Shopping centers to embrace retail innovation
Shopping centers and department stores are expected to become a breeding ground for retail innovation and new business formats as offline retail evolves to suit new demand, experts told an industry forum.
"We encourage innovative marketing as the development of shopping malls enters a new era of delicate operation to differentiate from other players and digital tools will become their core competence," Deputy Director Wu Ruiling of the China Chain Store & Franchise Association told the Shopping Center and Chain Brand Development Summit in Shanghai.
Ren Xingzhou, former director of the Market Economy Institute at the State Council Development Research Center, says it will take time for offline retail to return to pre-pandemic levels.
“Rises in operating and coronavirus containment expenses, and labor costs, have put pressure on retailers and operation efficiency suffered significant losses," he added.
Shopping centers serve a fundamental role as business infrastructure and still have great value for all kinds of retail demand. They will become important spaces for shoppers to experience new offerings, industry practitioners suggested.
Leo Ding, chairman and CEO of SCPG, said that shopping centers will strive to guide consumer demand and offer insights for merchants.
Vice Chairman Qu Dejun of Future Land Development Holdings Limited also called for department store operators and commercial real estate developers to turn shopping centers into iconic brands to further raise competency and push industry upgrades.
New shopping center openings slowed down in the first half this year due to the pandemic.
A total of 66 new commercial shopping facilities were unveiled in domestic cities in the first half, down from 167 new openings from the same period a year ago, according to commercial property consultancy Data Quest China.
Shanghai tops other domestic cities with 12 new projects signed by the country's top 100 domestic real estate developers in the first seven months, followed by Wuhan, Chengdu and Guangzhou.
