The Quest for the Consumer Shopping Mall Potential in China
1990 2010
Agenda 1. China Retail Market Update 2. Key Trends in China s Consumer Economy 3. Mall Development in China 4.A Closer Look at Malls in Certain Cities 5. Q&A with Panelists
China Retail Market Update
Key Trends in China s Consumer Economy Urbanization, Wages, and Savings Rates 2002: 1,300,000,000-900,000,000*10% 2012: 1,300,000,000-650,000,000*10% White Collar Wage Growth ~13% per year Household Savings Rate still above 35% Mass * Velocity Momentum
2008-20122012 Retail Sales Growth Rates USA and China 10,000 30% 9,000 8,000 15.5% 17.1% 14% 20% 7,000 6.4% 7.7% 6% 10% Retail Sales 6,000 5,000 4,000 3,000 2,000 1,763 4,410-7.2% 2,037 4,092 2,410 4,355 2,823 4,690 3,404 5,018 0% -10% -20% Growth Rate 1,000 - Retail Sales Growth Rate 2008 2009 2010 2011 2012 China USA "" "" -30% Year
Mall Development in China Benchmarking the USA 5,000 4,690 4,500 4,000 2011 US$ billion 3,500 3,000 2,823 2,681 Retail Sales 1.66 x 4,690 2,823 2,500 2,000 1,500 If in same ratio # of Malls 2,681 with retail sales 1,615 1,000 500 0 409 6.56x # of Malls 2,681 409 China USA retail sales shopping mall# Big Potential to Increase
Malls in HK 香港
Malls in Shanghai 上海
Malls in Beijing 北京 北京
Tier I Markets Leading the Way Beijing Shanghai Year 2008 2012 Hong Kong Shopping center data is from 2011 shopping center survey 2012-2015 planning mall is from China market report Chengdu Changsha 12
High Potential in 2 nd Tier Markets Hong Kong Beijing Shanghai Nanjing Guangzhou Chongqing Hangzhou Dalian Shenyang Shenzhen Haerbin Zhengzhou Ningbo Wuhan Chengdu Xiamen Qingdao Changsha Jinan Suzhou Xi'An 97.2% 47.3% 27.6% 17.1% 36.1% 28.9% 27.5% 9.1% 23.5% 21.1% 17.9% 12.1% 14.3% 9.8% 5.8% 6.3% 5.7% 3.5% 3.7% 37.9% 32.7% Shopping Mall Department Store 0 50 100 150 200 250 300 13 *Percentage is the ratio of shopping mall number to total shopping center number.
Major Shopping Center Classification Changsha H Fashion Shopping Center Rainbow Department Store Super Regional Shopping Center Orient shopping center ID Mall Better Lift Mall Friendship Store Heiwado Wangfujing Friendship Apollo Department Store Heiwado Dongtang Maison mode La Nova New World Department Store Population Density M Community Shopping Center Parksun Tong Cheng Commercial Plaza Liuyang Tong Cheng Commercial Plaza Xiang Fu Department Store Xingsha Tian Jian Department Store Jia Jia Le Shopping City Jia Jia Le Shopping City Lu Nan Shopping Mall Regional Shopping Center Friendship Store Dongtang Tong Cheng Commercial Plaza Xiang Fu Department Store Shirble Department Store Xing Sha Shopping Center Spring Department Store Apollo Commercial Plaza L Xing Sha Shopping Center Compass Commercial Plaza Golden Resources Mall L M H Shopping Mall Attraction Score Shopping center data is from getchee 2011 shopping center survey Department Store 14
Major Development in Core & Periphery Changsha Heiwado Ren He Spring Wangfujing Dept. Store Maison Mode Parksun Friendship Store Tong Cheng Golden Family ID Mall New World Department Store 15
Population Density H M Major Shopping Center Classification Caifu Zhongxin Plaza Laiya Department Store Fashion Shopping Center Parkson Zongfu Road HongKong Shopping Center New World Department Store Hualian Isetan Department Store Uno Far Eastern Department Store Community Shopping Center Capital Malls Chengdu Parkson Xida street Maoye Department Store Tong Hui International Shopping Center Pacific Department Store Wangfujing Super Regional Shopping Center Silver Stone Square IFC Chicony Plaza Wangfujing Zongfu Road De Luxe Shopping Center Ren He Spring Zongbei Yanlord Landmark Maison Mode Tianyi Regional Shopping Center the Mixc SM Plaza Paradise Walk Wanda Plaza Pacific Department Store Raffles City Ren He Spring Maison Mode Lessin Van's Department Store Unevo Ren He Spring Erhuan Road L Galleria 9 square ICC AUX square new century global center L M H Shopping center data is from getchee 2011 shopping center survey Shopping Mall 2012-2015 planning mall is from China market report Atraction Score 2012-2015 planning mall 16
Major Development in Core & Periphery Chengdu Year 2012 2008 Paradise Walk Wangfujing Dept. Store Ren He Spring Pacific Dept. Store Maison Mode the Mixc IFC Silver Stone Square ICC Raffles City Wanda Plaza New Century Global Center 9 square 17
The Quest for the Consumer Shopping Mall Potential in China