Kruger said that Mr Shwu-ing Liou, a former Chinese ship skipper turned businessman and travel promoter, can take much of the credit for the original concept. They saw how successful three developments of this kind were in Johannesburg and, says Mike Flax, Executive Director of Madison, had realised that a similar success could be achieved in Cape Town.
Madison, who owned the site, made it available for the project. It is only 250m from Redefine’s massive Ottery Hypermarket, which has an average foot count of 6 000 people per day and covers 15 000m2. Parking space is provided within and close to the new project for 400 motor cars.
All 45 units covering 7 500m2 of floor area were leased prior to completion, with 98% of the tenants being authentically Chinese and selling only Chinese goods.”
Certain of the tenants, said Liou, had taken two or three units and some, he said, are already asking for more space. Limited amount of additional space may be provided in a follow-up phase.
The main items traded in the new complex are clothing, shoes, handbags, electronic goods (including cell phones), linen, cutlery, crockery, stationery – and food. Prices of all goods, said Kruger, are very significantly lower than those of the average Southern Suburbs retailer, a statement proved recently when a visiting journalist discovered he could buy a strong battery powered lamp for R65, a pair of sports shoes for R68 and a colourful umbrella for R20.
A food court with three tenants provides take-away and sit down food, cooked in the traditional Chinese way and there is, too, a Halaal food outlet. This service has been so popular that the centre is now planning to stay open until 8:30pm on behalf of visitors wishing to eat and shop here.
A fairly large percentage of the purchasers visiting the complex, said Liou, are small or informal traders who find that the low prices enable them to resell them at a significant mark-up. Liou said that the Chinese tenants had, in fact, made it possible for many struggling small traders to set up with new lines of merchandise and increase their profit.
“The real attraction of this whole development, however,” he added, “is not just the goods: it is the traditional Chinese courtesy and friendliness which visitors encounter. The traders here are people who know how to work and how to come out on top despite very low prices.”
Kruger added that the project now ranks as probably the best of its kind in South Africa because, unlike its predecessors in the north, it was not developed in refurbished buildings but on a pristine site with totally new, appropriately designed units.
“The daily foot count on a good weekend can be as high as 3,000 and the trust estimates that, after admittedly starting from a fairly low base, trader turnover is being increased by some 20% per month. The Christmas trade, for which this complex is particularly well suited, should see turnovers rise exponentially within the next few weeks.”
Publisher: eProp
Source: MPF

