Dennis Gaviola

Article (news)

Arthur Fuentes

ABS-CBN News

<div><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/1784482829043SMXM Exterior (2).jpg" style="width:960px" class="fr-fic fr-dib" width="960"/>SM City Xiamen. Handout</div>XIAMEN CITY, China – SM Prime has been making a lot of innovations across its properties in China, especially in Fujian province, where the Philippine-based mall operator first made its mark overseas. From opening a luxury hotel that connects directly to its vast crown jewel mall, to developing a new type of commercial center that caters to Gen Zs looking for something different, to setting up a restroom exclusively for pets, and to hosting showrooms for the booming EV industry, SM has been looking to stay ahead of the lifestyle retail game in China. Apparently, in the world’s biggest e-commerce market, it takes a lot of innovation to keep shoppers coming back to physical spaces and physical shops, when purchasing is just a matter of smartphone clicks.    “I think we’re learning from China,” said SM Prime president Jeffrey Lim during a gathering with journalists in the company’s newly opened voco hotel. “Before, we used to send our people to the United States, or even to Europe and London. But over the last five years, instead of sending them there, we’ve sent them to China because there have been a lot of advanced developments here, especially in the shopping center industry.”While Amazon has decimated malls in the US, SM is thriving in China despite the presence of Alibaba, which dominates e-commerce in Asia. It was also quite telling that Walmart, which is Amazon’s biggest competitor in the US, sits inside SM City Xiamen, which is the company’s crown jewel in China.So how is SM managing to do this? <div>Chao, not ciao</div>In Xiamen, SM has not been sitting idle on its achievement of turning a grassland lot into a shopping center. When it opened in 2001, SM City Xiamen was a typical “big box” building similar to other SMs in the late 90s–it was a shopping center that catered to the mass market. That was Phase 1. But it has since expanded and evolved to have a Phase 2, which opened in 2009, and hosted more upmarket brands. <div><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/1784482866783CHAO BLOCK Design Renderings (4).jpg" style="width:960px" class="fr-fic fr-dib" width="960"/>Artist rendering of CHAO Block at SM City Xiamen. Handout</div>Phase 3, which opened in December 2022, at the height of pandemic lockdowns in China, meanwhile, catered to a younger, more hip crowd. And with China’s ascendant youth, SM is doubling down on this bet with the Gen Z by developing the CHAO Block, which is set to open in September this year.  SM says the 19,403-square-meter CHAO Block is envisioned as a “neo-urban block” with a diverse mix of independent founders, local entrepreneurs, cultural curators and first-to-market concepts.“Tenants will be encouraged to go beyond operating stores by hosting workshops, product launches, exhibitions, community events and brand collaborations,” SM said.According to SM, the name “CHAO” draws on the idea of a fourth state beyond water’s three conventional forms—liquid, solid and gas—representing openness, fluidity and the limitless potential of co-created commerce.In TL:DR terms, the CHAO Block aims to draw artists, performers, culture-shakers, and social media mavens into its orbit. With SM also developing office towers surrounding its malls, the CHAO Block also aims to be a 24/7 haven for Chinese professionals who want to unwind. “SM Xiamen City holds a distinct place in our company’s history. Being our first overseas investment, it has served as a long-term platform for learning, expansion and growth in China,” said Lim. “As Xiamen continues to develop, we intend to keep strengthening the property and the local entrepreneurs so it remains an important part of the city’s commercial landscape,” he added. <div>Malls for furparents, EV enthusiasts</div>During a tour of its other properties in Fujian, SM also showcased how pet-friendly its malls have become. Artworks of cats and dogs greeted you at the entrance. <div><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/1784482932725cat.jpg" style="width:960px" class="fr-fic fr-dib" width="960"/>A resident feline of the cat cafe in SM Haicang. Arthur Fuentes, ABS-CBN News</div>At the new Haicang mall, there is even a cat cafe, where people can interact with dozens of ragdoll cats. The mall also features a dedicated “pet restroom” which lets furparents wash and groom their cats and dogs, with free use of drying gadgets. Such a facility would likely also be very welcome in malls in the Philippines, where there is sometimes friction in diaper-changing rooms between parents with babies and pet owners who also need to change the diapers on their dogs. <div><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/1784482987406pet toilet.jpg" style="width:960px" class="fr-fic fr-dib" width="960"/>Pet toilet in SM Haicang. Arthur Fuentes, ABS-CBN News</div>As China continues to lead the world in the shift to electric vehicles, SM malls there now also host showrooms to some of the biggest EV brands, including BYD, Tesla, Xiaomi, Huawei, Geely and many others. Inside     SM Jinjiang, you could look at Xiaomi’s latest smartphones, tablets and laptops, and then get behind the wheel of the Xiaomi SU7 or YU7 electric cars. You could also look at the latest Huawei flagship phones, and then get inside the cabin of its EV offerings.<div><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/1784483096768xiaomi car.jpg" style="width:960px" class="fr-fic fr-dib" width="960"/>An EV showroom in SM Jinjiang. Arthur Fuentes, ABS-CBN News</div>A quarter of a century since setting foot in China, SM says it is not resting on its laurels. “As we mark our 25th anniversary, we look forward to bringing a new commercial format to the next wave of consumers, entrepreneurs and brands,” said Lim.

In the world’s biggest e-commerce market, it takes a lot of innovation to keep shoppers coming back to physical spaces and physical shops.

In the world’s biggest e-commerce market, it takes a lot of innovation to keep shoppers coming back to physical spaces and physical shops.

From Gen Z lifestyle centers to pet restrooms: How SM aims to stay ahead of the mall game in hypercompetitive China

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From Gen Z lifestyle centers to pet restrooms: How SM aims to stay ahead of the mall game in hypercompetitive China

Arthur Fuentes,

ABS-CBN News

Published July 20, 2026 08:00 AM PHT

Read More:

Xiamen

SM Prime

China

malls

EVs

pet-friendly

pet restroom

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