Hainan Business District Is Facing A Turning Point In The Face Of Electricity Supplier Shocks

Since the 90s of last century, it has been engaged in investment and operation in Haikou business circle for more than 20 years. Ms. Li Zonglian, a senior personage, recently told the reporter of the Southern Metropolis Daily for more than 20 years, witnessing the development course of Hainan entity business circle from scratch, from small to large, from weak to strong.

In the era of turning point of this business mode, Hainan physical business circle encountered various difficulties and faced the choice of direction.

From 90s to 2010 of last century, Haikou's traditional physical business circle has risen rapidly and has gone through 20 golden years. After 2010, the online shopping "revolution" launched by Taobao and Tmall has swept the whole country. In 2014, September 19th, Alibaba landed on the NYSE, exceeding the market value of $200 billion, and the world was surprised.

In the environment of big data and large logistics, the shopping mode of electric business and mobile Internet brings huge impact to the whole country and even the local retail trade in Hainan.

The rise of the electricity supplier, the physical business circle but business gloomy, the real business circle encountered investment difficulties, shops "rent reduction" has been staged throughout the country, Hainan has not been spared.

Hainan's local traditional physical business circle has also experienced weak growth recently, and the entity pavement business is shrinking.

Hainan's traditional business district under the impact of electricity supplier, where to go?

Electronic business mode

Channel: (factory, shop, logistics, delivery, consumer) not only saves the expensive store rent, but also saves personnel wages. The cost advantage is pformed into the price advantage.

Advantages: low price + delivery.

Disadvantages: unable to experience physical shopping.

Traditional business management mode

Cost: payment of shop rent (including hydropower, etc.), wages of personnel, cost of goods, etc.

Channels (producers, provinces, cities, wholesalers, shops, stores, consumers).

Advantages: shopping experience;

Disadvantages: high price and shopping inconvenience.

10 years ago: Haikou's industry was full of vitality.

In the evening of December 31, 2005, the eve of new year's day in 2006, this day is a profound memory for Li Zonglian, who has worked hard for many years in Haikou business circle.

On the evening of the day, the Oriental Plaza, which should have been closed on time at 11 p.m., was delayed until 11:45 at that evening.

That evening, the Oriental Plaza promoted sales activities before the new year's day, and flooded the shopping force, which surrounded the shopping malls.

At that time, he served as the senior manager of Haikou Oriental Plaza Mall, and Li Zonglian, as the general duty officer of the shopping mall, was responsible for coordinating all kinds of unexpected incidents in the mall.

She witnessed the opening of Oriental Plaza for more than 5 years (the opening of Oriental Plaza in June 24, 2000), and the sales volume of the first day was broken by one million yuan.

"Maybe it's nothing to see today, but 10 years ago, this figure is a miracle."

Li Zonglian recalled that it was the most vigorous era of Haikou's physical business circle.

After closing the store that night, Li Zonglian stood on the crowded street, ready to send information to the chief executive in the United States, telling this exciting news.

As a result, Li Zonglian was squeezed out of his wallet and cell phone in a crowded crowd.

But on this day, Li Zonglian still felt the most exciting day in her career.

The time goes back to 1992.

At that time, a few years after the withdrawal of the province, Hainan's business grew rapidly.

That year, Li Zonglian came to Hainan from a mainland central enterprise, resigned from the comfortable office and went to sea, and began to recruit small staff from the original Oriental Plaza.

In 1994, the first private joint-stock department store in Haikou, the predecessor of happy heart department store, was the first hot department store in Haikou.

Since then, department stores such as Sheng Sheng Department store, first department store (now Wang Hai International Plaza), Pearl Plaza and Oriental Plaza have gradually emerged.

From 20 years ago to 10 years ago, Haikou's traditional business circles rose rapidly from scratch and from small to large.

"At that time, department stores were new things in Haikou. They could make profits quickly by copying business models."

Li Zonglian said that in those days, large commercial square pavements were scarce resources, and for large and small businesses, they often had to "crush the scalp" for large shopping malls in Haikou.

"10 to 20 years ago, during the holidays and holidays in Haikou, the shopping Carnival scene was magnificent. Holiday promotions and shopping malls even achieved several times of monthly sales."

Li Zonglian said that commercial operators are required to write business analysis reports, set up assessment indicators for the operation team, and have strong sales atmosphere in Haikou business district.

In 2005, Li Zonglian, a senior executive at the Oriental Plaza, was also on a tour to Thailand, Hongkong and other countries and regions. She was rewarded by the company for traveling abroad because of her performance appraisal ahead of schedule.

Since the early 90s of last century, commercial plaza in Haikou has been replicated one by one, and gradually homogenized commercial square. The mode of operation is lack of innovation, and the development space has been exhausted. The profits among business circles have been gradually diluted.

Since 2010, online shopping such as "Taobao", "Tmall" and "Jingdong" has become popular among young groups. A bottom-up online shopping craze has begun to carve up the popularity of the real store industry and encroach on the profit margins of physical business circles.

From 2010 to 2012, the Hainan entity business circle, which experienced 20 years of crazy development, began to suffer from weak growth.

Li Zonglian said that if the development of physical shops in Haikou in 2010 could still maintain the same performance, then most of the commercial squares began to decline after 2012.

In 2012, the location of China World Trade Center, Haikou, a newly established Haikou large comprehensive commercial city, although the plan is more optimized, so far, its investment is still not in place.

The commercial rentals of the old business circle remain high, but the profit space is increasingly diluted. The development of the shopping mall has been in a dilemma. The new shopping mall lacks features. The contradiction between the operators and the shops is becoming increasingly difficult to reconcile, and the development of the entity business center is facing difficulties.

In May 24, 2014, a mall owner in Nanjing protested collectively: the traditional business was difficult to do, and the rent was reduced. In Haikou, some business circles had already been hard pressed for investment, and the vacancy rate of shopping malls began to increase year by year.

The traditional business mode brings two pressures to suppliers: sales decline and sales costs continue to rise, making some businessmen or store owners struggling.

The reason is that Li Zonglian and some people in the industry believe that there are two factors: the continuous replication of shopping malls and stores, the imbalance between the number of shopping malls and the consumption population, and the great changes in shopping methods.

First, the Hainan real business circle has experienced 20 years of gold development.

With the construction of Hainan international tourism island, new shopping malls and specialty stores are constantly emerging. Some planning and development of business circles are homogenized.

As far as Haikou and Sanya are concerned, by the end of 2010, there were more than 2.97 commercial outlets, such as wholesale, retail trade, catering and other commercial outlets in Haikou, with a total area of about 2 million 960 thousand square meters and 17.6 employees. As of December 2011, the city has built 3 million 800 thousand square meters of commercial area. According to the preliminary statistics, during 12th Five-Year, the area of planning and construction of commercial outlets will be about 5 million square meters, while in 2012, the population of Haikou will be about 214 million.

At the same time, the main commercial street: Pearl Plaza, Wang Hai International Plaza, JINGWAH City, Mingmen square, upper state Baihui City, South Asia square, Friendship Square, Oriental Plaza, Pearl River Plaza, Yixin square, etc., the average number of local consumption in each shopping mall is less than 150 thousand.

Sanya is a famous tourist city in the world. After the summer department store, many new shopping malls and street stores were born. Due to the influence of the peak season of tourism, the business of other shopping malls and franchised stores has gone from bad to worse in addition to the business of the duty free shopping mall and the Sanya pedestrian street.

Hainan's original commercial "cake" is not big enough, and it has always been in a state of "lack of money".

Under the impact of online shopping crazily, the department stores of large general stores are affected, and pure department stores are the first to bear the brunt.

The big change of shopping mode is the second.

"A brand of water dispensers, local entities store 160 yuan, and online shopping is only 57 yuan, less than half of the physical store, and never leave home to get what they need."

Ms. Wang, a white collar in Haikou, said that online shopping is a natural choice.