中国大型数码商场面临的挑战

位于北京中关村的太平洋数码商场已经关闭,是什么导致大型的数码商城也经营部下去了呢?

The once bustling digital world, the Pacific Digital Center in Zhongguancun is now completely quiet and empty. The building's property manager explained that the contract with the landlord, Peking University, has come to an end. However, the answers from some nearby digital product trading centers in Zhongguancun shed some light on other possible reasons behind the closure.

"Computers in my store each used to bring me 700 to 800 yuan in profit three or four years ago. But now, the profit has declined to about 400 yuan each."

"If we have enough regular customers buying products from us, then we'll want to continue our business. Otherwise, the profit can't even cover the rental expenses."

Low profit plus high rental fees have driven many stores to close down. From 2002, the digital product shopping centers furiously expanded from 60 thousand square meters to today's 320 thousand square meters, which is roughly equivalent to 44 football courts. But the business models of these businesses were quite similar which caused vicious competition amongst sellers.

Similar results have also occurred in Shanghai's Xujiahui district and Shenzhen's Huaqiangbei area, both known as the centers of the local digital product market. Chen Xiaozhen, one of the local store owners in Shanghai's Xujiahui area says he is also considering withdrawing from the market.

"I could make 700 to 800 yuan by selling one computer in the past, but now I only make 100 yuan. I can tell that market demand has shrunk tremendously. The supply has greatly exceeded the demand. I can hardly make a living here."

According to the China Mobile Internet Federation, the demand for personal computers has declined from 30 percent to 10 percent since 2008. Assembling personal computers was once the major business model in many digital product shopping centers. But now very few customers would buy computer in this way. This means that the whole industry is now facing huge losses in profit. Some home-appliance and electric product sales companies like Suning and Gome have also expanded their businesses to digital products like computers and laptops. Online digital stores have also attracted large numbers of customers by offering lower prices.

Industry Insider Li Yi, also the Secretary-In-Chief of the China Mobile Internet Federation indicates that the current competitive situation has forced the traditional digital market to change their business model.

"A newly released administrative policy says places like Zhongguancun will have to develop high-end digital service businesses to return to their original development plan of building a Chinese Silicon Valley. Silicon Valley should not be defined as a digital product retail and wholesale market, but a high-tech center which leads frontline research in digital fields."

Industrial Insiders say basically the whole area of Zhongguancun has finished its historical mission as a trading market, and should find its next direction for development at this turning point. China will probably follow the business format of western countries, by developing some supermarkets that specialize in digital products, which allow product manufacturers to sell directly to consumers in the future. Multiple business models will be developed step by step for the Chinese digital market with more professional and secure services for digital product users.

For CRI, I'm Liu Min.