SHANGHAI — China is building an unprecedented number of shopping malls and while some observers might be concerned about an oversupply, new research from Jones Lang LaSalle indicates otherwise.
The glut of shopping centers in China might not be as bad as previously thought, according to the real estate and property management firm. Consumer classes in major cities, like Shenyang, Chongqing and Wuhan, will “grow faster than the supply of shopping malls” resulting in scenario where the supply will be absorbed, the Jones Lang LaSalle study said. It projects that by 2015, the provision of shopping mall space per consumer will be the same or lower than it is now.
That projection comes from focusing on the growing number of individuals in cities across China whose annual income is 30,000 renminbi, or about $4,782, making them the target demographic for shopping malls, Jones Lang LaSalle said. The growth of this consumer class combined with populations living in greater metropolitan areas around cities means that the stock of retail space per consumer in many cities will not increase between now and 2015 and in some instances the stock per metropolitan consumer will decrease over the next three years.
“In many of the major cities, such as Shenyang, Wuhan, Chongqing and Zhengzhou, the consumer class will actually grow faster than the supply of shopping malls between 2012 and 2015,” the study said.
Shopping mall vacancy rates continue to be an issue in cities like Shenyang, Zhengzhou and Chengdu. “This mainly reflects the large percentage of the city’s stock that was recently completed and has had little time to stabilize, rather than weakness in the overall market,” the study said, adding that overtime as the malls stabilize, vacancy rates should decrease.
The study also noted that while the rise of e-commerce in China will not mean the end of shopping malls, it does mean that retail centers must evolve in order to compete. Malls must focus on offering more entertainment and food and beverage options and also offer consumers access to fashion that they cannot find online.
Of the world's 25 cities with the most new malls being built in 2011, 13 of them are on China's mainland, according to research published last year by global real estate firm CBRE.
The CBRE report indicated that the rapid development of retail space in many cities created a situation where supply outstripped consumer demand. In addition, many of the malls in the pipeline are located in subprime areas, creating pent-up demand for prime retail space, CBRE said.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews