Small Luxury retailers are turning their attention toward developing areas of the capital, far from the traditional commercial hot spots, in a bid to snare new customers.
A cleaner wipes a giant billboard in the financial street of the city. The city's premium department stores have begun to focus on markets in the suburbs. [China Daily]
Evolving areas, such as the south city and the suburbs, are in line to get more up-market shopping malls, said Li Fei, director of the business management department at the China Commerce Association for General Merchandise. "The traditional business areas, such as the CBD (Central Business District) and Xidan, have been saturated with high-end shopping malls and competition is very stiff," Li said.
He explained that it was difficult for high-end shopping malls to make a name for themselves in the already popular shopping areas, so they are increasingly looking outside the traditional neighborhoods for expansion.
Li said fast-growing parts of the city are becoming more attractive.
While sales in these new areas are less than in established shopping areas, they are growing quickly.
Statistics from the Beijing Municipal Commission of Commerce showed retail sales of consumer goods in Changping district rose the fastest in Beijing, at 26.3 percent.
As a whole, the city saw 53,099 million yuan in retail sales in 2009.
The Modern Plaza, which has been operated since 1995 in Zhongguancun Street and which accommodates many famous brands, including HERMES and Cartier, opened a second shopping mall, in Shijingshan district, in October.
The Shijingshan district, on the west of the city, is a developing area and plans from the local government call for the district to be a conduit between Changan Street and the western developing areas, reported Beijing Business Today.
Zihexin Plaza, which opened in August 2008, is the first big shopping mall in the fast-growing south city area.
"The sales performance in our plaza increased by 80 percent in 2009 compared with 2008," said Liu Feng, director of the planning department at Zihexin Plaza.
Liu said the plaza was the first one opened by the Zihexin Company and the brand has not yet been accepted by most consumers. After a market survey, the company chose the Fengtai Science Park because the area was underdeveloped. "The government's plan to develop the south city also attracted us to open the shopping mall here," said Liu.
