China's evolving consumer trends mean fresh opportunities for malls and shopping centers, according to Joyce Zhu, president of Ingka Centres China.
In Shanghai, Ingka Centres officially opened its 10th Livat complex in late September under the local government's 15-minute living circle initiative.
Livat Shanghai is the single largest investment project of Inga Group globally with a total investment of eight billion yuan (about 1.14 billion in U.S. dollars) and a construction volume over 430,000 square meters, or around the size of 60 soccer fields. It includes a large shopping center, an Ikea store and five office towers. Ingka Centres is a subsidiary of the Ingka Group, which also owns Ikea Retail.
Located in a pilot area of the 15-minute living circle initiative, the new complex will help enhance the quality and convenience of residents' everyday life, Zhu said in an interview with China Global Television Network (CGTN). She also expressed Ingka Centres' confidence in the Chinese consumer market.
"We also observed the consumer trend is undergoing significant changes. This will bring both new challenges but also opportunities for the consumer market. I can share a little bit of our observation. First of all, we see consumers are making more cautious and smarter choices anchored with value-for-money. At the same time there is also a growing emphasis on living a more sustainable and healthy lifestyle. And people are willing to put more emphasis on self-satisfaction and at the same time to make meaningful social belongings," she said.
Zhu said Livat Shanghai is also going to host diversified community activities, aiming to bring playfulness, innovation, and collaboration into reality.
She also emphasized that the company's other Livat shopping centers are doing well citing double-digit year-over-year growth so far in the fiscal year 2024 for total visitations and tenant sales.
"For us, it's not only about the numbers, but when we see all the people-centric approaches, and our meeting place concept has been more and more welcomed and appreciated by many customers. And when we see our Livat meeting places, no matter the new ones or the mature ones, they keep on growing with the people in the city. I think this brings us the true rewarding feelings," the regional company president said.