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Asia Distribution and Retail
Commercial Districts in Shenzhen Dec 2015
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Table of Contents:
• Overview of Shenzhen
• Major commercial districts of Shenzhen
• SWOT analysis of Shenzhen’s commercial districts
• Appendix
• Shenzhen is one of the two hub cities in the Pearl River Delta (PRD) region*. It is China’s first Special Economic Zone (经济特区; SEZ)**
• Shenzhen has ten districts, namely, Luohu (罗湖), Futian (福田), Nanshan (南山), Bao’an (宝安), Yantian (盐田), Longgang (龙岗), Guangming (光明), Pingshan (坪山), Longhua (龙华) and Dapeng (大鹏)
•The Pearl River Delta economic zone is formed by nine cities, namely Guangzhou (the provincial capital), Shenzhen, Foshan, Zhuhai, Jiangmen, Zhongshan, Dongguan, four districts
and counties of Huizhou and four districts and counties of Zhaoqing. According to the Fung Business Intelligence Centre, there are two hub cities in the PRD region, namely Shenzhen
and Guangzhou. Hub cities are key cities in a certain cluster, with GDP generally accounted for over 20% of the GDP of the cluster.
**The Special Economic Zones (SEZs) of China are regions/cities that are granted special economic policies and flexible government measures that include special tax incentives for
foreign enterprises.
Shenzhen is one of the hub
cities in the PRD Region
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• The State Council has declared Shenzhen as a National Economics Centre (全国性经济中心城市) and a “city of global clout” (国际化城市)
• By the end of 2015, Shenzhen had a population of approximately 18 million, of which,
11.4 million are permanent residents*
Shenzhen is an influential and international city
* Shenzhen Statistics Bureau
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Key economic indicators According to the Economic Competitive Index report published by the Chinese
Academy of Social Sciences in 2014, Shenzhen ranked number one in terms of
city’s total competitiveness level
Exhibit 1 shows the key economic indicators of Shenzhen benchmarked against
the PRD region and country-level data in 2015
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GDP Total retail sales Population million
billion yuan yoy billion yuan yoy
National 67,670.8 6.9% 30,093.1 10.7% 1,374.6
PRD region 7,281.3 8.0% 3,133.3 10.1% 58.7
Shenzhen 1,600.2 8.8% 484.4 9.3% 10.6
Source:
National, Guangdong and local statistics bureaus; compiled by Fung Business Intelligence Centre
Exhibit 1: Key economic indicators, 2015
Shenzhen 1,750.3 8.9% 501.8 2.0% 11.4
Key economic indicators
Nanshan
371.5
(9.3%)
The ten administrative districts in Shenzhen and
their respective GDP, 2015
Source: http://www.sztj.gov.cn/xxgk/tjsj/tjgb/201604/t20160426_3606261.htm
compiled by Fung Business Intelligence Centre
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GDP billion yuan (yoy growth )
Futian
325.6
(9.0%)
Bao’an
264.1
(9.0%)
Long
Gang
263.7
(10.5%)
Luohu
172.8
(8.0%)
Long
Hua
163.6
(8.0%)
Guang
Ming
67.1
(9.4%)
Yantian
48.7
(8.9%)
Ping
Shan
45.8
(9.4%)
Dapeng
27.4
(4.0%)
Exhibit 2: Shenzhen’s GDP, 2010-2015 Exhibit 3: Total retail sales, 2010-2015
• Total GDP in Shenzhen amounted to 1,750.3 billion yuan in 2015, up by 8.9% yoy, while total retail sales
in Shenzhen were 501.8 billion yuan, up by 2.0% yoy (Exhibit 2 and Exhibit 3)
• Growth in total retail sales has continued to slowdown in Shenzhen in recent year, due mainly to a
relatively weak economic sentiment
Source: Shenzhen Statistics Bureau
Key economic indicators (Cont’d)
Source: Shenzhen Statistics Bureau
billion yuan
billion yuan
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958.2 1,150.6
1,295.0 1,450.0
1,600.2 1,750.3
12.0%
10.0% 10.0% 10.5%
8.8% 8.9%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2010 2011 2012 2013 2014 2015
GDP (billion yuan) yoy changes %
300.1 352.1
400.9 443.4
484.4 501.8
16.9% 17.3% 16.5%
10.6% 9.3%
2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
-
100
200
300
400
500
600
2010 2011 2012 2013 2014 2015
Total retail sales (billion yuan) yoy changes %
• Exhibit 4 and Exhibit 5 show the per capita disposable income and per capita consumption expenditure
of urban households in Shenzhen between 2010 and 2015
• Per capita disposable income reached 44,633.3 yuan in 2015, up by 9.0% yoy; at the same time, per
capita consumption expenditure was 32,359.2 yuan, up by 12.2% yoy
Key economic indicators (Cont’d)
Source: Shenzhen Statistics Bureau Source: Shenzhen Statistics Bureau
Exhibit 4 Per capita disposable income, 2010-2015 Exhibit 5: Per capita consumption expenditure, 2010-2015
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yuan yuan
21,380.9
36,505.0 40,741.9
44,653.0 40,948.0
44,633.3
10.7%
12.7%
11.6%
9.6% 9.0% 9.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
2010 2011 2012 2013 2014 2015
Per capital disposable income of urban residents…yoy changes %
22,806.5 24,080.0 26,727.7
28,812.4 28,853.0 32,359.2
5.9% 5.6%
11.0%
7.8%
10.1%
12.2%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
0
5000
10000
15000
20000
25000
30000
35000
2010 2011 2012 2013 2014 2015
Per capita consumption of urban residentsexpenditure (yuan)
yoy changes %
Existing metro network
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As of June 2015, Shenzhen has five metro lines and 131 metro stations
Planned metro network
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• Five more metro lines are currently under construction in Shenzhen*
Exhibit xxx: Shenzhen metro lines under construction
*http://www.szmc.net/page/plan/index.html
Line Station Distance (km) Operation year
6 Shenzhen Station East -
Songang
37.2 n/a
7 Tai’an – Shenzen Zoo
29.8 End of 2018
8 Guomao - Xiaomeisha
26.4 n/a
9 Xicun – Shenzhen Bay
37.2 End of 2016
11 Central Futian - Songgang
51.2 June 2016
Source:
https://zh.wikipedia.org/wiki/%E6%B7%B1%E5%9C%B3%E5%9C%B0%E9%93%81#/m
edia/File:Shenzhen_Metro_Extension_Plan-zh.svg
6 1
2 3
4 5
Location of the six commercial districts of Shenzhen: 1. Dongmen 2. Renmin Road South 3. Huaqiangbei 4. Central Futian
5. Nanshan 6. Overseas Chinese Town 10
Location of major commercial districts (Cont’d)
1. Dongmen
2. Renmin
Road South
3. Huaqiangbei
4. Futian 6. Overseas
Chinese Town
5. Nanshan
Luobao Line
Huanzhong Line
Shekou Line
Longgang Line
Longhua Line
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Key features of major commercial districts in Shenzhen
No. Commercial district
Location Features Size* (sqm)
Foot traffic* Major retail formats Major retailers Metro station
1 Dongmen (东门商圈)
Luohu district
Oldest commercial district in
Shenzhen; mainly bargain shops for
apparel and accessories
176,000 sqm
600,000 daily
Department store, specialty store, wholesale market
Maoye Department Store,
Rainbow Department Store
Laojie
2 Renmin Road South
(人民南商圈)
Luohu district
Largest commercial district in Shenzhen
n.a.
n.a.
Department store, shopping mall
Friendship Department Store, King Glory Plaza, KK Mall, MixC,
Luohu Commercial
Centre
Guomao
3 Huaqiangbei (华强北商圈)
Futian District
Famous for electronics
markets
n.a. 600,000 daily
Department store, shopping mall, electronic wholesale
market
Maoye Department Store,
Rainbow Department Store, Women’s World, Suning, Sundian
Huaqiangbei Huaqianglu
4 Nanshan (南山商圈)
Nanshan district
Mostly community stores
1,510,000 sqm
n.a.
Department store, shopping mall, supermarket
Haiya Department Store, Rainbow
Department Store, Coastal City
Shopping Mall
Houhai
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Exhibit xxx shows some of the key features of major commercial districts in Shenzhen
*the Bluebook of Pearl River Delta Circulation
No.
Commercial district
Location Features Size* (sqm)
Foot traffic* Major retail formats Major retailers Metro station
5 Central Futian
(福田中心商圈)
Futian District
Shenzhen’s central business area
Has the largest underground
commercial street in Shenzhen – Link City Shenzhen Exhibition
Centre and Civic Centre are located in
this area
n.a.
n.a.
Department store, shopping mall, supermarket
Dream-on Department Store , Coco Park,
Central Walk, Link City
Shopping park Exhibition Centre
6 Overseas Chinese
Town (华侨城商圈)
Nanshan district
Shenzhen’s major tourist attractions
n.a.
50 million annually
Department store, shopping mall, supermarket
Wanpan Department Store, Xinnankang Department Store
Huaqiaocheng
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Exhibit xxx: Key features of major commercial districts in Shenzhen
Key features of major commercial districts in Shenzhen (Cont’d)
*the Bluebook of Pearl River Delta Circulation
Department Store
Convenience Store
Supermarket and Hypermarket
Shopping Mall
Metro Station
Specialty Store
Location of major retailers
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Dongmen commercial district: overview
Dongmen commercial district, also called the
“Old Street” (老街), is historically the oldest
commercial district in Shenzhen
The commercial area is popular among tourists,
youths, and mid- to low-income people; many
bargain shops that offer trendy apparel and
accessories for mass market can be found in
Dongmen
Several famous retailers include Maoye
Department Store, Rainbow Department Store
and the Sun Square are located in Dongmen
15
Source: http://citylife.house.sina.com.cn/detail.php?gid=47158
7-11 CVS
Wenhua Mart:
• Mid-low end • Bargain stores for clothing
White Horse Apparel
Wholesale Market
Maoye Department Store
• Mid-end • 9 Floors • 40,000sqm • Opened: 1997
Mongkowk Plaza
• Mid-low end • Bargain stores for clothing
Polision CVS
Jiukong Plaza
Rainbow Department Store
• Mid-end • 6 Floors • 26,000 sqm • Opened: 2000
Golden World Plaza
• Mid-low end • Bargain stores for clothing
Nantang Commercial Plaza
• Mid-low end • Bargain stores for clothing
Polision CVS
Dongmen Ding Square
• Mid-low end • Bargain stores for clothing
Metro Station
7-11 CVS
Dongmen commercial district: location of major retailers
16 Source: Fung Business Intelligence Centre
Renmin Road South commercial district: overview
Renmin Road South commercial district is next to Luohu border. This commercial district is popular among people from Hong Kong to spend their weekend in Shenzhen
Renmin Road South commercial district is also a thriving place for dining and entertainment in Shenzhen. Apart from high-end hotels such as Shangri-La and Best Western Shenzhen, there are many entertainment facilities including theaters, KTV, bars, night clubs and numerous restaurants in this district
Several department stores and shopping malls include Maoye Department Store, Friendship Department Store, King Glory Plaza, KK Mall and MixC Shopping Mall are located in this district
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Source: http://www.qigaipo.com/
MixC Shopping Mall
• Mid- to high-end • Developed by China Resources
(Holdings Company) Limited • 188,000 sqm (Built-up area) • Opened: 2004
Reel Department Store
• Mid- to high-end • Located inside MixC • 4 floors • Opened: 2004
7-11 CVS
Friendship Department Store
• Mid-end • 3 Floors • 15,600 sqm (Gross floor
area) • Opened: 1984
Maoye
Department Store
Pollison CVS
King Glory Plaza
• Mid- to high-end • 120,000 sqm • Opened: 2004
Metro Station
Metro Station
KK Mall
• Mid- to high-end • 83,500 sqm • Opened: 2004
Renmin Road South commercial district: location of major retailers
18 Source: Fung Business Intelligence Centre
Huaqiangbei commercial district: overview
Huaqiangbei commercial district is one of
Shenzhen’s busiest commercial districts. The area is
most famous for electronics markets including SEG
Electronics and Huaqiang Electronics World
Consumer electronics professional stores include
Gome, Suning, and Sundian can be found in
Huaqiangbei
Other retailers include Maoye Department Store,
Rainbow Department Store and NICO Women’s
World. The district is popular among Shenzhen’s
middle-class consumers
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Source: http://www.uutuu.com/fotolog/detail/1492190/picshow/
Maoye Department Store
• Mid-end • 83,000 sqm (Gross floor
area) • 10 floors • Opened: 2003
NICO Women’s World
• Mid- to low-end • Shops for bargain clothing
and accessories • Opened: 2004
7-11 CVS Metro Station
Women’s World
• Mid- to low-end • Shops for bargain clothing and
accessories • 11,000 sqm (Gross floor area) • Opened: 1994
Children’s World
• Mid- to low-end • Shops for bargain clothing and
accessories • 6,000 sqm (Gross floor area) • Opened: 1999
Metro Station Polision CVS
Duty Free Mall
• Mid- to high -end • 3 floors • Opened: 1997
Rainbow Department Store
• Mid-end • Community store • 20,000 sqm (Gross floor area) • 4 floors • Opened: 1984
Huaqiangbei commercial district: location of major retailers
Suning Expo
Sundian Consumer Electronics
20 Source: Fung Business Intelligence Centre
Nanshan commercial district: overview
Nanshan commercial district is located in the western part of Shenzhen. The area has attracted
consumers from both Nanshan district and Bao’an district
Major retailers include Haiya Mega Plaza, Coastal City Shopping Mall, Rainbow Department Store,
Aeon and Carrefour
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Nanshan commercial district: location of major retailers
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Metro Station
Pollison CVS
Coastal City Shopping Mall
• Mid- to high-end • Largest community store in Shenzhen • Shopping mall size: 120,000 sqm (Built-up area) • Commercial street size: 40,000 sqm (Built up area) • Opened: 2007
Polision CVS
Haiya Mega Square:
• Mid-end • 50,000 sqm (Built-up area) • Opened: 2014 (re-opened
after renovation)
Metro Station
7-11 CVS
Rainbow Department Store
• Mid-end • 15,000 sqm (Gross floor area) • 4 floors • Opened: 2007
Carrefour
Aeon
Renrenle
Source: Fung Business Intelligence Centre
Central Futian commercial district: overview Futian district is the administrative
and cultural center as well as a
major business hub of Shenzhen; a
number of five-star hotels such as
Marco Polo Shenzhen, Shangri-La,
and Golden Central can be found in
Futian
With an increasing number of
multinationals and large domestic
enterprises setting up offices in
Futian commercial district, the
white-collar workers and households
in nearby residential areas are the
driving force of consumption
Several retailers include COCO Park,
Central Walk, and Rainbow
Department Store can be found in
Central Futian commercial district
23
Source: http://www.szeat.net/news/html/2011-04/0802501217734.shtml
Metro Station
Metro Station
Metro Station
Poliision CVS
Carrefour
Central Walk
• Mid-end • 140,000 sqm (Built-up area) • Opened: 2007
Link City:
• Links two subway stations together: Exhibition centre station and Shopping centre station, with a total underground length of 663m.
• Divided into three areas: (a) consumer electronics and cartoon products (b) apparel, cosmetics and cafes, and (c) restaurants
• 27,000 sqm (Built-up area) • Opened: 2012
7-11 CVS
Poliision CVS
Metro Station
Coco Park
• Mid-end • 85,000 sqm (Built-up area) • Mainly restaurants, cafes and
bars • Opened: 2006
Aeon
Dream-on Department Store
• Mid- to high -end • 38,000 sqm (Built-up area) • 2 foors • Opened: 2010
Central Futian commercial district: location of major retailers
24 Source: Fung Business Intelligence Centre
Overseas Chinese Town commercial district: overview
Overseas Chinese Town (OCT)
commercial district is a tourism and
leisure destination; over 30 million
tourists visit this district each year
Famous tourist attractions include
Happy Valley, China Folk Culture
Village, Splendid China, and Window of
the World
Several big retailers can be found here,
including Yitian Holiday Plaza, Wal-
Mart, and King Banner Centre
25
Source: http://www.chinaoct.com/
26
Metro Station
Yitian Holiday Plaza
• Mid- to high-end • 135,800 sqm (Built-up area) • Opened: 2012
Metro Station
Xinnancheng
Department Store
7-11 CVS
Kingkey Banner Centre
• Mid-end • 120,000 sqm • Opened: 2008
Wanpan Department Store:
• Mid-end • Community store • 20,000 sqm (Gross floor area)
Walmart
7-11 CVS
Source: Fung Business Intelligence Centre
Overseas Chinese Town commercial district: location of major retailers
SWOT analysis of Shenzhen’s commercial districts
Strengths
• Strong purchasing power
• In 2015, the per capital disposable income
in Shenzhen reached 44,633 yuan while the
average urban disposable income in China
was 31,195 yuan
• An easily accessible transport network
• Each commercial district is at least covered
by one metro station
Weaknesses
• Lack of parking space
• Some commercial districts, such as Central
Futian, do not have enough parking space
to accommodate all vehicles
Threats
• Competition from retailers in Hong Kong
• Due to the price difference, many
consumers go to Hong Kong for shopping
• Competition from online retailers
Opportunities
• Cross-border e-commerce
• The State Council has approved the
establishment of the Shenzhen Qianhai
Free-Trade-Zone (FTZ). The development
of the Qianhai FTZ is likely to create new
retail opportunities as it offers several
preferential policies that are expected to
attract both domestic and international
retailers
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Appendix
The Chinese names of the companies mentioned in this newsletter are listed below
as a reference
Duty Free Mall (深圳免税商场), Dreams-on Department Store (君尚百货), Friendship
Department Store (友谊城百货), Maoye Department Store (茂业百货), Nankang
Department Store (南康百货), Rainbow Department Store (天虹商场), Reel Department
Store (芮欧时尚生活百货), Sun Square (太阳百货), Wanpan Department Store (湾畔百货)
Central Walk (怡景中心城), Children’s World (儿童世界), Coastal City Shopping Mall (海岸城),
Dongmen Ding Plaza (东门町广场), Golden World Plaza (金世界广场), Haiya Mega Square (海雅缤纷城), King Glory Plaza (金光华广场), Kingkey Banner Centre (京基百纳广场), KK Mall (京基·百纳空间), Luohu Commercial Centre (罗湖商业城), New 2000 Plaza (新2000广场), Link City (连城新天地), Mongkowk Plaza (旺角购物广场), MixC (万象城), Nantang Commercial Plaza (南塘商业广场), NICO Women’s World (女人世界名店), Wenhua Mart (文华商场), Women’s World (女人世界), Yitian Holiday Plaza (益田假日广场), Zhongwei Commercial Square (中威商业广场)
Aeon (永旺), Carrefour (家乐福), Renrenle (人人乐), Park n Shop (百佳), Wal-Mart (沃尔玛)
1000colors (千色店), Fiona (研丽), Manning (万宁), Sundian (顺电), Suning (苏宁), Watsons (屈臣氏)
Department
Store
Shopping
Mall
Supermarket
Professional
Store
Convenience
Store
Polision (百里臣), 7-11
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Asia Distribution and Retail Teresa Lam Vice President [email protected] (852) 2300 2466 Echo Gong Senior Research Analyst [email protected] (852) 2300 2465
Fung Business Intelligence Centre 10/F, LiFung Tower, 888 Cheung Sha Wan Road, Kowloon, Hong Kong Tel: (852) 2300 2470 Fax: (852) 2635 1598 Email: [email protected] http://www.fbicgroup.com/
Contacts
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Though the Fung Business Intelligence Centre endeavours to have information presented in this document as accurate and updated as possible, it accepts no responsibility for any error, omission or misrepresentation. Fung Business Intelligence Centre and/or its associates accept no responsibility for any direct, indirect or consequential loss that may arise from the use of information contained in this document.
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