East China, the leading region of China's economic development, is a hot spot for commercial real estate development and is favored by the industry. In recent years, more and more commercial projects and brand merchants have entered East China, which not only brings impetus to the commercial development of East China, but also increases certain pressure. Homogenization, general quantification and e-commerce impact are the challenges that must be faced in the development of commercial real estate in East China and even the whole country. In the land of East China, a number of business elites have emerged. They write their own wonderful in their own way, discuss the current situation and future of commercial real estate from a unique point of view, and make selfless contributions to the whole industry. Obviously, Fang Jinliang is one of them.

After leaving office from Shenzhen International Investment Corporation, Fang Jinliang became a partner of Dragonair Holdings and established Suzhou Bailey City Business Management Consulting Co., Ltd. as the managing director. With many years of experience in fund operation, project management, information management, and investment promotion operations in the commercial real estate industry, the commercial management of Bailey City led by Fang Jinliang has developed rapidly, with successive layouts in Suzhou, Hangzhou, Kunshan, Wenzhou, Nanjing, etc. Multiple projects. At the same time, with years of work experience and keen market insight, Fang Jinliang has his own unique insights and suggestions on the hot land of East China.

Fang Jinliang, Managing Director of Suzhou Bailey City Commercial Management Consulting Co., Ltd.

E-commerce is actually a wedding dress for entity commerce.

In recent years, the national business has shown the status quo of ice and fire. On the one hand, due to the sharp increase in supply and limited consumption power, the tide of physical commercial store closure has been one after another; on the other hand, with the rapid development of online e-commerce, the market share of the already white-hot physical business has been constantly divided up. In this regard, many developers blame the network electricity supplier, said it has had a significant impact on the entity business.

However, Fang Jinliang has different views on the role definition of e-commerce and physical commerce!

He said that e-commerce did not have a direct impact on physical commercial shopping malls. If it is really an impact, then correctly speaking, e-commerce has the greatest impact on traditional department stores and home appliance stores, because online shopping is cheap, so e-commerce can squeeze out the market share of traditional department stores and home appliance stores by virtue of lower prices and convenient shopping methods. However, for physical businesses, such as catering, entertainment and other experience formats, e-commerce can not have an impact on them at all, because the retail formats have the greatest impact. However, consumers can not try on online purchases, and the purchased goods need to go through logistics and can only be obtained after a period of time. This is a problem that e-commerce can not solve. Unless the price of retail online has a very big advantage, there is still a chance for the competition between retail stores and e-commerce. To sum up, e-commerce should not be the enemy of our entity business, but a channel of entity business. If the physical store is not online, it can be handed over to e-commerce, online to offline drainage, through offline environment, experience to make online customers into physical store customers. In this sense, e-commerce is actually a wedding dress for the entity business.

The future of commercial real estate will be more professional

Of course, in addition to the impact of e-commerce, it is generally quantified, homogenized, lightly capitalized, difficult to attract investment, and difficult to operate... These also represent the current status of commercial real estate. And Fang Jinliang used only one word to comprehensively summarize the status quo-fierce competition.

He said that with the acceleration of urbanization, the centripetal force and cohesion of the city will become more obvious. Although the development speed of commercial real estate has slowed down, more and more commercial projects will still emerge. In addition to the impact of e-commerce and cross-border transformation of laymen, the competition in the commercial real estate industry will only become more and more fierce. And want to break through from the fierce competition, improve their core competitiveness is the key, one of the most important is the talent competition. Of course, this does not refer to a single talent, but a team of talents. The team with long-term operation and management experience should be in the leading position in the whole process of commercial real estate development and operation. Only the team advantage can form the real core competitiveness and promote the better development of commercial real estate in the future.

As for the future? More professional, of course. Fang Jinliang gave an example, "Many people say that the current commercial real estate in China is a surplus situation, but compared with tens of thousands of commercial bodies in the United States, the total commercial volume of thousands of Chinese companies is not surplus, but the development zones are relatively concentrated. Taking Hudong of the park as an example, more than 20 shopping centers have been developed within only three kilometers, and the homogenization competition is very serious". In the face of such a situation, the future development of commercial real estate will be more and more professional, to the rough, the survival of the fittest. Children's format, omni-channel transformation and experiential format will also become the trend.

Experiential format should be adapted to local conditions

Facts have proved that Fang Jinliang's view is undoubtedly correct.

Since the development of commercial real estate, consumers are no longer satisfied with the simple shopping function, and the status of emotion, experience, service quality and other factors in their minds is getting higher and higher. As a result, some commercial projects, especially shopping malls, have followed this trend and have invested in experiential formats, moving cinemas, fitness clubs, video game cities, skating rinks, and children's theme parks into shopping malls. The reason for this is that the experiential format has a strong ability to gather customers, especially those unique experiential formats, which can enable consumers to break through the barriers of distance to consumption and effectively expand the radiation scope of the business circle.

Of course, it is not to say that if a project is easy to do, everyone is suitable to do it. Fang Jinliang said, "In the process of introducing the experiential format, you can't blindly follow the trend, but you still have to plan the format according to the consumer behavior of the surrounding customers and local conditions. If you make a K11 in a small town, it is definitely not suitable". Therefore, adjusting measures to local conditions is the key to do a good job in experiential formats and exert its magic power to the greatest extent.

Third-and fourth-tier cities are opportunities. Burley City comes with the wind.

Finally, when talking about the current development pattern of commercial real estate in East China, Fang Jinliang said that East China, as one of the most economically developed regions in the country, has a relatively concentrated population and the strongest consumer demand for shopping, entertainment, and food. Nowadays, as the commercial competition in first-and second-tier cities is becoming increasingly fierce, third-and fourth-tier cities with large market gaps and broad consumption potential will become a must for all developers and brands.

Although the current market has many different voices on the development of third-and fourth-tier cities, there is no doubt that the market gap and consumption potential left by the third-and fourth-tier cities in East China are huge. This is from the recently announced list of the top 100 counties in the country. It can be seen. In the list of the top 100 counties in the country in 2015, seven provinces and one city in East China became the biggest winners. Among them, 65 counties in Jiangsu, Shandong and Zhejiang were on the list, accounting for more than half of the country. At the same time, 9 of the top ten seats belonged to East China. It can be seen that the population density, economic level, and consumption capacity of East China are among the best in the country, and these third-and fourth-tier cities with huge development potential will surely become a must for the development of commercial real estate in the future.

Of course, Burley City Commercial Management will seize this opportunity. According to Fang Jinliang, at present, the commercial real estate projects of Bailey City Commercial Management in East China include four shopping centers under Dragonair Holding Group (two in Suzhou, one in Kunshan and one in Hangzhou), Suzhou Housing Plaza, Ningbo Harbour City and 99 Matai Street in Nanjing. But this is not all. In the future, Burley City Commercial Management will continue to undertake some third-party projects, including cooperation with fund companies or other developers to complete output management, with the focus on East China.

(Source: Soupu/Chen Ninghui)