(NBD) Aug. 28 -- A total of 864 new shopping centers are expected to open business across China in 2017, according to a real estate information website winshang.com. In contrast to the soaring number, the shopping mall industry faces insufficient effective supply yet excessive ineffective supply.

It is estimated that the number of shopping centers in China will reach 10,000 by 2025, according to Mall China, a shopping mall information center and cooperation promoter in China. However, NBD reporter notices that many traditional stores and old shopping malls have undergone restructuring and even closed in recent years.

Tao Wensheng, an expert in retail and strategic management explains to NBD that customers increasingly flow to other businesses and shopping malls face soaring cost and operational requirements. How to achieve differentiation is a big challenge.

Xie Meng, Vice Chairman of Zheng Jia Group Co., Ltd., told NBD in an interview that the business mode of traditional shopping centers has reached the ceiling and its sole dependence on rent is unsustainable. There's no making without breaking. Shopping centers should introduce multi-tiered income structures and shift from thinking as a developer to thinking as a service provider to transform shopping malls into an experience center or a tourist spot, Xie added.  

Email: gaohan@nbd.com.cn