Development of Dongdaemun in Shenzhen

At the East Gate, the most prosperous place in Shenzhen. With a history of more than 300 years, Dongmen Old Street in Shenzhen has been completely transformed into a modern commercial pedestrian street integrating business, tourism, sightseeing and leisure after more than three years of thorough transformation. This morning, the builders, designers and sculptors of the new East Gate gathered together to inform the news media of the results of the second phase transformation. Walking into Dongmen Pedestrian Street, people can't put down the dazzling array of goods, and the comfortable and fashionable shopping environment makes people linger. Whether local citizens or foreign tourists, children of migrant workers or high-income class, East Gate will always be one of the ideal places for them to shop and relax.

When a historical product goes from glory to decline, there are always many people to explore its success or failure. Just like today's Dongmen commercial pedestrian street, from the leading place in Shenzhen in the past, it has become the business circle with the highest risk in retail business and low-grade goods. The trend of low-grade East Gate has caused a lot of discussion in business circles. In fact, there are inevitable factors in the current operating conditions of Dongmen. For example, the lack of overall planning of pedestrian street, serious repetition of commercial formats and lack of professional management knowledge of operators are the main reasons for the low commercial grade of Dongmen.

The repetition of commercial formats forms vicious competition, and the main reason for the low grade of Dongmen is the repetition of commercial formats. Shopping malls in the business circle are fragmented, lacking the overall planning and professional business planning of the government. Many shopping malls compete to develop industries such as clothing, shoes and hats, which leads to repeated formats and vicious low-price competition.

On the other hand, in order to increase the rental income, shopping malls divide the shops into small areas for rent (commonly known as "counter shops"), attracting a large number of small self-employed people who operate low-grade goods. The poor quality of their goods makes it difficult to upgrade, which makes the whole business district full of low-grade goods, forming a low-grade trend.

The level of business management is low, so-called "the lips are dead and the teeth are cold", and the success or failure of business operation is related to the rise and fall of shopping malls. Looking at the successful businesses in Dongmen, such as Sun City Department Store and Mao Ye Department Store, they all have one common feature: professional management; Unified image propaganda; Comfortable shopping environment. In contrast, many mall operators lack modern business knowledge and are still in the role of "rent collectors", and rarely consider creating a "prosperous" business environment for businesses; For example, in the layout planning, the store layout is too dense, the channel is narrow, and the shopping environment is not good, which reduces the customer's desire to buy and makes it difficult for passengers to stay in the mall; Propaganda is often a flash in the pan. When attracting investment or opening a business, money is wasted on publicity. After opening a business, money is "as expensive as life". The lack of proper publicity in the image makes the brand of shopping malls disappear and does not strengthen consumers' cognition and memory.

Business positioning leads to business difficulties above the second floor, and business difficulties above the second floor of Dongmen have been recognized as a long-standing problem in the industry. This is directly related to the lack of individuality in business positioning and the repetition of business formats. Due to the repetition of commercial formats, customers can buy good and cheap goods when they enter the main street (Jiefang Road) less than 100 meters from the commercial pedestrian street. Most customers digest in the main street, which leads to the bleak operation of most inner streets, and the operation on the second floor is even more unsustainable; Of course, there are also property hardware problems on the second floor. Most shopping malls in Dongmen have local restrictions and design problems, such as improper staircase design and narrow shopping space, which makes guests lack the desire to go upstairs to shop.

With the continuous improvement of Huaqiang North business circle, Dongmen's position as a "business leader" has been lost. On the other hand, we will find that the business process of Dongmen has never been high-grade, complete in characteristics and popular. From the marketing point of view, grade is also market positioning. The middle and high-end business districts, including Guomao business district and Huaqiang North business district, are already very competitive. The middle and low grades are only the living space of the East Gate, which is the inevitable law of the market.

Then, how to reduce the investment risk in view of the current situation of low-grade goods full, low profit and high investment risk in Dongmen business district? The key lies in the unique business orientation and professional management. Successful examples, such as Hongji Craft City, which specializes in handicrafts, are unique in the East Gate; The professional management is Sun City Department Store, which holds regular performances, instant discounts, timely promotion in the media, and contributes to the sales of merchants, which is worth learning.

In short, the current bad situation of Dongmen is inevitable in the development process, an inevitable "painful period" and a stage for operators to improve their self-ability. I believe that through learning and improving in the competition, through the state of advantages and disadvantages, a group of operators who can really do business will be cultivated, and the Dongmen business circle will be full of vitality again.