Core Insights - The article emphasizes the shift in the retail industry from "scale expansion" to "asset operation quality and capital efficiency," highlighting the emergence of a "quality competition" era in physical commerce [2][35] - Starry Commercial has adopted a focused strategy since 2023, prioritizing customer-centric approaches, asset appreciation, and lean operations to enhance the value of existing projects [2][35] Group 1: Activation of Existing Commercial Spaces - Existing commercial spaces are viewed as the most promising investment return areas, serving as a testing ground for corporate wisdom and capabilities amid homogenized competition and fluctuating consumer willingness [4][36] - Starry Commercial manages 27 projects across 20 cities, with a total commercial area exceeding 2.54 million square meters, featuring various product lines such as COCO Park and COCO City [4][36] - The company focuses on enhancing the quality of existing projects, injecting unique commercial characteristics into each operational project through a lean strategy [5][36] Group 2: First Store Economy 2.0 - The annual brand replacement rate in leading first- and second-tier cities is 20-26%, with Starry Commercial achieving a 26% replacement rate, moving beyond the traditional focus on the quantity of first stores to an "ecological leadership" approach [6][37] - In 2025, Starry Commercial introduced 239 regional and city first stores, with 72 high-quality stores rated A or B, covering diverse sectors such as lifestyle and innovative dining [6][37] - The introduction of flagship stores and themed events has transformed first stores into community platforms, fostering long-term customer loyalty [7][39] Group 3: Enhancements in Main Stores - Upgrading traditional main stores is crucial for existing operations, with Starry Commercial optimizing service and experience to turn supermarkets into traffic magnets [43][44] - The implementation of a self-adjustment model in supermarkets has led to a 25% increase in average daily sales per store, while new community supermarkets have driven foot traffic growth of 15% and 12% respectively [43][44] Group 4: Innovative Marketing Strategies - Starry Commercial's marketing strategy focuses on emotional resonance and value alignment, leveraging nationwide IP events like "Big Grab Festival" and "Hi Star Carnival" to connect with younger generations [47][48] - The company has integrated ESG principles into its operations, launching the "Sustainable Exploration Plan" to enhance both commercial and social value, resulting in a 12.5% increase in foot traffic and a 15% rise in sales during related events [49][50] Group 5: Digital Transformation and Service Enhancement - Digitalization is identified as a core engine for lean operations, with Starry Commercial establishing a digital ecosystem to enhance efficiency, traffic aggregation, and value conversion [52][53] - The company has redefined its service model to create a warm commercial experience, focusing on five friendly systems that cater to various consumer needs, thus transforming commercial spaces into lifestyle hubs [56][57] Group 6: Strategic Expansion in Key Regions - Starry Commercial is committed to a focused expansion strategy, concentrating resources in the Greater Bay Area and Yangtze River Delta, avoiding a scattergun approach to growth [62][64] - The recent opening of the second COCO City in Shenzhen has generated significant consumer interest, with over 400,000 visitors in three days, exemplifying the company's strategic focus on high-quality commercial projects [62][64]