Research on the resumption of the “Cosmos Net Red Street” in Shanghai: the business of net red stores is weak, and high-end customization is still strong

“This is a very western-style street in Shanghai, and there are many fewer people now.”

“The flow of people on Anfu Road and Wukang Road is the best in Shanghai, and the current situation is truly unprecedented.”

The first line comes from the Brutalist clerk, who was standing under the wreathed sign, and it took a while for a customer to come in.

The second sentence is from the person in charge of BoyzCombo perfume shop. The shop owner is actively expanding the shop during the shuffling of the epidemic. It is usually difficult to rent a shop here and the competition is fierce.

Anfu Road is located in the historical and cultural area of ​​Hengfu. In the former French Concession, there are many bungalows and sycamore trees. It has a pleasant street environment and is full of cultural charm. It is the favorite “small road” of Shanghai people. In recent years, the national attention of Anfu Road is also attributed to young hipsters who regard the T-junction of Anfu Road and Wukang Road as the “cosmos Internet celebrity center”.

Huamei, Brutalism, Duoyu, BM, Sunflour… There are a large number of specialty shops at this intersection. Every afternoon, there are always fashionably dressed young people who bring a cup of coffee, or hold a bunch of Brutalist flowers to chat and take pictures here. . On weekends, the high density of hipsters at this street intersection may cause anxiety among “social fears”.

With the rise of social media, it has also become one of the neighborhoods for out-of-town tourists to check in. As the writer Liang Wendao said, the image focus of global cities is changing from “landmark buildings” to “neighborhood blocks”.Anfu Road and its surrounding neighborhoods are becoming a representative of Shanghai’s urban image and a highland for cultural and commercial consumption..

There are designer clothing stores, flagship stores of international furniture brands, clothing customization studios, vintage stores, independent fragrance brands, stylish western food stores, coffee and bakery, theaters, flower arrangements, etc. It can be said to be rich in business formats.

However, the supermarkets and grocery stores serving community life have almost completely moved away, and it has become a commercial gathering place for tasteful consumption, light luxury consumption, atmosphere consumption and popular consumption in Shanghai.

On June 13 and 14, researchers from CIC Research Institute conducted field investigations to understand the resumption of work and market in Anfu Road.We found that among the approximately 77 shops along Anfu Road, about 13 shops have been emptied and closed or have not resumed work (see the picture below), Yonglehui Park has not yet resumed work, and there are several clothing stores inside. In addition, there are some shops on Anfu Road on the second floor or branch roads, which have not been included in the survey.Research on the resumption of the "Cosmos Net Red Street" in Shanghai: the business of net red stores is weak, and high-end customization is still strong -Research-on-the-resumption-of-the-Cosmos-Net-Red-StreetWe have seen that there are both large companies and large chains, as well as self-employed businesses; there are both old stores that took root more than ten years ago, and “newcomers” who have rushed to the nuggets in recent years; both depend on There are also online celebrity stores with “adult flow” consumption, as well as small stores with a single customer base and a slow pace.

Under the epidemic, different business formats have caused different impacts on each, and the “staggered” appearance of resumption of work also indicates to a certain extent subtle changes in Shanghai’s consumption trends.

Internet celebrity shop: There are still people taking pictures, but fewer people enter the store to spend

Outside the beauty store “HARMAY” at the intersection of Wukang Road and Anfu Road, you can often see such a scene – the clerk carries a basket with a basket to hand a lollipop with a plum flavor to the customers in line. Soothe the boredom of queuing. These lollipops are so popular that they run out every now and then.

On the afternoon of the 13th, the researcher saw that the lollipop basket was quietly placed in the corner, and it was still full.

There are still many people sitting, squatting, and standing on the stairs outside “Huamei”. This is the magic of the store. Everyone treats some of the open facilities here as public spaces for leisure. But unlike usual, although there were crowds outside, there were only a few customers in the three-story store. The girls who used to be bustling and scrambled to try makeup did not show up this day.Research on the resumption of the "Cosmos Net Red Street" in Shanghai: the business of net red stores is weak, and high-end customization is still strong -Research-on-the-resumption-of-the-Cosmos-Net-Red-Street

On the steps of “Huamei”, two girls are taking pictures with flowers.All pictures in this article were taken by Zhu Meijie

There are still people gathering outside, but fewer people enter the store to spend, and the same is true for the “big net red” Fauvism opposite.

Since the resumption of work, layers of blue-purple hydrangeas have been piled up outside the Brutalist gate, which once attracted citizens lining up for a group photo. On the afternoon of the 13th, several young people also took pictures while sitting among the flowers.

The clerk told the researcher of the Pengpai Research Institute that customers who enter the store usually consume more or less, and bring some flowers and aromatherapy. Although some people take pictures these days, fewer people enter the store and business is much weaker.

Many stores have reported that the number of people on Anfu Road has decreased recently, and the number of people entering the store has also decreased. Many clothing stores open their business hours to 7 or 8 in the evening, usually around 10.Research on the resumption of the "Cosmos Net Red Street" in Shanghai: the business of net red stores is weak, and high-end customization is still strong -1655556533_333_Research-on-the-resumption-of-the-Cosmos-Net-Red-Street

The Brutalists put a lot of flower arrangements outside, and some flower stalls also come here to “snap traffic”.

The “big crowd” has disappeared, but the business of “Wenlu 3000”, which mainly focuses on high-end customization, has exceeded the expectations of the store manager.

She told the researcher, “I expected to open the store on the 1st, and there should be no customers in the 10 days from the 1st to the 10th, but I didn’t expect that there would be.”In general, the business level of the store recently is similar to that of the past, or even a little better.

Different from the large and beautifully decorated Internet celebrity shops, Wenlu 3000 is half a basement. The gate is not along the street, and you need to turn in from the gate of the residential building. Walking on the street, you can only get out of the small window of less than one square meter. I saw the yellow light in the room and a pair of high-heeled shoes on the wall.

“In the past few days, there have been customers visiting Anfu Road. It’s very interesting to see it, so I came in curiously,” said the store manager of Wenlv 3000. It specializes in new Chinese clothing such as cheongsam, Ao Dai (Vietnamese cheongsam) customization and high heels customization. Most cheongsams cost more than 5,000 yuan per unit, and high-heeled shoes are about 2,000 to 3,000 yuan. Compared with a ready-to-wear store, it is more like a studio, with not many visitors and a small area, less than ten square meters.

Usually, this small shop is very slow-paced. Three or four new styles are released in a season. Sample clothes are hung here, and customers need to customize them. Also because of customization, there is no loss of spring clothing inventory in this epidemic store. The hard loss is mainly more than 10,000 rent per month, which is not very stressful for the store.

The store manager mentioned that 90% of the orders for clothing are from old customers. There are not many people who like Chinese style, but there are more new customers for shoes. In general, most of the income comes from clothing. Therefore, this store relies most on the frequent customer circle, followed by some higher-income groups in the Anfu Road flow of people.

“We are just the opposite of the current trend, not being an online celebrity store, not targeting all consumers, but we (style) actively choose consumers,” the store manager mentioned. Therefore, the reduction in the flow of people on Anfu Road has little impact on this small store, and the retaliatory consumption of new customers has become an unexpected joy.

Light luxury store: buy a thousand-yuan t-shirt without trying it, retaliatory consumption on the first day of resumption of business

The Brutalists, which are greatly affected by the reduction in the flow of people, mainly sell fragrances and flowers in the Anfu Road store. These are young people’s improved consumption and experiential consumption, providing young people with network social capital. The price is not very high, and a sense of ritual can be bought for a few hundred yuan. At present, this type of consumption has been greatly impacted.

However, the consumption power of some high-income groups is still strong. The “retaliatory” consumption of clothing is not only in Wenlu Sanqian, but also in kleeklee.

After the news of the resumption of work was confirmed on May 28, kleeklee started to send the new summer clothes to Shanghai. The new clothes arrived at the store on June 1. The clerk was busy changing the spring clothes in March and putting on the new summer clothes. “The scene was very chaotic.” The kleeklee clerk recalled that a customer came in at that time, picked up the T-shirt from the goods, saw that it was good, and bought it without trying it on.

Kleeklee means “take your time” in Tibetan. It focuses on natural style and environmental protection style, and its positioning is not low. The price of a T-shirt is about 800~1000 yuan.Research on the resumption of the "Cosmos Net Red Street" in Shanghai: the business of net red stores is weak, and high-end customization is still strong -1655556536_1_Research-on-the-resumption-of-the-Cosmos-Net-Red-Street

People sit on the steps outside the “Huamei” door to relax, and newcomers come to take wedding photos.

The kleeklee clerk mentioned that the “retaliatory consumption” of the store was mainly on June 1st and 2nd, when the store just resumed business. The business was a little dull after that, but with the high turnover of the first two days, the business was generally sloppy after the resumption of work for half a month.

What is different from the past is that these days, the unit price of customers has become higher, and the number of consumers has become less.

To a certain extent, this reflects that some high-income groups still have strong spending power, but fewer people dare to consume such light luxury clothing. In fact, these types of affordable luxury brands often have two types of consumer groups. One is those with higher incomes and no pressure to consume; the other is those with just “enough” income and can afford limited light luxury items, which are considered “middle” income groups.

Since the epidemic for more than three years, the consumption power of this part of the “middle” income group and the high-income group has also formed some contrasts.

On Anfu Road, Wenlv 3000 opened just before the new crown epidemic in early 2020. Since the epidemic more than two years ago, the performance of the store has slightly exceeded the original expectations of the partners. The personal charm of the partner has gathered a group of “true fans” for the store. Most of the customers like to make an appointment with her and are closely linked with the store. In the past two years or so, except for the guests in the real estate industry who seem to be affected by the epidemic, other guests have not been affected much and are still willing to spend on this kind of customized clothing.

On the other hand, the western food bar Puzui has been stationed on Anfu Road for more than ten years, and the per capita consumption is about one or two hundred yuan. According to the boss’s observation, the epidemic situation for more than two years has had a slight impact on the store’s customer flow, and the more important change is that the unit price of customers has decreased.

“In the round of epidemic in early 2020, there were still customers who ordered wine for takeaway, and now there are fewer orders for wine,” said the boss of Portuguese drunk. The manager of another western restaurant bar with a similar positioning also said that after two months of not going to work, the “belts” of the customers are also very tight.

Designer store: Missing hundreds of thousands of spring clothes, and summer clothes have not yet “delivered”

In addition to the consumer side, from the production side, under the epidemic, large companies are more able to resist risks than small companies.

Although Anfu Road seems to be a “small store” with distinctive characteristics, in fact, part of it is an individual business, and part of it comes from the company’s layout. For example, Wagas, a catering company, and Suran, a clothing company, have multiple brands of stores in Anfu Road. .

Kleeklee is a brand owned by Suran, backed by national companies. Before the epidemic, some goods sent to Shanghai warehouses were transferred to Jiangsu in time, so that the sales of stores in other areas in the spring were not affected. After the outbreak of the epidemic in Jiangsu at the end of May, it moved to the Shanghai warehouse, and the Shanghai store also put on new summer clothes in time.

Compared with Kleeklee, which can be flexibly adjusted between multiple regions to resist supply chain risks, Haptic has encountered the embarrassment of “not connecting in spring and summer”.

Haptic took root on Anfu Road more than ten years ago and is a clothing store led by the designer himself. At present, most of the clothes hanging in the store are spring clothes. The summer clothes have been designed, but they have not yet been delivered. “We need to adjust the version, line up and other partners to produce, follow up on quality control, etc.” Haptic store manager said that recently designers have also been very interested. Busy, July and August are the off-season for clothing. Summer clothing usually ends in early July. Now summer has begun halfway, and spring clothing is almost missed, so the pressure is not small.

This shop is characterized by not making chemical fiber fabrics, and seldom pursuing style changes. It pays more attention to cutting, material, and design. The price of a silk shirt is about 2,000. Under normal circumstances, Haptic should have hundreds of thousands of dollars in turnover in April and May.

Half a month after the resumption of work, the store’s turnover has not reached half of what it was before, mainly relying on regular customers. “Now people spend more on daily necessities, and they don’t care so much about clothes. Most of our customers are white-collar management, and they may not be in the state to spend recently,” Haptic store manager speculated.Research on the resumption of the "Cosmos Net Red Street" in Shanghai: the business of net red stores is weak, and high-end customization is still strong -Research-on-the-resumption-of-the-Cosmos-Net-Red-Street

On the afternoon of June 13, there were not many people on Anfu Road.

Speaking of Kleeklee, the Haptic store manager is somewhat envious of the mature online sales channels of the Suran brand.

In fact, after the epidemic in early 2020, Kleeklee started to prepare an online platform, and subsequently opened online shopping channels such as Tmall flagship store and mini programs. On June 17, Kleeklee Anfu Road store tried live broadcast in the store for the first time.Whether it is a concept brand store such as kleeklee or a designer store such as Haptic, all previousThere are many regular customers from Shenzhen and other places. These people cannot go shopping in Shanghai now, and they are also a little troubled by Haptic.

Therefore, online is the direction that Haptic is considering expanding. In the case of large losses this year, the store is still recruiting new shopping guides. “In the future, we will still need manpower. We will not close the old store for so many years.” The manager of Haptic said that when the designers are finished, whether it is WeChat, Taobao, or Tmall, they will slowly make it online.

Western food bar: It is very difficult to recover less than 20% of the first 20% of the epidemic

Compared with some clothing stores, which can still be “so-so” or half restored, the restaurants on Anfu Road are generally not optimistic.

Boom Boom Bagels’ main product, bagels, is rich in ingredients like hamburgers. It not only meets the needs of office workers, but also can be well adapted to take-out and take-out models. With the location adjacent to the CBD, the overall business of the store has returned to its original seven or eight. Cheng, in this street can be described as “lucky”.

At present, the catering business on Anfu Road is mainly Western-style light restaurants and coffee bakeries. The closed dine-in has a great impact on many restaurants that pay attention to atmosphere and experience.

“How’s it going? I’m telling you, in one sentence – very difficult.” The manager of a western food bar was emotional, “Look, it’s noon now, where is anyone coming?” The manager pointed to a few people on the side of the road and said. Usually relying on the flow of people in the nearby CBD, lunch can be full, but now half of the store’s employees are at home.

Another western food bar, Puzui, has a similar situation.Employees are rotated to work, one day off. There is no dine-in, and there are limited take-out orders for Western food, and naturally not many people are needed.

“The per-customer price of Western-style light meals will be higher. Although there are some foreigners nearby, they can make them at home. Recently, some foreigners told me that they have left Shanghai.” Portuguese drunk boss said, and you are doing takeout, aren’t others doing it?

In the past two weeks, almost all restaurants in Shanghai have entered the takeaway track.

At around 12 noon, there was a long table at the entrance of the light meal chain BAKER & SPICE, filled with all kinds of bread, passers-by were queuing for bread and coffee, and the delivery boy came and went. out your own number. Although the place is very lively, the turnover of the store has only recovered by about 50%.Research on the resumption of the "Cosmos Net Red Street" in Shanghai: the business of net red stores is weak, and high-end customization is still strong -1655556536_57_Research-on-the-resumption-of-the-Cosmos-Net-Red-Street

In the case of not being able to dine in, an old-fashioned “Internet celebrity” cafe with a large area set up a long table outside the door to sell baked products.

“It’s good to be able to achieve five achievements now”, there is a customer waiting for coffee next to him. He is a regular customer here and one of the shopkeepers on Anfu Road. “I used to eat here at noon every day, and the dine-in space is very large and full of people.” The customer said, now I buy some coffee and bread for take-out, which is much lower than the unit price of dine-in light meals ( The store has both roasted coffee and light meals), and consumption habits have changed.

In fact, including the Portuguese drunk boss, the bosses who specialize in Western food do not expect takeaways to play a big role in store operations. The boss of Portuguese drunk said that the turnover of the Anfu Road store has not yet reached 20% of the pre-epidemic level.

The rent for a shop like Puzui on Anfu Road is about 100,000 yuan per month. The owner has two other restaurants with a total of 20 employees. Among them, the store in Pudong is being renovated. “If it goes on like this for another month or two, I really can’t hold it.” Now the boss hopes that the epidemic situation will be stabilized quickly and dine-in dining can resume.

Street: Some stores collapsed, while others accelerated expansion

The closure of Indigo Living has surprised many shop owners on An Fuk Road. When it comes to your home furnishing, no one knows these shopkeepers.

At the beginning of 2014, after successful operations in Dubai and Hong Kong, Yinguge Home Furnishing decided to land in Shanghai, and chose a three-storey historic house on Anfu Road as the first flagship store. In October 2020, due to the increase of your home furnishing, the second store opened on Nanjing West Road, Shanghai.

This home furnishing store features immersive furnishings. At the beginning of the store’s opening 8 years ago, the store mentioned that Indigo Living’s philosophy is to create a feeling like “entering a close friend’s home”, because of the exquisite scenery, because of you Ge is a frequent visitor in the Anfu Road Parade, and an icon of Anfu Road’s exquisite consumption format. On June 13, a researcher of the institute walked on Anfu Road and found that,Because all the items on the first floor of your store have been emptied, there is no notice of relocation or renovation posted on the door.

“The Indigo building costs 6 million a year for rent,” said the person in charge of BoyzCombo.The rent of stores on Anfu Road has never been cheap. Similarly, as the top player of Internet celebrity street, Anfu Road has also made a considerable return.The person in charge of BoyzCombo speculates that the annual turnover of BAKER & SPICE mentioned above can reach tens of millions.

Therefore, under the rare coldness of Anfu Road, the two principals of BoyzCombo are ready to seize the opportunity to invest. A year ago, the BoyzCombo fragrance brand was officially established on Anfu Road. In the past two months, the two responsible persons have won three stores in the former French Concession areas such as Wuyuan Road and Urumqi Middle Road nearby. “Usually there is no store here, and a dozen people line up to watch after a store comes out,” said the person in charge of BoyzCombo. Now there is still room to talk about conditions.Research on the resumption of the "Cosmos Net Red Street" in Shanghai: the business of net red stores is weak, and high-end customization is still strong -1655556536_357_Research-on-the-resumption-of-the-Cosmos-Net-Red-Street

A two-story barber shop posted a closure.

Regarding the expectations, the above-mentioned person in charge believes that it will be restored by the end of the year, “We will reduce costs now, maintain them first, and gradually resume investment by the end of the year. For example, we recruited full-time employees, and all five insurances and one housing fund must be matched. In the future, we will recruit part-time jobs first. Don’t make a big deal of decoration.”

When will it resume? An unpredictable situation is the recurrence of the epidemic, which is what worries the shopkeepers and staff at Anfu Road the most.

On June 9, an epidemic occurred in the Red Rose Beauty Salon in the center of Shanghai. Hunan Road Sub-district, which Anfu Road belongs to, stepped up control measures. The only convenience store on this road, Haode, was changed from a limit of 2 people to not being able to enter the store. Shopping, replaced by a clerk, and customers need to meet the 72-hour nucleic acid negative to purchase.

Haptic’s studio on Huaihai Road was also closed for a few days due to the “red rose” epidemic, which made the preparation time for summer clothes even more tense.

Regarding the closures and controls in the past two months, the clerks of many clothing stores and boutiques have been very calm. “There is no way, no one wants this”, this is a very common answer. People want to look forward and hold their jobs back to work.

Compared with the fact that the employees of the restaurant have not returned to normal work, the clerk of an accessory store is very content-the work is still the same now, but there are fewer customers, and the impact is not big or small. After all, wages and performance are linked. In her opinion, as long as there are jobs and savings, she will not leave Shanghai. “After all, Shanghai has different jobs (opportunities) and salary levels.”

Now, the whole street is waiting, waiting for the epidemic to stabilize and the market to recover. Before that,“You can only calm down, work harder, and eat less.”Brutalist employees say so.

(This article is from CIC, for more original information, please download the “CIC” APP)

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