The Other Side Of OLE: Potential Risks

In an interview with reporters, RET Rui Yide director Susan Shan said that because the department store format had no way to carry some social and interactive functions, the brand was also not recognized by the young fashion crowd, and the optimization adjustment they faced was a normal phenomenon.

Outlets are purposeful consumption, and some of the second tier cities are middle class.

The growth is thick enough, coupled with the boost of international brands in the mainland market, and the increase in urban traffic and car ownership.

In addition, after the fire of orlies, it can help local governments to raise land prices.

The most noteworthy phenomenon is that most of the outlets in the layout are concentrated in the three tier cities with poor consumption.

"In the future layout cities of the outlets, 25 cities will develop 34 outlets, three of which will account for 37.8% of the future development of all cities."

RET Rui Yide, chief analyst of China commercial real estate research center, said Shi Jin.

Oteri J has very high requirements for the operation ability of developing enterprises.

Shi Jin said that the uneven development and operation level caused nearly half of the project operation situation is not satisfactory, and some projects went bankrupt.

The report selects 2014 top ten national sales outlets to compare with other projects, and finds that brand combination, architectural design and group resources are the three fundamental factors that affect the difference of operation between outlets.

"There are no developers in the top ten projects, but there are more than two hundred in the country.

In China, more than 70% projects have been built and operated by developers. Among them, because of the lack of brand resources and lack of experience, there are a lot of outlets that eventually shut down or closed down.

Shi Jin pointed out that "the new ole project needs to pay attention to the above three factors and break the bottleneck of the development of OLE."

The industry insiders said that in the actual operation of the outlets, if it can provide

Standardization, professional services, strong resources and channels, diversified brand combinations, focusing on the creation of luxury brand culture atmosphere, and the combination of the actual needs of domestic customers, and satisfying the development and management of consumers' experience habits, will bring China's industry development to a new height.

But if we only use the concept of orter, but without professional operation experience, failure will be inevitable.