The rapid development of China's high-speed rail, in addition to bringing the world's most dense high-speed rail network, also opened up a new railway station business market.
Different from the business of ordinary railway stations in the past, the station business of high-speed railways is no longer an ordinary passenger. Instead, it hopes to transfer high-end consumers from airports and highways.
This is a new thing in China. There is no precedent to follow.
In this regard, Hu Jun, chairman of Beijing Ruiwei Business Management Co., Ltd., China’s largest and currently dominant railway station commercial operator, believes that in the future, high-speed railway station commercials will no longer be “instant noodle†markets. Fashion goods have been given a deeper meaning, and even the luxury Cartier, GUCCI, etc. will likely enter.
We hope to introduce the Hermes reporter: In recent years, China's high-speed rail has developed rapidly and a large number of new stations have been built. How do you view this market?
Hu Jun: The market is very scary. I will give you a set of data. Among the stations we designed, Beijing Fengtai Station has a commercial area of ​​90,000 square meters, and Zhengzhou East Railway Station has a commercial area of ​​33,000 square meters. The North Station has a commercial area of ​​25,000 square meters, Chengdu East Railway Station is 25,000 square meters, and Wuhan Station is 13,000 square meters. If the average station is 20,000 square meters, the Ministry of Railways will build 804 in all of China in 2012. A new passenger station, the market is too big.
By the end of 2020, the Ministry of Railways will build 1024 new passenger stations, and the Chinese high-speed rail will also connect with neighboring countries. For example, the Sino-Burmese Railway has now been completed.
The emergence of so many new stations has brought a huge commercial market.
Reporter: When did you start getting involved in the commercial operation of high-speed railway station?
Hu Jun: I used to be the first general manager of COFCO Plaza. In 2006, we abandoned the traditional commercial real estate business that we were good at, and made every effort to make station station business.
At present, we have mastered the commercial operations of more than a dozen high-speed rail stations, and we are talking about twenty or thirty new stations. We are the key layout, staking and enclosure, and the Ministry of Railways has set 16 major stations in 804 high-speed rail stations across the country - 6 national hubs and 10 regional centers. These 16 stations are key stations, which is a top priority. Therefore, we have basically completed the deployment of these 16 stations. Now we have only Nanning, Lanzhou, and Urumqi. Because we are a little bit far, we haven't paid any attention to it.
Reporter: What do you specifically do for each HSR station you deploy?
Hu Jun: It is divided into two forms, one is “big bagâ€. The commercial operations of the entire station station are based on our leadership. From the planning, positioning, and packaging of the station’s early stage of business to the production and formulation of the plan. The examination and approval, the final investment, management, are all we are doing. For example, 13,000 square meters of business in Wuhan Station and 10,000 square meters of business in Tianjin Station are all packaged.
The other is subcontracting. We took a part of it. For example, 25,000 square meters of commercial operations in Chengdu station is subcontracted. Because the area is too large, we can't take it and we can't get it. Now it's empty and the traffic is low. Several people, for us, are too risky. Others, including Xi'an North Station, are no one else. Of course, from a commercial point of view, some people may say that you are “myopic†and you need to wait a few years for the train station shopping district. However, this also requires us to be able to move.
After the commercial project at the station was taken down, we leased it. The railway station house is a state-owned asset and cannot be sold but leased. After leasing, there are two ways to deal with it. One is based on a plan agreed with the Ministry of Railways and a number of brand businesses, such as McDonald's and KFC.
The other is our initiative to introduce and self-employed.
In terms of self-operation, our company currently has 18 own brands, across 6 different formats. Including apparel formats, we also have our own brands.
This is a must. If you are simply subletting your investment, you are the second landlord. The Ministry of Railways will despise you and think that you are empty gloves and white wolf. They will think, "Can't we recruit KFC?"
Therefore, self-operation is the most powerful supplement and update of our investment promotion methods. After the Ministry of Railways reads it, it will feel that you are not coming to play. You are serious about marrying me for life.
In terms of active introduction, we are constantly updating the industry format and constantly updating our brand. Constantly bring world-class brands to the railway station. At the same time, we proposed airport commercialization of station buildings, which is to attract the airport's mid- to high-end commercial brands to the railway.
We are succeeding. This time, Beijing South Railway Station has done a great deal of commercial upgrading to meet the opening of the Beijing-Shanghai high-speed railway. Starbucks and Haagen-Dazs have been introduced. This is the first Starbucks and Haagen-Dazs in the entire Chinese railway system. It not only means that passengers can drink coffee, but that railroads can compete with civil aviation to compete for high-end passenger flow. The original railway business was treated as a low-end business. Now that the train station has Starbucks and Haagen-Dazs, it can provide targeted services to middle- and high-end people.
The apparel category is also the format we focus on. In Beijing South Railway Station, such as Caldanta, JEEP, LONDONFOG, Ordos, Timerland and other brands have already talked about it, there are also some luggage and jewelry brands, and even we are still considering Not to talk about Cartier, GUCCI, Lancome, Hermes, of course, this is very difficult, but we now have this idea.
At the same time, we are still talking with China tax-free group, Swiss tax-free group, and US tax-free group to strive for the large-scale introduction of international high-end brands.
Highland where clothing brands must occupy?
Reporter: What is your position on high-speed rail station business?
Hu Jun: From the early days, it was more suitable for Chinese and Western fast food, magazines, magazines, specialty shops, and convenience stores. These are very basic formats, but we are upgrading. For example, we are introducing fashion stores, and we have begun to introduce coffee shops and luggage stores. In the future, suits, ties, women's wear, and cosmetics will surely be introduced.
For any brand of business that is suitable for the airport, we think it is suitable to appear on the railway because the consumer demand is the same. The difference between the two is that the railway is a low-end customer, and the airport is a high-end customer. With the opening of the high-speed railway, more and more high-end passengers flow to the railway.
Reporter: What does the high-speed rail channel mean for clothing and fashion products?
Hu Jun: In our own brand, there are apparel products, but also the introduction of other clothing brands, positioning is in line with the consumption needs of high-end white-collar workers. In the past, ordinary railway travelers, or migrant workers, would not buy clothes in railway businesses. However, white-collar workers and business travelers brought by high-speed rail would have such needs. For example, I myself may accidentally stain my shirt, but there are important meetings to open. When I arrive at the train station, there will be a purchase demand. A few hundred shirts will accept it. But the absolute sales of this format may not be too large. This is similar to the airport. The airport's fashion stores can't really do any big business, can't do much sales, and it's more of a brand promotion. It must occupy the brand. Positions are like our high-speed rail business. Although we are losing money now, we still have to rush forward without hesitation. Why? Because this position I do not occupy, in case of being occupied by a competitor, I will be miserable, and I will leave a huge regret, I am missing a piece.
Reporter: Your high-speed rail business is still losing money?
Hu Jun: At present, commercial projects at the high-speed rail stations are basically at a loss because there are only a few high-speed rail stations. The highest number of people in the high-speed railway stations in China is Beijing South Railway Station and Tianjin Railway Station, but they are all short-distance travelers. Hours, shopping, this demand is relatively small, including the latest investment in Wuhan, Guangdong South Railway Station, Chengdu East Railway Station, Xi'an North Station, very few people, mainly because the high-speed rail four vertical and four horizontal network has not yet fully penetrated.
However, we are confident of making profits. We have been rigorously calculating. Today, we are losing money. However, with the completion of the four vertical and four horizontal divisions of the Ministry of Railways, we can turn around at the end of 2012, and then we will turn around for some time until 2020. Through eight vertical lines, we can make a fortune.
Reporter: However, for the liquidity business, there has always been a question. Large passenger traffic will not necessarily bring about year-on-year sales growth. Will the high-speed rail station business have such concerns in the future?
Hu Jun: The high traffic does not mean a large amount of sales. I agree with the idea of ​​a liquid business, but it is always better than a small passenger flow. A small customer traffic is certainly not good, so this risk is worth it. It sounds like a dilemma. Actually it is not. The railway has a large number of people and a large base.
Therefore, the business needs of station houses need to have an accurate analysis of the passenger flow and layout of the industries that meet consumer demand, so as to better stimulate consumption. However, from the current point of view, this analysis is difficult to achieve too precise.
For example, among high-end and high-end consumers of high-speed rail, their rail travel is not planned and purposeful, and purchases are also very arbitrary and difficult to analyze precisely. For example, speaking about myself, the Beijing-Shanghai high-speed rail is open. I’m going to Shanghai to visit my next parents. When I arrive at the station, I’m reminded of how we can empty-handed to meet Dad and Mom. Usually I can't think of this thing at the station. I’m too busy to buy it. You can't ask the secretary to buy it. The secretary doesn't know what you're buying. I don't know if the old lady is missing. Turning around at the station, I think of my dad's lack of a tie. The station did not sell a tie before. Now, It was Cartier's, so he bought it. This is our current position and the variety of formats will be very rich. We must help the station to enhance its image and provide more targeted services for the business flow.
Reporter: What do you think are the future challenges for high-speed rail station business?
Hu Jun: The first challenge is the public's concern. The recent rear-end accident is unfortunate, but it should not be overly worried. The high-speed rail is a new thing. The high-speed rail cannot be completely negated because of the existence of opposition and controversy. Any new things have shook the head and the opposition, the pro- and nod groups, and the plane will often fall down, but if he It is necessary for the development of human society. The insistence must be adhered to.
The second challenge is that our industry looks bright, but in fact there are also fatal weaknesses. Our properties are all rented, 5, 8, 10, and 15 year leases, and the landlord For the same person. Your lifeblood is in the hands of the Ministry of Railways. Therefore, you need to find your own competitiveness. Constant upgrades update your format, database, and product libraries so that you can't be replaced.
Different from the business of ordinary railway stations in the past, the station business of high-speed railways is no longer an ordinary passenger. Instead, it hopes to transfer high-end consumers from airports and highways.
This is a new thing in China. There is no precedent to follow.
In this regard, Hu Jun, chairman of Beijing Ruiwei Business Management Co., Ltd., China’s largest and currently dominant railway station commercial operator, believes that in the future, high-speed railway station commercials will no longer be “instant noodle†markets. Fashion goods have been given a deeper meaning, and even the luxury Cartier, GUCCI, etc. will likely enter.
We hope to introduce the Hermes reporter: In recent years, China's high-speed rail has developed rapidly and a large number of new stations have been built. How do you view this market?
Hu Jun: The market is very scary. I will give you a set of data. Among the stations we designed, Beijing Fengtai Station has a commercial area of ​​90,000 square meters, and Zhengzhou East Railway Station has a commercial area of ​​33,000 square meters. The North Station has a commercial area of ​​25,000 square meters, Chengdu East Railway Station is 25,000 square meters, and Wuhan Station is 13,000 square meters. If the average station is 20,000 square meters, the Ministry of Railways will build 804 in all of China in 2012. A new passenger station, the market is too big.
By the end of 2020, the Ministry of Railways will build 1024 new passenger stations, and the Chinese high-speed rail will also connect with neighboring countries. For example, the Sino-Burmese Railway has now been completed.
The emergence of so many new stations has brought a huge commercial market.
Reporter: When did you start getting involved in the commercial operation of high-speed railway station?
Hu Jun: I used to be the first general manager of COFCO Plaza. In 2006, we abandoned the traditional commercial real estate business that we were good at, and made every effort to make station station business.
At present, we have mastered the commercial operations of more than a dozen high-speed rail stations, and we are talking about twenty or thirty new stations. We are the key layout, staking and enclosure, and the Ministry of Railways has set 16 major stations in 804 high-speed rail stations across the country - 6 national hubs and 10 regional centers. These 16 stations are key stations, which is a top priority. Therefore, we have basically completed the deployment of these 16 stations. Now we have only Nanning, Lanzhou, and Urumqi. Because we are a little bit far, we haven't paid any attention to it.
Reporter: What do you specifically do for each HSR station you deploy?
Hu Jun: It is divided into two forms, one is “big bagâ€. The commercial operations of the entire station station are based on our leadership. From the planning, positioning, and packaging of the station’s early stage of business to the production and formulation of the plan. The examination and approval, the final investment, management, are all we are doing. For example, 13,000 square meters of business in Wuhan Station and 10,000 square meters of business in Tianjin Station are all packaged.
The other is subcontracting. We took a part of it. For example, 25,000 square meters of commercial operations in Chengdu station is subcontracted. Because the area is too large, we can't take it and we can't get it. Now it's empty and the traffic is low. Several people, for us, are too risky. Others, including Xi'an North Station, are no one else. Of course, from a commercial point of view, some people may say that you are “myopic†and you need to wait a few years for the train station shopping district. However, this also requires us to be able to move.
After the commercial project at the station was taken down, we leased it. The railway station house is a state-owned asset and cannot be sold but leased. After leasing, there are two ways to deal with it. One is based on a plan agreed with the Ministry of Railways and a number of brand businesses, such as McDonald's and KFC.
The other is our initiative to introduce and self-employed.
In terms of self-operation, our company currently has 18 own brands, across 6 different formats. Including apparel formats, we also have our own brands.
This is a must. If you are simply subletting your investment, you are the second landlord. The Ministry of Railways will despise you and think that you are empty gloves and white wolf. They will think, "Can't we recruit KFC?"
Therefore, self-operation is the most powerful supplement and update of our investment promotion methods. After the Ministry of Railways reads it, it will feel that you are not coming to play. You are serious about marrying me for life.
In terms of active introduction, we are constantly updating the industry format and constantly updating our brand. Constantly bring world-class brands to the railway station. At the same time, we proposed airport commercialization of station buildings, which is to attract the airport's mid- to high-end commercial brands to the railway.
We are succeeding. This time, Beijing South Railway Station has done a great deal of commercial upgrading to meet the opening of the Beijing-Shanghai high-speed railway. Starbucks and Haagen-Dazs have been introduced. This is the first Starbucks and Haagen-Dazs in the entire Chinese railway system. It not only means that passengers can drink coffee, but that railroads can compete with civil aviation to compete for high-end passenger flow. The original railway business was treated as a low-end business. Now that the train station has Starbucks and Haagen-Dazs, it can provide targeted services to middle- and high-end people.
The apparel category is also the format we focus on. In Beijing South Railway Station, such as Caldanta, JEEP, LONDONFOG, Ordos, Timerland and other brands have already talked about it, there are also some luggage and jewelry brands, and even we are still considering Not to talk about Cartier, GUCCI, Lancome, Hermes, of course, this is very difficult, but we now have this idea.
At the same time, we are still talking with China tax-free group, Swiss tax-free group, and US tax-free group to strive for the large-scale introduction of international high-end brands.
Highland where clothing brands must occupy?
Reporter: What is your position on high-speed rail station business?
Hu Jun: From the early days, it was more suitable for Chinese and Western fast food, magazines, magazines, specialty shops, and convenience stores. These are very basic formats, but we are upgrading. For example, we are introducing fashion stores, and we have begun to introduce coffee shops and luggage stores. In the future, suits, ties, women's wear, and cosmetics will surely be introduced.
For any brand of business that is suitable for the airport, we think it is suitable to appear on the railway because the consumer demand is the same. The difference between the two is that the railway is a low-end customer, and the airport is a high-end customer. With the opening of the high-speed railway, more and more high-end passengers flow to the railway.
Reporter: What does the high-speed rail channel mean for clothing and fashion products?
Hu Jun: In our own brand, there are apparel products, but also the introduction of other clothing brands, positioning is in line with the consumption needs of high-end white-collar workers. In the past, ordinary railway travelers, or migrant workers, would not buy clothes in railway businesses. However, white-collar workers and business travelers brought by high-speed rail would have such needs. For example, I myself may accidentally stain my shirt, but there are important meetings to open. When I arrive at the train station, there will be a purchase demand. A few hundred shirts will accept it. But the absolute sales of this format may not be too large. This is similar to the airport. The airport's fashion stores can't really do any big business, can't do much sales, and it's more of a brand promotion. It must occupy the brand. Positions are like our high-speed rail business. Although we are losing money now, we still have to rush forward without hesitation. Why? Because this position I do not occupy, in case of being occupied by a competitor, I will be miserable, and I will leave a huge regret, I am missing a piece.
Reporter: Your high-speed rail business is still losing money?
Hu Jun: At present, commercial projects at the high-speed rail stations are basically at a loss because there are only a few high-speed rail stations. The highest number of people in the high-speed railway stations in China is Beijing South Railway Station and Tianjin Railway Station, but they are all short-distance travelers. Hours, shopping, this demand is relatively small, including the latest investment in Wuhan, Guangdong South Railway Station, Chengdu East Railway Station, Xi'an North Station, very few people, mainly because the high-speed rail four vertical and four horizontal network has not yet fully penetrated.
However, we are confident of making profits. We have been rigorously calculating. Today, we are losing money. However, with the completion of the four vertical and four horizontal divisions of the Ministry of Railways, we can turn around at the end of 2012, and then we will turn around for some time until 2020. Through eight vertical lines, we can make a fortune.
Reporter: However, for the liquidity business, there has always been a question. Large passenger traffic will not necessarily bring about year-on-year sales growth. Will the high-speed rail station business have such concerns in the future?
Hu Jun: The high traffic does not mean a large amount of sales. I agree with the idea of ​​a liquid business, but it is always better than a small passenger flow. A small customer traffic is certainly not good, so this risk is worth it. It sounds like a dilemma. Actually it is not. The railway has a large number of people and a large base.
Therefore, the business needs of station houses need to have an accurate analysis of the passenger flow and layout of the industries that meet consumer demand, so as to better stimulate consumption. However, from the current point of view, this analysis is difficult to achieve too precise.
For example, among high-end and high-end consumers of high-speed rail, their rail travel is not planned and purposeful, and purchases are also very arbitrary and difficult to analyze precisely. For example, speaking about myself, the Beijing-Shanghai high-speed rail is open. I’m going to Shanghai to visit my next parents. When I arrive at the station, I’m reminded of how we can empty-handed to meet Dad and Mom. Usually I can't think of this thing at the station. I’m too busy to buy it. You can't ask the secretary to buy it. The secretary doesn't know what you're buying. I don't know if the old lady is missing. Turning around at the station, I think of my dad's lack of a tie. The station did not sell a tie before. Now, It was Cartier's, so he bought it. This is our current position and the variety of formats will be very rich. We must help the station to enhance its image and provide more targeted services for the business flow.
Reporter: What do you think are the future challenges for high-speed rail station business?
Hu Jun: The first challenge is the public's concern. The recent rear-end accident is unfortunate, but it should not be overly worried. The high-speed rail is a new thing. The high-speed rail cannot be completely negated because of the existence of opposition and controversy. Any new things have shook the head and the opposition, the pro- and nod groups, and the plane will often fall down, but if he It is necessary for the development of human society. The insistence must be adhered to.
The second challenge is that our industry looks bright, but in fact there are also fatal weaknesses. Our properties are all rented, 5, 8, 10, and 15 year leases, and the landlord For the same person. Your lifeblood is in the hands of the Ministry of Railways. Therefore, you need to find your own competitiveness. Constant upgrades update your format, database, and product libraries so that you can't be replaced.
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