October 14, 2017
The choice was difficult today – talented people are tireless in enriching the pool of knowledge for the community of finance and tech professionals. On the other hand, the Internet age doesn't make it easy to pick out read-worthy pieces.
The first one to catch my attention was a curious piece about the transformation of physical spaces under the influence of the digital world; particularly, how shopping malls became a leisure space rather than what they were intended to be – a shopping space. China is a vivid example of how brick-and-mortar retail will have to change to cut it in the e-commerce-driven world. The lifestyle center evolution – a perfect description of what is happening with retail.
The traditional shopping mall isn't really cutting it anymore in China, said Warner Brown of JLL. Department store and shopping mall landlords all know that they need to start focusing on their tenant mix or the products that are on offer, more on things that people can't buy online: experience.
According to China’s National Bureau of Statistics, 15.5% of all retail sales, amounting to $752 billion ($610 billion tangible goods), were transacted online last year — up 26.2% year-on-year. Over 500 million people reportedly engaged in online shopping in China in 2016, and it’s becoming normal for even fast-moving consumer goods, like toothpaste, to be bought online. By 2020, it is estimated that e-commerce sales in China will surpass those of the USA, UK, Japan, Germany, and France combined. In this fray, traditional shopping centers clearly need to evolve or go extinct.