Dinghao Mall Takes the Lead in Transformation
Dinghao (Weibo) Electronics Building has welcomed four prestigious guests: Innovation Works, Gome Mall, International Technology Transfer Center, and Tsinghua Science Park. Meanwhile, observant people may notice that over the past year, the environment of Zhongguancun's electronics market has improved, with fewer merchants, larger stalls, and a better commercial atmosphere. All these indicate a quiet upgrade in the business landscape of West Zhongguancun.
Last Wednesday, reporters visiting the area found that the transformation of a regional business landscape is not a one-sided product of government initiatives but resonates strongly within society and has an internal foundation. The upgrading of Zhongguancun's business landscape is a natural social phenomenon resulting from Beijing's economic structure developing to a certain extent. However, during this powerful transformation process, related issues will also gradually surface...
From Electronic General Store to High-tech Hub
Starting from a street full of electronic markets, Zhongguancun has continuously developed and changed over 30 years. Here, Feng Jun (Weibo), who made only 5 yuan selling computer cases, created the Aigo (Weibo) brand; Liu Qiangdong (Weibo), who was an agent for optical magnetic products, founded 360buy (JD.com Weibo). In a sense, Zhongguancun's development history reflects the entrepreneurial changes of Beijing's talent pool.
Today’s Zhongguancun has transformed from the 1990s era when assembling computers could earn thousands of yuan in profit. Here, entrepreneurs relying on speculative trading to grow big are becoming fewer, while more overseas returnees with technology and patents are gathering here. Now institutions like Innovation Works and China Technology Exchange that serve "seed enterprises" have arrived, making Zhongguancun an incubator for emerging industries and a CBD. In this process, the strategic layout of the government has played an important role in advancing the change.
High-end Industries Cluster in the West Area - Four Major Institutions Move into Dinghao
This isn’t just hearsay.
The renovation of the electronic markets in the west area of Zhongguancun has entered a critical phase.
Reporters obtained the latest news that Innovation Works, Gome Mall, International Technology Transfer Center, and Tsinghua Science Park have reached agreements with Dinghao to move into the building.
Among them, Tsinghua Science Park occupies the 7th floor of Phase II of Dinghao, covering an area of 7,000 square meters; Innovation Works is located on the 9th-10th floors of Phase II of Dinghao, covering an area of 7,000 square meters; Gome Online Mall has rented out all the 7th-11th floors of Phase I of Dinghao Electronics Mall, covering an area of more than 17,000 square meters, and all employees of Gome E-commerce Company will be relocated to Dinghao Electronics Mall for office work.
At Dinghao, reporters saw that some floors had already begun overall renovations. The doors to the elevator and stairwell entrances were locked, possibly due to workers going home for the New Year holiday, causing the renovation to temporarily stop. Some floors' ground surfaces had already been leveled, waiting for the next step of laying tiles and wall decorations.
Reporters learned that the successful entry of the above four units into Dinghao benefited from the help of relevant government departments in Haidian District, which acted as intermediaries.
The long-standing problem of tight office space resources in the Zhongguancun area has always been a difficult issue. Lang Chunhui, investment director of Innovation Works, once told reporters, "The shortage of office space resources has become the main factor constraining the development of Innovation Works."
Currently, the office area of the location of Innovation Works, the China Technology Exchange Building, is only about 1,300 square meters, accommodating more than 40 teams and companies. Jian Jing, who started a business at Innovation Works, told reporters that when he first came to Innovation Works, the space was cramped, and he and another partner began their entrepreneurial journey in a small partitioned room that could only fit a table and two chairs.
Lang Chunhui said, "Even with such tight space, it's hard to find, and being able to operate in the China Technology Exchange Building is largely thanks to the strong support of the government."
Liu Xueliang, the responsible manager of the Dinghao project of Tsinghua Science Park, told reporters that by February 6th, the Dinghao branch of Tsinghua Science Park can officially begin operations. Currently, Tsinghua Science Park has a main base at Wudaokou in Beijing, and has also opened branches in areas such as Yuquan Huigǔ and Shunyi Lin Kong International. Each branch receives hundreds of calls, visits, and inquiries from companies interested in moving into the park every year. However, due to insufficient space resources, these companies struggle to enter the park.
Liu Xueliang indicated that in the future, the office area of Dinghao will attract high-tech enterprises to move in. These enterprises generally possess advanced technological capabilities. Currently, four or five enterprises have confirmed their intention to move in, some needing to expand rental space from existing park enterprises, and others being new entrants to the park.
Behind the Transformation of "Dinghaos" - Acceleration of Transition in the West Area
In the reporter's investigation, apart from the four companies moving into Dinghao, surrounding commercial complexes such as Kotai, Hailong, eWorld, and Pacific Digital Plaza have started upgrades to varying degrees, signaling that the transition in the west area is entering a substantive stage.
Investigation shows that the changes in these commercial complexes mainly manifest in three aspects: First, adjustments start from the top down. Property owners usually begin renovations on higher floors, clearing out small tenants on entire floors, renovating the entire floor to attract large enterprises. Entire floors, sometimes multiple, are leased to a single large enterprise.
Secondly, the complexes retain electronic goods retail stores, typically preserving five to six floors from the bottom up.
Thirdly, parts of the electronic market floors are re-decorated, breaking the original tenant layout, re-signing lease contracts, redistributing operating positions, increasing business areas, raising rents, and thereby clearing out weaker tenants.
Previously, media reports claimed that "rumors suggest that electronic markets will leave Zhongguancun, transforming entirely into office areas for innovative enterprises, with the original electronic markets turning into exhibition spaces for large enterprises, canceling sales functions." However, according to the reporter's investigation, electronic product retailing will still partially remain in the Zhongguancun area for some time.
Specific analysis of the surrounding large commercial complexes reveals that currently, there are no significant changes in floors 1-5 of Dinghao. Floors 6 and 7 are about to close for renovation, with merchants gradually withdrawing. Floors 8, 9, and 10 have already ceased operations, awaiting renovation. Floors above 11 have cleared out small businesses, introducing large enterprises. There are no significant changes in Zhongguancun eWorld, with some stalls closed for rectification. The Pacific Digital Plaza has stopped operations for the whole building, preparing for renovation. There are no significant changes in Kotai Mall, but rumors suggest rising rents, with some small businesses already leaving. Hailong Tower has been reorganized from the previous mix of merchants on floors 1-16, now with sales on floors 1-6 and office spaces above floor 8.
Industry insiders pointed out that the changes in Zhongguancun's electronics market are inseparable from the government's push. Over the years, issues such as black guides, forced buying and selling, tax evasion, and other problems in Zhongguancun's electronics market have been widely criticized by society. The government also hopes to revamp Zhongguancun's waning brand image and enhance its high-tech reputation.
This strategy was first conceived in July 2009, when the Haidian District Government issued a notice titled "Accelerating the Adjustment of Business Types in West Zhongguancun," categorizing innovation elements, science and technology finance, headquarters and R&D centers of tech companies, high-tech services, cultural and creative industries, etc., as "encouraged" types, while electronic markets, malls, shopping centers, and catering were classified as "discouraged" types. That same year, Hailong Tower initiated the rectification of electronic markets, transforming office spaces above the 8th floor to attract high-tech companies. Subsequently, Hailong, Dinghao, eWorld, and other malls launched their own rectification work, such as uniform work attire, clear pricing, price inquiry additions, etc.
In May 2011, the "Business Type Adjustment Plan for West Zhongguancun (2011-2015)" was released and implemented, requiring that by the end of 2011, the commercial areas of buildings like Hailong and Dinghao should be reduced to less than 50%. The rectification of Dinghao Electronics City was also placed on the agenda.
Notably, the plan explicitly defined that low-end business forms, including small merchant electronics repair and sales, low-end clothing, and low-end catering, would be prohibited in the west area in the future. Brand stores would gradually be built within electronic markets, providing display and experience services, and the existing counter-style and vendor-style operations would be phased out.
In response, the government also introduced relevant supporting policies, hoping to encourage enthusiasm for commercial complex renovations. For example, the Haidian District Government will provide financial support to organizers of electronic markets that complete market vacating. Based on the district-level fiscal revenue generated by newly moved-in enterprises, a 100% reward will be given for the first two years, followed by a 50% reward for the next three years. For newly opened brand specialty stores, the Haidian District Government will provide a one-time decoration subsidy, with the subsidy standard being 50% of actual decoration costs, and each store receiving a maximum subsidy of 5 million yuan.
The reporter's survey found that individual merchants generally support the changes in the business type adjustment of the west area. They believe that in the past two years, the Zhongguancun electronics retail market was chaotic, lacked supervision, and experienced fierce cutthroat competition, with instances of cheating customers indeed harming the brand of the Zhongguancun area. Clearing out small individuals and retaining capable large agents will help improve the credibility and brand image of merchants in the Zhongguancun area.
Archive of Upgrading in the West Area:
Dinghao: No obvious changes in floors 1-5. Floors 6 and 7 are about to close for renovation, with merchants gradually withdrawing. Floors 8, 9, and 10 have already ceased operations, awaiting renovation. Floors above 11 have cleared out small businesses, introducing large enterprises.
Zhongguancun eWorld: No obvious changes, with some stalls closed for rectification.
Pacific Digital Plaza: The entire building has ceased operations, preparing for renovation, with future direction unclear.
Kotai: No obvious changes in the mall, rumors suggest rising rents, with some small businesses already leaving.
Hailong Mall: Previously a mix of merchants on floors 1-16, now reorganized into sales on floors 1-6, with office spaces above floor 8.
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