Shopping malls boom in China on urbanization (2)

In Chengdu, more than 100 shopping malls have been erected, most of them with an area of more than 100,000 square meters, said the report.

"The greater density of buildings and residents across major cities in China forces developments to be more vertical, typically five or more stories high. In Europe or the US, there are very few centers offering over 100,000 square meters of space, while in China many malls exceed this," said James Hawkey, executive director of retail services for Cushman & Wakefield China, a subsidiary of the New York-based commercial real estate services firm.

With the boom in Chinese shopping centers, difficulties have also arisen, said the report. They include questions as to whether local purchasing power matches the luxury centers, and if the under-construction shopping centers are designed with clear marketing strategies in mind.

"Chinese consumers tend to do more experience spending, such as dining and watching movies, as opposed to just buying goods inside shopping centers, so retailers should increase the proportion of dining and entertainment options," said the report.

"Future shopping malls should concentrate more on lifestyle experience," Guo said.