The Major Business Circles Have Taken The Luxury Line &Nbsp; More And More Customers Are Shopping Malls.

The major business circle is upgrading.

"We are not opposed to the upgrading of business circles, but we can not break away from the needs of the market."

At the beginning of the year, the old friendship store in Shanghai, which was founded in 1958, moved to Putuo District to reopen. The new friendship store no longer operated the department stores that had been flagship before, but focused on high-end gifts, handicrafts, antiques, jewelry and collectibles.

A month ago, the Tianshan commercial building in Tianshan Road, Changning District was officially closed for business. In the next two years, it will be pformed into a department store based on high-end brands.

The ordinary people who had been keen on shopping in the fair market gradually realized the bitterness of being isolated and abandoned in the new round of upgrading of Shanghai business circle.

"To tell you the truth, before the Tianshan commercial building was very good business, our family had to go shopping almost every day." Qin Jiayuan, who lives in Tianshan Village, recalls that ten years ago, nearly every family living nearby had to go shopping in the shopping mall. "After hearing that it was expensive to sell high-grade goods later, it felt that it was only aimed at wealthy people and had little to do with our people."

Qin Jiayuan said that he now favors visiting big supermarkets or buying clothes directly online.

Since last year, the luxury goods cluster of Shanghai state gold center and the flagship store of the east section of Huaihai middle road have been opened, and the LV building of Hongqiao commercial area is under construction.

"The biggest problem of Shanghai business circle is that it is high-end, ambitious, and even there are comparisons among different districts."

Zhu Lianqing, director of business research center of Shanghai Academy of Social Sciences, said.

Qin Jiayuan's voice reflects the dilemma of the upgrading of business circles at the moment: the upgrading of major business circles leads to luxury routes. The more shopping malls open, the narrower the consumer groups are.

Tianshan commercial building is a typical example of higher grade and more lonely.

The Tianshan commercial building with a working class as the target consumer opened business in 1996. Based on this positioning, the commercial building was welcomed by the general public after its opening, and it was profitable after a year of operation.

Public data show that in 2003, Tianshan commercial building achieved sales of 1 billion 905 million yuan, with an annual profit of more than 2620 yuan.

This situation lasted until around 2005, when commercial manager Zheng Xiujuan made the "second take-off" positioning adjustment. In 2008, the new building on the west side of the original Tianshan commercial building was completed, and the two were integrated into one, officially renamed the "Chang Fang International Plaza".

But this pformation is much more difficult than expected.

"After the decoration of Tianshan commercial building, there was a lot of difference in popularity." Qin Jiayuan occasionally went to the shopping mall to stroll around, but he often went back to the spot. There were some infamous miscellaneous department stores in Tianshan commercial building, but the prices were far too high. "I once saw a shirt sold for 4000 yuan."

The decline of word of mouth directly brought economic losses. After two years of insisting, the Tianshan commercial building was forced to shut down and pform in December 31, 2010.

According to media reports, business profits before the closure of more than one thousand, compared with the shrinkage of nearly half in 2003.

A larger adjustment is concentrated in Shanghai's former "number department store".

In the 50s of last century, a series of shopping malls from 100th to twelve department stores were built in Shanghai, which became an important part of people's life.

Today, the twelve department stores are almost completely destroyed, and there are less than four.

Among them, the first department store in Nanjing East Road has long positioned the consumer group in young people under thirty years old, mainly in middle and high grade consumption; Ninth department stores jointly invested with Hongkong capital to build Jiu Guang Department store, and the location has also been upgraded; second, the department store has changed its capital to two hundred Yongxin. Despite the insisting on the pro democracy route, two hundred of Yongxin's brand shops are also gradually increasing.

How many of the old Shanghai parity department stores have been upgraded? How many figures do the Shanghai Department Store Industry Association say is hard to count, but there are definitely many.

North Sichuan Road, once famous for its Huaihailu Road and Nanjing Road, began its overall upgrading plan in 2006.

Reporters in North Sichuan Road on site visits found that the main shopping malls, including Paris spring, are hard to call popularity.

Even residents living near North Sichuan Road also said that once shopping, they would still go to Nanjing road or Cheap Road to purchase.

"It should be said that this kind of shopping malls upgrading is a normal phenomenon in the industry."

Ye Qizheng, a fashion critic, said that because of the nature of its format, department stores are hard to stick to the middle and low end route.

Because "the lot of the department store is better, the rent is high, plus the labor cost, decoration cost and so on, all together, the cost will be much higher."

Although the reason for changing shopping malls is reasonable, when a large number of department stores have been upgraded and adjusted, it is bound to affect the layout of the entire Shanghai business district.

In 2009, the outline of Shanghai commercial network layout plan (2009 -2020) announced that the number of commercial centers at all levels in Shanghai will reach 145 in the future, all over Shanghai.

Reporters noted that almost all of the twelve municipal commercial centers located at the core of the entire commercial network layout are located in the "high-end consumption" field, including the new Hongqiao commercial center covering Tianshan commercial building.

High end confusion

In fact, before the 2009 outline was announced, the discussion on whether Shanghai business circle was saturated had already started.

Public figures show that in 1992, the retail business area in Shanghai was only 4 million 20 thousand square meters, and in 2006 it increased to 36 million square meters, with a per capita two square meters, which exceeded many international metropolis.

There is a saturation crisis in the total volume, and it is bound to need different business circles to carry out differentiated operation. The outline also emphasizes that 145 commercial outlets in Shanghai are required to have their own characteristics, different locations, wide layout and Shanghai.

But the requirements of differentiated development are hard to implement.

For example, the rising business circle of new Hongqiao business center and central business center all put forward the market positioning of "high-end consumption", and have already positioned high-end business circles such as Huaihailu Road, Nanjing road and so on. They have been upgrading in recent years, eliminating old brand stores and introducing international brands.

Although the prospects are unclear, the upgrading of business circles in various districts is still in hot progress.

A few days ago, Kate China announced that it would build second Raffles square in Shanghai city in Changning District. As an important part of the Zhongshan Park business district, Changning's Raffles Plaza covers an area of more than sixty thousand square meters, with a total investment of 9 billion 600 million yuan.

Is the future trend of Shanghai department store more and more high-end? Is the high-end business saturated or still lacking? For this reason, the Shanghai Business Committee and the District Commerce Commission responsible person said that in order to maintain the traditional advantages of Shanghai's business, Shanghai will focus on the development of "national" business and "global" business at the same time, while speeding up the construction of the community business in order to facilitate the daily life of the masses.

In fact, Shanghai's business is facing increasing competition pressure. Compared with the international metropolis, Shanghai still lags behind London, New York, Tokyo, Paris, Hongkong and other cities in the development of commercial center, business operation and market environment, etc. compared with the domestic Beijing, Tianjin, Chongqing, Guangzhou, Hangzhou and other large cities, the leading edge in the commercial facilities construction, new business format and business atmosphere construction is becoming smaller and smaller, and some aspects have been surpassed.

Therefore, in order to further enhance the overall competitiveness of Shanghai's commercial sector, the city will focus on developing "nationwide" business and "global" business with the ability of gathering and radiating the domestic and foreign markets during the "12th Five-Year" period, and will continue to maintain and expand the leading edge in China.

Zhang Xinsheng, deputy director of the Shanghai business commission, said that during the "12th Five-Year" period, Shanghai's commercial development should take the construction of the international trade center as the main line. The construction and development of community commerce will also be one of the key points for the next stage of Shanghai's commercial development. The implementation of the new large-scale residential community construction base, the perfection of commercial facilities, the unified arrangement of commercial service outlets, and the incorporation of state-owned assets management, will enable commercial service enterprises to enter the large residential communities as soon as possible, and enter the newly built large residential communities to carry out operation and service activities as soon as possible.

"We are not opposed to the upgrading of the business circle, but we can not break away from the demand of the market. Now Shanghai's per capita disposable income is less than three thousand yuan per month. So many high-end shopping malls are serving whom?" Zhu Lianqing said.