Malls, shopping centers change with times
Shanghai Xintiandi, in the heart of the city, is noted for its upscale restaurants, bars, cafes and boutiques, and recently saw an increase in the ratio of the retailers of cosmetics, lifestyle products and fashionable brands in order to diversify shopping options.
For example, Xintiandi invited more world-leading cosmetic names such as NARS and YSL to open flagship stores. Lifestyle brand Tom Dixon's largest and first Asia-Pacific flagship store is also in the pipeline.
Integrated shopping mall Xintiandi Style I, housing cutting-edge trendy brands, will be launched in November this year to further appeal to high-end consumers.
Meanwhile, Xintiandi has been adding more restaurants such as Foodie Social－a 3,000 square meters venue combining the catering and retail experiences.
Clarence Lee, commercial director of the Taipingqiao and Panlong projects of China Xintiandi, said:"With strong support from the government to boost domestic consumption, we have adopted multiple approaches to improve the cultural and social experience in Shanghai Xintiandi since the breakout of the epidemic this year."
There are now more than 50 restaurants and cafes at Shanghai Xintiandi offering delivery services to nearby offices and residential buildings through online ordering channels.
Lee said they have spruced up shopping festival themes, including developing live performances and art activities, and joined hands with tenants in launching promotions and exploring digital tools such as livestreaming to gain more access to consumers.
The RET report added that despite uncertainties along the road to recovery, leading developers and mall operators have never been so firm in developing their online platforms－including online shopping websites and livestreaming promotions－to further expand customer outreach, extend services and boost sales.
A recent China Chain Store & Franchise Association (CCFA) report on Chinese shopping centers suggested mall and shopping center operators improve their daily operational capacities and embrace a transition to digitalization.
The report also found that earlier this year, the COVID-19 pandemic had a severe impact on shopping centers and commercial real estate sectors. The survey collected data from 2,014 retail venues from 44 first-to-third-tier cities. Survey respondents were aged between 18 and 55, and the survey was carried out between October 2019 and March this year.
About six out of 10 shopping centers said the numbers of customers fell more than 50 percent in the beginning of the year compared to October of last year. About 40 percent of shopping malls surveyed said their first quarter revenue was down 30-50 percent during the six-month period.
Developing destinations that have their own unique characteristics in various cities and areas is what shopping mall operators have prioritized in recent years in order to offer must-visit experiences.
"Now, an increasing number of consumers make purchases online instead of visiting traditional retail venues," said Huang Shaomei, executive director of New World Development Co Ltd and chief executive officer of New World China.
"Such changes in shopping behavior have inspired renovations of an art-oriented business model for K11 Art Mall," Huang said.
K11 Art Mall, founded in 2008 by Adrian Cheng－executive vice-chairman and chief executive officer of New World Group－has now sprung up in eight cities across the Chinese mainland.
It is designed to become a destination offering an environment that integrates art, culture, nature and kid-friendly elements to set a consumption trend among a new generation and avoid homogenization. "Such cultural and lifestyle experiences could only be enjoyed if one ventures out of one's home. That is why K11 succeeds," Huang added.
