In the process of urban renewal, commerce is undoubtedly an important content that cannot be ignored. In the first perspective column of this issue, we invited Mr. Du Bin, Vice President of Humber Commercial Group and General Manager of Shanghai Company, to talk about how the urban renewal commercial project is outstanding in combination with the two major urban renewal projects he recently operated, the Mix320 Project on Wuyi Road in Shanghai and the Manle City Shopping Center in Pudong.
Mr. Du Bin
Vice President of Humber Commercial Group
General Manager of Shanghai Company
With more than 20 years of experience in commercial real estate services, he has rich practical experience and unique insights in the fields of pre-positioning, construction planning and investment operation, and is good at the national site selection and expansion of innovative formats and characteristic operation brands. He has presided over and participated in nearly 100 domestic commercial landmarks of Vanke, COFCO, Hang Lung, Shui On, Poly, China Resources, CITIC Pacific and other enterprises. In his spare time, he also served as the secretary general of the Brand Professional Committee of the Shanghai Shopping Center Association, the director of the Brand Committee of the Pudong New Area Business Federation, and a special commentator and writer for many well-known financial media such as CBN and 36Kr, and served as a distinguished professor in Institutions such as Zhixue College and Singularity College.
QWhat are the new opportunities in the business management industry under the new round of urban renewal?
At present, in terms of geographical location, the proportion of downtown projects is smaller than that of surrounding areas, and the proportion is gradually decreasing. Therefore, everyone has turned their attention to urban renewal projects and upgraded the old projects, of which urban renewal projects in the city center are the most sought-after.
There are mainly three major renewal power: many building properties and surrounding formats can not meet the needs of the surrounding customer groups, need to be reconfigured; the main consumer group from 70, 80, to 90, 00, the consumption habits have completely changed. Under this situation, many commercial projects have to be re-transformed, positioned and divided into formats, and then re-attracted; the formats must also change with the changes in policies, such as the previous third floor of the shopping mall is basically a children's format, and now the education and training industry is declining, the format needs to be adjusted, the category and floor area also need to be changed, and the shopping center also needs to be upgraded.
QWhat are the characteristics of Urban Renewal in Shanghai? What is the role of a commercial project?
Shanghai's urban renewal market developed earlier, and the introduction of government-level concepts and policies also has a certain demonstration role in the country. A few days ago, the "Shanghai Urban Renewal Regulations" began to be officially implemented, which is also the first time that Shanghai's urban renewal has risen to the legislative level of local people's congresses. In general, Shanghai emphasizes the renewal principle of historical and cultural inheritance and public interest transfer. In this process, commercial consumption is naturally an indispensable part of the public interest. Although commercial projects have low short-term profits and longer capital repatriation cycles, they are more flexible and inclusive, providing more features and content for newer projects. Therefore, I am very optimistic about the opportunities for commercial projects in this wave of updates.
QWhat are the usual categories of Urban Renewal Projects in Shanghai?
Urban renewal projects are generally divided into three categories: office, industry and commerce, and the proportion of the three is different, and two or more combination functions may appear in a project. As far as commercial urban renewal is concerned, whether the project positioning is appropriate needs to be considered from the aspects of geographical location, surrounding conditions and policy guidance. The most important thing is to see whether the project has the characteristics of doing business, such as the project that is wrapped in the park, and it needs to be done with the business supporting the park, but if the geographical location is very superior, it can be pure business. Make different positioning according to different locations to maximize the commercial value of the project.
Q Many urban renewal projects are not large, what should we pay attention to in the process of updating?
I always emphasize that small projects can also be brilliant or even outstanding. There are many such projects in Shanghai, such as Shanghai Hongqiao Jinchenhui Art Center, which is an international cultural exchange and living aesthetics art center for the integration of architecture, interior and landscape design.
To do a good job in small-scale urban renewal projects, the key point is small and beautiful, small and fine, small and packed. Don't think big and complete, include all the formats, this is too risky. Due to the limited area, if there are too many types of formats, others cannot see the highlights of the project. Such a project to play a business card or label, so that others at a glance, the label can only choose a direction to develop, after market research, select a most in line with the temperament of the project, focus on fire in one direction to do enough, do fine.
QHow can commercial projects of urban renewal face the accelerated iteration of business brands?
Format renewal accelerates iteration, brand life cycle is getting shorter and shorter, from the previous 8-10 years to the current 1-2 years, the main reason is the promotion of capital, brand cross-border and the increase of talent in the field. The phenomenon of format iteration is actually a cycle. At present, the mainstream consumer group is Generation Z, who are more willing to pay for the fun of experience, pay for feelings and spirits, and are loyal users of face value consumption. Therefore, the brand is innovative, the pattern is repeated, the track situation is very good; capital also enters the track to invest in some good brands or to develop brands, so that brand designers increase, more industry IP and brand cross-border joint names, brands are more diverse, and consumers are more selective. However, it should be noted that the flow of people is fixed, consumers will like the new and tired of the old, attracted by new things, good brands are respected, and bad ones will be eliminated.
From the perspective of project investment, urban renewal projects should introduce more first-in-one brands. In particular, brands with good market performance, entering cities, regions or projects for the first time, can bring freshness and good experience to local consumers. For projects in Shanghai, the first brand generally accounts for 10-30% of the total investment brands, so that the renewal project can be bright when entering the market.
Humber Commercial Shanghai Company - Urban Renewal Case
1
Old bungalow new business - Wuyi Road MIX320 project
Click on the image to see a before-and-after comparison of the project
Service content: Chief investment agent
Service achievements: Successfully introduced a number of Internet celebrity special formats and brands such as Z-ZEST, trendy e-sports social center ONLINENESS (e-sports bar and tide brand collection store), vinyl record theme bar RIDDDIM (DUFOUR), craft beer bar Houlang craft brewing, innovative bar Western food complex RED ROCK, Mexican fusion cuisine SORANA and many other Internet celebrity characteristic formats and brands, to create a new business in the old bungalow. It will be unveiled in the second half of 2021.
The trader said
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Originally a community vegetable farm, it is now repositioned as a quality and elegant life center. After the repositioning, we carried out the transformation of each building and the implantation of water, electricity and gas, followed the principle of one positioning of one building, and professionally communicated with the owners in terms of property, mechanical and electrical, engineering and design when attracting investment, so as to make the ideal building carrier to the greatest extent. At the same time, the owner also hired a design company to artistically transform the image of the project building and inject cultural charm, injecting new vitality into the urban appearance of Changning District, where Wuyi Road is located.
With the help of the team, the project has introduced the trend of internet celebrity formats, mainly live house, clear bar, bar entertainment, western restaurants, trend collection stores as a combination, closely follow the market trend, and with local needs, match the surrounding high-grade atmosphere, so that its exquisite atmosphere and fireworks blend together, not only to meet the daily needs of surrounding residents, but also to meet the diverse needs of white-collar workers working in nearby commercial buildings.
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2
From a hypermarket to a shopping mall - Shanghai Pudong Manle City
Service content: self-owned brand "Manle City" brand output
Service results: from the original single commercial supermarket format to a new shopping mall, the architectural form, format brand is newly upgraded. The project is expected to open in the second half of 2021.
Pudong Manle City is located in Shanghai Pudong New Area, next to the Shanghai World Expo Park, is based on the old property, the supermarket hypermarket relocation of the property for internal and external hardware and software upgrades. Next to the project is a commercial complex of more than 100,000 square meters, with sufficient retail formats and many schools around it. To this end, based on the comprehensive consideration of the project's geographical location and surrounding environment, we decided to abandon retail, focus on special catering formats, bring together multi-category and multi-regional cuisines, and supplement them with a small number of music, dance, sports and other specialty training formats.
The project focuses on the two target customer groups of nearly one million quality residential consumer groups in the surrounding three kilometers, and the nearly 500,000 high-spending business elite customer groups of nearly 15 high-end office buildings, and the function locks in the "more beautiful the night", the Tesco-themed commercial center of eating, drinking and playing, which will build the nearest one-kilometer consumption place integrating fashion, aesthetic life, gourmet catering, sports and health for the Changli plate, and create a petty-bourgeois community life and a demonstration point for the night economy in Pudong.