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Urban Renewal Step 110: Suburban Renewal: Protect Neighborhood Business First

2024-08-12

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The word "hold" when describing a war scene means a fight to the death with blood drawn on the bayonet;

Grafted onto market logic: Although the mall is like a battlefield, "holding on" is more about position positioning.

Talking about suburban renewal today, it seems to be just the "old three" of customer base, positioning, and business format, but if we follow the order, we can see the dependence between them: first set the radius of the customer base, and then reversely study the update points or get closer to the demand.

This is a reverse thinking on the common practice of “bringing consumption to the city center” in suburban renewal, which upholds the principle of keeping integrity first.

1. There is a reason for the “unlimited customer base”

In the era of extensive project positioning, from real estate to urban renewal, the customer radius is basically exaggerated and greedy.

The manifestation of exaggeration is: the product side must have everything, big and comprehensive; the positioning side must have everything good, high-tech and sophisticated.

Greed comes naturally: no client is spared, everyone is our target customer.

With the abundance of market supply, or even unlimited supply, and the trend of competition becoming more localized, market segmentation has been widely proposed and accepted. The so-called segmentation is actually a trade-off: do what you should and don't do what you shouldn't. Not all customers are our target customers.

Indeed,A project often uses the slogan "facing the entire city, facing the Yangtze River Delta, and facing the whole country", which just exposes the lack of confidence in the precision of the product. The subtext of the above three aspects may be the foreseeable low customer conversion rate of "the entire city is not enough, the Yangtze River Delta is not enough, and the whole country is not enough".

Nowadays, non-standard products are often mentioned, which is actually a mixed bag of product definitions:

On the one hand, non-standard products are subject to the site conditions and approval parameters, and there are trade-offs, variations, and screening in presentation.The word "non-standard" is put in front of the customer base to give them a warning: don't expect the original flavor and don't expect a one-to-one restoration.

On the other hand, non-standardization is also a backlash from the current over-reliance on standardization in the real estate and urban renewal fields.Standardization leads to homogeneity, and further implements price wars in the market. Under "involution", we can only start from the beginning, so it is not ruled out that we will actively make non-standard products.

It seems that the non-standard strategy has escaped the red ocean of homogeneous competition, but it also takes into account the inconsistency between owners and customers in terms of aesthetics. Therefore, considering the pros and cons of non-standard products, only by maximizing the customer radius can we satisfy the transaction matchmaking under the condition of "high screening rate & low conversion rate".

The reason why suburban renewal is often called "a place for urbanites to rest and their spiritual home" is that it is a last resort under pressure from both sides:On one hand, there is the homogenization of suburban construction - real estate developers always claim that a compact three-bedroom apartment of 90 square meters meets basic needs, commercial properties are often ancient towns next to "new world", and urban renewal is likely to take the single-plank bridge of farmhouses; on the other hand, with the homogenization caused by standardization, "we have become like twins born from the sky", and can only hope to divert traffic to the urban area - not only Tian Ji's horse racing, but also everyone wants to take a scoop.

Where is the confidence in the suburbs?

Four words: differential advantage. In any case, the most lethal marketing logic is hidden in the word "cheap".

But suburban renewal is not Nanjing Road, the Bund or Xintiandi after all, because the distance also blocks some consumption in the destination which can be visited or not. In addition, the limited characteristics lead to the non-existence of "you are the only one". Therefore, for a larger market, the absolute quantity is often greater than the relative quantity, because the conversion rate is too low and will only get lower and lower.

After all, "the whole world is our customer" is more wishful thinking, and the latter's choice logic is not like this.

2. Suburban renewal: strategic choice first

Recently, during a consultation on a suburban renewal (commercial) project, a strategy of “inward research” was proposed. Although the owners kept saying, “There are a lot of people coming from the city to play here,” they became silent when the topic of repurchase rate was raised.

In the past two years, the owners of suburban renewal or cultural tourism have a seemingly experienced talk, which is actually just five words:Urban elderly people, who seem to have both leisure and money, are in a blue ocean. As the group "competition" rises, but the product breakthroughs are limited, price competition is inevitable. On the other hand, elderly consumers have gradually improved their aesthetics and requirements in the market participation, and have gradually upgraded to improvement consumers. They not only understand the quality of content, but also have more and more "non-convergent" individual demands., but the suppliers on the other side still look at this consumer group with an outdated perspective.

So, do you think the consumption downgrade has affected the retired employee group?

It seems that pensions are not only increasing every year, but can the elderly completely stay out of the big environment? Because their children are likely to be hit by three hurricanes: layoffs and salary cuts in the workplace, mid-life crisis, and consumption downgrades, and the elderly will be indirectly dragged into them. So - is the blue ocean still blue enough? At least it is not absolute and sustainable.

From the perspective of "not being surprised by anything", it is reasonable for suburban renewal to target urban customers, just like Tian Ji's horse race; howeverComplete reliance on urban customer consumption not only requires scarcity and even exclusivity in product creation, but also has high requirements for transportation support, surrounding (project or facility) connections, service experience and other aspects. These are by no means something that a project party can achieve independently.

The key is "addition, subtraction, multiplication and division":

1. How to increase the flow of urban passenger traffic?

2. Unit consumption of urban tourists;

3. Repurchase rate of urban tourists;

4. The communication effect of “old tourists bringing new tourists” in urban areas.

Apart from the farmhouses with particularly obvious signs in the suburbs, other industries, businesses and renewal projects, even if they use the urban area as an important source of customers, cannot completely abandon the local base. After all, they are not pure cultural and tourism projects.

Especially in those areas with "substantial population and mainly residents", appropriate consideration - capturing the surrounding residents is actually a staggered competition strategy.

If the strategy is changed from the conventional "air transport consumers" to "spreading the pie", the approach is completely different:The former needs to take into account the scarcity of products or brands, regional differences in consumption, and whether they are included in cultural and tourism packages independently or assembled; the latter needs to conduct in-depth research on surrounding competitors, customer groups, consumption, and dislocations. Therefore, different strategies determine huge differences in tactical operations. In a word, the project teams do completely different things.

The biggest hope of establishing a foothold in the region is actually to achieve "repeat purchases". Once this becomes the lifestyle of surrounding residents, then even if there is a difference in consumption but it is not very large, suburban renewal projects can overwhelm the surrounding street businesses and shops with their scale advantages. Everyone will have a "one-stop" convenience complex and be prepared to deal with some variability and uncertainty. This is the imagination space for newer products.

Of course, in suburban renewal, in addition to most of the standardized routines, up to 30% of the "surprises" are not only the secrets of various projects, especially the street battles of nearby competitors, but also the final magic weapon for winning. Behind them is the internal factor that ferments the subjective initiative of the operator to the maximum.

3. Focusing inwards, suburban renewal “spreads the pie well and deeply”

According to programming reading habits, under the guidance of "If you agree with the above strategic thinking, proceed to the next paragraph, otherwise return to the previous menu", if it is the former, then proceed to the next link: product filling.

The product business is like speaking: the threshold is low, everyone knows how to do it, it is difficult to do it well, and there is survival bias.

When it comes to suburban renewal, the ever-true “four elements” of nonsense come to mind:

1. Buildings should be used according to local conditions;

2. It must have cultural soft power as its soul;

3. There must be a hot-selling main business format or brand;

4. There must be a check-in spot for internet celebrities.

All of the above are correct, but only 10% can be fully presented, and then according to the "10 into 1 principle" from strategy to tactics to execution, from creativity to presentation to business, it is normal for 1% to survive.

First, the building:When looking at a person, look at the face first; when looking at a house, look at the facade first. The architectural style is the consumer’s first impression and also the project’s appearance.

The choice of style, if the other side is "accepted by the market",There are three major pitfalls to avoid along the way (but which are often difficult to avoid): the boss's personal preferences, market trends, and being used as a guinea pig by the designer.

Second is culture: The sarcastic remark of "internal excavation" is quite sarcastic, but what is excavated may not be all cultural relics, but may also be dregs, soThere are also three key steps on the road to teaching students in accordance with their aptitude: (assessment) whether there is market value, whether the content or product can be transformed into reality, and whether it can be integrated with business demands after the transformation.

Next, look at the hot items: This is not only related to the vision of product selection, but also to the courage and purchasing power to obtain it.

The hot products, brands, formats, complementarity, and traffic diversion mentioned by peers are often empty and false that cannot withstand questioning.Asking "Why is it TA" for each product, content, business model and brand can reveal the brain structure and dynamics of practitioners.

Finally, the check-in pointThis is also a ratio issue: clocking in does not discriminate between the young and old, beautiful and ugly, but the role recognition of the clocking in person is very important, which not only determines the vision of the project party,In fact, it is about seeing through the customer positioning: what kind of people are wanted to come, whether they come just to consume and get straight to the point, and when the "atmosphere group" will naturally withdraw.

At least for now in urban renewal projects, check-in points are not only a rigid demand, but also cannot be static once and for all. The selection, placement, traffic flow and replacement of check-in points may seem like an aesthetic issue but is actually a marketing proposition.

When doing suburban renewal in the area under my jurisdiction, I face familiar faces and neighbors on the street.The difficulty lies in “getting them to come in and come in repeatedly as a daily scene of life”. This is the difficulty of suburban renewal based on serving the surrounding areas. After all, community beliefs are built within an inward radius, and recognition < cognition < approval.

The inherent disadvantage of suburban renewal is the location, and the single-plank bridge is the farmhouse. It is indeed difficult to develop an independent market, but because there are survivors, their biases often cannot be copied, and one case, one policy is the inevitable path.

Although this road is steep and long, the cost of trial and error is extremely high.