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November 23, 2009

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Blueprint for brighter business

AMID cut-throat competition in the commercial sector, Changning District planners are working on ways to lure shoppers and companies to its world-class business centers, discovers Victoria Fei.

Competition is fierce in Shanghai for the retail and commercial world -- as the growing number of shopping malls, supermarkets and department stores further fragment the market.

To distinguish its business centers from those in other districts such as Xuhui and Huangpu, Changning District government is now endeavoring to take a different path in planning for the future to attract good tenants.

"The district will achieve a sound environment good for both individualized consumption and mass consumption," says Chen Fangjian, vice director of Changning Commercial Commission.

"Professionals consider Changning to be a district of hope and prosperity. Its future will be to develop high-end areas featuring easy and clear access to retail and commercial buildings."

According to Chen, one of the main hurdles to building a brighter image of the district's business centers is that in the past they were scattered.

"When doing their shopping, people follow the principle of proximity," Chen says. "What we are doing now is market segmentation, which is necessary to today's business and the key to the district's development."

In Chen's eyes, each business center has its own characteristics, which can lead to less competition and direct people to have a clearer idea of what each shopping area offers in terms of goods and services.

New Hongqiao Business Center

Covering an area of 3.15 square kilometers, New Hongqiao Business Center starts from Zhongshan Road W. in the east, Huangjincheng Road in the south and ends at Furongjiang Road in the west and Yupin Road S. in the north.

Targeting consumers in Shanghai and other cities in Yangtze River Delta region, it is an area featuring top modern business facilities, dining and entertainment services.

Currently, the area boasts Shanghai Hongqiao Friendship Center, Hongqiao Parkson, JSWB Hongqiao Branch and Shanghai Maxdo Center.

Shanghai Hongqiao Friendship Center is known for its tranquil and cozy shopping environment. It has remained a growth in sales volume for 15 years since its opening in 1994. Sales volume reached 695 million yuan (US$101.78 million) last year.

JSWB Hongqiao Branch is one of the most high-end furniture malls in Shanghai, featuring many international brands.

The New Hongqiao Business Center is now turning its focus on its three sections -- Zunyi Road, Tianshan Road and Gubei Community.

Zunyi Road section will be elevated to a high-end business district while Tianshan Road section will be a paradise for the masses. The two sections will form a good business pattern for business people and local residents.

Gubei Community will take the opportunity of the construction of Takashimaya Department Store to set aside a road called "Japanese Town." Featuring brands well known in Japan, the area will bring a strong Japanese touch to visitors.

Zhongshan Park Business Center

Zhongshan Park Business Center starts from Huayang Road and Anxi Road in the east, and ends at Zhongshan Road W. in the west, Anhua Road in the south and Suzhou Creek in the north. It covers an area of around 1.14 square kilometers.

This area is planned to become a hub for home appliances and digital products. With a focus on "Fashion, Experience, Recreation and Digital," the area is being built into a digital-dominated area featuring modern and multi-media businesses.

"This is taking shape now. People now think that when they buy home appliances they should go to Zhongshan Park," Chen says.

"It offers a lot of convenience -- a great variety of brands, large area, full sizes and shapes and most importantly, convenient transport."

Zhongshan Park Business Center is one of the major transport hubs in Shanghai. It is where Metro Lines 2, 3 and 4 intersect, with daily passenger flows reaching more than 400,000 at Zhongshan Park Station. With the settlement of giant retailers such as Best Buy, Gome, Suning Appliance and Yongle, Chen really sees it as the answer to Tokyo's Akihabara Electric Town.

Last year, Changning District has undergone a steady and rapid growth.

The district's retail sector last year reached 16.576 billion yuan, increasing by 12.1 percent over 2007 figures. By September this year, the district's retail sales amounted to 14.076 billion yuan, increasing by 11.4 percent over the same period last year. It accounts for 75.8 percent of the yearly goal.

Chen says the district's sound environment is attracting more film stars, successful men and real estate giants to relocate their homes.

The attractions include a sound business environment, high-quality real estate, foreign influences and most importantly, the convenience brought by Hongqiao integrated transport hub.

People from Zhejiang and Jiangsu provinces, Taiwan and Hong Kong have also showed interest in Changning District.

To make the district more suitable for business and residential purposes, the local government is now making efforts to further bring convenience to people.

While Xinjing Community and Gubei Community are serving local and foreign residents with sound facilities and services, Xinhua Community and Xianxia Community in the district will be also improved and elevated by the local government.

Chen says the government is now also working on providing more breakfast and lunch choices for office workers in central business districts.


 

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