How will developers reignite our love for the humble ‘community shopping mall'?

Author: Jing He

Dispatch #01 // Community Malls

Community shopping malls were once an essential part of local urban life brimming with everything you could possibly need. Yet, with the ubiquity of online shopping and convenient delivery services, will ‘pivoting purpose’ be the only way these property assets can survive??

Community shopping malls first emerged in China during the late ‘90s largely due to the rapid development of the suburban residential areas. Providing local neighbourhoods with convenient retail shops, essential amenities and social entertainment — all within a short walk from home — community malls thrived on daily consumer needs.

In recent years, however, e-commerce has severely impacted the purpose and relevance of China’s community malls. Online purchasing simply offered more convenience and more choice at the touch of a button — all delivered to your door. Before long, many community malls struggled to attract regular footfall becoming tired, placeless giants.

So, how can the humble community mall find a new lease of life in the local neighbourhood in China??

At JWDK, we believe the key behind the revival of the community mall is the community itself. By understanding the social needs of the neighbourhood on a human level, the mall can provide a platform from which the community can grow and connect. Despite the conveniences of digital, a sense of place is still high on the needs of urban dwellers.

Community building starts from the inside — think participants, not tenants; think culture, not real estate. The experience of the place is now certainly driven by the ethos and culture of the place brand and consumers and brands all play a big part in its success.?Gone are the days of leaning on the anchor tenant to draw in the crowd.

During our research, we unearthed how innovative retail operators are rethinking community retail to fit the social needs of urban communities. US-based Foxtrot is a brilliant example of a brand that connects to its local customers on a whole new level. Three key learnings from the Foxtrot case:

1. Become part of neighbourhood’s daily routine
2. Design and brand it as a warm and welcoming “third space”
3. Curate products well and cultivate a local foodie community

Equally, theCommons in Bangkok is a community gathering space that found its sense of purpose by focussing on the needs of modern families. These international cases provide great inspiration for retail developers in China who want to shift away from traditional operational models.

THE CASE OF FOXTROT

Foxtrot was founded in Chicago in 2013 as a high-end convenience store and now has at least 22 locations across the US. The brand successfully shifted the perception that ‘convenience retail’ was all about speed and necessity, instead redefining it as plentiful, socially responsible and inclusive. Here’s a few thing we think Foxtrot got right:

1. Operating model: Foxtrot became part of neighbourhood’s daily routine

Foxtrot’s?model is?similar to?a gourmet market combining boutique products, food and drink within a carefully its curated ambience. Product choice and prices range from budget to luxury suiting any type of local customer. Foxtrot understands how local people live even providing home-cooked meals for one and in-store dining areas facilitating social interaction.?

Unlike traditional convenience stores that offer cheap coffee and frozen food, Foxtrot has its in-house barista and chef to ensure the quality of its products. For coffee lovers, enjoying a reliable cup of Foxtrot coffee before work has become part of their morning routine. This level of dedication for quality is certainly rewarded with repeat visit rate and making Foxtrot a neighbourhood destination.

2. Design and branding: A warm and welcoming “third space”

Foxtrot is a departure from the homogeneous image of traditional convenience stores. It is easy to see from its logo that it is a brand with a vibrant personality. The same goes for the design of its space, with warm lighting, open public areas, retro signage and humorous tonality, all giving Foxtrot an interesting soul.

This carefully crafted ambience makes for a relaxed, comfy and vibrant atmosphere every time you visit. Unlike the traditional quick visits at the corner store, Foxtrot is a "third space" where you want to linger, chat, read a book and chill with friends. The founders joked about Foxtrot being the “first date incubator”, a place with great ambiance that won’t break the bank. Interestingly enough, some customers have actually found their significant other here.

3. Product curation: Cultivating a foodie community

Foxtrot is every foodie’s heaven on earth. Its lifeblood lies in the constant search for the most unique brands on the market, and to this end they have created the Small Makers Awards to support local independent founders and brands.

Foxtrot is also developing its own extensive private label, so the store is filled with little surprises and rare finds. In addition, It has created a strong foodie community through hosting live streaming events featuring wine experts and pro chefs as well as offline events where likeminded foodies can connect.

What inspirations can we take from Foxtrot to transform community malls in China?

Create a place for discovery

On the flip side of e-commerce convenience is “choices overload”, which makes the shopping experience time consuming and arduous. Having a place in the neighbourhood that has curated high quality products means discovering trusted products is easier and more satisfying.

Common Rare is another great retail example closer to home. People always say that there’s nothing in the mall that can’t be bought online, yet they are willing to purchase entry tickets and queue for a market loaded with unique artisan products and rare finds. For community malls, adapting trade mix to tap into the curiosity of local customers will differentiate it from other mall experiences.?

Create a place of belonging

In the wake of the epidemic, people are becoming more aware of the importance of neighbourhood social connections. According to a RED report1 titled, “Annual Life Trend Analysis 2023,” online shopping and the digital space in general have failed to serve the social needs of the modern dwellers, resulting in a surge of popularity for community-centric places, such as family-owned cafe, local fruit stands, street bars and so on.?

This is where community malls’ spatial resource can come into play. Facilitating multi-purpose event spaces that are well promoted and easily accessible for the local community. Offering adequate seating, green space, contemporary decor, audio playlists and so on are all important aspects of the ambience culture you will create. By understanding the community first, you can create a vibrant community space.

Build a community, not a mall

At JWDK, we believe everyone has the right to a great place especially within their local neighbourhoods, and community malls still have an important part to play. A successful transformation requires developers to return to the true meaning of “Community” — a social unit that bond together through common interest and beliefs. No longer a mall just for essential purchases, but a warm and inviting neighbourhood place for gathering and connection, a “neighbour” who understand us and share our values, and a place where stories, growth and love can take roots.

Do you think Community Malls stand a chance in China? Let us know in the comments section below.?

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References

（1）RED report “Annual Life Trend Analysis 2023”?