From ‘Trading Spaces’ to ‘Living Spaces’: The Evolution of Community Business

As Urbanization Shifts from “Incremental Expansion” to “Stock Optimization,” Urban Renewal Becomes an Essential Requirement for High-Quality Development.Community business renewal, a crucial part of urban renewal, is closely linked to residents’ daily lives and plays an important role in the internal economic cycle. Currently, traditional community businesses are facing common challenges such as severe homogeneity, lack of experience, and insufficient customer loyalty. However, many industry pioneers have successfully transformed previously single-function, outdated commercial spaces into community hubs that integrate shopping, dining, leisure, socializing, and culture. This article analyzes several of the latest community business renovation cases, aiming to explore the solutions for the transformation of community business.Huadong Xincheng Hui.Renovation Highlights: Data-driven, flexible adjustments, and a focus on community.Since its opening on April 29th, Huadong Xincheng Hui achieved remarkable results within two months. The average daily foot traffic increased to about 20,000, a several-fold increase from 5,000-6,000 people before the renovation. The monthly sales reached approximately 60 million yuan, with daily sales around 2 million yuan.

Previously a traditional department store, it has now transformed into a comprehensive commercial space combining fashion, leisure, and daily consumption. With an area of just 50,000 square meters, it includes various business formats like trendy fast-moving consumer goods, local boutiques, high-end dining, tea, coffee, alcohol, snacks, cinemas, and fitness centers, with nearly 200 brands.The project revolves around the positioning of a “community-quality shopping center,” significantly reducing the clothing and apparel categories and adding dining and service-oriented businesses. It has also expanded public spaces, adopted a block-style entrance, and an open-plan layout to create a relaxed and comfortable shopping atmosphere. To better serve nearby residents, Huadong Xincheng Hui introduced brands such as China Film Digital Cinema, Ufit Fitness, and Yalan Wellness, and created a children’s play area to meet the needs of family-oriented customers.In terms of marketing, the project strengthened its cooperation with nearby communities, hotels, universities, and dining entertainment venues. It plans to hold approximately 500 community events annually, with 2–4 events every weekend, each with a cost of around 1,000 yuan. This strategy not only enhances interaction with in-store brands but also increases customer loyalty within a 1.5–2 km radius.

Overall, this data-driven, flexible adjustment model focusing on the community avoids the pitfalls of traditional community business homogeneity and low engagement, providing a reusable methodology for similar projects.Shanghai Yangpu Kongjiang Xuhui Mall.Renovation Highlights: Proactive innovation through problem diagnosis and system adjustment.In response to rapidly changing market conditions, the Shanghai Yangpu Kongjiang Xuhui Mall underwent a period of short-term challenges before proactively making adjustments. A detailed analysis of the project was conducted, from repositioning ideas to specific actions. The team identified three main issues: an over-representation of service-oriented stores (50% of the mall’s businesses), limited dining options (only 20%, most of which were simple meals), and a weak brand structure with a high proportion of incubated brands and few chain brands, making the mall unstable.To address these, the team introduced higher-grade chain brands such as Huawei, added quality dining options, and brought in entertainment formats like KTV to increase customer retention and improve risk resilience. In terms of space, the team created the “Qi Yu Ji” theme market to provide dynamic experiences and attract more foot traffic. Other operational improvements included upgrading restrooms and improving parking signage.The focus was on “opening rate” first, followed by refined operations.

The team planned more targeted content for a younger demographic, such as trend-focused pop-up markets and events, while deepening community engagement. The core of this transformation was centered on people and community.Beijing Tuanjie Xili ChaoFUN Street.Renovation Highlights: Space layering, business integration, and cultural fusion for a three-dimensional update.Once facing significant operational difficulties, Tuanjie Xili ChaoFUN Street, formerly Tianyu Market, has now become a community commercial landmark after its renovation in 2024. Its first month saw an average daily foot traffic of over 3,000 and a signing rate of 98%. The success of this project lies in its re-planned space and upgraded business formats. The street’s layout is uniquely designed with staggered staircases and rooftop spaces to create a sense of multi-level spatial experience.The first floor focuses on “convenient living,” while the second floor targets “fashion experiences,” and the rooftop is dedicated to “leisure and socializing.” The integration of local cultural elements, such as neon signs, graffiti walls, and abundant green plants, has injected vitality into the space while preserving its local flavor. The business strategy emphasizes retaining core community needs, such as grocery stores and breakfast shops, while introducing trendy brands like JM Boutique Café, handmade craft stores, and pet-friendly bookstores.

Hangzhou Xihu DongshanjiRenovation Highlights: Localization empowerment and a dual-phase development approach.The Dongshanji project in Hangzhou has been renovated in two phases. Phase A, known as the “Dongshan Market,” focuses on community essential services like markets and breakfast stalls. Phase B and C, together known as “Dongshan Li,” highlight the essence of the Song Dynasty culture, presenting a blend of old Hangzhou’s market scenes and culinary heritage. The design team redefined the space as a “new neighborhood symbiosis space,” promoting a modern expression of local lifestyles while encouraging tourists to engage with the area. This project successfully integrates tourism and local culture, making it a key example of revitalizing traditional spaces by leveraging local cultural resources.Chengdu Yulin Fanghua Street.Renovation Highlights: Art + local culture + community governance in a street renewal project.Yulin Fanghua Street in Chengdu, though only 1.5 kilometers long, is a quintessential example of the city’s cultural and commercial fusion. The project blends cultural heritage with art, creating an ecosystem of “art, nightlife, and fashion.” The renovation included broadening pedestrian paths, adding seating areas, and creating interactive art spaces.

The introduction of Michelin restaurants, limited-time offers, and the preservation of local favorites like Yulin Skewers enhanced the area’s appeal. Furthermore, the project emphasizes community-building and ongoing events, including markets, art exhibitions, and music performances, to keep the street vibrant.Hangzhou BinfenliRenovation Highlights: Experiential street block with an agricultural reading cultural theme.Hangzhou Binfenli project is a classic example of a town-based community commercial renewal with a focus on “agricultural reading culture.” The project has evolved over five years, now being the first of its kind to integrate cultural tourism into community commerce. The design emphasizes local heritage and promotes communal engagement through activities and events. The mall also introduced a unique “farm reading” cultural experience to boost local pride and create a sense of belonging for the residents.These community business renovation projects share a common focus on human-centered, community-driven approaches that move beyond merely offering goods to creating memorable experiences. The key takeaway is that successful community business models must be adaptive, incorporate local cultural elements, and foster long-term relationships with residents.