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What does it take for an outlet mall to evolve into a "scenic spot outlet mall"?

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2025-01-19

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Editor-in-Chief | Yang Ming

Editor | Liu Kaiye

Source | China Chamber of Commerce for the Development of Outlet Malls

This article will share the successful experience of Zhengzhou Shangshan Outlet Mall in Zhongmu (hereinafter referred to as Shangshan Outlet Zhongmu), which continues to evolve based on the traditional core values of outlet malls. How to build a comprehensive upgrade from "outlet mall to scenic spot outlet mall, from outlet mall to outlet mall complex" by creating a unique and vivid "content system"—from brands to formats to scenes and activities. Through the interpretation of Shangshan Outlet Zhongmu, it provides a more cutting-edge and deeply insightful classic case for the booming outlet mall industry.

From Traditional "Outlet Malls" to "Outlet Mall Complexes"

Shang Xiuli, vice secretary-general of the China Chamber of Commerce and president of the Outlet Mall Branch, believes that outlet malls have always been characterized by the retail model of "famous brands + discounts." However, with the development of the outlet mall industry and the iteration of consumer demand, in order to meet the consumption needs of different regions, ages, and preferences, catering, leisure, and entertainment experiences have been added to make outlet mall consumption richer and more diverse.

Shangshan Outlet Zhongmu opened in September 2016 and has been operating for eight years. The project is located at the intersection of Zhengkai Avenue and Yanming Avenue, adjacent to the "golden channel" of Zhengkai Avenue, connecting Kaifeng, Xinxiang, Jiaozuo, Xinzheng, Xuchang and other major cities around Zhengzhou, making its geographical location very advantageous.

Shangshan Outlet Zhongmu is the first truly pure-blood outlet mall in Henan and also the first shopping mall in a scenic area in Henan, with an area of 140,000 square meters. Due to its excellent location, the average weekend traffic reaches 50,000, and even on non-holidays, the traffic reaches 25,000. The peak daily traffic on major holidays even reaches 120,000. The mainstream age group of these customers is between 25 and 49 years old, mostly high-net-worth individuals with strong spending power. This level and quality of traffic would be the envy of even shopping malls in the core locations of megacities with populations exceeding 10 million.

Shangshan Outlet Zhongmu continues to evolve along the path of "complexification and diversification," gradually forming diversified catering, leisure and entertainment, and interactive participation formats. This year, Shangshan Outlet Zhongmu has added a new food street and a night market, including outdoor open-air formats, further amplifying the "driving effect" of experiential formats on traffic flow, forming a 1+1>N compound customer attraction effect. Such formats with more "browsable attributes" complement each other, breaking away from the single function of shopping.

Making the Most of Local Conditions to Create More Emotional Value for "Scenic Spot Outlet Malls"

●Surrounded by Eight Scenic Spots

Zhongmu County, under the jurisdiction of Zhengzhou, is known as the "City of Fantasy," and is the number one theme park county in China. This special geographical location has created unique advantages for Shangshan Outlet Zhongmu. There are eight theme parks around the project, including "Only Henan," "Film Town," and "Fantasia." The huge "entertainment attribute" brings huge traffic to Shangshan Outlet Zhongmu, and also "ignites" richer scene creativity for the project.

●Iterative Scenes, "Nature-Friendly"

This year, Shangshan Outlet Zhongmu has continued to upgrade, with brand stores keeping pace with optimization, achieving "one store, one scent" for fragrances and "one store, one color" for garden layouts. Shangshan Outlet Zhongmu has set up a large number of landscape IPs, from large flower and green plant landscape islands and small and medium-sized landscape points to green leisure areas, filling the entire street with the impression of "a green oasis" and "leisure Shangshan." This supports the scene section of the "scenic spot outlet mall," highly echoing the identity of "outlet mall within a scenic area," forming a unique identity label and characteristic IP, creating rich and pleasant emotional value for consumers entering the mall.

●National Scenic Spot Tickets Can Be Used as Cash

As an in-scenic-area street commercial area, tourists are a large group with significant purchasing desire and spending power. In order to lock in this target group, Shangshan Outlet Zhongmu launched an activity where national scenic spot tickets can be used as cash. Tickets from any scenic spot in the country can be directly deducted from the corresponding cash when shopping at Shangshan Outlet Zhongmu. This activity makes full use of the tourist flow from scenic spots and achieves efficient reuse of traffic.

●Innovative Application of Tourism and Culture IPs

In addition, combining external environmental resources and Henan characteristics, leveraging unique cultural IPs, regularly holding various art exhibitions, cultural exchanges, and developing research and study routes. Combining surrounding tourism resources, cross-border joint marketing activities are carried out, and characteristic tourism and shopping routes are planned. For example, using the well-known historical event of the "Battle of Guandu," the "A Battle to Fame" themed Shangshan Outlet Zhongmu "First Stand-up Comedy Competition" was launched through the stand-up comedy show "Cooking Green Plums"; starting with "Finding the Beauty of Henan," recording intangible cultural heritage inheritors and explaining the history of Henan intangible cultural heritage, presenting works such as the "soul of Henan" Henan Opera, "step by step, a heavy sky" Longmen Arhats, and "skilled in long sleeves" Ambush on Ten Sides to "interpret the beauty of Henan."

●Female-Friendly, Pet-Friendly, Child-Friendly

In terms of optimizing service content, Shangshan Outlet Zhongmu continues to upgrade its "service content." In particular, it has made refined settings in the three dimensions of female-friendliness, child-friendliness, and pet-friendliness, providing water points, pet strollers, free children's play areas, and real-time mobile service vehicles. On special festivals such as Women's Day and Children's Day, customized gifts are provided for specific groups, deeply understanding the potential needs of the target group, and amplifying the deep satisfaction of emotional value.

Gathering of "Flagship Stores + First Stores" Under High-End Brands, Creating Core Competitiveness

In the process of continuous optimization and upgrading, this year Shangshan Outlet Zhongmu has completely upgraded 70% of its original stores, forming a huge "cluster effect" with more than 100 brand flagship stores gathered here. For example, the NIKE UNITE flagship store, the FILA Central Plains Outlet flagship store, the Li Ning Central Plains first super outlet store, the Central Plains Outlet first THE NORTH FACE ONE BOX flagship store, and the Marisfrolg national outlet benchmark store, etc. This has formed 50 national first-tier brands, 5 billion-yuan stores, 40 super outlet brand flagship stores, and 80 Central Plains Outlet exclusive high-end brands.

The concentration of numerous first stores and flagship stores in the Sangsang Outlet in Zhongmu has created a huge "siphon effect," drawing in target consumers from the surrounding areas.

New Trends in Outlet Development: From Brand Strength to Innovative Strength

Ms. Chen Yunfei, General Manager of Zhengzhou Sangsang Outlet Zhongmu Store, told "Lianshang.com" that the goal of these innovative changes in 2024 is to create the following positioning labels for the project:

Commercial Positioning: Super Outlet, Central Plains Leader;

Tourism and Culture Positioning: Garden Outlet, Shopping Scenic Area;

Customer Positioning: Serving Locals + Serving Tourists + Serving Young Trendsetters;

Product Positioning: Outlet + Amusement Park + Garden;

Functional Positioning: A new type of integrated outlet complex integrating commerce, tourism, culture, and sports;

It aims to become a new type of integrated outlet complex combining "outlet + amusement park + garden," integrating culture, commerce, tourism, and sports.

Through an analysis of the Sangsang Outlet in Zhongmu, the author believes that this case provides the following three dimensions of inspiration for a wide range of outlet projects:

First, in terms of shopping, simply "famous brands + discounts" is no longer enough. It is necessary to introduce more large stores, flagship stores, and first stores to broaden the width of product SKUs, creating a richer product appeal and building a strong moat from the product perspective.

Second, in terms of business formats, a diversified combination of business formats is needed. In particular, the introduction of catering, entertainment, and interactive participation projects will allow the outlet to not only be a shopping mall but also a comprehensive project that is "browseable, playable, and edible," increasing consumer dwell time.

Third, in terms of scene experience, outlet projects need to create their own unique, branded IP content. Whether it's an "outlet in a scenic area" or an "outlet with local tourism and cultural characteristics," the Sangsang Outlet in Zhongmu is already ahead of the curve in this aspect, leaving a deep impression on consumers.

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