Transformation Of Traditional Shopping Malls In Xinjiekou, Nanjing

Xinjiekou has a daily average of nearly 100 million passenger trips every holiday season. Nearly 100 of the world's top five hundred branches are stationed. Its commercial concentration is higher than that of Beijing, Shanghai, Xujiahui and China. It is the most densely populated area in China, and is known as the "first business circle of China".

The core area of Xinjiekou business circle is less than 0.3 square kilometers, with nearly 700 stores, 30 large and medium-sized commercial enterprises with more than 10 thousand square meters, and 1600 or more large and medium-sized businesses.

For Nanjing people, today's Xinjiekou is no longer the only place to shop. High school, low-end restaurants, cinemas and entertainment facilities are all available, and the market's activity is only seen from eleventh stores opened by Starbucks in Xinjiekou.

Central shopping mall

The central shopping center opened in early 1936 at the completion of the urban infrastructure construction. It was jointly launched by 32 members of the Central Committee of the Kuomintang, Zhang Jingjiang and Zeng Yang Fu. The purpose was to boycott foreign goods, promote domestic products and develop national industry and commerce.

The business model of the leasing site launched by the central shopping center has attracted many businesses such as Jingdezhen porcelain, Zhang Xiaoquan scissors, Hendry jewelry and so on.

But after less than two years of operation, the central shopping center was forced to shut down because of the Japanese invasion.

Although it has been re opened since then, it has been really stable since 1949.

After 1949, through the era of purchase, distribution, public-private partnership and steel refining, the central shopping center was finally identified as a state-owned enterprise by the Nanjing municipal government in early 1964.

It was also in this year that the compartments between stores and shops were opened up, and a uniform business pattern was initially formed.

As the only large department store in Nanjing at that time, the central shopping mall almost monopolized the entire consumer market in Nanjing for a period of time.

New hundred shopping malls

In that particular historical period, the only thing that could be compared with the central shopping mall was the Xinjiekou department store, which was established in 1952.

From China department store

The Xinjiekou branch of the branch has developed into a department store that has begun to take shape. The new hundred flowers won 22 years to stand side by side with the central shopping mall.

Along with China's economic restructuring, the new hundred and central shopping malls have also gone through the process of shareholding reform and reorganization.

In September 1993, Xin Bai became the first publicly traded company in Nanjing.

On the surface, between 1996 and 2000, Xinjiekou can almost be regarded as a new century.

In 2000, the annual sales volume of new hundred single stores exceeded 1 billion 300 million yuan, and all the profit indicators were ranked first among the ten largest department stores in China, becoming the most brilliant period in the history of the new century.

Around 2000, the new hundred shopping environment was bright and bright. The salesmen and managers dressed in uniform. The shop opened in front of the gate from the morning, smiling and applauding the arrival of customers.

In October 2000, the Dongfang mall, a wholly owned new capital, opened on the opposite side of the street. It became the first high-grade department store in Nanjing to truly internationalize and fashion. It filled the vacancy of the new high-end product line.

In 2005, restricted by the volume of the department store, the new office area of 800 square meters was removed from the two floor, which was used to run the famous discount shop. After that, the office area of the 4 to 6 floors has also been greatly adjusted, which has increased the business area of 4000 square meters for the shopping malls, and eliminated 335 brands, and has introduced 134 brands with more market potential.

In September, 5000 square meters of large leisure Food Plaza opened on the 1 floor, becoming the first department store in Xinjiekou business circle to introduce catering business.

But even if the adjustment was made at the right time, the main exports of 3 Japanese people with more than 10 thousand passenger trips were directly connected to the new hundred after the opening of the MTR.

After the acquisition of new hundred gold hawk and the problem of competition in the same industry, the position of the new hundred in the Golden Eagle system has become more and more embarrassed, and its position in the Xinjiekou business circle has gradually declined.

In 2011, Wang Heng, chairman of golden eagle, gave a 17% stake to Yuan Yafei, chairman of the third group of friends, making it a controlling shareholder.

After the acquisition of Nanjing new 100 in 2011, Yuan Yafei, chairman of the three cell group, also rapidly reformed the new hundred. The new 8 floor office area has been vacated and pformed into a food plaza. The average queuing time is between 2 and 3 hours since the opening ceremony, and queuing up is extremely rare in the consumer market of Nanjing in the past.

The traffic volume that followed was very impressive, and the sales performance of shopping malls increased significantly during the same period.

Friendship mall

During this period, the completion of the new building of the friendship store in Xinjiekou broke the original balance.

This home decoration is the first escalator department store in Nanjing history. For the first time, the concept of "upscale" and "characteristic" was introduced to Nanjing, and there was a certain degree of diversion to consumers.

Despite the fact that any shopping mall produced a fashionable dress would still be snapped up by the public, the probability of hitting a shirt on the streets of Xinjiekou has gradually declined in the next few years.

By 1996, the sales volume of the friendship store had reached 890 million yuan, surpassing that of the central shopping malls at the time.

However, this year, the Nanjing municipal government took the line, and the friendship store merged with Hualian Commercial Building in the same building as friendship Hualian Commercial Building, and the new shopping center gave up.

The "boutique" feature was operated by the low-level civilian style of Hualian, and the friendship store began to decline.

At present, the new friendship square has been built, but the homogenization competition is still serious.

In 1996, the Golden Eagle International Mall was completed and officially opened.

The Jinying department store, which has the Taiwanese capital background, was seen as the "foreign intruder" at the time of the Xinjiekou department store, and the 216 meter high building was far more than the Jinling Hotel, which had been called "the first high building of Nanjing", and became the new landmark of Nanjing. With Shanghai's Heng Long square and Jinmao Tower, it was considered as the three largest skyscraper of China.

Wang Heng, chairman of Jinying international, came to Nanjing to start a business with the goal of being king in the two or three line city.

Born in a family of finance, he came to China with $30 million, leaving Beijing and Shanghai alone, and only chose Nanjing and Xinjiekou for investment.

However, Jinying did not make a start at the very beginning. It takes 10 to 15 years to accumulate real estate and department stores' "double chips" business model.

Truly breaking the Golden Circle of homogenization competition in Xinjiekou is golden eagle. In the course of "three days, a whole day and two days, a big whole", Golden Eagle has gradually formed its own high-end department store positioning. Estee Lauder, Clinique, Chanel, Givenchy and other international cosmetic brands have replaced the women's shoes and some brand leather products originally set up on the first floor. This "intruder" has gradually replaced the new hundred in Nanjing's mind.

In 2004, Jinying purchased hundreds of tradable shares through the two tier market and large scale trading, holding 24.55% of the shares, becoming the largest shareholder in the new century.

Jinying will link its department stores, high-end residential quarters Jinying garden, and "Golden Eagle West Court" with leisure catering as the main business form, so as to avoid being plunged into vicious price wars and bring diversified development ideas to the entire Xinjiekou business circle.

In the same year, the central shopping center was sold by Jiangsu Yurun Group because of the pfer of state-owned shares.