New South China Mall Fights For Survival, Spends ￥200 Million on Reinvention

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Wiki: New South China Mall

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Vagabond Journey coverage: New South China Mall: An Update On The World’s Largest (Ghost) Mall

In the video from last year, the mall looks the same as it was when I was there in early 2011, but business picked up in June according to the article below. Visitors hit a new high of 80,000 on June 1 and average time spent by visitors increased. The developer in charge now is also looking to be cash flow positive by 2017, which still gives him two-and-a-half years to improve the situation.

Many shop owners had purchased their shop space, but the new owner, PKU Resources (PKU= Peiking University), has repurchased property and currently owns about 80% of the retail space.

Next year on May 1, the mall will have its grand "re-opening" following the ￥200 million renovation.

“全球最大商场”华南Mall2亿元重新改造 免租求生

See high-speed rail bolt again, he was busy and a number of new friends - go to New South China Mall in late stationed shop bosses, lively discussion daily operation. The original six months before the world's biggest and, as this is the foreign media called a "ghost town" of the shopping center, general manager of South China Mall, in the outside world in a variety of exaggerated rumors, he did hit the wall every day, Chaiqiao, fill fountains ......

"June 1 the same day, people traffic and sales hit a record of South China Mall." Tied to high-speed rail, " First Financial Daily "said that the day of the flow of people reached about 80,000 people.

"Eat to queue" here today became the deepest feelings. According to a number of days and department stores in the shopping guide describes the clothing retail counters, the business can be, and now the weather is hot, the evening more people.

"Just opened that week, the daily turnover is calculated to tens of thousands." Maniform underwear store clerk told this newspaper that, according to her observations, despite the current business was good, but the people who come here mainly to eat, drink, Incidentally shopping.

Opened from January to now, South China Mall daily average flow of people to keep more than 1 million people, per capita increased residence time of 2 to 3 hours.

Bao Xing Tea restaurant owner said Lee, whose business is getting better, the South China Mall stores operating performance has slowly than in Dongguan old results.

In fact, since 2005 for the public business, South China Mall in the industry is being questioned. 2012, with the "vacancy rate of 99%." Rumors emerged, this former "world's biggest shopping mall" was sensationally dubbed "ghost town" title.

200 million yuan to reinvent

December 2006, Peking University Resource Group from South China Mall in the hands of the original owner, Hu Guirong officially took over the project.

According to high-speed rail bolt memories, since taking over, the South China Mall has been solving problems left over by history, "North resources only requirement is to make an inventory of my assets, to achieve cash flow positive in 2017."

According to the plan the budget resources allocated 200 million yuan for the North South China Mall large transformation, which includes all aspects of the transformation of the transformation of moving lines, facade renovation, interior transformation.

According to Wen, 胡对华 South Mall devoted a great deal of effort, from the United States invited a very well-known design company to do the architectural design, which is home to the American design company moved to the U.S. shopping center designed Dongguan.

Many industry insiders believe that the Chinese shopping mall to be busy farm, food is a very important part. South China Mall American design to the main building left a lot mishap.

"We got a shopping center, business lunch needed gas, grease traps, cesspools, no nothing." High iron bolt, said late reformation, cost a lot of money.

In addition, American-style shopping malls are not designed to meet the Chinese shopping mall crowd movements. South China Mall now shatter the previous entrance building, tore down the bridge into the plaza, fountains landfill, the entire square was completely open.

"Before no transformation, which very few people would go to the shops." Said a merchant South China Mall.

In addition to reconstruction, recovery of retail property is also placed in front of a puzzle university resources. According to university resources to verify Before the acquisition, the South China Mall, 80% of retail property rights have been sold to individual property owners.

Insiders believe that, in order to supplement cash flow selling shops, but also a lot of shopping centers ills. Non-owned property shops scattered distribution, disrupting the overall planning and operation of the entire shopping center.

North resources have gradually recovered some of the shops of the property, with 80% of the property rights of the shops. High iron bolt that at present, there is still a small number of retail properties have not been recovered.

After the transformation of a South China Mall opened earlier this year to next year May 1 opening across the board.

"Ground gas"

"Mall targeting tier cities' Tall 'die', high-speed rail bolt believe play" Tall "in a second-tier cities as well as room for survival, but in shopping malls get together 34 cities dead," we do 80% of people in business, vision aimed at general consumers. "

This is a high-speed rail bolt carrier South China Mall experience.

However, after the South China Mall chose a path contrary. The former boss 胡桂荣 South China Mall "based on the PRD, the radiation the whole of China," its position on, partial end businesses to recruit them. South China Mall opened in early 2005, B & Q, a group of influential companies have entered Causeway Bay, did not last long, not long before, on the face of the embarrassing situation of dismantling businesses.

After the disk access, high-speed rail bolt first South China Mall repositioned from the previous "based on the Pearl River Delta, the radiation the whole of China" to "based Wan Jiang, Dongguan radiation." He believes in the four-tier cities to do shopping center, the first decoration to be very beautiful, with big cities so that consumers enjoy shopping environment, but the introduction of the brand and positioning, to "ground gas", in line with local market consumers awareness, spending power.

Reporter visited found that the first phase of South China Mall opened, the investment [ Introduction News ] home most of the Dongguan local brands, such as its main store days and department stores, SPA boutique supermarket, as well as the popular 26 restaurants in Dongguan stores.

"In addition to days and department stores, supermarkets, and opened the second phase next year interspersed with a small number of similar Semir, in plain clothes integrated shop, South China Mall is not another trick retail." High-speed rail bolt introduction, the entire South China Mall's investment structure has undergone great changes, the former dominated by retail shopping centers, into a restaurant, 40%, 30% experiential retail accounted for 30% of the shopping complex.

"Adjusting the narrow retail, expanding dining experience and interaction has become the development trend of Chinese-style shopping mall." Mall China Information Officer Guo Zengli think, dining and interactive experiential focus, and has a good ability to attract customers.

It is reported that in the future the new positioning South China Mall in Dongguan is the greatest food city.

According to the terms of Peking University Resource Group, said the South China Mall will be opened next year the second phase, the majority of investment objects catering, plus offices , medical centers, children's education, gym.

Although the proportion of high-speed rail bolt believe in reducing retail at the mall, but not the investment proportion Mall binding, different consumption habits of consumers in each region should be adapted to local conditions.

"Stores thinking" shopping center operators

High iron bolt that the key is not the shopping center investment, "Merchants Mall role in only 30%, 60% are planning follow-up operation, 10% after the opening, the investment team to communicate with each business, running."

This implies that investors should change the shopping center "to recruit them, the rent" operational thinking. "Once and for all" is no longer the shopping center business ideas, how to follow-up operation is the highlight of a shopping center trader.

The traditional retail sector is operating goods, and shopping centers are operating shops. High iron bolt believe that shopping center should introduce some aspects of management thinking department. For example, the shopping center rents received deduction mode is changed to department store model, "so, shopping center investors will pay more attention to operations, and recruit them traders are more confident."

The maximum deduction is characterized by doing the business of risk and investors, in general, do deduction is two extremes, one is very difficult investment, the other is very confident on the results of the mall.

In addition, the department's management focus on incremental performance, refinement to each brand and each species. "Shopping centers are also doing the same investment team in need of counseling businesses constantly adjust the brand, adjusted to the most suitable for this shopping mall consumers." High iron bolt, said the success of every major shopping center activities, is a large flow of the main store , investors should be actively involved in constantly doing activities, manufacturing highlights for the shopping center to attract more crowd.

Early 2013, a period of re-opening the South China Mall, North Resources money to consumers around the camp [ News Price apartment Review ] send 50 million coupons.

"Catering primarily to help these two on the third floor, be disguised subsidies to them." Not only that, the South China Mall merchants enrolled in the first year of all rent-free. High iron bolt that the key to a shopping center can be maintained to support the business is to live, "Flower 20 million strokes LV come, reach sales, they also want to Withdraw."

However, at present, the industry is doing the shopping center with department stores do share too clear.

High iron bolt, said the future of South China Mall is still a long way to go, and the investment team's operations is the key.