On November 28, SM Group, which has been innovating for 66 years and has been moving forward steadily, hosted its first tenant appreciation in Xiamen, where SM first set sail for its investments in China. Over 200 tenant partners, industry representatives and media leaders convened to recount their growth tales spanning the past two decades and deliberate on the future prospects.
Mutual Effort, Mutual Achievement
The event kicked off with a traditional southern Fujian tea ceremony, where guests enjoyed heartfelt conversations and explored the theme of "newness."
"One hero needs three helpers, as the saying goes. SM China's growth could not have been possible without our partners. Over two decades, we've stood together even during the pandemic and business revolution." Hans T. Sy, Chairman of Executive Committee of SM Prime Holdings, Inc., and Steven T. Tan, President of SM Supermalls, on behalf of SM Group, thanked all attendees and held high hopes for more collaborative opportunities in the future.
Sun Yan, ANTA Sales VP, shared ANTA's brand attitude of "Keep Moving" and its overseas investment strategy. He noted that ANTA had successfully expanded into the Philippines through SM as early as 2019, thanks to the win-win partnership.
Chen Songyong, Calvin Klein's largest agent in China, recalled the 23-year collaborative journey with SM since its China debut.
Collaborations bring warmth, strength, and even more delightful surprises. Tian Yehua, Head of Expansion, MUJI (Shanghai) Company Ltd., spoke about MUJI's first cross-floor store in Fujian, which launched in September after a recent upgrade and has become a top performer provincewide, even nationwide, since opening in SM Xiamen.
Numbers Unveil Potential, Strength Underpins
Liao Jie, Research Director of Winshang Tech, shed light on China's commercial market dynamics and officially released the Bluebook of Fujian Market's Investment Strategies.
Analysis indicates that China's commerce has shifted towards an inventory-driven era, where the key to industry competition lies in pinpointing regions with high growth prospects and sustainable vitality. The Chengdu-Chongqing urban agglomeration leads the way with its thriving commercial vitality, abundance of top-notch projects, and a high concentration of leading operators. While Fujian market enjoys a solid economic foundation and brisk consumption, particularly in Xiamen and Fuzhou, where commerce is highly concentrated and there's immense potential for growth in newly planned spaces.
The Blue Paper notes that SM Xiamen Haicang is a prime mixed-use area with a solid customer base, enhanced by TOD. The surrounding area lacks commercial options, with gaps in retail, parent-kid and service formats.
Meanwhile, SM Fuzhou Cangshan sits in Baihuting area, Fuzhou's future sub urban hub, benefiting from metro access, dense population, and young consumers. There's potential to fill gaps in retail brands and consumption levels.
SM China was listed into Winshang's Top 100 China Retail Real Estate Enterprises, strong in second tier and above cities (accounts for 82.7% of SM Supermalls China’s total GFA). In Fujian, SM stands out: 53.66% in retails, and 60.21% in high-end brands, exceeding provincial averages. SM is a top choice for brands' first-in-Fujian stores, with 10.22% this year.
Seize Moments, Forge Opportunities
SM Group, stable yet innovative, capitalizes on China market trends and urban opportunities.
SM has unveiled a major upgrade plan for SM City Chongqing, committing an extra investment of around CNY200M for the comprehensive transformation, revealed by Kaye Natalie Lim, Head of SM China Operations, and Helen Guo, Head of Leasing. Embracing the design philosophy of beyond borders and nature-friendliness, the project will integrate local culture and hill elements of Chongqing, crafting a chilled-out "Urban Oasis." And SM City Chengdu will embark on its renovation journey, adopting the novel concept of "SUPER MERCADO" to blend diverse and unique spaces and themed scenarios, thereby fostering an "Urban Stress-Free Lifestyle."
This year, SM China accelerates its "Deepen Roots in Fujian" strategy, says Lim.
On the "new" front, SM Xiamen voco Hotel signed with InterContinental in May, marking voco's Fujian debut. SM International Center completed three towers this September, launching leasing.
In retail, SM City Fuzhou's construction progresses smoothly, aiming for Spring Festival pile foundation work completion and 2027 entire completion. SM City Xiamen Haicang wraps up facade work, set for year-end finish and Q4 2025 opening. Next year, SM China enters non-standard retail with SM Xiamen CHAO BLOCK, a trendy youth-focused commercial block showcasing the SM attitude. Stay tuned!
