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Dazhongsi Business Forum Discussing about the Fourth Generation of Business Management Modal.

Recently, Mr. Huang Nubo, the chair of the board of Beijing Zhongkun Investment Group raised the notion of the fourth generation of business modal—“Urban Living and Leisure Center” and he also put the notion into practice in the Dazhongsi International Plaza Project. This notion has widely drawn attention of the people in the business trade, and at the same time, it has brought many doubts: What on earth can be called the fourth generation of business modal? How does it work? What difference lies between the management notion initiated in this new business modal and that in the present international modal? How can this new modal avoid the problems and the mistakes in the present business modals?

On September 29th, the 5th Dazhongsi Business Forum with the topic of “the Business Management Modal of 21st Century” was held in Xi Yuan Hotel. The participants of the forum include Jiao Qing, general manager of Beijing Zhongkun Investment Group, Zhang Tianxiang, executive director of Beijing Hotime Mall Investment Consulting Ltd. Co and Notting Hill Commercial Management Group,  Ye Jiyuan, directing manager of Beijing Hotime Mall Investment Consulting Ltd. Co, Liang Bei, professor of Beijing University of International Business and Economics, Wan Wenying, general consultant of Jin Yuan New Yansha Mall, Guo Zheng, vice manager of  Bai Rong World Trade Center, Xu Shizhou, vice manager of Best Discount Business Development Ltd. Co, Wang Chuanku, vice manager of Han Show Department Store, Xiang Xianhong, representative of Cmall Group, and general manger of Beijing Junefield Sogo Department Store, Zhang Wei, vice manager of Beijing North Star Shopping Center, Ma Dafei, CEO of Shan Shui Tang Brand Promotion Institution, and Xiao Jun, manager of Beijing Channel 2 Business Consulting Company. They discussed about the fourth generation of business management, the localization of foreign business management modal, and the problems in the present business management modal, etc.

On the forum, the speech delivered by Mr. Jiao Qing, general manager of Beijing Zhongkun Investment Group aroused wide interest of the participants. Mr. Jiao held that the chief management targets of sopping mall was to promote consuming, to persuade the customers to do more shopping and to help the sellers to sell more. However, in the urban living and leisure center, although there are still such targets, the chief targets change to be trying to satisfy the multi-demands in consuming including spiritual and cultural consuming and material consuming, to conform to the trend that the proportion of shopping has gradually lowered, and the proportion of spiritual and cultural consuming is still rising, and at the same time to provide a comfortable environment for leisure, as well as a new life style. Mr. Jiao elaborated on the notion of the fourth generation of business management modal, and gave professional statement on how to combine the advanced international management notion with the local condition in practice.

This Forum was held by New Beijing Newspaper, Sina.Com, China Real Estate News and 21st Century Business Herald, supported by Beijing Zhongkun Investment Group, Beijing Hotime Mall Investment Consulting Ltd. Co, and Shan Shui Tang Brand Promotion Institution, and undertaken by Xintianyou Culture Promotion Company. This forum would be held monthly since May 2005, focusing on the most advanced and popular topics in business.  

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Dazhongsi International Plaza, Leading a New Business Innovation

With a high-speed economic development in the past twenty years, the aesthetic judgment and the spiritual and material demands of the people are gradually tending to be multiplication and individualization. The former business modals can not satisfy the demands of the people any more. Nowadays, large and super shopping centers come swarming, with the lack of a business modal with multiple consuming factors, and a new business innovation is about to occur conforming to the situation.

In recent years, the commercial real estate in China is flouring and prosperous. After several years’ development, China’s commercial real estate seems to have stepped into a era of Shopping Mall, and the construction spreads like wild fire. The notion Shopping Mall was sourced from the compound business model in America, meaning a super shopping center. Nowadays, the Shopping Malls have sprung up like mushrooms in China, including Jin Yuan Mall in Beijing, Metro-city and Westgate Tower Plaza in Shanghai, all of which are on a grand scale. At the same time, many professionals posed their doubts: Whether the Shopping Mall modal is suitable in China’s market or not? Can we copy the business modal that has got its saturation in America?

In May, 2005, on the first Symposium on “the Business Management Modal of 21st Century” of Dazhongsi Business Forum , Mr. Huang Nubo, the chair of the board of Beijing Zhongkun Investment Group raised the notion of the fourth generation of business modal. He clearly pointed out that the Shopping Mall Modal is not in its property any more, and is not suitable to the conditions in China, especially the developing trend of the commercial real estate. The Dazhongsi International Plaza which is under the construction by Zhongkun Group base on the fourth generation of business modal, aiming to be a human-centered and open modal. The raising of the fourth generation of business modal is undoubtedly a shock in the trade. A business innovation advocated by Dazhongsi International Plaza is just like a rising wind foreboding the coming storm.

Obviously, those investors with foresight have fully realized an era of humanistic spirit is coming. The multi-demands in entertainment, aesthetics, art, culture and consuming become a critical factor in business. In the quick pace of urban life, people are not contented with shopping anymore. Instead, the consumers expect to accomplish a process of enjoying, discovering and experiencing within a limited time, which is also a process of spiritual leisure. The modern commercial modals tend to focus on the profit, ignoring the happiness and satisfaction they could provide for the customers. The human-centered business modal seems to be in deficiency in China.

In fact, the fourth generation of the business modal aims to provide a new life style for people, and to lead them into a whole new world full of joy. Here one can take a rest, have recreation and social intercourse, do shopping, enjoy delicious food, appreciate the art and enjoy the urban night life. You can be leisurely and carefree, getting a harmonious interaction between you and the outside world.

The essence of the new business modal advocated by the Dazhongsi International Plaza is Experience Economy, which demands the commercial activities not only pay attention to the material demands of the consumers, but also focus on the multi-demands of the consumers in spiritual, cultural and social activities. The new business modal differs from the former ones in which commercial activities only aim at the promotion of shopping, instead, it stresses the importance of both the spiritual and material consuming, and regards the material consuming as a supplement to spiritual consuming. The new modal will maximally create happiness as well as the culture of happiness. The aim of the commerce does not lie in itself, but lies in the satisfaction and happiness it could provide for people.

As a unique business project within the third ring of Beijing, the Dazhongsi International Plaza is situated in the intersection of the three business cycles including the Xizhimen, the Zhongguancun and Ya’ao. The plaza covers an area of 140 thousand square meters, with a architecture area of 430 thousand square meters.  The total investment of the project is over 3 billion yuan and it is listed in the 60 key projects in Beijing. The plaza is planned to be divided into four theme zones, including the World Characteristic City, Leisure Street, Sleepless Night Club and  High-quality Life Zone. The four buildings stand separately on the plaza, connected by pedestrian streets of modern style, forming a new business center in 21st Century.

Dazhongsi International Plaza is an innovation of the present business modal, unifying shopping, food service, cinemas, bars with the functions of leisure, entertainment, social intercourse and business, creating a new business modal mainly based on leisure and entertainment, with shopping as a supplement. This new human-centered modal presents an open business culture in the 21st Century. It is not limited to the traditional notion of shopping center, but becomes a humanistic commercial area beyond the material consuming, providing a new life style for people.

Dazhongsi International Plaza Project was started in late 2004, and is planned to be completed in 2006. At that time, Dazhongsi International Plaza will make a center for people to experience a new urban life style.