In the process of empowering urban development, the mission of leading enterprises has shifted from single building construction to all-round life construction. One of the keys to success or failure is to create high-quality commercial spaces that respond to consumers' expectations for a better life. In the face of business management competition, how to expand scale, improve efficiency, and strengthen internal collaboration has become a common challenge for the industry.
In the ever-changing market environment, every commercial project must be brave in innovation, keep up with trends, build diversified personality forms, and accurately meet consumer needs.
Relying on China Merchants Shekou, China Merchants has steadily expanded its business territory. According to the 2023 annual financial report released by China Merchants Shekou not long ago, as of the end of 2023, China Merchants Commercial Management has successfully operated 38 major concentrated commercial projects, and another 44 projects are under construction or in preparation, distributed in core cities across the country.
Taking Shanghai as an example, projects such as Caolu Merchants Garden City were well received when they entered the market, demonstrating the determination and speed to lead the new wave of business. At the same time, through the second "Flower Life Festival" and other activities that kicked off in April, we will continue to renew content, scenes and brands, and activate the value of existing assets.
Driven by the 2nd Flower Sea Life Festival, from April 1st to April 21st, the total sales of China Merchants Management in East China achieved a year-on-year growth of 85%, and the overall passenger flow increased by 71% year-on-year. Dongsheng Pudong sales first, MSLAN, New Balance Xiamen sales first.
In the new consumption era, we will lead business prosperity with content and scenario innovation
In the context of the new consumption era, the value of commercial projects increasingly depends on the richness and diversity of content and the unique innovation of scenes, which are not only the source of project attraction and competitive advantage, but also an important driving force to stimulate consumption, activate the market and shape urban culture.
Therefore, actively innovating content and scenarios is the only way for commercial projects to continue to prosper and develop in the long term in the new era.
From April to May, the second "Flower Sea Life Festival" in East China will link up with 7 projects in 4 cities in East China to jointly create a poetic and story-telling cultural consumption feast. On the basis of a unified theme, the Flower Sea Life Festival integrates differentiated elements to form two highlight activities: "Seeking the Meaning of the Flower Sea, Secret Forest Spirit" and "Deep Mountain Market X Flower Sea Life Festival".
The former is inspired by the British Museum's collection by artist Tang Geyao to create a surreal flowering landscape, integrating oriental charm and modern aesthetics to create a poetic and dreamy secret place.
The latter uses different projects as different carriers to customize the themed "market tour", with flower totems as the main line, and carefully builds an immersive check-in space that integrates the aesthetics of the national tide and the charm of ancient totems, such as-
Shanghai Cao Road Merchants Garden City is as warm and unrestrained as a prickly pear flower;
Shanghai Baoshan Merchants Garden City is as fresh and elegant as an azalea;
Shanghai Sunland Merchants Garden City is symbolized by the phoenix crest, noble and elegant;
Hangzhou Qibao Merchants Garden City is as bright and dazzling as pomegranate flowers;
The garden of Yinzhou in Ningbo is as elegant and pure as a pear blossom.
The market is set against the backdrop of the original ecological landscape Miao Township in the southwest, integrating the aesthetics of the national tide and the ancient totem, reproducing the scene of the market in the depths of the mountains, and showing the charm of traditional Chinese culture.
The "Flower Sea Life Festival" vividly demonstrated how China Merchants managed seven projects in Shanghai, Xiamen, Hangzhou, and Ningbo through unified collaboration and differentiated creation, activating the potential of scene creation and event planning.
Each project actively responds to consumer trends such as pet-friendly, loving supply stations, maternal and child services, women's rights, and VIP services, and meets the needs of different customer groups through differentiated scenarios, special content, and personalized activities.
Shanghai Sunland Merchants Garden City leverages the international life heritage of the Senlan Lake sector to create a borderless art business, plan national tide music festivals, equestrian paddle board experiences, camping parties and other activities to build a high-quality life experience space.
Shanghai Caolu Merchants Garden City integrates innovative business formats and fashionable lifestyles, with a passionate go-kart track, a concert stage and an open-air movie viewing event under the romantic starry sky on the rooftop, and a cross-floor staircase on the 2nd and 3rd floors transformed into a fashion catwalk and artistic interpretation of the show, creating an immersive gravitational field of trendy toys.
Shanghai Baoshan Merchants Garden City has joined hands with the Baoshan District Women's Federation to actively explore a new path of "child-friendly business district", deeply focus on family customers, and set up a flower club for children aged 3-10, and launch parent-child membership rights and interests integrating entertainment, education, experience, social networking and public welfare.
As a city-level waterfront cultural and tourism commercial complex, Xiamen Sea World has deepened the positioning of parent-child and young trendy toys, attracted more than 20 million people in the first and a half years of opening, and exceeded 1 billion yuan in sales.
Xiamen Haicang Merchants Garden City has built a one-stop outlying island life, innovatively designed seven characteristic spaces, created a super lineup of 15 major stores and the first restaurant store, launched SVIP services, strengthened member stickiness, and consolidated the leading position of regional commerce.
Hangzhou Qibao Merchants Garden City has become a social landmark in Genbei New Town with "comic" life as the core, and implemented the strategy of "weekly activities" to effectively link consumers, with a record high passenger flow in the first quarter of this year, and nearly half of the active members.
Ningbo Yinzhou Garden combines commerce, ecology, art, trendy toys and humanities, and regularly holds music festivals, markets, and art exhibitions to create a new gathering place for the city's diverse trends.
Leveraging emerging business formats and brand innovation, we will lead the business trend of "X+ for a Better Life".
Tmall's Q1 2024 data reveals the rise of emerging formats, such as sports and outdoor, smart home, etc., with a growth rate of 100% for new merchants, highlighting consumers' demand for freshness and distinctive brands.
Through the renewal of the brand lineup and the adjustment of business formats, the China Merchants Management Project actively introduces the first store, online celebrity store, big store and specialty store to enhance the attractiveness, competitiveness and commercial value, and demonstrate the "Better Life X+".
With its uniqueness and scarcity, the first store stimulates consumers' curiosity, enhances the popularity and attractiveness of the project, stimulates consumption upgrading and economic growth, and helps the project to compete differently.
With its high network exposure and fan base, the online celebrity store attracts a large number of consumers, shapes the image of fashion trends, attracts young customers and foreign tourists, and enhances the interest and interactivity of the project. Both of them will help enrich the business format and promote the innovative development of the retail industry.
Shanghai Caolu Merchants Garden City has introduced a large number of regional first stores since its opening, and has recently prepared new stores such as National Treasure Chow Tai Sang and Converse, and plans to introduce new formats such as online celebrity brand stores to attract young customers.
As the first TOD commercial flagship in Haicang District, Xiamen, Haicang Merchants Garden City brings together international brands, continues to introduce the first store in the region, and launches the "Star Anchor Training Program" to enhance project awareness.
With its well-known brand effect and rich product line, the store attracts loyal consumers, improves the grade and customer flow of the mall, and generates high sales and rental income. Specialty stores meet personalized needs with uniqueness and topicality, enhance consumer stickiness, drive peripheral sales, form good business interaction, and jointly enhance business vitality.
In the future, Xiamen Sea World will continue to introduce trendy toy IP and experience formats, build an immersive trendy toy space, enrich the catering level, create a comprehensive consumption space, and set a new benchmark for regional commerce.
After nearly four years of steady operation, Shanghai Sunland Merchants Garden City has become a comprehensive family shopping center, recently introducing blockbuster restaurants such as Zuoting and Right Courtyard, Lao Fat Cat, Pizza Hut, Jasmine Milk White, Jinzhi Japanese Food, Dian Niu, etc., and the next step will be to introduce first-line sportswear, trendy men's and women's clothing brands, and build a men's and women's clothing shopping matrix covering all ages.
The introduction of a variety of F&B brands to meet diverse tastes can extend the consumption period, increase the frequency and stickiness of consumption, increase rental income and ping efficiency, promote the linkage of business formats, and enhance brand image and competitiveness.
In the first quarter of this year, Hangzhou Qibao Merchants Garden City successfully introduced a number of special catering brands such as Liangliang Hai, Pear Blossom Beef Soup, Ma Jiyong, etc., through the dual-core drive of "catering + experience", to achieve comprehensive coverage of diversified cuisines and build a one-stop food matrix.
In 2023, a total of 33 new catering and retail brands will be introduced, successfully attracting high-profile star brands such as Saizeriya, Tang Bofu, Chengdu You Liujie, Jinzhi Japanese Cuisine, Xiao Cai Yuan, GXG, ALDI, and Dangye Barbecue.
Ningbo Yinzhou Garden A and B have introduced Junxi Jiangshan Banquet, Steamed Steam Seafood Buffet, Jiangnan Small Banquet, LAVAZZA, Duoji Tala, Yuxiang People's Family, Selenium Soil Girl, Xiangyu Yingjun and other brands, the first store accounts for 52%, and continues to cultivate million-level catering brands.
The three major product lines cover the whole market, and the development of light and heavy is fruitful
We see that the three product lines of China Merchants Management's Sea World, China Merchants Garden City and China Merchants Garden Lane cover the city, regional and community market positioning. These product lines not only have representative benchmark items, but also continue to iterate and evolve in terms of functionality, design, and user experience.
In addition to successfully creating various themed activities and consumption scenarios, effectively expanding the brand resource library, and significantly enhancing industry influence and consumer awareness, the specific performance of the improvement of business management capabilities is also reflected in the more "realistic and convincing" asset-light expansion.
In East China, China Merchants Management has successfully acquired asset-light projects such as Ningbo Yinzhou Garden and Shanghai West Bund Media Port Garden. Outside of East China, significant progress has also been made in the asset-light output of projects such as Foshan Merchants Garden, Kunshan Tongfeng Road Garden, and Shenzhen Pingshan Shahu Commercial Project.
Such pioneering achievements fully demonstrate the potential of China Merchants Management in the field of asset-light operation.
Based on the existing stable foundation, the performance of CMM is expected to be even better in the future. First of all, the maturity of the product level is constantly improving, and continuous R&D and market feedback have made the product increasingly perfect in terms of functionality, design and user experience. Secondly, the enhancement of brand influence and resource integration capabilities will expand the popularity of China Merchants Management in a wider market.
For the future, we have reason to believe that China Merchants Commercial Management will be among the top 5 commercial management enterprises in the mainland.
In East China, projects such as Shanghai Sea World, Shanghai Beicheng Merchants Garden City X, Shanghai Sijing Merchants Garden City, Hangzhou Chengbei Merchants Garden City, and Ningbo Silk Street are all worth looking forward to. These projects may further demonstrate the excellent capabilities of CMM in commercial operations.