Core Viewpoint - The decline in foot traffic and sales in high-end shopping malls in first-tier cities is attributed to multiple factors, including wealth reduction, income decline, e-commerce competition, and changes in consumer spending habits [1][14]. Group 1: Consumer Behavior Changes - First-tier cities like Beijing and Shanghai are experiencing slower consumption growth, even negative growth, contrary to previous assumptions that they would withstand economic fluctuations [3][14]. - Many families are burdened with high mortgage payments, leading to reduced discretionary spending on non-essential items like clothing and entertainment [5][6]. - Shopping malls are increasingly viewed as non-essential, with consumers prioritizing experiences over material goods [12][15]. Group 2: Impact of E-commerce - The rise of e-commerce has significantly impacted traditional retail, with online retail sales increasing from 10 trillion yuan in 2019 to 15.5 trillion yuan in 2024, while physical malls see declining foot traffic [11][12]. - Many shopping malls have failed to adapt to the evolving retail landscape, maintaining outdated layouts and lacking competitive pricing or convenience compared to online platforms [11][12]. Group 3: Economic and Structural Factors - The decline in consumer confidence among the middle class is a critical factor affecting physical retail, as high-end positioning no longer guarantees success [14][15]. - The shift in consumer spending from goods to services is evident, with service retail sales growing by 20% in 2023, outpacing goods retail growth [13][14]. - The overall retail landscape is changing, and malls must either differentiate through unique experiences or embrace new consumer trends to survive [15][17].