China Resources Vientiane Life 2021 Shopping mall has a rent of 15.2 billion yuan, and the luxury mall is ＂full of firepower＂!

On March 31st, China Resources Vientiane Life released its 2021 annual report. In 2021, the realized income of China Resources Vientiane Life was RMB 8.875 billion, a year-on-year increase of 30.9%; Gross profit was RMB 2.759 billion, a year-on-year increase of 51.0%; The gross profit margin was 31.1%, up 4.1 percentage points year-on-year. Among them, the overall rental income was RMB 15.2 billion, up 35.4% year-on-year.

According to the financial report, the annual retail sales of the shopping center under the management of China Resources Vientiane Life reached a new high, breaking through the 100 billion mark for the first time, reaching 118.9 billion yuan, up 43.8% year-on-year. Among them, there are 8 luxury shopping centers in the camp, ranking first in the industry, and the retail sales increased by 39.7%.

Under the epidemic situation, luxury consumption returned to China, driving high-luxury shopping malls to attack all the way.

Combing the performance of heavy luxury market under China Resources Vientiane Life in the past two years, the sales performance growth is particularly prominent.

In 2020, the growth rate of retail sales of heavy luxury venues will reach 20.3%;

In the first half of 2021, the growth rate of retail sales of heavy luxury venues reached 84%;

In 2021, the growth rate of retail sales of heavy luxury venues reached 39.7%.

What can’t be ignored behind the data is that China Resources Vientiane Life Luxury Shopping Center is growing rapidly with the naked eye. Under the normalization of epidemic situation, the luxury market, which shows strong growth momentum and excellent anti-vulnerability ability, has become the ballast stone of China Resources Vientiane’s life performance.

Covering potential cities

Four luxury markets are the first in the market.

According to the research report of Bain Company, the luxury market in China is expected to grow by 48% against the trend in 2020, and the personal luxury consumption market in China will reach 311.7 billion by 2025. Stimulated by the huge consumer market, domestic high-end businesses are booming. According to the big data monitoring of Win Business, by the end of December 2021, there were 73 high-end shopping malls in China.

From the enterprise level, the domestic high-end market is mainly divided by hang lung plaza, SKP, Wharf, Swire Property and China Resources Vientiane Life. In terms of quantity alone, compared with these high-end business players, China Resources Vientiane Life has a slightly larger scale of eight luxury venues. According to the official disclosure of China Resources Vientiane Life, the number of luxury venues currently ranks first in the country.

China Resources Vientiane Life’s eight luxury venues are located in seven cities: Shenzhen, Shenyang, Nanning, Tianjin, Xiamen, Chongqing and Hangzhou. From the perspective of urban coverage, taking the TOP10 cities of total retail sales of social consumer goods in 2021 as a reference, four projects of China Resources Vientiane Life occupy three cities of Shenzhen, Chongqing and Hangzhou, covering 30%, and Henglong Real Estate, which is similar in scale, is 20%.

From a macro point of view, China Resources Vientiane’s luxurious living place has relatively less competition in high-end business in the city and a higher market share. Take Shenzhen and Nanning as examples. At present, only the life layout of China Resources Vientiane has a luxury market, which is the only destination for local luxury consumption.

In addition, for cities with fierce market competition in Hangzhou and Shenyang, China Resources Vientiane Life actually takes the first-Mover advantage to seize the market. Hangzhou Vientiane City opened in 2010, and Shenyang Vientiane City opened in 2011, both of which were the first luxury MALL in the local area.

The strategy of dislocation competition is optimistic about the target city, which reflects the rising of high-end consumption in the sinking market. As early as the Official Report of the World Luxury Association in 2010-2011, it was mentioned that the awareness and willingness to consume of big brands in second-and third-tier cities are close to those in Shanghai and Beijing, and the consumption amount is almost equal to or even higher than that of consumers with the same income in first-tier cities. Under the saturation of high-end consumption in first-tier cities, China Resources Vientiane City life took the lead with the first-Mover advantage and formed a leading position in regional deep cultivation.

At the 2020 performance conference, China Resources Vientiane Life revealed that Shenzhen Vientiane City, Shenyang Vientiane City, Nanning Vientiane City and Tianjin Vientiane City ranked first in the market; Xiamen Vientiane City and Chongqing Vientiane City ranked second in the market.

Five-year retail sales tripled.

Heavy luxury field contributes a large proportion

According to the financial report data, China Resources Vientiane Life achieved a retail sales of 118.9 billion yuan in 2021. From 35.9 billion to 118.9 billion yuan, in the five years from 2017 to 2021, the retail sales of China Resources Vientiane tripled, which was inseparable from the doubling of scale, and the luxury market also played an increasingly important role.

Taking 2021 as an example, the total retail sales of China Resources Vientiane Life for the whole year was 118.9 billion yuan, while according to unofficial data, the total sales of six luxury markets in Shenzhen Vientiane City, Shenyang Vientiane City, Hangzhou Vientiane City, Xiamen Vientiane City, Chongqing Vientiane City and Nanning Vientiane City reached 46.1 billion yuan in 2021. This also means that if the data is accurate, the six luxury venues contributed 38.7% of the performance.

Previously, the data of China Resources Land’s 2020 financial report also mentioned that heavy luxury shopping centers accounted for more than 46% of the annual retail sales of 73.8 billion yuan.

As a real barrier to luxury shopping centers, luxury brands are also the main drivers of performance growth. China Resources Vientiane Life disclosed in the financial report that it has reached strategic cooperation with nearly 100 international luxury brands and nearly 400 international luxury brand stores.

From the perspective of individual projects, Vientiane City in Shenzhen, Vientiane City in Hangzhou and Vientiane City in Shenyang, which have been in operation for more than 10 years, have been very stable, with sales of individual projects of 8 billion+,especially the earliest opening of Vientiane City in Shenzhen will reach 13 billion in 2021, which is the cornerstone for China Resources Vientiane Life to maintain steady growth in performance.

In the past three years, newly opened shopping malls, such as Vientiane City in Shenzhen Bay and Vientiane City in Xiamen, are incremental parts of the life performance of China Resources Vientiane, and the two major projects have also ushered in a large increase this year. This is mainly due to the fact that the newly-opened heavy luxury market only ushered in the presence of heavy luxury brands in two or three years.

//Vientiane City in Shenzhen Bay: Luxury brands have been launched one after another, and their performance has improved significantly.

In 2018, the second luxury market in Shenzhen-Vientiane City in Shenzhen Bay is getting better and better. After three years, the luxury brand has been basically in place, which is also an important reason for the surge in retail sales in Vientiane City in Shenzhen Bay. The data shows that the retail sales of Vientiane City in Shenzhen Bay in the first half of 2021 increased by 225% year-on-year.

It is reported that in 2021, Vientiane City in Shenzhen Bay opened the first Chanel in Shenzhen and the second Hermes in Shenzhen, as well as DIOR, LV, Cartier, LOEWE and other luxury brands. In addition, there are a large number of high-end watches, such as Cartier, BVLGARI, BLANCPAIN, Jaeger-LeCoultre, IWC and other top head brands.

With the "unique and powerful" brand matrix, Vientiane City in Shenzhen Bay has gradually demonstrated its strong ability to attract gold.

//Xiamen Vientiane City: More than 40 luxury brands, leading high-end businesses in Fujian.

Xiamen Vientiane City opened in 2018, when more than 42% of the first stores were introduced. One year after its opening, Hermès, Louis Vuitton, Cartier, Gucci, Bvlgari, Roger Vivier, BALENCIAGA and other luxury brands appeared one after another.

Last year, the project was adjusted again, and the proportion of the first store in the region was raised to 55%, and brands such as Fendi, Loewe and Thom Browne were opened. At the same time, the formats of beauty cosmetics, niche luxury and high-end watches were strengthened. At present, Xiamen Vientiane City has gathered more than 40 international brands, forming a super high-luxury brand matrix. According to reports, the sales of Xiamen Vientiane City will reach 6 billion in 2021.

?Three luxury venues will be opened in 2022.

Domestic high-end consumption continues to rise, and China Resources Vientiane Life is still accelerating the pace of expansion of the luxury market.

According to known data, in 2022, China Resources Vientiane Life will also open heavy luxury shopping centers in Haikou Vientiane City, Wuhan Vientiane City and Fuzhou Vientiane City. At that time, the number of heavy luxury shopping centers in China Resources Vientiane Life will increase to 11, ranking first in the country.

China Resources’ first Vientiane City 3.0 project, Wuhan Vientiane City 5.1, opened.China Resources’ first Vientiane City 3.0 project, with a commercial building area of 190,000 square meters and more than 400 shops planned, will bring over 40% of the first stores in Wuhan, covering luxury, luxury, luxury and catering.

The first pure island tourism theme shopping center, Haikou Vientiane City opened on June 28.China Resources’ first Vientiane business in Hainan Free Trade Port, with a total volume of 123,000 ㎡, will focus on luxury and introduce over 60% of the first brands, covering national flagship stores, regional flagship concept stores and stores with the highest brand level, so as to create a new banner of high-end business in Hainan.

Fuzhou’s first "Luxury+" shopping center, Fuzhou Vientiane City opened this year.The commercial building area is about 90,000 square meters. It is planned to introduce the Super 300+ brand, the first store in 100+ city, and two self-operated high-end brands of China Resources, Ole’ Boutique Supermarket and Vientiane Studios, which will bring together a number of high-luxury brands around the world and open a new chapter in Fuzhou’s commercial development.

In addition, China Resources Vientiane Life also has Vientiane City shopping centers in Guangzhou Huangpu, Dongguan Nancheng, Changsha and other regions. These cities are big consumption cities, and it is not ruled out that luxury shopping centers will be built in the future.

According to the "Fourteenth Five-Year Plan" previously disclosed by China Resources Vientiane Life, from 2021 to 2025, there will be 50 outreach projects (non-China Resources Department projects), and the goal will be to reach 150 shopping centers in operation by 2025, while China Resources Vientiane City will still focus on luxury and quality shopping center tracks. Obviously, China Resources Vientiane Life is in full swing on the "luxury-oriented" track, and the rapid expansion of scale advantages will also provide full protection for China Resources Vientiane to live in luxury consumption.