By Steve Lo, posted Jul 17, 2011 at 1:30 PM, 900 views,

Apple Plans to Open Retail Stores in Southern China

We have some extremely exciting news! It seems although Apple is opening two new stores, they are hard at work finding out where they can put their next ones. Where will they go? More after the jump!

Fellow readers, we here at M.I.C. Gadget know Apple very well, and we pride ourselves on bringing you China related news first. Working with our real estate contacts and verifying through some other sources we have found out some very interesting things about Apple’s future plans. You will remember our recent story on the new Hong Kong flagship store, as well as the new Shanghai store on East Nanjing Road.

Previously Apple had made it apparent it was coming to China in a very big way according to Apple’s VP of Global Retail Ronald B. Johnson, the company will establish 25 regular chains in the Chinese market by 2012.

However this has not materialized, as China is a very dynamic country full of promise, but also some unique challenges not found in any other part of the world. We previously covered the grey market and it’s effect on Apple’s supply chain in this story.

However this is not the end of the tale, for there are far more challenges. Apple has 4x the amount of people walking in it’s doors in China than anywhere else in the world on any given day its 40,000 people in and out the door. Some have likened it to “organized chaos” but Apple is the first major brand to capitalize in a retail environment in China where many other companies have failed.

With all those people coming in, Apple needs big stores. Apple stores are built extremely precise, with 2mm of give allowed in the specs by the companies. With this in mind, it has not been so easy for Apple to find space. The Beijing stores are relatively small, and speaking from experience it is difficult to get in there at any moment when they are open. None of the staff here at M.I.C. Gadget have been brave enough to try and get in during a product launch. You will remember back and see what happens when people go to those small crowded stores and get overly excited about a product launch.

Bottom line is Apple needs space, and lots of it. The Pudong store is more than 15,000 square feet and the upcoming Nanjing Road one is even bigger at 20,000 square feet. The one in Hong Kong’s IFC mall is two floors and has 15,000 square feet of space. An internal memo redefined what Apple wanted in order to succeed in China. They recently had a huge hiring of experienced real estate people from China as well so they could negotiate the often rocky market in China. Their new mode of operating is to buy the biggest real estate they can striving for 15,000+ square feet, and get the lease negotiated long term to negate any increase in the price. Apple seems to be buying into places that are in development as they are easier to buy into and as an “anchor” store they often get huge concessions as it will boost the value of the property for other retailers as well.

Now to the interesting part, Apple has stores in the top two cities of China, Beijing and Shanghai, where there will soon be five stores in between both. They are also opening one flagship store in Hong Kong. Southern China has so far been off the list. Our team has investigated and utilizing our contacts, we have found out that Chengdu is on the map as a city that will soon be getting at least one Apple store.

One will be in Raffles Square, the retail part of the high end development known as Raffles City which has mirror developments in other major Chinese cities. The development includes retail, apartments, office space, a hotel and a smaller SOHO development within it. Rent is currently being negotiated for this location. It is in Wuhou district. Check out the links to the development (Click here and here).

The other is supposedly in another high end development, Mixc City. It is slated to be opened in 2012, with an ice skating rink, cinema, high end shopping of premier brands and high end apartments as well. It mirrors the concept found in similarly named developments in Shenzhen and Hangzhou. It is in Chenghua district. Apple is scouting this area as we speak and we are told by our real estate contacts that they are working closely with Apple. Check out the official website of Mixc City for the development at Chengdu.

Also, we have heard many rumors about other cities, but Guangzhou has also been rumored to be targeted relatively soon. According to cnBeta, the Apple store will be located in the newly renovated Grand City Plaza area. We have been unable to verify this but we have heard the same thing from developers, real estate agents and job postings about Apple wanting to open a store in the city.

It would as the others be in a high end area, with retail as well as residential zoning nearby. What makes this one particularly good is that it has four times as many underground parking spots as it did before. It would be located in Tianhe district, with from this editor’s experience, it could easily be called Guangzhou’s Silicon Valley. Lots of computer malls are located in this district and some of the best nightclubs in China could be found here too.

If you are wondering why Apple is planning to open retails stores in Southern China, we have a good explanation on that in our previous story (scroll down to the section “Why people from mainland China will visit the store?“). So, we will keep you posted on any other developments, as we strive to get you the news first.

Source: Sina

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