Need some more space? Self-storage fills the bill
November 26, 2011, Saturday
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Print Edition
Print Edition
SELF-STORAGE - leasing climate-controlled mini-lockups to people and businesses who want to store personal possessions or merchandise - has long been a thriving business in the United States and other Western countries. Now it's taking off in China.
Shanghai Easy Storage Co recently opened three self-storage sites, one of them located on Hongzhong Road in the Minhang District.
The site is really a huge warehouse divided into rows of individual steel-plated storerooms. The site is accessed by intelligent IC card at a monitored door. Nearly 30 security surveillance cameras keep a constant eye on the area, and a security guard monitors the monitors. It's a high-tech operation fitted out with smoke detectors, temperature controls, fire-fighting equipment and dehumidifiers.
The idea is to keep stored items safe and in good condition.
"The environment should be kept dry, cool and well-ventilated," said Gu Xunzhen, general manager of Easy Storage.
In addition to the Minhang site, the company also has opened storage lockup sites in the Zhabei and Xuhui districts of Shanghai. The first opened in Zhabei in September.
The temperature in the storerooms is kept at a constant 20 degrees, with air humidity between 40 percent and 50 percent. Pest control procedures ensure that cockroaches, ants and other creepy-crawlies don't breed in the storage areas.
The rental spaces are usually secured by a leasee's own lock and key to ensure that employees with sticky fingers aren't tempted to rifle through the contents of the units.
The Minhang storage warehouse, which opened last month, contains about 500 rental units. Fifty of them are already leased. The Zhabei storage site has leased out more than 80 of its 400 units.
"We are running ahead of our expectations," said Gu.
If the current trend continues, she said, all units will be rented out within a year.
Gu got the idea of going into the self-storage business during a trip to the US last February.
"One of my relatives who's in business there puts some of his products in self-storage units," Gu said. "If it works there, why not here? Shanghai is quick to embrace new ideas."
Gu and her business associates did surveys of about 80 companies and found that up to 70 percent of them expressed interest in leased storage space.
Gu and her associates launched promotional campaigns on television and knocked on the doors of middlemen to explain the new service.
So far, about half the company's business has come from the commercial side and half from individuals.
The majority of customers are Chinese, and their storage needs vary. Among the contents of storage units are toys, excess inventory, small furniture, books and documents. You name it.
"Our Chinese customers usually visit their storerooms three or four times before they decide to rent space," she said. "We take the time to talk to them and show them the units because it is still a new concept. They are always concerned about security, of course."
A Russian in the clothing business rents space to store fabrics. An overseas businessman rents a small unit to store his clothing so he doesn't have to bring suitcases with him on frequent trips to Shanghai.
A Chinese girl rents space to store her summer clothing during the winter months because her shared flat isn't big enough. In summer, she stores her winter wear.
A local man leases out his apartment and moves some household furniture to storage until he finds a new residence. Another man, recently married, stashes away love letters from an ex-girlfriend. Companies, foreigners, small businesses, people shifting residence. These are the major customers, Gu said.
The Minhang site offers more than 10 different sizes of space rentals. A medium-sized unit measuring 2.2 meters high and 1.3 meters wide rents for about 500 yuan (US$77) a month. The terms of the lease are flexible. The majority of customers rent space for a year.
Only four people are required to staff each storage site. One always lives nearby in case of emergency.
When the Hongzhong site recently experienced a blackout due to a regional power failure, a staff member slept on the premises to safeguard the storerooms.
Encouraged by the current progress of the business, the company is planning to open specialty self-storage units. One will be targeted at wine. There will be four to five unit sizes, capable of handling between 200 and 600 bottles each, Gu said. Temperature and humidity will be closely controlled.
"Collecting red wine is popular nowadays, but storing bottles in the home is dicey because collectors have strict guidelines on humidity and temperature," Gu said.
The storage site will also feature stabilizers underneath to ensure that wine bottles aren't shaken, and there will be freight lifts to move wine cases. Specialty units targeting tobacco goods and pharmaceuticals are planned in the future, she said.
Shanghai Easy Storage Co recently opened three self-storage sites, one of them located on Hongzhong Road in the Minhang District.
The site is really a huge warehouse divided into rows of individual steel-plated storerooms. The site is accessed by intelligent IC card at a monitored door. Nearly 30 security surveillance cameras keep a constant eye on the area, and a security guard monitors the monitors. It's a high-tech operation fitted out with smoke detectors, temperature controls, fire-fighting equipment and dehumidifiers.
The idea is to keep stored items safe and in good condition.
"The environment should be kept dry, cool and well-ventilated," said Gu Xunzhen, general manager of Easy Storage.
In addition to the Minhang site, the company also has opened storage lockup sites in the Zhabei and Xuhui districts of Shanghai. The first opened in Zhabei in September.
The temperature in the storerooms is kept at a constant 20 degrees, with air humidity between 40 percent and 50 percent. Pest control procedures ensure that cockroaches, ants and other creepy-crawlies don't breed in the storage areas.
The rental spaces are usually secured by a leasee's own lock and key to ensure that employees with sticky fingers aren't tempted to rifle through the contents of the units.
The Minhang storage warehouse, which opened last month, contains about 500 rental units. Fifty of them are already leased. The Zhabei storage site has leased out more than 80 of its 400 units.
"We are running ahead of our expectations," said Gu.
If the current trend continues, she said, all units will be rented out within a year.
Gu got the idea of going into the self-storage business during a trip to the US last February.
"One of my relatives who's in business there puts some of his products in self-storage units," Gu said. "If it works there, why not here? Shanghai is quick to embrace new ideas."
Gu and her business associates did surveys of about 80 companies and found that up to 70 percent of them expressed interest in leased storage space.
Gu and her associates launched promotional campaigns on television and knocked on the doors of middlemen to explain the new service.
So far, about half the company's business has come from the commercial side and half from individuals.
The majority of customers are Chinese, and their storage needs vary. Among the contents of storage units are toys, excess inventory, small furniture, books and documents. You name it.
"Our Chinese customers usually visit their storerooms three or four times before they decide to rent space," she said. "We take the time to talk to them and show them the units because it is still a new concept. They are always concerned about security, of course."
A Russian in the clothing business rents space to store fabrics. An overseas businessman rents a small unit to store his clothing so he doesn't have to bring suitcases with him on frequent trips to Shanghai.
A Chinese girl rents space to store her summer clothing during the winter months because her shared flat isn't big enough. In summer, she stores her winter wear.
A local man leases out his apartment and moves some household furniture to storage until he finds a new residence. Another man, recently married, stashes away love letters from an ex-girlfriend. Companies, foreigners, small businesses, people shifting residence. These are the major customers, Gu said.
The Minhang site offers more than 10 different sizes of space rentals. A medium-sized unit measuring 2.2 meters high and 1.3 meters wide rents for about 500 yuan (US$77) a month. The terms of the lease are flexible. The majority of customers rent space for a year.
Only four people are required to staff each storage site. One always lives nearby in case of emergency.
When the Hongzhong site recently experienced a blackout due to a regional power failure, a staff member slept on the premises to safeguard the storerooms.
Encouraged by the current progress of the business, the company is planning to open specialty self-storage units. One will be targeted at wine. There will be four to five unit sizes, capable of handling between 200 and 600 bottles each, Gu said. Temperature and humidity will be closely controlled.
"Collecting red wine is popular nowadays, but storing bottles in the home is dicey because collectors have strict guidelines on humidity and temperature," Gu said.
The storage site will also feature stabilizers underneath to ensure that wine bottles aren't shaken, and there will be freight lifts to move wine cases. Specialty units targeting tobacco goods and pharmaceuticals are planned in the future, she said.
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