Old business districts are very likely to become unpopular as new ones are built with more advanced designs and bigger appeals to consumers. Xujiahui, one of Shanghai’s earliest modern business districts, is taking the initiative to regenerate itself: Grand Gateway plaza has turned its patio into an open art area; Pacific Digital mall and other commercial buildings are under renovation; and a public arcade connecting the district’s various buildings is under construction.

Night view of Xujiahui [Photo/wenhui.news365.com.cn]

With the completion of Shanghai’s first metro line in the 90s, Xujiahui became the first major business district of the city. Now, after two decades of unprecedented economic growth, the district is facing challenges in transitioning to keep up with the latest trends and maintaina sustainable development. The Oriental department store, now the buyer hatch basefor Bailian group, has completed its industry regrouping and introduced a number of European brands. MetroCity continuously hosts novel restaurants and activities, rated as the must-go venue for young people. Grand Gateway plaza started its redevelopment last year and is expected to employ two-story high glass windows on the two sides to more appealingly display products, while more international luxury brands will be available for the first time in China.

Xujiahui used to be the place where households got their first computer and was well-known as an electronics Mecca. However, with the advent of Taobao, JD and large electronic traders, Xujiahui’s digital mall, a place where individual traders sell their wares, has lost its appeal. This outmoded shopping area has shrunk to only two floors of the mall. In order to attract the customers to leave their houses and shop in a department store, Buynow group has turned the mall into a recreational venue where entertainment programs enabled by technology are coupled with digital shopping and restaurants.“Only by creating fun entertainment programs that retain people for a long period of time in the mall can we have loyal customers,” posits the manager, Yuanming Xie.

Overall, the Xujiahui business district plans to take a cultural route to achieve its regeneration. Rich in cultural resources such as the Xujiahui Library, Xu Guangqi memorial, Shanghai Stadium, Jiao Tong University and Shanghai Film Studio, an aimless walk anywhere in the district will lead you to somewhere full of fine art or history. The key for Xujiahui to rebuild its core value and brand effect is through refining and improving its distinctive area through its cultural legacy. The reconstruction so far has received positive feedback from consumers. According to a sample survey, the growth rate of sales for Xuhui district was 26% during the Labor Day holidays, ranking second in Shanghai. Its heyday may be behind it, but this shows that its attractiveness is far from lost.