How promising is the future business landscape of guangdong-Hong Kong-Macao Greater Bay Area?This campaign speaks for itself...

Release time:

2019-10-22

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The fourth bay area in the world - the Guangdong-Hong Kong-Macao Greater Bay Area is the highest standard urban agglomeration in China, holding an important strategic position in the national development landscape. With the planning and development momentum, a world-class business circle is also being incubated and formed, which will rewrite the future commercial landscape of China.

On October 18, 2019, initiated and hosted by Winshang Network,Ola Lotus • Lian Di × Guangdong-Hong Kong-Macao Greater Bay Area Commercial Real Estate Summit Forumwas grandly opened at the Traditional Chinese Medicine Science and Technology Industrial Park of Cooperation between Guangdong and Macao in Hengqin, Zhuhai. This Greater Bay Area Commercial Real Estate Summit Forum is themed on"New Coordinates, New Business, Win the Bay Area, Win the Future", gathering many commercial real estate developers, brand merchants, and renowned development experts from the Guangdong-Hong Kong-Macao region to jointly explore the new commercial opportunities and development tracks brought by the Greater Bay Area dividends, injecting more commercial vitality and thought into the construction of the Greater Bay Area.

This summit forum covers a series of content including keynote speeches, the release of heavyweight Greater Bay Area commercial real estate reports, high-end dialogues, themed exhibitions, and award ceremonies, making it rich in content.

01 [Cross-industry resource cooperation will be a major highlight of the Guangdong-Hong Kong-Macao Greater Bay Area commercial sector]

Wu Chuan Kun: Chairman of Guangdong Winshang Network Data Service Co., Ltd.

At the beginning of the event, Wu Chuan Kun, Chairman of Guangdong Winshang Network Data Service Co., Ltd., delivered an opening speech. He believes that the Guangdong-Hong Kong-Macao Greater Bay Area will be built into a world-class urban agglomeration and develop a high-quality living circle that is suitable for living, working, and tourism, which is closely related to the development of commercial real estate. From the perspective of retail business, the major cities in the Greater Bay Area have been relatively lagging in commercial real estate development over the past decade, even falling behind inland cities like Chengdu; however, under the planning dividends of the Greater Bay Area, these cities' commercial real estate has ushered in new development opportunities. In the future, mainland brand merchants and Hong Kong-Macao brand merchants can provide richer content and combinations for high-quality projects in the Greater Bay Area through cross-industry cooperation.

02 [Release of the Zhongcheng Commercial Research Institute Report: New Paths for Shopping Center Development in the Guangdong-Hong Kong-Macao Greater Bay Area]

Jiang Xing Di: Research Director and Chief Analyst of Zhongcheng Commercial Research Institute

A substantial report opened the content climax of this summit forum. Jiang Xing Di, Research Director and Chief Analyst of Zhongcheng Commercial Research Institute, released the heavyweight report "New Paths for Shopping Center Development in the Guangdong-Hong Kong-Macao Greater Bay Area" on site, stating that the macroeconomic environment is closely related to the future development direction of commerce and consumption trends.

² Commercial Environment of the Guangdong-Hong Kong-Macao Greater Bay Area:The Guangdong-Hong Kong-Macao Greater Bay Area is quite outstanding in terms of population dividends and income levels. Taking Guangdong as an example, as the richest province in the country, the per capita income level is quite high. People in Guangdong have money but do not like to spend it; how to encourage them to spend more is something brand merchants need to think about.

² Project Environment:In the first half of the year, the project environment in the Guangdong-Hong Kong-Macao Greater Bay Area was relatively weak, with an opening rate of about 33%. Compared to previous years, the number and scale of newly opened shopping centers have significantly declined in the first half of this year.

² Business Format Trends:From the four leading cities in the Greater Bay Area (Guangzhou, Shenzhen, Foshan, and Dongguan), the structural changes in business format proportions from 2019 to last year were not significant. The proportion of dining slightly increased; the clothing sector showed a clear downward trend, but it grew against the trend in the Greater Bay Area; the cultural, sports, and entertainment sectors saw a slight decline.

² Brand Trends:In 2019, the number of new stores opened by brands in the Guangdong-Hong Kong-Macao Greater Bay Area exceeded the number of closed stores, showing significant improvement compared to 2018. Among them, retail brands underwent considerable adjustments. In terms of brand tiers, the proportion of mass brands slightly decreased, while mid-to-high-end and high-end brands increased, reflecting consumption upgrades.

03 [Keynote Speech: In-depth Analysis of the Commercial Prospects of the Guangdong-Hong Kong-Macao Greater Bay Area]

✦ Greater Bay Area · Big Hengqin: New Investment Tracks in Hengqin New Area

Zhang Sheng: Director of Investment Promotion Bureau of Hengqin New Area

As the only free trade experimental zone in the mainland connected by road and bridge to Hong Kong and Macao, Hengqin's future commerce is full of imagination. Zhang Sheng, Director of the Investment Promotion Bureau of Hengqin New Area, presented a thematic sharing on "Greater Bay Area · Big Hengqin: New Investment Tracks in Hengqin New Area" on site.

The development of Hengqin New Area began in 2009, and after ten years of development, it has undergone tremendous changes. Currently, Hengqin focuses on developing six major industries: medical health, cross-border trade, cultural tourism, and exhibitions, with each industry having leading enterprises driving growth.

² Cultural Tourism and Exhibition Industry:On March 21 of this year, the State Council approved the "Construction Plan for Hengqin International Leisure Tourism Island." As a leading enterprise, Chimelong International Ocean Resort received a total of 10 million visitors last year, and since its opening, it has welcomed over 58 million visitors.

² Talent Policies:Since the implementation of special talent policies, approximately 15,000 individuals have been rewarded, with total rewards exceeding 1.2 billion.

² Unique Business Environment Advantages:

· Provide renovation subsidies for eligible commercial brand stores: renovation subsidies are provided at a standard of 500 yuan per square meter, which can be increased to 600 yuan for Hong Kong and Macao merchants.

· Implement management measures for vehicles entering and exiting Hengqin from Macao: As of the end of August this year, entry and exit qualifications have been granted to 1,506 vehicles, making it more convenient for travel between Macao and Hengqin.

✦ New Cultural Tourism Era: Windfall Dividends under the "Health + Cultural Tourism" Model

Zeng Wei Feng: Deputy Director of the Thematic Cultural Street Project Department of the Guangdong-Macao Traditional Chinese Medicine Science and Technology Industrial Park Development Co., Ltd.

Building a world-class tourist destination is an important aspect of the construction of the Guangdong-Hong Kong-Macao Greater Bay Area, thus ushering in a golden development period for cultural tourism commerce in the Greater Bay Area. Zeng Wei Feng, Deputy Director of the Thematic Cultural Street Project Department of the Guangdong-Macao Traditional Chinese Medicine Science and Technology Industrial Park Development Co., Ltd., delivered a keynote speech on "New Cultural Tourism Era: Windfall Dividends under the 'Health + Cultural Tourism' Model."

Zeng Weifeng shared that culture + tourism opens a new era of tourism. During the National Day in 2019, the country received 780 million tourists, achieving an income of 649.7 billion yuan, with 66% of tourists visiting cultural tourism attractions, 59.45% visiting historical cultural districts, and 86.36% participating in both cultural tourism activities. In 2018, the total number of tourists in Hengqin, Zhuhai exceeded 10 million, with 9 million transit visitors, indicating that Hengqin is a tourism hotspot. Surveys show that the health tourism output value is 639 billion yuan, and it is expected to exceed 900 billion yuan in 2020. The trend of big health in China has arrived, and the era of national health preservation has come. The report on big data of health preservation in China shows that 70% of people in China are in a sub-healthy state; among health preservation users, women account for 63.2%, and men 36.8%. The market for traditional Chinese medicine health preservation is very broad within the trillion-yuan big health industry. Health + cultural tourism is a brand new way of leisure vacation, and the industrial park health + cultural tourism extends a new healthy lifestyle. The Traditional Chinese Medicine Science and Technology Industrial Park of Cooperation between Guangdong and Macao seizes the opportunity of the times, planning projects such as the Rui Lian Zhuang theme hotel, the Traditional Chinese Medicine Science and Technology Creative Doctor Museum, and Ola Lotus·Lian Di, to create an international health industry exchange platform.

04 [High-end Dialogue: Bay Area Era, Future Business Imagination of the Pearl River Delta Urban Agglomeration]

According to predictions from the China International Economic Exchange Center, by 2023, the Guangdong-Hong Kong-Macao Greater Bay Area will develop into the world's largest bay area, with a GDP reaching 4.6 trillion USD, standing out globally. For commercial retail enterprises, the strategic planning of the Guangdong-Hong Kong-Macao Greater Bay Area will inevitably affect the deployment of enterprises in the region. So, how do industry leaders and business experts view the future business prospects of the Bay Area cities?

Dialogue Guests:

Zhu Haiqun: Vice President of Inliven Group and General Manager of Guangzhou-Shenzhen Urban Commercial Company

Fan Wenrui: General Manager of Zhuhai Youte Commercial Management Co., Ltd.

Yang Yingjian: Vice General Manager of Aoyuan Business Management and General Manager of the Operations Center

Wang Qihui: General Manager of Jiangmen Huiyue·Dalong City Project

Wang Bin: Vice President of Bee+ Technology

Liu Gang: Co-founder/Executive Director of SUPIN+ LIFE STYLE

✦ Zhu Haiqun: The Guangdong-Hong Kong-Macao Greater Bay Area will introduce a large number of foreign populations, driving the return on shopping centers.

Under the policies of the Guangdong-Hong Kong-Macao Greater Bay Area, Guangzhou, Shenzhen, and Hong Kong form a very influential urban agglomeration. Coupled with the benefits of transportation, policies, etc., the Greater Bay Area will attract a large number of foreign populations. The introduction of foreign populations is crucial for the development of shopping centers, as foot traffic generates customer flow, customer flow generates sales, sales generate rent, and rent generates returns. Inliven Group currently has laid out 7 cities in the 9+2 cities of the Greater Bay Area, with 10 shopping centers opened. However, opportunities and challenges coexist, with challenges mainly coming from the decline in consumer confidence, increasing pressure on the overall operation of commercial properties, and the lack of timely adjustments in government tax policies. In the future, Inliven Group will continue to deepen its efforts in the Hong Kong-Macao Greater Bay Area, making planned investments based on the levels and development status of each city in the Bay Area.

✦ Fan Wenrui: Zhuhai's commercial market is not yet saturated and has latecomer advantages.
Currently, Zhuhai's retail business has great development potential and possesses latecomer advantages. Last year, Zhuhai's resident population growth rate was 7.12% (the highest in the country), and this year the actual resident population has exceeded 3 million, with a significant influx of high-quality, high-net-worth individuals. This is a very favorable support for retail business. Many positive news overlaps (policies of the Guangdong-Hong Kong-Macao Greater Bay Area, the opening of the Hong Kong-Zhuhai-Macao Bridge, the Shenzhen-Zhongshan Channel, the Shenzhen-Zhuhai Channel, etc.), and Zhuhai's retail business will enter a rapid development phase. The biggest feeling from investment attraction in the past two years is that many brands that were previously unwilling to enter Zhuhai have now listed Zhuhai as a key development city in their store opening plans in the Pearl River Delta. In the past two years, the industry influence of Zhuhai's retail business has been continuously expanding. There are two challenges: one is the talent bottleneck, and the other is the potential regional development imbalance brought about by rapid growth. In the future, the most important point is "whoever wins the young people wins the world."

✦ Yang Yingjian: Major cities in the Bay Area still have segmented markets to explore, sharpening the "differentiation" sword.

The commercial layout of the Guangdong-Hong Kong-Macao Greater Bay Area can be differentiated based on three factors: "population density, per capita GDP, and total retail sales of social consumer goods." There are many innovative things to do in the shopping centers, community businesses, and commercial streets in the central areas of Hong Kong, Macao, Shenzhen, and Guangzhou; shopping centers and community businesses in areas such as Xiangzhou District of Zhuhai, Chancheng of Foshan, Shunde, and urban areas of Dongguan also have a large market. The challenges of commercial development in the Guangdong-Hong Kong-Macao Greater Bay Area are significant. Currently, what we feel most deeply is that we need to combine the regional economic situation and the characteristics of competitors to sharpen "differentiation" into the sharpest sword. For example, at Aoyuan Plaza in Jiangmen, we focus on family customers and strengthen the parent-child sector. The key in the future is to innovate in line with the times, maintain an 18-year-old mindset, continuously absorb new things, and understand the thoughts of the post-00s, post-10s, and post-20s.

✦ Wang Qihui: Operating business in the Guangdong-Hong Kong-Macao Greater Bay Area requires positioning, service, and employees.

Operating business in the Guangdong-Hong Kong-Macao Greater Bay Area mainly faces two major challenges:

· External Environment:The Guangdong-Hong Kong-Macao Greater Bay Area needs to benchmark against international bay areas, but transportation still needs improvement, such as the Tokyo Bay Area in Japan, where the transportation network is very developed.

· Insufficient Population Base:The projects we acquired in Shunde and Jiangmen, compared to Shenzhen, Dongguan, and Huizhou, face bottlenecks in consumer power and average spending.

Projects need to position well, provide an excellent customer service experience, and cultivate employees. By refining operations, we can generate cash flow. Once the project scales up, it can have a larger resource platform, reduce costs, and naturally generate benefits!

Many traditional developers worry about investing large amounts of capital in development and how to exit later, with most covering development costs through rental returns. In terms of exit strategies, we are relatively mature; in addition to equity sales, we currently exit more through asset securitization schemes.

✦ Wang Bin: Deepening in the Guangdong-Hong Kong-Macao Greater Bay Area, the enterprise management model is very important.
Deepening development in the Guangdong-Hong Kong-Macao Greater Bay Area, managing one's own enterprise well is very important. If we continue to expand rapidly using a money-burning approach, we will encounter significant problems later. Whether we can truly generate profits is the most important. We choose to proceed steadily, focusing on refined operational management of each space. Bee+ has become a national leader in co-working spaces in just four years, achieved through deepening the development of office space products and continuously understanding market changes, combined with new technologies and new opportunities brought by emerging industries. Enterprises should actively strive to develop alongside young people and young enterprises to create more opportunities.

✦ Liu Gang: The Guangdong-Hong Kong-Macao Greater Bay Area is entering a golden period of development, and stimulating consumer enthusiasm is key.

The rapid urbanization of China in the future will definitely give rise to stronger consumption power. Regardless of how the external environment changes, I am optimistic about the Chinese market. With a large population base, new consumer categories, spending amounts, and future consumption demands are constantly emerging.

The Guangdong-Hong Kong-Macao Greater Bay Area, as one of the three most important urban agglomerations for the development of China's consumer economy, has the highest per capita income and will become a leader in China's economy in the future. However, opportunities and challenges coexist. New shopping centers are constantly emerging, bringing challenges such as diluted consumer power and rising operating costs for brands. The key to addressing these challenges is to stimulate consumer enthusiasm, and the most important thing is to improve products and services. From a data perspective, the Greater Bay Area has entered a good era. Our strategic focus moving forward is to continue to expand into the Greater Bay Area, and we will double the number of stores in this market.

05 【Quality Project Roadshow in the Greater Bay Area: The "Stars" of Commercial Real Estate in the Bay Area】

As a highlight of this summit forum, the GBA Greater Bay Area Urban Commercial Theme Exhibition, a platform for showcasing quality projects in the Bay Area, was also launched, showcasing includingOla Lotus•Lotus Land、Youtehui、China Overseas•Fuhua Liand several quality projects from the nine cities in the Pearl River Delta in recent years. They are the "stars" of commercial real estate in the Bay Area and are popular choices for brand merchants entering the respective cities.

06 [GBA Greater Bay Area Commercial Real Estate 【Leading Bay Award】 Award Ceremony

At the summit forum, the GBA Greater Bay Area Commercial Real Estate 【Leading Bay Award】 was officially announced. Representatives from the companies, brands, and projects nominated for this series of awards attended the award ceremony to receive formal recognition.

This award aims to promote the development of commercial real estate in the Guangdong-Hong Kong-Macao Greater Bay Area, showcase the excellent achievements of the Bay Area's commercial real estate and brand merchants, record market role models, and assist in industry development.

GBA Greater Bay Area · Highly Anticipated Commercial Real Estate Projects

Youtehui

Jiangmen New Ying World Trade Plaza

Jinshazhou Golden Platinum World

Zhongshan Haiya Colorful City

Zhaoqing Agile Plaza