--- title: "Guotai Junan: The rise of new outlet formats, broad prospects for urban outlets" type: "News" locale: "en" url: "https://longbridge.com/en/news/228159333.md" description: "Guotai Junan released a research report indicating that China's outlet industry has developed rapidly in recent years, with sales reaching 230 billion yuan in 2023, a year-on-year increase of 9.5%. JD Outlet, jointly created by Hailan Home and JD Group, demonstrates strong growth potential due to its layout in lower-tier markets and cost advantages. New urban outlet formats are rising rapidly, with major trends including format innovation, expansion into lower-tier cities, and light asset development. Leading companies such as Shanshan and Huipin Warehouse are driving growth through innovative models" datetime: "2025-02-13T08:35:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/228159333.md) - [en](https://longbridge.com/en/news/228159333.md) - [zh-HK](https://longbridge.com/zh-HK/news/228159333.md) --- # Guotai Junan: The rise of new outlet formats, broad prospects for urban outlets According to the Zhitong Finance APP, Guotai Junan released a research report stating that China's outlet industry has shown vigorous development in recent years, with sales reaching 230 billion yuan in 2023, a year-on-year increase of 9.5%, leading the retail sector in growth rate. As consumers become more rational, a new urban outlet model characterized by "deep discounts + quality products" has rapidly emerged, among which the JD Outlet jointly created by Hailan Home (600398.SH) and JD Group-SW (09618) demonstrates strong growth potential due to its layout in lower-tier markets and cost advantages. ## **Guotai Junan's main points are as follows:** **Industry Level: The Rise of Urban Outlets, Booming New Retail Formats** Since the opening of the first outlet store in Beijing Yansha in 2002, China's outlet industry has continued to expand. By the end of 2023, there were 239 operating outlet projects nationwide, with leading companies such as Shanshan (20 stores), Shazhi Chuan (19 stores), Shouchuang (15 stores), and Wangfujing (14 stores) occupying significant market shares. Outlets have shown strong anti-cyclical resilience with their "branded products + discounts" model, achieving approximately 230 billion yuan in sales in 2023, a year-on-year increase of 9.5%, with a sales per square meter of 12,800 yuan, leading the retail sector in growth rate. Currently, the outlet industry is exhibiting three major trends: first, innovation in formats, with urban outlets rapidly emerging due to their proximity to city centers and convenience; second, a shift towards lower-tier cities, with a significant proportion of new space in third-tier cities; third, light asset and diversified development, with leading companies accelerating expansion through mergers and acquisitions. **Typical Company Review: Shanshan Outlet and Huipin Warehouse Each Have Their Own Characteristics, Innovative Models Drive Growth** 1. Shanshan Outlet: Currently has over 20 self-operated projects, leading the industry in scale. It enhances the experience by integrating "outlet +" formats with parks, sports, and other scenarios, and achieves efficient operations through a joint venture model and a unified cash register system, with 2023 revenue increasing by 50% to 2.796 billion yuan. 2. Huipin Warehouse: A pioneer of the warehouse-style discount model, it reconstructs the supply chain through a membership system and "store-warehouse integration" model, with over 10 million SKUs and more than 3,000 cooperative brands, attracting middle-class customers with prices ranging from 10% to 30% of the original price. In 2024, new stores opened with daily foot traffic exceeding 10,000, and it expands growth space through global layout. **Hailan Home JD Outlet: New Format Potential Highlights, Accelerating Penetration into Lower-tier Markets** The JD Outlet jointly created by Hailan Home and JD has entered the market as an "urban outlet," rapidly expanding to 10 stores since the beginning of the year, with locations covering core business districts in second to fifth-tier cities, adopting a large store model of 3,000 to 10,000 square meters, covering internationally renowned sports and outdoor brands such as Adidas and Puma, and focusing on a deep discount strategy of 30% to 50%. Grassroots research shows that as the first store with an area of 10,000 square meters, the Linyi benchmark store has seen daily foot traffic exceeding 10,000 after opening, with a high conversion rate. Relying on the advantages of labor and rental costs in lower-tier markets, its profit prospects are promising. Considering the existing scale of 239 outlet projects in the industry, JD Outlet, with its grouping capabilities and location advantages, is expected to fill regional gaps and become an important increment in the expansion of the outlet format. **Risk Warning:** Downstream consumer demand may not meet expectations, and store profitability may fall short of expectations. 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