“Red Sea” In Beijing
The high tide of complex development is sweeping the tier 1 and 2 cities in China. Data show that every year there are 300 new shopping malls born in the domestic market and by the end of 2015 the total number will reach up to 4000. With the rapid growth of commercial real estate investment, the competition has entered a cruel “Red Sea” period.
How to break the bottleneck in the competition has been a hot topic faced by many commercial real estate projects. Some opined that the crisis at the present stage mainly comes from the so-called “Homogenization”, so the key to succeed will be “Differentiation of strategic orientation”. Products with differentiated values will contain huge potential of appreciation because of its growing attractiveness to customers.
There is no need to explain too much about the importance of commerce to a city. Regarding to the commercial real estate market in Beijing, the overall balance of supply and demand is kept in a stable status, in which the commercial value should be gradually released and realized. Previously, the developers built the commercial projects with the logic of residential buildings, but now they are more concerned about the reasonable format planning and self-adjusting growth to realize the regression of value.
Taking the Poly Metropolitan project located in Tongzhou District in the eastern suburb of Beijing as an example, this project is regarded as a commercial and artist complex with the lowest density in Canal CBD area in Tongzhou. Except for its advantage of location, it also contains the only 24-hour operating all-format commercial street on the riverbank in this area. All the stores in Poly Metropolitan are facing the main street with GBA ranging from 100-150 sq.m. Furthermore, that each store is equipped with a basement of 40-169 sq.m. also creates a competitive performance price ratio.
Taking a look at the present market with such cruel competition, we can find out that the winners are not getting inside the “Red Sea”, nor are they trying to simply strive for the customer flow, on the contrary, they are caring more and more about the differentiation of shopping experiences. The combination of commerce and different environments will create stronger attractiveness to customer groups. The outstanding projects such as Poly Metropolitan, Edmonton Shopping Mall and Mosaic Plaza in Kobe, Japan, are all featured with special and differentiated environments. Poly Metropolitan project took full advantage of the canal and built a special commercial street on the riverbank, which gathers art, culture and social communication all in one complex. There are four major shopping themes: cultural leisure plaza, brand theme stores, fashion shopping blocks and riverbank restaurants. The combination of differentiated commercial and artist phenomenon and special shopping environment has created a brand new shopping experience.