K11 opened its second store in Wuhan, which is the epitome of the commercial upgrade of this central Chinese city

Wuhan has become the second city after Hong Kong to have two K11 art shopping malls at the same time.

On December 12, Wuhan K11 opened in Qiaokou District. Different from Optics Valley’s K11 Select three years ago, this time Wuhan K11 is positioned as high-end, introducing more than 30 brands to their first stores in Wuhan or Central China.

Wuhan’s K11 II Pavilion and the commercial district AVENUE 11, which were the first to open, include luxury brand beauty stores such as Chanel and Armani Boutique. Among them, Oulon, Oronnasu, etc. have opened Huazhong stores here. The first store in the region. In Hall I, which will open next year, many designer brands will also appear in Central China, relying on China's first Antonia buyer store.

It is not difficult to see that Wuhan K11’s investment promotion work revolves around the word "first". In fact, the first store economy has become one of the leading ideas in the development of commercial real estate in many cities. According to data from the Ministry of Commerce, both Beijing and Shanghai have proposed the concept of first store economy, and these two cities also have the largest number of “first stores” in the country.

In many new first-tier cities, the first store economy has also received attention, among which Chengdu has achieved remarkable results. Driven by the two projects of Wharf IFS and Sino-Ocean Taikoo Li, many luxury brands such as Balenciaga and Chanel opened their first stores in the Midwest in Chengdu, and luxury jewelry brand Piaget opened China's largest flagship store here.

The prosperity of the first store economy has made Chengdu the third fashion city after Beijing and Shanghai. After both IFS and Taikoo Li became landmark projects, many luxury brands have held exhibitions in Chengdu in recent years, and the development atmosphere and consumption concept of local commercial real estate have also been improved.

Therefore, for K11, which decided to delve into the Wuhan market, the status of the first store economy is self-evident.

The newly opened Wuhan K11 is located at the intersection of Jiefang Avenue and Liji North Road in Qiaokou District. It is the traditional core business district of Wuhan. Just a few streets away is Wuhan Group, the largest local retail enterprise in Hubei Province. It owns the luxury shopping mall Wushang Plaza, and further away there is the Plaza 66 under construction.

To stand out in the fierce competition, Wuhan K11 must show its uniqueness, and attracting consumers who come here by opening its first store is undoubtedly one of the shortcuts. This method helps the mall to establish a signboard of "I have it, you don't have it" in the early stage, and can also strengthen its connection with new consumption methods in the future, attracting traffic to the mall from the "exploring new choices" level that stimulates curiosity.

In an interview with Jiemian Fashion, Chu Meiling, senior vice president of K11, said that distinctive personalization on labels is an important means of shopping mall operations, and the concept of one-stop meeting everyone's needs is not realistic, " We can help consumers create a new scene at any time in the space, and then give it content and spirit."

What is reflected in Wuhan K11 is the combination of cultural and commercial interaction. An atrium inspired by a toy factory and an immersive pink-themed installation using pink boxes as a medium bring wonders to the retail scene. The "Urban Farm" interactive installation made of neon strips and transparent glass, and the "Hot Dog Bus" work by artist Irving Worm introduced in AVENUE 11, embed sustainable concepts into the consumption scene.

Different from residential projects, commercial real estate development is a process of superimposed changes in details and concepts. Operators need long-term and slow maintenance to ensure project vitality and future returns. From a larger perspective, K11 also hopes to build itself into a landmark commercial brand in Central China through its success in Wuhan. Chu Meiling said, “In Wuhan’s 8+1 city circle, the surrounding business levels are still relatively traditional and traditional. Simple, it has always been a department store business. After the opening of K11, consumers will see different business operation models. It is entirely up to the market to decide what they prefer.”

Indeed, with cities such as Chengdu. In comparison, Wuhan's high-end commercial development is not mature. Chen Qizong, chairman of Hang Lung Group, said at the Boao Forum in 2014: "Wuhan does not yet have a truly high-level shopping mall." This does not mean that luxury brands are far away from Wuhan. Wuhan International Plaza Luxury goods stores have sufficient traffic even on weekdays. The problem is that most shopping malls in Wuhan are still mainly traditional department stores positioned as mid-range, and the brand mix and interior decoration are still far from current fashion trends.

The Wuhan government is also aware of these problems and has promoted the transformation of the urban business district through a series of municipal plans in the past few years. Hanzheng Street, which was once regarded as a synonym for bargains, is one of the representatives. Upgrading measures include renovating the street buildings and improving the screening standards for merchants. The Qiaokou District where it is located has received new expectations as the central old city of Wuhan.

If there had been no epidemic, 2020 would have been a critical year for Wuhan’s business transformation. In addition to Wuhan K11, Plaza 661, with a construction area of ??661,000 square meters, will also enter the market, promoting the upgrade of Wuhan's core area into a modern central business district that integrates various commercial forms such as finance and e-commerce.

After a period of stagnation, Wuhan’s urban operations finally gradually returned to normal after March, and many construction projects began to resume work. Compared with the intensification of overseas epidemics in the same period, Wuhan's rapid recovery trend has been recognized by many brands.

Talking about the investment promotion process of Wuhan K11, Chu Meiling pointed out that Wuhan is the first choice for retail brands to enter the Central China sector, and most brands have made it clear that they will return since June.

On the other hand, the return of talents has boosted the level of endogenous consumption in Wuhan. With the adjustment of policies in recent years, many technology, financial and e-commerce companies have set up branches in Wuhan. The preferential settlement for graduates has attracted more young people to come. Changes in consumption preferences can promote further changes in the city's business model.

These young people are also the consumer group that K11 will target in the future. “The development and growth of the Central China sector is rapid because it is supported by a huge industrial base, and at the same time, high-quality talents from relatively good universities will stay in Wuhan in the future. trend," Chu Meiling said when talking about K11's expectations for Wuhan

This coincides with K11's goal of promoting Wuhan's business transformation, and it already has a first-mover advantage. The urban development strategy and the real estate strategy are consistent. As the first Hong Kong-funded enterprise to enter Wuhan, K11’s parent company New World Group has accumulated a lot of experience in Wuhan’s local business development model. Three years ago, Optics Valley K11 Select was a new type of shopping. The implementation of the center in Wuhan provides a reference.

After that, Wuhan Chow Tai Fook Financial Center built by Chow Tai Fook Group will officially start construction in the near future, and Chu Meiling also said at the opening ceremony of Wuhan K11 that New World Group will open the city’s third mall there. Home K11 will further improve the brand’s layout in Wuhan to play a leading role in the central China market.