city" as an important way to propel the urbanization process. In Wenzou, from the south to the north, and from Cangnan to Leqing, in several years, about 20 city mixed-uses have been built. City mixed-uses boom everywhere in Wenzhou. Pingyang Wanda Plaza is very hot in Aoyang and Pingyang. The total size of the project is 550,000 square meters. The plaza is so famous there that Mingfa city mixed-use is almost forgotten by the local people. Longgang is three or four kilometers far away from Aojiang. Longgang Fountain Center mixed-use is to be finished soon. As the resources are concentrated highly, mixed-use has become hot. Then can they provide what everyone expects? The first "city within city" is Longwan Wanda Plaza. The plaza has brought different experiences to the local people. The plaza was opened on November 30th, and the total building area is about 386,000 square meters. The supporting facilities of the area are comparatively insufficient. Before the plaza came there, local customers need to go to Renmin Road or Xialvpu for shopping. But after the project came, the place assembled different kinds of business. The place became prosperous. That is all due to Wanda Plaza. The Atlantic Shopping center at Ouhai new district is expected to play the same role as Longwan Wanda Plaza. They are expected to promote business facilities and improve business atmosphere. Just three or four years ago, the traditional business model in Wenzhou was criticized by many people. The business model lacks unitary plan and set-up. In several years, "city within city" booms. This phenomenon makes the city excited. However, many experts also show their worry. In fact, Wenzhou citizens are familiar with city mixed-use. The Wenzhou European City is also a "city within city". Wenzhou European City includes apartments, office buildings, department stores etc. But it has a hard development. Until the April of last year, it has a quick development. Recently, reporter interviewed several related offices on the question that if the city mixed-use were too dense. The inside-players didn't give any answer. Zhang Yili, dean of Business Collage of Wenzhou University said that those city mixed-uses need exact business position to avoid the phenomenon of empty cities. English.mallchina.net All rights reserved
Recently, The 2013 Strait Tourism and Culture Development Forum was held in Fuzhou. Experts from both sides of the strait will investigate the cultural heritage and development in Fujian and Taiwan together. Those experts are famous in tourism, economy and culture industry. They did brainstorm on tourism real estate and tour trend. The tourism exchange between Taiwan and Fujian is more than any other provinces in China. Doctor Wang Lirong from Chuang Hua Institution for Economic Research is very optimistic about the prospects for the development of Strait tourism and cultural exchanges. She expressed that one tenth of the tourists to Taiwan are from Fujian province. At the same time, the destination of one fifth of the tourists from Taiwan is Fujian province. From her opinion, a good tourism culture will boost the economy significantly, and this is sustainable. With the development of the economy, the travel demand of the Chinese will increase dramatically. The domestic tourism prospect is promising. Especially the regional tourism has a very bright future. Tourism and culture mixed-use will better promote the strait tourism and culture development, Professor Yuan Shuqi said who is an advisor of Fujian tourism. Fujian has a wealth of ecological and cultural tourism resources, which is excellent among the coastal cities. Therefore, the culture tour is as important as the sightseeing tour. The culture tour will not only increase the tourist number, and will attract them to come back again by leisure, health, and vacation etc. Developing tourism should guarantee the traditional culture. Fujian and Taiwan has a close geographical location, and the consanguinity is very close too. There are many cultural identities between the two sides of the strait. Professor Lin Jifu from China folklore Society expresses that tourism culture is creative. He hopes that culture will be regarded as the soul of the tourism between the two sides of the strait. At present, tourism real estate is complicated. Developers must have a clear plan. A good tourism should comprise both natural resources and humanistic resources. Only by keeping the features of the culture and integrating into modern and scientific elements, can the projects reflect the cultural, social and economical values. English.mallchina.net All rights reserved
During the Chinese People's Political Consultative Conference National People's Congress, the hot topic of the new real estate regulation policy has no effect on the commercial real estate. In recent years, commercial real estate has a quick development. Without the restrictions of the regulation policies, commercial real estate has blowouts continuously. Foreign capitals obviously have found the business opportunities at the commercial real estate of China. Recently, the U.S. private equity firm Warburg Pincus became a shareholder of a commercial real estate company, Beijing Tongchang Shengye Assets management Co., Ltd. (T&C Group). Tangyao, an elevated manager from the group expressed that the Warburg Pincus regarded the prospects of the T&C Group is reasonable. In three years, T&C Group has served commercial real estate projects worth more than 190 billion Yuan. The group has a database including 150 shopping centers and over 10,000 brands in 36 cities around the country. All these representations show the confidence of the foreign capitals. They are sure to make a profit at the commercial real estate market of China. Joseph Gagnon, Managing Director of Warburg Pincus, has made it clear that the commercial real estate industry in China continues to be optimistic. Xie ChaoYing, deputy of National People's Congress and the director of the Hunan Province Economic and Information Technology Commission, told reporters that we should pay attention to the foreign capitals. According to the publicly available data, since the third quarter of last year, the foreign has took part in many large real estate transactions. The proportion of the participation has been increased to 36% from 16% in the second quarter of last year. However, the transaction mainly is commercial real estate projects. T&C Group has fine strategic advisory relationships with all levels of local government. Tang Yao told reporters that in recent years, T&C Group has set up regional branches in the southwestern region of Chongqing, East China, and Shanghai continuously. In three years time, In three years time, In three years time, the company served nearly 16 million square meters of commercial projects. T&C Group has served nearly 16 million square meters of commercial projects, and also has become a strategic partner with many famous real estate developers, such as Vanke, Sino-Ocean etc. These are the basis for the T&C Group to be a investment organization and real estate developer. Warburg Pincus prefers the foundation laid by the group at the commercial real estate field. Besides, the booming commercial real estate in China is another important reason. According to a global survey, international investors favour three countries. They are the United States, Turkey and China. Zhang Xin, Co-President of SOHO China said residential real estate development is coming to an end. But she predicts the commercial real estate in Beijing and Shanghai will be expected to sustain growth. It is reported that Warburg Pincus manages assets of over 30 billion U.S. dollars. Warburg Pincus invests more than 125 companies. Since 1994, Warburg Pincus has invested many different industries including 7 Days Inn, Gome, Harbin Pharmaceutical Group, etc. Since 2003, the total investment of Warburg Pincus is about 3 billion US dollars. But there are also different voices. In the last five years, the investment on commercial real estate is far more than the growth in retail sales. Risks are also increased. English.mallchina.net All rights reserved
Urbanization brings many business opportunities to commercial real estate, and attracts many companies to the industry. Many of them are amateurs. Those nonprofessional companies can't refrain from the temptation of the industry. In 2012, Wahaha Group got into the commercial real estate industry. In the February of 2013, Kingway Brewery Holdings Limited, VV Group and Beijing Oriental Garden Shares Co., Ltd. entered the commercial real estate one after another. On Feb.25th, Beijing Oriental Garden Group held a welcome ceremony at its headquarters. The ceremony was named “Get-Together" to welcome four famous managers. They are Yin Rong from Forte Group, Zhang Pengli from Topspring, and Ding Yao, Yan Chunhao from Wanda Group. Beijing Oriental Garden recruits the four famous managers is regarded as a signal that the company will get into the commercial real estate industry. Beijing Oriental Garden Shares Co., Ltd mainly focuses on the research and sale of plants, the design gardens and landscape engineering etc. In the recent years, the group pays more force on the development of commercial mixed-use. An inside-player from the group told the reporter that the group got some land parcels from the government. This also pushes the group to enter the commercial real estate industry. It is reported that many nonprofessional companies got into the industry this year. Kingway Beer also issued a report that it transferred the production, distribution and sale of the beer to Snow Breweries, and it would develop commercial real estate projects. In fact, as early as the 2012, there were many nonprofessional companies setting foot in the commercial real estate industry. Under the influence of the housing regulation and control policies, many housing developing companies transferred to the commercial real estate industry, while in this year, more nonprofessional companies entered the industry. There are many business opportunities in the process of urbanizations. The government regards the urbanization as a good way and a good chance to stimulate domestic demand and narrow the urban-rural gap. Therefore urbanization will bring appreciations to the commercial real estate. Many nonprofessional companies also take urbanization as a good chance to make money. Behind the urbanization, the government invests a lot on the public traffic to push the local economy forward. Beijing can be taken as an example. The consumption market has a special phenomenon of "South Cold and North Hot". However, along with the development of South City, especially with the completion of Subway line 4, the consumption market is no longer what it was now. Urbanization makes the peasants rich. They have big consumption potential. This also wil become a new retail growth point. Urbanization brings the demand of commercial mixed-uses. The consumption in the future is multiple. The traditional supermarket can not satisfy the demand any more. The modern shopping mall will provide shopping, catering, entertainment and leisure etc. This can satisfy the demand in the future. Though the urbanization can provide good business opportunities, risks are still there. The commercial real estate should pay attention on the Economic bubbles. The core idea of the urbanization concerns human, not building new projects. English.mallchina.net All rights reserved