Analysis on Development Strategy of China＇s Commercial Street： A Case Study of Hangzhou City.docx

Analysis on Development Strategy of China＇s Commercial Street： A Case Study of Hangzhou City.docx

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China-USABusinessReview,ISSN1537-1514August2013,Vol.12,No.8,787-795

AnalysisonDevelopmentStrategyofChina'sCommercial

Street:

ACaseStudyofHangzhouCity

HEZheng-biao

HangzhouBureauofEconomyandTrade,Hangzhou,China

ZhejiangAdministrationofWorkSafety,Hangzhou,China

ChinaisarrangingaboomofcommercialstreetdevelopmentacrossthecountryandHangzhouworksasanoutstandingexample.CommercialstreeteconomyisboostingChina'surbanizationandindustryprosperity.ConcerningontherapidandsounddevelopmentofcommercialstreetinChina,thispaperintroducesmanyproblemsandconflictsthatblockdomesticcommercialstreetdevelopment.WiththeguidancesofChinaCommercialWalkingStreetCommitteeandHangzhouBureauofEconomyandTrade,dataanalysisbyHangzhouMunicipalBureauofStatistics,andcasestudyofcommercialstreetsinHangzhou,thepaperstatesthatcommercialstreetdevelopmentbeyondChina'ssocialismeconomicsystemshouldfollowtheguidanceofscientificoutlookondevelopment,insistongovernment-ledandmarket-driven,designfirstandservice-oriented,andhighlightcorefeatureandcomprehensivefacility.Also,itisessentialtounifyandensurelegalstatusofmanagementcommittee,andstreamlineorganizationalstructure,balancebetweeninterestgroups,weakenconflictsofpublicandprivate,andpromoteindustryassociationdevelopmentandprivately-operatedpublicaffairstoensuresustainabledevelopmentofcommercialstreet,whichwilltrulybenefitdomesticurbanizationaswellasimprovepeople'smaterialandculturallife.Fortheotherdevelopingcountriesintheurgentprogressofindustrializationandurbanization,thepaperisexpectedtobeguidelines.

Keywords：

commercialstreet,interestsconflicts,publicpolicy,Hangzhou,scientificoutlookondevelopment

Introduction

Astheepitomeandessenceofurbanbusiness,commercialstreetisamulti-purpose,multi-industrytype,andmulti-fbrmatcollectionofbusiness.TheancientmeansofcommercialstreetinChinamaydatebacktotheTangDynasty（Year618-907AC）.ModerncommercialstreetconstructioninChinastartedfrom1980swithinmodemmeansandtraditionalelements.Theancientandmodemcommercialstreetsmirrorandhighlighturbanhistory,characters,properties,andlifequality.China'surbanizationhasworldwideimplications;noble-winningeconomistJosephEugeneStieglitzhasoncenamedurbanizationinChinaandhigh-techdevelopmentintheUnitedStatesasthetwoprimaryfactorsshapingtheworldofthe21stcentury（Retrievedfrom10/2013-03/12/content_28216370.htm）.RecentyearshavewitnessedthecommercialstreetboomalongwithrapidprogressofurbanizationthroughoutChina,whichisparticularly

HEZheng-biao（WashingtonHo）,M.A.,AssistantResearcher,HangzhouBureauofEconomyandTrade;Secretary,ZhejiangAdministrationofWorkSafety.

CorrespondenceconcerningthisarticleshouldbeaddressedtoHEZheng-biao,No.77XixihexiaRoad,Hangzhou310012,ChinaE-mail:

washington0223@.

ANALYSISONDEVELOPMENTSTRATEGYOFCHINA'SCOMMERCIALSTREET 793

notableinHangzhoucity.Hangzhou,knownasUN-HabitatScrollofHonorAwardCity,China'sBestCommerceCity,andChina'sBestInvestmentCity,hasalreadyarrivedathighlevelsofdevelopedcountryinmanyaspectsparticularlywithitspercapitaGDP（byhousehold）reachedto86,642ChineseNationalDollar（CND） HangzhouMunicipalBureauofStatistics,HangzhouBulletinofEconomicandSocialDevelopmentStatisticsof2010（Retrievedfrom

HangzhouMunicipalBureauofStatistics,HangzhouStatisticsYearbookof2010（Retrievedfrom

inyear2010.AccordingtoaverageexchangeratethenbetweenCNDandU.S.Dollar（USD）,Hangzhou'spercapitaGDPwas12,797USD.Thewholecitycontainedatotalpopulationof6,833,800,totalurbanpopulationof4,294,400,andtotalnon-agriculturalpopulationof3,544,800%Amongwhichurbanpopulationaccountedfor62.84%ofthetotalpopulationandnon-agriculturalpopulationaccountedfor51.87%.Meanwhile,Hangzhou'scommercialstreetdevelopmentisintheforefrontofChina,whichhadbuilt20nationalfamouscommercialstreets.AccordingtothecasestudyofHangzhoucity,analysisofcurrentdomesticcommercialstreetconstructingandmanagingstrategies,itwillbenefitcommercialstreetChinaandabroad.

TheFunctionofCommercialStreet

Accordingtothestatisticsfromcommercialstreetsinrecentyearsbothathomeandabroad,commercialstreetactsveryirreplaceableroleinregionalindustrydevelopmentasthedisplayingandsalesplatform.InVolume3Chapter4ofTheWealthofNations,Adamsmithanalyzedhowurbancommercialactivitiespromotesocietyandeconomydevelopmentofruralareas.Recentstudiesofsomeeconomistprovethatrelationshipbetweenurbanizationandsocio-economicdevelopmentissoclosethatrestricteachother（Northam,1975）;andonenation'seconomygrowthisdeeplyrelatedtoitsurbanizationquality（Henderson,2010）.Indevelopedcountries,commercialstreetisanimportantelementofurbancivilizationandlifequality.InPhiladelphia,commercialstreetgroupformedabetterlivable“CityCenterDistrict"andcreateda"clean,safe,attractive,andbrawpublicenvironment"（Garvin,2010）.InChina,thesumofannualturnoverofcommercialstreetgroupinsomelargecitiesaccountsfbrmorethan70%ofregionaltotalretailsalesofgoods.InHangzhou,commercialstreetsboostregionalurbanizationandindustrialization.Forexample,WulinRoadWomenFashionStreet'sannualtotalretailsalesofgoodsarrivedatthreebillionCND,contributedmorethan100millionCNDtaxation,andattractedthenewly-graduatedcollegestudentsdoingbusinessandre-hiredlaid-offworkersmorethan6,000people.Theincreasingprominentroleofcommercialstreetinpromotingurbaneconomicdevelopmentandsocialstabilitycomesmorecertainwiththetaxcontributionsrising,careeremploymentoffering,industrymanaging,andstimulatedomesticdemandtoexpandconsumption.Toapplytheguidanceofscientificoutlookondevelopmentandmeetthepeople'sgrowingmaterialandculturalneeds,acityshouldbuildcommercialstreetmatchingurbanscaleandeconomicdevelopmenttoinvigoratelocalbusinessandindustry,andunitecommerce,tourism,andcultureasonetopromoteregionaleconomicprosperityandsocialharmony.

BasicPrinciplesofCommercialStreetConstruction

Modemcommercialstreetgenerallycontainsdiverseindustriesandcommerceforms,distinctivecommercefeatures,certaincommercestructures,conveniencetransportation,supersafeguards,andrationalconsumption.Sincethebeginningofthe21stcentury,Hangzhoucommercialstreetgrouphasgainedpositiveinteractionamongcommercebusiness,urbanconstruction,andtourismdevelopment.AccordingtotheconstructionandmanagementpracticesandexperiencesoftheHangzhoucommercialstreetgroup,therearethreebasicprinciplesthatcanbelearnedfordomesticcommercialstreets.

Government-LedandMarket-Driven

Commercialstreetconstructionandmanagementshouldrelyonboththegovernment'svisiblehandandtheinvisiblehandofthemarket.AmericanscholarAlexanderGarvinstatedthatmostofurbanizationprojectsonpedestrianstreetsareresultsofclosecooperationbetweenbusinessgroupsandlocalgovernment,bothofwhichareessentialbecauselocalgovernmentisinchargeofpublicresources,andthebusinessgroupsprovidetransformationfundsthatrequired（Garvin,2010）.Asadevelopingcountry,China'smodernization（urbanization）requiresgovernmentleadbycentralizedpoliticsfrommacroscopicapproach.Indetail,commercialstreetconstructionisasystematicprojectinvolvingbuildingprotection,facilitiesconstruction,storedecorationandrunning,environmentmaintaining,etc..Itistotallydifferentfromanysinglesimpleurbanconstructionproject.Thegovernment'sleadingroleisnecessaryespecialinplanningandlayout,industriesadjustmentandreform,publicservice,supervisionandinspection,andmanyotheraspects.CommercialstreetsinHangzhouareallbuiltandmanagedbeyondgovemment-ledandmarket-driven.Hangzhousetupanofficial"CommercialStreetPlanningandConstructionTeam"toguidetheplanningandconstructionofallcommercialstreets.Andeachcommercialstreetsetupitsown''ManagementCommittee”toberesponsibleformanagementandconstruction.Localgovernmentalsodraftedandcarriedoutmanypositivepoliciesandsucceedhosting"TheSixthChinaCommercialStreetDevelopmentForum,,inHangzhou.Alsothegovernmentgatheredpopularityandbusinessopportunitiestopromotesoundandrapiddevelopmentofcommercialstreetsbyimprovingurbanlifequalityandenhancingcomprehensiveresourcestoholdcommercialexpoandfestivals.

Ontheotherhand,commercialstreetshouldrunbythemarketaftergovemmenfsconstructionisdone.Commercialstreetoriginatedfromthedevelopmentofcommercialeconomyinancienturbanareas.AlexanderGarvintoldusthatpedestrianstreetcannotattractmarketwhenthereisnone;theprojectofpedestrianstreetmaybepossibleonlyifthereareenoughpotentialretailconsumersgatheredandtherecanprovidenewfacilitiestoattractplentycustomers（Garvin,2010）.Businessesincommercialstreet,eitherrunningbygovernmentagentsorprivateowners,aremarketbehaviorsandshouldberegulatedbymarket.Andfreecompetitionamongenterprisesinsidecommercialstreetistheresultofnaturalselectionbythemarket.Soisthefreecompetitionbetweendifferentcommercialstreets.While"themosteffecti