When commerce entered the era of "new retail", consumers' shopping behavior underwent a fundamental shift, and the demand for shopping malls was no longer limited to shopping, but emphasized experience. According to the analysis of methodology, today's experience mode should be comprehensively planned from the construction of the subject, the analysis of the six senses system, the static symbol design and the dynamic combination of activities, so as to break through the shackles of physical space and enter the social value chain of consumers.
Commercial real estate is looking for change, and community business has become the key to breaking through. Different from the "giant" commercial complexes in the city that focus on retail, catering and entertainment, the community commercial form that grasps the service radius of the "last mile of life" is gradually becoming the foundation of urban commerce and gradually becoming a new growth point for the development of commercial real estate in the future.
There is still a lot of room for development in domestic community commerce
Twenty years ago, the performance of community business was: residential private door and unified planning of the floor business. The residential building facing the street, a row of commercial faces is planned on the first floor, and then sold at a price about 2 times higher than that of the residence. And the operation after that is nothing more than the landlord operating it himself or renting it out directly, as for what to do and how to do it, it is up to them to decide. Among them, there are also many upstairs and downstairs in the later stage, such as hotel smoke, noise interference and so on. The property is often not working hard at this time, and the final solution is nothing more than to report to the relevant government departments. To sum it up in one word: chaos.
Ten years ago, brand developers began to pay attention to this problem, so they began to optimize business planning, more and more commercial streets, single boxes, commercial podiums, etc., and developers who care about post-management, in addition to the layout of community commercial product lines, but also large-scale self-sustaining, unified leasing, unified operation and management. The experience of the owners of the community is better, but the developers are facing the problem of not being able to monetize. To sum it up, you can't have it both ways.
Nowadays, community business is always involuntary in the big economic environment and market environment. Especially when I see the big players in the industry either reducing their holdings or closing their stores, I feel like I am shivering in the wind. But don't worry, there are still very good prospects for community business in the mainland. According to the data, the proportion of community commercial consumption in the total retail sales of social consumption in developed countries has exceeded 60%. On the other hand, in China, even in first-tier cities, this proportion is only between 30% and 33%, and there is still great room for growth in community commerce. This space is supported by many factors such as urbanization, the saturation of urban center development, the expansion of urban scale, and the cost of transportation and time.
What will the future of community business do?
1. Personalization has become a consumer label.
Driven by the tide of market economy for nearly 20 years in China, material wealth has accumulated to a certain stage, wealth class differentiation at the same time, the quality of life of the general public has also been greatly improved, simply put: in the past, as far as possible to live to make others envious, live better than others, live outstanding, this simple to show off for the purpose of the concept of consumption gradually faded, along with the general trend of consumption upgrading, personalized, quality consumption concept began to prevail, healthy, happy, full of experience, Full of convenience and warmth have become the mainstream consumption concepts at present.
2. Changes in consumption concepts.
The expansion of well-known foreign brands in China has gradually slowed down and cooled down, and businesses based on the aesthetics and consumption characteristics of local culture have begun to awaken. Only when a product truly expresses the aesthetic consciousness in the minds of the middle class will they be willing to pay for it. Consumers are no longer the first consideration of cost performance, and at the same time, the extreme consumption mode of "not seeking the best, but seeking the most expensive" has gradually disappeared, and the middle class will only consider cost performance after integrating the quality factors of goods, and the brand is no longer the main driving force; Consumers' decision-making is also efficient and simplified, focusing on the return of the emotional attributes of the product and the personal spirit.
3. Changes in business formats.
Large-scale commercial development such as Wanda and Xincheng has caused serious homogenization of shopping centers, lack of corresponding planning and coordination, and the construction of a large number of new districts and commercial housing development have led to large commercial supply, low occupancy rate of residential areas, and imperfect related supporting facilities.
There is no clear operation model and business theme positioning, due to the development speed is too fast, lack of operation experience, it is easy to have inaccurate project positioning, and the model is not clear. The lack of mature means of capital operation and exit mechanism has led to the semi-unfinished stage of many community businesses, which has also greatly affected the good operation of community businesses.
4. The front warehouse and community group buying have become a new link.
As a channel innovation model, community group buying has attracted a large number of capital giants, and the front warehouse is considered to be the best solution for the entire community business service model. At present, e-commerce and traditional supermarket giants, including JD.com, Suning, Yonghui, Wal-Mart, etc., have entered the market, and the competition has gradually entered the white-hot stage.
5. The transformation from functionality to experience.
At the same time, commercial facilities have gradually completed the transformation from the past mass brand to personalized consumer goods, from functional to experiential; The transformation from a commercial function to a community cultural function. Regional commercial centers are being challenged, and the replicas under the assembly line are far less acceptable to consumers than interesting souls, so creating small but beautiful, refined and complete, convenient and convenient community shopping centers has become the hottest trend at the moment. For example, large supermarkets and commercial centers that pursued large and comprehensive products in the past will face the challenges of new retail such as Hema Fresh and Fresh Legend.
6. Evolution from traditional marketing to digital marketing.
With the increasing power of big data, AI intelligence, mobile apps, and mini programs, digital marketing will not be limited to large shopping malls. Community commerce will also make efforts on the data side and the client side to subvert traditional marketing through online marketing. The heat map within the business can analyze the consumption habits of customers, so as to provide data support for later investment. Merchants will be more sticky in their communication with customers. The mobile terminal can push relevant promotional information according to the customer's consumption preferences, and even carry out contactless delivery of goods through unmanned delivery and other facilities. This is also what customers value more in the post-epidemic era.
7. Evolve from "accessories" to "profit points".
The supporting business of the community used to be often "accessory", and the development enterprises paid more attention to the profits brought by residential and other products, thus ignoring the importance of business, so they did not focus on the research in the early stage of product positioning, and did not consider the balance between the commercial part and the residential part, which caused a lot of unreasonable design places, so that the building itself had a fatal injury. It is difficult to attract investment and operate. As many brand developers began to build their own community commerce product lines, more developers began to realize the importance of community commerce. In the future, the community business will be based on clearer positioning, architectural planning and pre-investment, and solve the later problems in advance.
8. Evolve from traditional commerce to home center.
There is no doubt that the ultimate purpose of business is to make a profit. However, traditional sales alone can no longer solve the real needs of consumers. Consumers are increasingly inclined to community commerce with a sense of experience and diversified services. In other words, a more warm business. This requires all-dimensional planning and building. It is not only limited to the first neighborhood centre in Singapore, but also adds a variety of services such as administration, health, neighborhood socialization, and elderly care. This is the Homeland Center. In the future, multiple communities will be equipped with neighborhood centers in the form of groups, not only to meet the needs of shopping, but also to take care of life and soul from as many dimensions as possible. Sticky consumption and customer aggregation will become a powerful driver for merchants to improve their operations.
9. Evolve from emphasizing consumption to emphasizing experience.
In addition to the home center mentioned earlier, the sense of experience will also be transformed from many aspects such as the decoration, sketches, and cultural landing of the commercial body. In the future, there will be less and less cold business, replaced by a more distinctive, humanistic and caring consumer environment.
10. In the future, community business will pay more attention to operation.
The operation of community business is a very complex system, and whether it can be effectively operated and managed will directly affect the development and income of community business.
When the community business develops to a certain scale, it is necessary to carry out scientific planning and positioning of the community business, accurately grasp the market demand of the surrounding consumers and the supply of the surrounding commercial market, so as to determine the development scale of its own project; It is necessary to reasonably regulate and control the market positioning, business proportion, business planning, product mix and other factors of community commerce, so as to avoid community commerce not meeting the needs of consumers in terms of grade or function, prevent repetitive construction and blind competition, and promote the coordinated operation of all parts of community commerce, forming an organic whole, and facilitating sustainable and good development.
In terms of operation management, it is necessary not only to have a professional process and team, but more importantly, to continuously and effectively adjust according to the operation situation.
Conclusion: At this stage, there is still a lot of room for improvement in domestic community commerce, which is mainly reflected in the relatively basic, scattered, extensive operation, and lack of standardized community business centers. At present, some traditional community businesses are more of a combination of farmers' markets, street markets, supermarkets and convenience stores, lacking new formats to meet the consumption needs of the elderly and young people, and also lacking reasonable planning to accommodate new types of community business centers. Soaring Horse Commercial Real Estate believes that the improvement of community business in the future needs to be carried out from the aspects of community business planning, business investment, and new retail, which requires the joint efforts of the government, real estate enterprises and e-commerce.
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Characteristic Real Estate Zhuge Liang - Soaring Horse China, more than 20 years of professional, dedicated and dedicated to the transformation of real estate enterprises in cities and counties into characteristic towns, commercial real estate & industrial real estate projects to provide full nanny menu services:
1. Land acquisition consultants, combined with international and domestic robots, science and technology innovation schools, smart hospitals, cultural creativity, pension industry resources, strategic planning of top-level design for characteristic real estate projects such as characteristic towns and characteristic commercial streets;
2. Integration of planning and design, and join hands with the National Grade A Architectural Design Institute to transform commercial real estate such as complexes, shopping malls, commercial streets, professional markets, and community businesses for real estate enterprises; Industrial real estate such as business travel, cultural and creative, science and technology, agricultural innovation, health, sports and leisure, pension education, new economic park development, providing positioning planning, conceptual planning, architectural design solutions;
3. Leasing and sales agent, with more than 20 years of experience in menu services in tens of millions of square meters of cities and counties, to attract investment and sales for industrial real estate & commercial real estate projects such as trade and logistics real estate, characteristic commercial streets, etc.;
4. Project diagnosis, providing solutions to problem projects in cities and counties;
5. Whole-process consultant, with more than 20 years of accumulated experience in menu service to escort the whole process of the project.