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The transformation of shopping

By CAO CHEN | China Daily | Updated: 2019-01-19 09:44
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No 1 Shopping Center underwent an 18-month renovation to attract more young consumers. [PHOTO BY GAO ERQIANG/CHINA DAILY]

The move is aimed at drawing younger consumers, as evidenced by the drastic change in featured brands. According to the mall operator, more than 70 percent of the old brands that were once located in the two malls have been replaced with those currently in vogue. Meanwhile, the food and beverage options have been increased from 20 to 38 percent, while more space has been allocated for lifestyle amenities such as hair salons, exhibition zones and child care centers.

According to Fan Liqun, the manager of the shopping center, the average age of its consumers has dropped by about 20 years. Today, the majority of those who visit the mall are aged between 20 and 45.

Formerly known as Da Sun Department Store, this 82-year-old mall has like its many peers in the city embraced the sweeping changes to the retail sector, transforming itself into not just a retail hub but a lifestyle center that is focused on providing real-time experiences for consumers.

"No 1 Shopping Center used to be the mall with the highest sales for 14 consecutive years in Shanghai," said Fan.

"But this transition it has undergone is obviously inevitable in this day and age. The renovation represents a new evolution of traditional department stores as they try to adapt to the new retailing era."

Stores through the centuries

According to Song Zuanyou, a former researcher at the Institute of History in the Shanghai Academy of Social Sciences, department stores only became popular around the world in the 1800s following the founding of Le Bon Marche in Paris, France, in 1838.

However, Shanghai was largely isolated from this trend until the 1900s when the city's economy made great strides forward due to rapid industrial development.

"During this period, people became wealthier and had more purchasing power. This meant that the smaller stores they used to shop at were unable to meet their growing demands," said Song.

The first department store in Shanghai was built in 1906. Established by the foreign company Whiteaway, Laidlaw & Co and located on Nanjing Road, the five-story building featured more than 20 brands. However, the store did not make much of an impact in the local scene as most of its offerings were imported goods catered to the expatriate population.

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