The "new business" civilization is the business civilization of the information age, which is a new business civilization emerging with the development and influence of information technology. The business model under the new business civilization is "mass personalized customization" with flexible manufacturing, personalized marketing, and socialized logistics as the pillars for consumers.
On Black Friday (the day after Thanksgiving) in the United States in 2016, JC Penny
promoted its products through multi-channel promotions, including web displays, TV commercials, online videos, emails, publicity, social media, and apps
and so on! Under the new business trend, the integration of online and offline, the communication of information and experience, the interaction between merchants and customers, and the new business rules have all become the research direction for future business breakthroughs.
As early as around 2010, there are industry elites began to deal with the "new business" of the "Noah's Ark program", we also began five years ago, "business 4.0 We also started the research of "Business 4.0" five years ago. With the advent of the Internet of Everything (IoE), new experience technologies and artificial intelligence will disrupt current business practices in the next five years. Business 4.0 is a new paradigm in the era of Internet of Things integration, and our research is not only limited to the scope of the five senses (sight, hearing, smell, taste, and touch), but also needs to be enriched with emotional (right-brain+business) fulfillment in addition to meeting the needs of function and structure. There are a lot of topics we are studying, not only the innovation of business model in the new environment, but also the future business application technology. Here, I am going to briefly share a few aspects of the "new business" in the context of the present.
The gold-absorbing method of commercial real estate
The earliest commercial shopping centers developed in China were Plaza 66 and Grand Gateway 66, which I was responsible for when I put down my own business in the United States and came back to China to develop these two projects in 1993. In the last three consecutive years, Hang Lung and Grand Gateway have achieved the highest rental income ping efficiency and the highest rental unit price of shopping centers in China. The annual average ping efficiency of Hang Lung Plaza exceeds RMB 120 per day
As an overseas listed company, this is a benchmark in China's commercial real estate industry from the perspective of international investors.
Hang Lung Group's commercial real estate in Hong Kong, mainly concentrated in Causeway Bay, Hong Kong, that is an inch of gold place, but in the planning of Grand Gateway Plaza, we designed a very large atrium, the area of public **** accounted for about 45%. In the early nineties when we did the preliminary planning, we have been forward-looking to see the future of the atrium diversity of marketing use and operation and promotion activities. Today's brick-and-mortar stores face the impact of e-commerce in the era of big links, and need to have enough volume of atrium to do different promotional activities, which is the gene of some successful commercial real estate.
There were also dissenting voices at the time that questioned the public **** area of Grand Gateway Plaza being too large and not generating revenue. "Why invest so much money in an atrium?" All it takes is some out-of-the-box thinking, especially in the age of big links and innovation.
But in the 1990s, when China's shopping centers were just starting out, we combined the more mature international experience of shopping centers to create China's first multiplex cinema in the planning and design of Grand Gateway Plaza, and at the same time, because of the very large volume of shopping centers, which required fire protection zones, a 13-meter fire escape was cut out of the middle of the shopping centers by the fire department, and we thought about how to make the cold fire escape come to life. At that time, we were thinking about how to make the cold fire escape come alive. If you've been to Grand Gateway Plaza, what you've noticed, or what you think is good, is that it was an innovative leisure food walkway at that time.
Pre-positioning is very important in any era. From the perspective of asset management, why could we think of doing a luxury shopping center after the Asian financial turmoil at that time? The positioning of the shopping center must focus on the future trend, rather than just focusing on the immediate consumer market, if according to the consumption level in the late 1990s, China was not enough to support the consumer market of top luxury brands, but taking into account China's two-digit economic growth over the past three decades and the rise in per capita income, so we have done some very bold reorganization of the industry, adjustments to do the whole of China's top luxury shopping centers. luxury shopping center in China. If you look at the annual report of Hang Lung Company, the rental income in 2015 was HK$4.194 billion, which is a very healthy and stable cash flow, and that's what's very fascinating about commercial real estate, it's the income that keeps coming in an orderly fashion.
The essence of commercial real estate is asset management
"NOI" Net Operating Income, and Cap
Rate capitalization rate, are the two most important indicators of asset management, that is, how to use some reasonable management, how to do better operation and investment, to increase income. That is, how to use some rational management, how to do a better operation and investment, to increase income and reduce expenditure, only in this case, your NOI will increase, the capitalization rate is reduced, the asset will be upward appreciation.
When I was in charge of asset management at Sino Group, I did several projects that were defensive measures, mainly mall renovation and value-added. At any given time it is necessary to understand the entire local market, before the competitor's new mall has been built before the first one or two years, Sino has launched a defensive renovation business enhancement. In the process of asset enhancement, some of the very underutilized commercial categories were refurbished to increase the commercial retail leasing space. At the same time, we have also upgraded different formats. Especially in the era of big links, shopping mall renewal and upgrading, it is more necessary to make different defensive adjustments at different stages.
Commercial real estate investment has an exit process, in 2007 I was responsible for Hong Kong's first privately-listed REIT, ICP Real Estate Trust and the overall acquisition of the Cheung Kong Group's seven properties. There is a way out for commercial real estate, but the way out is to unify the operation, unify the management, and sell the whole package. A REIT is a securitization of some developer's property at a mature stage.
Currently, there is no REIT in China that is truly open to the general public market, and there is no REIT that is truly open to the general public that stockholders can invest in. From the trend, I think this is also China must take the next step, can release a lot of heavy assets for light asset management.
Of course, in asset management, one of the focuses is how to save energy, but also includes adjusting the format and image, which are all things that must be done in asset management. Whether it's Sino Group, Hang Lung Group, or ICP Real Estate Trust, basically they all have very good asset management, operational management, so that they can continue to improve their NOI every year, or improve their income.
Tell us about the case of financing in the era of big links, because there is no way to borrow high interest financing for commercial real estate, because the loan usually expires in two or three years, and the project is too late to complete. Developers because of the high interest cost of borrowing, if it is collateralized by equity, it will eventually be borrowed money to take over the equity of the project company, do commercial real estate investment and borrowing, to figure out how much leverage ratio of the project, what is the interest rate, is it reasonable
Correct exit plan, everyone is talking about Li Ka-shing and ran away, in fact, from a businessman in terms of business, when your property reaches a When your property reaches a peak or matures, it is considered that the value of the property has come to an end, and the overall exit is a reasonable program. Recently, Century Plaza in Lujiazui was taken over by ARA (a company specializing in fund and REIT management). Because ARA has a stake in the Cheung Kong Group, the original team will continue to manage the project.
E-commerce instrumentalization
Currently, e-commerce makes up for the lack of business or products in the third, fourth and fifth tiers, so e-commerce will be more popular in China. However, in the United States, e-commerce accounted for a proportion is still quite low. No matter how developed e-commerce, now to 2025, China will have seven thousand shopping centers under construction. At present, e-commerce to buy a lot of things are clothing, sports or footwear-based things. In fact, when it comes to the Internet, I have always believed that the web is a tool, the tool means how you use the Internet to combine your customers to come to your shopping center before your site and products already have a basic understanding, so to the physical store, after their own touch, see, try and then decide to buy, the use of the Web is still very important, and has become more and more popular.
China's online transaction volume, mobile has accounted for a high proportion, now mobile so developed, China's cell phone Internet users now accounted for 88.9%. Now the mobile payment "Alipay" accounted for almost the whole market absolute number, I believe everyone will have Alipay, WeChat, whether you pay the phone bill, or pay other expenses, also has been very popular. I once forgot to bring my wallet, I ate the meal after the silly there, and then Grandma's restaurant service foreman saw me, I said how to do, he said you have WeChat, I said WeChat has, then you quickly go to the popular Dianping point, buy a restaurant coupons can be used. I immediately bought a restaurant voucher on WeChat, but he said he could not find me money, I said it does not matter, the foreman will be the rest of the money took five or six bottles of Coke to me to take away.
China traveled everywhere once the golden week came, you can see Alipay spent the most money during the golden week is South Korea to go, probably South Korea or girls go to buy cosmetics more, Thailand second, Hong Kong third. The volume of mobile payment transactions in the United States, Apple Apple
Pay is also becoming more popular, the magnitude of the rise is very fast. E-commerce in the U.S. probably accounts for about 13% of retail, whether it is Amazon Amazon or EBay
Ebay or Walmart Walmart, all of these e-commerce customers are also more and more. The major U.S. retailers in Cyber Monday
"Chopper Monday" (Black Friday after the ground Monday), the individual merchants Best Buy, Kors, Target, Old Navy, Toys "R "US,"
Walmart and other web and social media sites are advertising to grab pre-Christmas shoppers
Overall, e-commerce is going to grow, but it's still a small percentage of overall retail. Brick-and-mortar commerce, brick-and-mortar retailing is not going away because of the impact of e-commerce. Double 11 after five years, in 2014 grew 1,000 times, to 2015 to 91.2 billion, 2016 120.7 billion. Of course, this year, Double 11 has increased a lot of entertainment elements, party, interaction and so on. In fact, you don't care if they are e-commerce, double 11 or what to do in Taobao, ultimately to land and interact with people. On the other hand, if you put all the physical stores on the same day to do the same thing, focusing on discounts and concessions, this sales will also be very huge.
Big Data Changes Life
This year's U.S. election is of great concern to everyone, and this election has made all the experts fall through the cracks, including the mainstream media, which has a lot of hidden conditions, and a lot of customers are not interviewed in the mainstream media, so why would there be such a big error? Before more than seventy to eighty percent of the prediction is Hillary won, the result is finally Trump won. You can see Trump in Facebook Facebook or in Twitter Twitter, it is a lot of fans.
Another thing I want to point out is that Trump spent $5 million analyzing the big data of U.S. voting citizens, and we hear a lot about big data, but it's the same concept when it comes to commercial real estate analyzing clients. Because of the precise analysis, so Trump's advertising placement, what state of what townships what counties and other small places, what population becomes more and more targeted, this time the big data analysis of Trump's voting voter impact has a certain amount of help, and ultimately the winning townships and counties maps clearly proved that this move. Of course social media itself will pass on far more information than the main media categories, which is what influenced the vote this time around. So I want to say a word is that today has been used in the era of the full force of big data, many times we are still doing questionnaires, or with thousands of questionnaires to analyze to decide the project hundreds of millions of dollars of investment and positioning, there will be a certain misunderstanding, perhaps asked down most people like to drink coffee, eat Western-style food, but wait for you to invest in the introduction of coffee and Western-style restaurants, you find how Western-style restaurants are not much
China is also currently combining some of the telecommunication industry with the telecommunications industry to create a new generation of social media. >China now also has some combination of telecom company data big data analytics company, they based on your use of cell phones, you can clearly analyze a shopping mall one kilometer distance is what crowd, three kilometers is what crowd, what is the family situation. All of these data can be used to find a more accurate positioning, with this information, your business will know how to modify and adjust. With this information, you will know how to modify and adjust your business. With this information, you will know whether you need to increase the children's business, and whether the activities you do are family activities and so on. In this regard, I believe that this time I use the example of the U.S. presidential election to use big data to strengthen your knowledge of big data and our future research can help you.
Online and offline integration
Currently often see the death list of department stores, sometimes I have to look at it from another point of view, look at the death list of the e-commerce, it also has a cost, the courier is also a cost, the Tmall also have to deduct the point of labor needs money, the promotion of the money needs money, the tax has to be paid, the warehousing is also the money, so the e-commerce is not no money.
How do brick-and-mortar retailers respond, they also join together to do some promotions, shopping festivals and other activities. E-commerce is also looking for brick-and-mortar stores, Yamaha opened one on 34th Street in New York, and it's now going to open even more convenient brick-and-mortar stores ready for curbside pickup, and the first convenient brick-and-mortar store will start near its Seattle headquarters. So e-commerce is looking for entities, and entities are getting involved in e-commerce, but I've always said that the Internet is a tool that focuses on how we use it
Xiaomi is also opening physical stores, and Xiaomi expects to open 200 to 300 in 2017. Xiaomi claims that their ping efficiency is 20 times that of the general retail business, because the unit price is very high, so if you can sell hundreds of cell phones a day, rent a 200 square meters, an average of a few thousand dollars for a cell phone, its ping efficiency is very high. This is a trend.
Another one speaks of stock, a friend acquired an old factory building, invited international designers, the very old factory building into a multi-functional office building, at the same time multi-functional hall constantly do different activities, filming a movie or MV, or fashion show or, the transformation of these old factories depends on how you operate. Especially now the organic combination of culture, art and entertainment, in this era of big linkage of the stock of real estate, how do we use these innovative ideas to maximize the value of the transformation.
"New business" to cope with the changes
The year of the millennium, there is a big staircase platform in front of the Grand Gateway, on top of the staircase to do the millennium activities, at that time it was hundreds of thousands of people blocked the side of the full! In the future, the staircase platform will be demolished, and there are several benefits after the demolition, including the increase of some rental area, including those customers can come in more directly from the ground floor. However, at the time we did this staircase platform, the thinking is to be able to put the second floor and the first floor of the rent through the staircase platform to introduce people, so the rent of the second floor and the rent of the first floor is almost the same, which is also from the business at the time of pre-planning some of our thinking. After remodeling, Xujiahui will create a gathering place for cultural and artistic exhibitions in Shanghai.
My old employer, Hang Lung Group, has promoted the "EST" program,
Experience, Service, Technology,
At present, Hang Lung is still improving its shopping centers in Shanghai, which are so successful, and this is an important gene for success. is an important gene for success. According to the annual report of Hang Lung, it can be seen that the group is going to spend 1.3 billion dollars to renovate Shanghai Plaza 66 and Grand Gateway Plaza 66. Shanghai Plaza 66 will expand its leasing area by adjusting the local area, and in particular, the basement will be completely remodeled. With the introduction of the new "EST" improvement, a new pattern will be ushered in for Plaza 66, and I am optimistic that rents will go up in the future after the remodeling is completed.
The business environment is always changing, and those who adapt to the changes are those who are experienced and adept at management. I am very happy to participate in the activities of "CCIM" International Certified Commercial Real Estate Investment Manager and "CPM" International Certified Property Manager, I am also a CCIM and CPM, so I always think that the successful operation of a project is ultimately about the people, how to build a good team, and how to recruit a good team of people. How to build a good team and recruit good and professionally trained people to work together is very important. Having an experienced management team is actually the main engine of asset preservation and appreciation.
Conclusion
"New business" is the continuation of the era of commercial civilization, new technology and new business models, in the final analysis, are for the service of a new way of life. 80s and 90s have an alias, called the "second" generation. The post 80's and 90's have an alias called the "second generation", which is different from the past practice, and we propose that commercial real estate in the era of big links will be a themed experience commercial body. From the marketing point of view, whether it is visual, auditory, sensory, the need for sensory stimulation of marketing, but also the need for cultural marketing in the content, the future of the business is no longer functionalism just to meet the needs of the future will be a cultural perception of the business generation, the need for sensory realization of cultural marketing. In the era of big connection, big data analysis, precise positioning, artificial intelligence services, virtual reality experience, will become the new marketing tools. The "new business" needs to do a good job of planning, positioning and business management from a forward-looking perspective to maximize the value of the project in keeping with the times.