K11 Shopping Centres Do Not Make Money? 40% Turnover Comes From Fans.

Integrating art into business, K11 is the best in the industry.

In the K11 shopping center of Hongkong, 13 sets of art worth HK $20 million have been displayed for a long time. There are 18 new local artwork windows on each floor.

The sales of Hongkong K11 doubled in the first three years, and now it still maintains a growth rate of over 20%. The monthly traffic volume is more than 1 million passengers. At present, there are 28 thousand VIP members in the shopping mall and more than 10000 members of the Art Alliance, which are significantly higher than the average retail level in Hongkong.

Affected by Hongkong

Encouraged by this, Zheng Zhigang quickly launched the layout of the mainland.

Shanghai K11 is renovated from the former Hong Kong New World building, occupying the advantage of Huaihailu Road's core business district. Its shopping center shopping area is 38 thousand square meters, and the office building area is 81 thousand square meters.

The project cost more than 400 million yuan, and it is estimated that the cost will be recovered in five to six years.

At a commercial real estate summit, there are still some people questioning Zheng Zhigang's K11.

Some people think this is just a gimmick over the actual sales results show, it still has no way to escape the electricity business attack under the decline of physical retail.

However, it still uses a series of data to prove its value.

First of all, after the renovation of Shanghai K11, the rental of the shops increased by 70%, and the office rents increased by 30%. Then, the average volume of people's traffic has increased to 1 million times since the trial operation in January.

According to monitoring statistics, 30% of the 100 major shopping centers in Shanghai were dismal, accounting for 30%, of which 10% were trapped in the quagmire and were on the verge of "dead shopping centers".

Compared with those shopping centers, K11 is a different sight.

K11 set its DNA as art, culture and environmental protection.

It is eager to stand out from a unique position in the retail sector.

But how can we combine art with retailing? How can we bring art to people and pform art into reality?

Zheng Zhigang's answer is: "do not focus solely on the number of business. What China needs most is content and software. Hardware is no longer good enough to win the respect of others. Software and content can be sustained.

If we look at the problem from the perspective of business data, you will not be able to innovate. It is impossible to achieve sustainable development.

The fans of Hongkong K11 are also amazing.

The new world development 2015 China Daily reported that the K11 rental rate in Hongkong was close to 100%, the turnover increased by 11% annually, and the average monthly traffic volume was more than 1 million 300 thousand.

K11 is locking the target before opening.

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"25 to 45 year old fashion workers and tide people are the guests we want.

Now, they are our VIP. "

In Shanghai K11, a one-time consumption of more than 5000 yuan can become a gold card member, and a year's total consumption of more than 300 thousand yuan can become a black card member.

Zheng Zhigang revealed that K11 now has about 12 thousand gold card members and 300 black card members.

K11 positioned its own consumer groups in 25 to 45 years of age, a relatively mature consumer group in shopping.

They are usually younger and are fond of fresh things.

Careful people will find that people visiting K11 are generally more progressive in their costumes, or they are simply defined as literary youth or fashion pioneers.

K11 did a lot of research before and after the opening of the business. They found that consumers used to use Logo products to represent their identities, but the people who came to K11 were not. Their style of dressing, food, afternoon tea, and meeting with friends were their own labels. These combined factors decide who they are.

In other words, what K11 wants to do is create an atmosphere, create a sense of belonging, and let them feel that K11 is a representative of themselves.