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China Tech & Business Decoded
Takefumi Makino
vol.131:The Disappearing Mall:OMO Model
OCT 17, 202613 MIN
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Description
The provided text examines the existential crisis facing urban shopping malls in China as e-commerce dominates traditional retail. Expert analysis suggests that physical storefronts are becoming obsolete for material purchases, shifting instead toward service-oriented "experience consumption" to remain relevant. The source identifies four primary survival strategies, including transforming into art-focused spaces, prioritizing gastronomy, or focusing on service-based tenants like pharmacies and cram schools. Ultimately, the author argues that the most effective path forward is Online Merge Offline (OMO), a model that integrates digital ordering with physical showrooms. This transition is framed as a necessary evolution for both Chinese and Japanese commercial facilities to survive a landscape where physical shopping is no longer the primary driver for leaving the home.

