Global EditionASIA 中文雙語Fran?ais
Africa

Malls shrug off the trend for online purchases

By Evelyn Yu in Hong Kong | China Daily Africa | Updated: 2017-10-06 09:21
Share
Share - WeChat

Mainland shopping malls are shrugging off the impact of e-commerce and recovering strongly on the back of healthy retail sales, a brokerage company says.

Shopping malls hit head winds in 2014 and 2015 as brick-and-mortar stores took a hit from the e-commerce boom and luxury-item sales declined.

Figures from DBS Vickers, the securities arm of Singapore-based multinational bank DBS, show that retail sales at the top 50 mainland retailers dropped by 7 percent year-on-year as of August 2014.

But experienced mall landlords have worked out ways to mitigate the impact, the broker says, even though online retail will continue to sustain a double-digit compound annual growth rate.

"Years ago, fashion apparel comprised 70 to 80 percent of the tenants in a shopping mall. The percentage has been lowered to 50 percent. ... Shopping malls are shifting to experiential consumption and more service providers, such as tutorial schools and beauty salons, are moving in," says Carol Wu, executive director and head of research for DBS Vickers.

The brokerage company says the number of malls in China's top 30 cities will grow from the current 998 to 1,445 by 2019, but Wu says market concerns that the mainland has too many shopping malls are unfounded.

"Thirty to 50 percent of the new malls will be delayed or canceled due to construction delays and leasing difficulties. If a mall can't secure enough tenants, it won't open in the end. Policy is also encouraging the conversion of retail malls to office space," Wu says.

Mall penetration on the mainland remains low, DBS says. Based on urban population, the penetration rate is less than 60 percent.

Growing buying power, especially in first-tier cities, strongly supports retail recovery. Disposable income per capita in first-tier cities reached more than 50,000 yuan ($7,490; 6,380 euros; 5,690) last year, representing 8.8 percent more than the previous year. Recovery at retail malls is mainly driven by strong buying power in first-tier cities, Wu says.

To cash in on rising consumption demand in first-tier cities, dozens of foreign luxury brands have narrowed price gaps to prompt domestic buying on the mainland.

Chanel, for example, narrowed the price gap between luxuries sold on the mainland and in the United States to 15 percent.

Four types of shopping mall will be top performers in the recovery, DBS predicts: existing luxury malls in first-tier cities; mass shopping malls in suburban areas of first-tier cities, which will benefit from rising populations because of decentralization; quality malls with first-mover advantage in lower-tier cities; and those with good management.

The broker is betting on mainland shopping malls over their Hong Kong peers, saying landlords from mainland malls collect lower fixed rent but turnover rent, buoyed by strong sales of its retail tenants, will boost income. In Hong Kong, the rental structure relies heavily on fixed rent. DBS estimates that landlords of major mainland shopping malls will have a 10 percent growth in rent this year.

DBS is bullish on leading players in mainland shopping malls, including China Resources, Longfor and Initiate Joy City. The brokerage has just upgraded Lang Lung Property to "buy".

More real estate developers are moving into the shopping mall business, Wu says. Country Garden, for instance, a leading residential property developer based in Guangdong, is poised to expand into shopping malls.

"Properties sold to homeowners are more profitable, but this is highly cyclical. More developers will want stable cash flow from shopping malls to hedge the risks," Wu says.

evelyn@chinadailyhk.com

(China Daily Africa Weekly 10/06/2017 page28)

Today's Top News

Editor's picks

Most Viewed

Top
BACK TO THE TOP
English
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
主站蜘蛛池模板: 伊人久久大香线蕉无码| 最近2019中文字幕高清字幕| 国产精品漂亮美女在线观看| 乱码一乱码二乱码三新区| 色88久久久久高潮综合影院| 脱顶胖熊老头同性tv| 娇小bbb搡bbb搡bbb| 亚洲欧美国产另类视频| 色yeye香蕉凹凸视频在线观看| 国产精品成人久久久久久久| 一区二区精品久久| 日本视频免费看| 免费在线色视频| 香港国产特级一级毛片| 奇米影视7777久久精品| 亚洲国产精品成人精品软件| 被猛男cao尿了| 天天干天天爽天天操| 久久久久亚洲av成人无码| 自拍偷自拍亚洲精品播放| 国产精品亚洲产品一区二区三区 | 18禁强伦姧人妻又大又| 中文字幕丝袜制服| 天海翼视频在线| 久久er国产精品免费观看2| 狠狠色噜噜狠狠狠狠69| 国产明星xxxx视频| 不卡av电影在线| 欧美人与物另类| 伊人久久大香线蕉av色婷婷色| 色吧亚洲欧美另类| 国产成人精品一区二区秒拍| 中文字幕一精品亚洲无线一区 | 七仙女欲春3一级裸片在线播放| 日韩免费a级毛片无码a∨| 亚洲国产综合网| 清冷受被放置play分腿器| 午夜人妻久久久久久久久| 香蕉免费看一区二区三区| 天天夜碰日日摸日日澡| 中国人观看的视频播放中文|