The title of Retail In Asia “Why 1/3 of Chinese shopping malls will close in five years” has to be taken seriously. The news first appeared in a report from theChinese Academy of Social Sciences(CASS).
For foreigners landing in large cities in China, it is always surprising to see so many shopping centers…The report of the CASS predicts that 1/3 of shopping malls will have to transform to eitherwholesale or retail marketplaces or integrated online shopping platformby the end of 2020, as they don’t demonstrate competitive strengths towards consumers (overabundance, competition with online shopping).
The phenomenon already started in cities likeQingdao, Chongqing and Dalian. China has already way more shopping malls than Europe and US (4000), and many othersare still under construction (7000).
According to CASS, the shopping malls which will survive will provide with real consumer experience: global fashion, children and offeronline to offline (O2O) model (Internet integrated with physical shopping).
It is also said that the consumption growth will be faster foronline channels than office retail sales.
Interested to understand the potential of shopping malls in Beijing, contact our sales team to find sustainable retail locations in Beijing to develop your brand image and expand your O2O business!
Sources:
https://www.warc.com/LatestNews/News/China_faces_mall_overhaul.news?ID=37381
http://www.ecns.cn/cns-wire/2016/09-07/225631.shtml
http://shanghaiist.com/2016/09/08/one_third_shopping_malls_gone.php
Chinese Think Tank Says 1/3rd of Mainland Malls to Close Within 5 Years