The era of hypermarket ends, small owners of Dinghao Building are facing a choice
Our reporter Li Chunlian
The new crown pneumonia epidemic struck, and the transformation of Zhongguancun Electronic City had to be postponed.
On the afternoon of March 28, a reporter from the Securities Daily came to Zhongguancun Electronic City. The door of Dinghao Building was closed and not open. Looking into the glass, the first floor was basically empty.
"Since the epidemic has not been open, businessmen with brains have moved to other places." The security guard near Dinghao Building told the Securities Daily reporter that there are only some merchants on the second, third and fourth floors. It is estimated that It will be emptied before the end of this year, and those merchants who do not want to leave will have to leave sooner or later.
In recent years, due to the rise of Internet e-commerce, the once bustling Zhongguancun Electronic City has deteriorated and has to be transformed. In 2015, Zhongguancun e-World announced its closure; in 2016, Hailong Electronic City ceased its business transformation; in early 2019, as the last stayer of the Zhongguancun hypermarket, Dinghao Building also changed hands, a move known as the "last step in the transformation of Zhongguancun Electronic City" Baton".
But a year has passed, and the renovation of Dinghao Building has not yet started. Affected by the epidemic, related actions such as building engineering transformation and small property owners' decentralized property purchases had to be slowed down.
"Affected by the epidemic, all work of Dinghao Building has slowed down. After resuming work in mid-March, negotiations with small owners have resumed." Wang Jianfeng, general manager of Dinghao Building, said in an interview with Securities Daily reporters, "We The company's established small owner's decentralized property purchase plan for 2019 will no longer be implemented. It will make trade-offs based on the epidemic situation and communication with small owners. It will end the acquisition in a timely manner, readjust the investment strategy, control costs reasonably, and start the construction of building A. To promote the overall progress of the project. "
Challenges in Engineering Transformation
In March 2019, Dinghao Building completed the equity acquisition. The investors are mainly overseas fund institutions, and the equity transaction price was 5.72 billion yuan. This acquisition has attracted much market attention because it involves the transformation of Zhongguancun Electronics City.
However, from the perspective of the project site, the renovation project of Dinghao Building has not yet started one year after the equity acquisition.
"Ding Hao Building is a large-scale urban renewal project with great innovation and challenge. Currently affected by the epidemic, the progress of engineering reform is lagging, the cost control pressure is rising, and the investment budget is at risk of losing control." In an interview with the Securities Daily reporter, Wang Jianfeng said that some problems can be controlled and solved through hard work and various measures, but there are also some problems, especially the integration of decentralized property rights stores, which faces great challenges.
In fact, the acquisition of small property owners' decentralized property stores is a common problem encountered by many stores in Zhongguancun Electronic City during the transformation process.
It is understood that decentralized property stores began around 2000. Developers sold the stores to different small owners. Due to the small store area and low operating costs, many stores gathered together and had great vitality in the beginning. However, with the development of the times, the deficiencies of decentralized property rights have been exposed. Due to the over-dispersion of property rights, it is not possible to plan and manage operations and management in an integrated manner.
The industry believes that, today, the Zhongguancun Electronics hypermarket is brilliant, and the high profitability of decentralized property stores no longer exists. If it can exit in a timely manner, it may not be the best choice, but it will be the most rational choice.
At the beginning of December 2019, Dinghao Building launched the acquisition of decentralized property stores in stores. As of March 20, 2020, more than 80 households have signed and transferred and 100% payment has been completed. At present, there are still about 340 merchants still operating, and related negotiations are continuing.
Wang Jianfeng said: "The principle of the acquisition of decentralized property stores is that they can be collected, then rented, rented, respect for property rights, and common development. The price of the acquisition will be constant and run through from beginning to end. In addition, The acquisition will not be indefinite, and we will end the acquisition in due course according to the company's strategic adjustments this year. "
Some merchants who have moved out told the Securities Daily reporter that because the shop area is too small, they can't get high-priced acquisitions anymore. It is better to make a quick decision and realize that cash is king. However, some merchants are still watching and tangling, saying that the unified purchase price of Dinghao Building makes them unwilling. The shortage of funds and the break in the capital chain affected by the epidemic have also caused some small owners to face increasing operating pressure.
Zhongguancun hypermarket era ends
Those who have been to Zhongguancun Electronic City are hard to forget. At that time, every building was bustling. People who did business here in the early days also made a lot of money.
In 1999, several large stores such as Ding Hao and Hai Long opened for business, making the “Electronic Street” in Zhongguancun West District famous for a while. The next decade was the heyday of Zhongguancun Electronics Hypermarket, with market share once occupying more than 70% of the country.
However, the development of e-commerce has brought a huge impact on traditional sales methods. The effectiveness of offline hypermarkets has become worse and worse, and internal management has become increasingly chaotic. From time to time, negative news has been exposed to fraudulent consumers.
Data show that in 2011, the sales of electronic products in Zhongguancun IT Store fell to 17.6 billion yuan, while Jingdong Mall ’s 2011 net sales were 21 billion yuan. At that time, the strong growth momentum of e-commerce has begun to leave traditional electronics stores behind. One was exhausted and the other was in the limelight.
Starting from a 4-square-meter booth in Zhongguancun, Liu Qiangdong started to seize the cake that originally belonged to Zhongguancun Electronic City through the establishment of Jingdong Mall, an e-commerce method.
In addition to JD.com, Tmall, Taobao, and Suning and Gome, which have been cultivating in traditional home appliance stores for many years, have seized this market. At the same time, consumers are increasingly relying on online platform purchase channels.
After a decade of prosperity, the Zhongguancun electronics hypermarket continued to decline with the changes in the Internet era, and the government's new positioning of Zhongguancun also announced the end of the Zhongguancun electronics hypermarket era, and gradually transformed into an "innovation and entrepreneurship district" .
In 2009, the Haidian District Government issued the "Notice on Accelerating the Adjustment of Zhongguancun West District Format", no longer encouraging the development of electronic stores, shopping malls, shopping centers, restaurants and other formats in the region, and gradually adjusting the scale of traditional commerce and trade to develop for high-end industries Free up space; in 2011, relevant government departments issued supportive policies aimed at reducing the wholesale and retail space in Zhongguancun West District and increasing office space for high-end industries; in 2015, the “Zhongguancun Street Development Plan” proposed that Zhongguancun area will Complete the transformation within five to five years, and bid farewell to the electronics store.
From 2015 to 2016, Zhongguancun e World, Bainaohui, and Hailong Electronic City have all been shut down and transformed.
Wang Jianfeng said that the future business model should be done in accordance with the planning requirements of Beijing and Haidian District and the permission of relevant departments. It is expected that unified management will be the general trend. Within the scope of the decentralized property rights that the owner insists on, the high probability will be combined with the present The model of the store is made in the form of Zhongguancun Historical District and Zhongguancun Historical Museum, giving the remaining owners a display space.
He also emphasized that he hopes to use Dinghao Building as a public interactive space for high-tech companies through project positioning and reorganization, design concept update, engineering transformation and upgrading, etc., to drive the area to upgrade and attract more high-tech enterprises. (Securities Daily)