Traditional retail downturn

Absrtact: Even in the discount season, Beijing's large shopping malls have been difficult to find 400 yuan below the women's shoes. July 19, in the bustling central district of Beijing Xintiandi Shopping Center, a woman came to test shoes told reporters, now come to the mall to select the right clothes, note the marking and

Even in the discount season, Beijing's large shopping malls have been difficult to find 400 yuan of women's shoes.

July 19, in the bustling central district of Beijing Xintiandi Shopping Center, a woman came to test shoes told reporters, now come to the mall to select the right clothes, note the label and style, go back online purchasing.

As the price of clothing in traditional shopping malls is getting higher, more consumers choose to buy online. Trade, Wangfujing, Dong Dan's large shopping malls, it is difficult to reproduce the past bustling crowd.

July 18, the first half of the Beijing Municipal Commission of Business work, January-June this year, the traditional retail industry in Beijing, the overall performance of the downturn, high-end boutique consumption has negative growth. The sales growth in Xintiandi and Dorset, which operates on international brands, has slowed markedly, by 27.9 and 9.6%, respectively, from a year earlier.

The building economy and shopping center economy is an important part of Beijing's modern service industry, for Beijing, where the service sector has accounted for 75% of the national economy, the current signs of a business slump in shopping malls have forced Beijing's economy to become more vigilant.

Traditional retail downturn

In the day of the ventilation meeting, the Beijing Municipal Commission of the market operation director Mrs Lau said, although the first half of the holiday intensive, but affected by the macroeconomic situation, the physical store into the store passenger flow down significantly, the traditional retail industry overall performance downturn.

According to Beijing Business Information Consulting Center, the first half of this year, Beijing 65 key department stores to achieve the first half of the commodity sales 36.81 billion yuan, growth of only 5.9%, sales of negative enterprises accounted for more than 30%.

As commercial property prices rise, resulting in higher rents for shops, high-end boutique shopping malls goods difficult to reduce prices.

In the context of real estate regulation, commercial real estate investment has developed rapidly, which led to the spread of shopping malls, and the increase in rents.

According to data from SouFun, the average fixed rent for stores in Beijing is up 3.97% per cent quarterly, although the new project will add an additional 312,000 square metres of retail outlets to Beijing, but most shopping malls still have a high rate of rent.

Only a rise in rents has left high-end shopping malls powerless to lower commodity prices, leading consumers to shop.

Under the influence of property market regulation policy, commercial real estate is favored by many housing enterprises and social capital, and the number of shopping malls has started to climb.

A report from the China Shopping Center Development Report 2012-2013, which comes from the Chinese purchase Union, shows that Beijing has 245 shopping malls by the end of 2011, of which 216 were opened in 2004-2011, and 645% grew at the top of the national city. Consumers of high-end shopping malls have also been diverted.

Industry analysis, as large city retailers in the new market, mainly to one or two top shopping venues as the goal, resulting in fierce competition in shops, rents increased significantly.

High-end shopping malls are usually located in the location of good and large people flow, is the place where the retailer competes with the investor, the rising store rents also directly causes the high-end boutique shopping center commodity price to be difficult to drop.

Physical Store Transformation

Online stores and brand discount stores are the main contenders for high-end shoppers, and more and more brand makers are starting to hit the web.

Beijing Wangfujing Department Store announced that it will invest more than 100 million yuan to build a complete network operation platform, Wangfujing department store information director Liu Changxin to the media, the next five years, Wangfujing department stores expect in the E-commerce part of the revenue to achieve an average annual growth rate of 70%.

In addition, brand discount stores and other new types of business, in terms of price and accessibility advantages, attract more consumers.

According to the Beijing Municipal Commission statistics, January-June Dorset outlets, day on the cumulative sales growth of more than 30%, Dangdang (micro-blog) cumulative sales growth of 29.5%.

Discount stores in the trend of growth, so that high-end boutique businesses see the path of breakthrough.

During the Beijing-China Fair, the Government signed a letter of intent on strategic cooperation with the Chaoyang District, which will open a large duty-free shop in Beijing CBD area. It is reported that the initial set of duty-free shop area of 3000 to 5000 square meters, the goods sold by the China-exempt group, about hundreds of brands.

Industry insiders believe that the CBD duty-free shop form, can promote high-end shopping entity store sales, still need to observe.

Chaoyang District Commerce Committee deputy director Hong Guangxin has introduced, at present, the main object of duty-free shop is "overseas international travellers", mainly hope that overseas consumption can stay at home, passport visa foreign tourists, in Beijing can enjoy shopping duty-free, departure can be picked up at the airport, do not have to go to the airport to do duty-free shopping.

According to the data, the 2011-year exemption from the group's Sanya in the pilot sales of duty-free shop 1.67 billion yuan, the number of buyers 770,000 people, sales over the central city of a large shopping center.

In view of the drop of the passenger flow in Beijing entity stores, the overall performance of the traditional retail industry is depressed, the Beijing Business Council said that it will be issued a notice in the near future, to vigorously develop the "night Economy", the Initiative and guide business Enterprises in accordance with the characteristics of summer consumption appropriate adjustment of business hours