The Development of China’s Indoor Parks and Commercial Complex

In recent years, the development of fun park, and its industry is not very good.  A number of enterprises went down.  This situation creates opportunity for new comers.

The development of business has two observations, first is innovation, second is quality. Nowadays, there is an understanding in the industry, no innovation no business.  In the past, innovation is icing on a cake, but now it is life and death.  Without innovation, one cannot survive. For example, in the past, some health clubs, very much like indoor fun parks, sold cards, and collected pre-payment.  And then upon mismanagement, closed down and ran away, That is the reason why shopping malls are very cautious in allowing shops to set up this kind of prepay card system nowadays.  On the surface, the shop is an independent legal entity.  But consumers always think that they spend in the mall, mall management gets to have responsibilities. So can we find a way to change the model of this prepay system, can we innovate? Many people may find it difficult. But there are some good examples in the fitness industry.  Super Orangutan, with capital market valuation also very high, never sells card, only collect pay in every visit.  And there is no management staff, every customer self serves.  With one being  innovation, and second being quality, I can sell better than you, The restaurant Haidilao is definitely a good product.  Haidilao takes care of every detail perfectly.   For example, waiting at the door, there are snacks, manicure, fruits for customers.  Many companies copied the services. In addition, re services, we all know that when guests get upset, the person who can solve the problem is not the store manager, not the supervisor, but the frontline waiter. The practice of Haidilao is, whenever customers get dissatisfied, the waiter can waive the bill right away.  The authorization comes from Haidilao.  Why can’t others copy the practice? What if the fussy aunts come? This is closely related to how to ensure employees’ loyalty.  Haidilao designs a good welfare system which moves the employees.  And the employees serve perfectly well.  The boss of Haidilao started in a small county town in Sichuan selling kebab.  His mentality is very good, “I get to this point, I made the most money in the kebab business; my name is best among the rich.” So at the end, it is mentality which is related to his attitude about value.  This is called core competitiveness, from quality.  Taking care of every detail is not an easy job.

Consumer change has three directions, one is to move, the second to be ingenious, the third to be attentive.

First, move, Nowadays, business setting becomes hot spot, or no one will come to experience.  Currently, there are three hot businesses.  It is a matter of whether you can make them work?  The first is hospital.  The well run hospitals are crowded. The second is high-speed rail.  The high-speed rail carries traffic, on time.  Especially in time of wind and rain when climate is not good, all love to take high-speed rail.  But what caused businesses around high-speed rail being closed?  The high-speed rail is too punctual, people come and go on time.  Half an hour in between does not provide traffic for shopping. The third is temple.  Now people get no belief, no faith.  Burning incense and worshipping  Buddha get popular.  So it is important to read consumers’ mind.

Second, ingenuity, Product has to be good, Business has to stick to original initiative.  Business original objective is to provide good products, so focus has to be on the products.

Third, attentive.  Each service, each detail has to be right on.  Service has to be upgraded whole heartedly.

The whole fun park industry is the trend, from quantity to quality, from redevelopment to operations, from incremental to stock. I think in the fun park industry, there is a lot of stock commercially.  Now is not new expansion of how much, but how to keep your park alive? This may be more important, to live, From hedging Party A’s thinking to consumer thinking. To go back to consumer thinking: I will provide consumers with what they want,

Example: Shanghai Grand Hyatt City bought a Ferris wheel, because the positioning of Grand Hyatt City is for young people, small white-collar, some don’t have children yet.  She makes the Ferris wheel into a romance landmark. How? The Ferris wheel takes one run, a course is served, allowing you to enjoy a romantic dinner on the Ferris wheel, which can be turned into a place to propose. The Ferris wheel is on the 9th floor, very high floor, which is rarely visited.  Level 3 and above of shopping malls are in common rarely visited.  So how to get shops in? After setting the Ferris wheel, they also did a lot of research on other things, creating an ecological chain, with music, lighting, hand-made DIY and other supporting businesses. When business gets better, various brands launch conferences in the mall, transforming it into a public venue.  Then there is coffer shops around, Starbucks moves to the 9^th floor, the highest Starbucks is there.  And with Starbucks in, attracting other business becomes easy.

New “hot” content of shopping mall indoor park

Let us share the overall development trend of commercial real estate from a macro perspective, and reports and forms of indoor amusement park in the whole commercial real estate; from three angles, the scene aspect, the trend aspect.

As we all know, the proportion of the 90 and 00 account for nearly 20% of the entire national social population.  This % of ours is similar to the world’s.  This means the future customer’s consumption behavior and preferences have to focus on this group’s consumer personality.

From 2015 to 2019, the growth of indoor shopping center theme to anime & sports theme, especially some snow-themed indoor park growth, is most obvious. Whether in the north or the south, with its scarcity, “indoorizing” will meet our 90’s and 00’s consumption demand.

At present, the entire commercial real estate has entered the “stock” market, from incremental to stock,  a lot of personalized product are needed, evolving into a more focused park. For domestic consumers, a new mode of business, including the implantation of IP, is in great demand. At present, we can see that all shopping centers in China are basically turning to IP.  The introduction of domestic and foreign IP, the deepening of domestic traditional culture and combing them, how to use culture and activities to convey the concept to attract our target customers, have become the core fundamental.

Ice and snow theme park solicits higher spend and repeat business rate is relatively high, especially in the south.  With climate changing in the south, demand for ice and snow will be greater.  Guangzhou Rongcheng Park is a successful example. Second, there is now a relatively big event in 2022, the Winter Olympics, demanding a lot of ice and snow parks.  Whether it is in Harbin, the snowy place, or other places, ice and snow park business is relatively good.

In general, indoor park is certainly not a single subject of principle of the industry, but to overlay the food and beverage, including how we want to spend, and how to hold consumers to spend more time, With consumption upgrade to technology and intelligence becoming new marketing, transformation selling point, the birth of black technology stimulate consumers shopping desire.  It also changes the consumer’s decision-making ability, invisibly plays the role of shopping mall’s ability to attract traffic, a leap to be shopping center indoor park new favorite.

History of the entire industry shows, from 2015 to 2019, indoor shopping center growth ratio is between 4% to 6%.  Of course, the growth size is not in the same proportion.  But in general, has become the 4^th major class of shopping center area.  The first three are retail, catering, and parent-child business.  The fourth is the indoor park industry. 2015-2018 shopping center indoor park industry combination shows the “composite, cross-border” trend, “content innovation” has become the key to large indoor theme park to maintain a strong vitality.

Large indoor theme park changed the traditional business model, from “traffic thinking” to “traffic pool thinking”, through “composite industry mode , multi-category and cultural empowerment and theme scene”, to create a social center connecting consumers, pan-entertainment center, to meet the current generation of diversified consumption demands.

In the future, “emerging original brand” will reconstruct the indoor park ecosystem and experience chain of shopping center, and constantly derives the new demand of “quality consumption, personalized consumption, community consumption” and becomes the content “new engine” of indoor park in shopping center.