Luohu tries to revive a shopping mall
Owing to its proximity to Luohu Port, Luohu Commercial City, a shopping mall opened in 1994, was once popular among consumers from both Shenzhen and Hong Kong.
However, the once-bustling mall, which at its peak saw as many as 50,000 consumer visits per day, now struggles to attract customers, even during traditionally busy periods such as the May Day holiday. This downturn was particularly noticeable given that major shopping areas in Shenzhen registered a year-on-year rise of 47% in visitor visits and a 33% increase in sales revenue during this period.
For instance, on April 29, the first day of the five-day holiday, approximately 58,000 people traveled from Hong Kong to Shenzhen via Luohu Port. Yet, only a fraction of them trickled through to Luohu Commercial City, where many retail spaces now stand vacant, awaiting renters.
The outdated infrastructure and ineffective management of the mall are among the primary reasons it has been unable to compete with newer shopping venues in the city. Additionally, the long-standing issue of some vendors selling counterfeit and inferior goods within the mall remains unresolved, resulting in a worse shopping experience for consumers.
To revitalize the mall, it is suggested that it renovate its infrastructure, reform its management and improve its services. By doing so, it could effectively leverage its proximity to the port and reclaim its former glory.
Experts say the mall could boost its competitiveness by capitalizing on Shenzhen's comparatively low labor costs and Hong Kong's reputation for high-quality goods, thereby forging a path toward diversified competition.