Shenzhen Huaqiang North: Growing pains of China Electronics First Street

Shenzhen Huaqiang North: Growing pains of China Electronics First Street

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Shenzhen Huaqiang North, China Electronics First Street, is undergoing a transformation and upgrading pains.

As the largest distribution center of electronic products in Asia, it repeatedly suffered profits decline, empty shop tide, flow reduction because of road blocking or closures and other crises in recent years. According to the informations to the media revealed from Lin Weidong, director of Huaqiang North institute, Futian branch, Shenzhen market supervision administration in 2015, the lowest rental rate of some of Shopping Mall in the region even dropped to 30%. But in the heyday of the Huaqiang North, it was once “hard to find a shop”.

Except the crisis, Huaqiang North also experienced various baptism such as e-commerce impact, intellectual propert enhancement and city upgrading. All these make it’s old development pattern facing transformation.

However, it’s also a place of great vitality. On the Pearl River delta 2.0 Forum in Shenzhen and Hongkong Bi-City Biennale of Urbanism \ Architecture at the beginning of this year, Chen Yanping, dean of architecture and city planning college of Shenzhen University, said that the planning in Huaqiang North constantly compromise and concessions, and by means of the government and the market cooperate, something new will be always to enter Huaqiang North.

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Efforts to move from the downstream to upstream

On the China electronic information Expo in this year, Ma Xingrui, Shenzhen municipal Party committee secretary, introduced that Shenzhen electronic information industry accounted for nearly one-sixth of the country’s output value in 2015.

The predecessor of Huaqiang North is Shenzhen Shangbu Industrial Zone. Li Xiaojiang, Former president of China Academy of Urban Planning and Design, said that space like this not only in the city center but also low-cost, is the source and soil of urban innovation. In the new round of development in China, we should try to retain such space.

At the tenth China HI-TECH Fair in 2008, Huaqiang North has won the title of “China Electronics First Street”, where the mobile phone is one of the important industries. Reporter in Twenty-first Century Economic News recently quoted the introduction of industry Association of Shenzhen, said the mobile phone shipments of Huaqiang North up to more than 100 million per year, and the shipments to domestic market accounted for ten to twenty percent of the country.

In addition, for creative teams from all over the world, rich categories of electronic components makes Huaqiang North almost become synonymous with “hardware paradise”, and this has also become a natural advantage of current attracting many of hardware entrepreneurs in Shenzhen.

However, the old model of Huaqiang North has been in trouble. Recently, the reporter visited the Huaqiang North area. In some markets, the sight was still crowded and cluttered. Such as the counter was littered with all kinds of electronic accessories, and some shops and counters posted notices for lease.

The challenge for Huaqiang North right now is how to move “from downstream to upstream”. An objective fact is that Huaqiang North has not completely get rid of the “low-end” store image. A market manager told the Twenty-first Century Economic News reporter, that the old mobile phone recycling businesses he knows have been having fewer and fewer customers, and the profit of per unit have been reduced to even only 20 yuan.

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Behind the transformation: the industrial chain remains

Wang Xiaofei, the general manager of Shenzhen Huaqiang Electronic World Co., Ltd, said that in the face of economic downturn, e-commerce impact, road closures which because of subway construction and other heavy attack, rental rates and rental prices are falling, and the transformation of Huaqiang North is more of a forced move.

Whether it is because of the decline of traditional stores on account of the internet impact, or to conform to the development upgrade of the whole city of Shenzhen, the transformation of Huaqiang Northis is a necessity of the times.

However, Wang Ning, the vice president of China Electronic Chamber of Commerce, stressed that the transformation should not be become “transferring job”, the transformation of Huaqiang North should be a upgrade of trade way.

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· Liu Zhiyong, vice deputy head of Futian District, Shenzhen, said that Huaqiang North is not just a place to sell things, but also an industrial circle and a distribution center where can contact production and sales, and many businesses and electronic components manufacturers in the Pearl River Delta has formed a very closed relationship. Liu Zhiyong also said that“E-commerce can never replace industrial manufacturing, the capacity of industrial manufacturing is the unique advantages that Huaqiang North should keep.”

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