Overlooking West Nanjing Road from the terrace of CITIC Pacific Plaza, you may find that the main street is adorned with towering “100-million-yuan buildings”, showcasing the modern prosperity of the city. In the backstreets, the Chinese parasol trees provide a canopy, while the old buildings exhibit the local charm and ambiance of the Shanghai style.
This vibrant functional area, fueled by consumer vitality,
is continuously transforming the lives of urban dwellers because of sci-tech innovation.
The “Jing’an Sample”, characterized by the deep integration of sci-tech innovation and business,
is being explored and studied.
As the final episode of the interview series, “Jing’an Talks: Sci-tech Innovation”, the fourth episode invited Mr. Xu Xing, Director of the West Nanjing Road Functional Area Investment Service Center and Party Secretary and Board Chair of Shanghai Join Buy (Group) Co. Ltd., Mr. Zhang Xiaofei, Senior Vice President of SAP China and General Manager of the High Growth Business Group in SAP China, a multinational technology-based enterprise stationed in the functional area, and Mr. Liu Bo, Partner at Roland Berger International Management Consulting Co., Ltd. Together, they discussed the development trends of sci-tech innovation returning to urban areas in the bustling Nanjing West Road’s “RMB 100-billion-level business district” and decoded how sci-tech innovation empowers business innovation.
As “sci-tech innovation returning to urban areas” becomes a new trend, what are the advantages of the “RMB 100-billion-level business district”?
In the past, suburban areas with abundant land resources were the preferred choice for sci-tech enterprises to settle in. However, in recent years, the trend of “sci-tech returning to urban areas” has emerged. Looking globally, in cities like New York, London, and Berlin, more and more sci-tech innovation zones are emerging in the core areas of metropolises. This trend is also evident in Jing’an, the central district of Shanghai.
Eight years ago, SAP, a global leader in enterprise application cloud solutions, chose to establish its China headquarters in the vibrant West Nanjing Road Functional Area in Jing’an. Today, its innovative digital technologies continue to empower Chinese enterprises in building the foundation for the global digital economy.
The enterprise has expressed that choosing to settle in Jing’an was due to the favorable business environment of a modern international urban area and the alignment of development strategies with the values of the enterprise.
“We have always felt that Jing’an has created a relaxed and open business environment for many foreign-funded and technology-based enterprises like us. For example, the Global Service Provider Program launched by Jing’an District in recent years provides thoughtful localized services for foreign-funded enterprises. With such sincere and dedicated services, we can maximize the integration of global resources and continuously support Chinese private enterprises in expanding overseas, building global business networks, and forming industry chain alliances. The development strategy of Jing’an and the values of SAP take into account both globalization and localization, allowing us to engage in harmonious collaboration,” said Zhang Xiaofei.
The growth “tipping point” of a new technology
often lies in activating
its application in emerging industries.
This requires sci-tech innovation to be closely connected to
finance, applications, and the market,
deeply integrating with business, cultural tourism, and daily life.
“From a cultural perspective, the West Nanjing Road Functional Area possesses rich historical resources as former residences of notable figures, representing the cultural heritage of old Shanghai. In terms of its layout, the buildings on both sides of the road are artfully arranged, creating an open and spacious design. Regarding supporting facilities and transportation, the Functional Area is highly convenient, well-connected, and capable of meeting various lifestyle needs. Most importantly, it is a convergence point for countless world-renowned corporate groups, resulting in impressive economic contributions and vibrant industries,” explained Mr. Xu Xing.
The West Nanjing Road Business District, home to the first building with annual tax revenue of RMB 1 billion in the city, boasts abundant scenes, resources, and elements. Many internationally renowned companies have gradually set up their innovation laboratories and centers here. In addition, numerous “small yet smart” sci-tech enterprises are flocking to settle in the backstreets of the business district. They are attracted by the comprehensive and aggregative capabilities of various innovative elements and resources available here.
How to utilize the vibrant consumer vitality to empower business innovation through sci-tech innovation?
In the era of the digital economy, the relationship between the hard technology and soft model is increasingly showing mutual support, mutual promotion, and co-evolution.
“The abundance of data, diverse application scenarios, and the collision of ideas are important factors that often enable sci-tech innovation to powerfully drive business innovation in central urban areas.” Liu Bo’s viewpoint finds tangible examples in the bustling West Nanjing Road Business District throughout the day.
During the Spring Festival, a themed light and shadow show called “Shining RMB 100-billion-level Business District: Light and Shadow Show for the Chinese New Year” was held in the West Nanjing Road Business District with the “convergence of countless businesses”. This event allowed citizens and tourists to enjoy a sensory feast of light and shadow created by digital technology while shopping. Just as this show connects cultural tourism, sci-tech innovation, and consumption, the connection between sci-tech innovation and business innovation is unfolding in Jing’an. Sci-tech innovation elements are increasingly becoming integrated into the daily lives of urban dwellers.
Nowadays, in the West Nanjing Road Business District,
industries such as catering, retail, and services
are increasingly utilizing intelligent technology
to enhance customer consumption experiences.
This not only helps to innovate business models
but also earns the favor of consumers.
Department stores like Jiuguang Department Store and HKRI Taikoo Hui have long integrated intelligent services into the operation of their commercial complexes. Automated vending machines are no longer a novelty, and activities that utilize technologies such as AR and VR to provide immersive experiences and enhance the interactivity and fun of shopping are frequently seen.
In 2023, the retail sales volume in the West Nanjing Road Business District exceeded RMB 90 billion. The vibrant consumer vitality has provided rich application scenarios and a vast amount of consumer reference data for innovative business models. This has attracted many well-known enterprises, including international luxury brand conglomerate LVMH, to establish their consumer research centers and testing centers in the business district.
The central urban area is no longer just a laboratory competing in scientific research and development facilities but is gradually transforming into a “space station” that links sci-tech innovation and the consumer end market.
Besides, the mature urban infrastructure and diverse cultural exchanges brought by thriving global business interactions have attracted excellent innovative individuals from both domestic and overseas sources and fostered a continuous spark of inspiration. The central business district, enriched with vibrant creative scenarios, has also become a focal point and launchpad for emerging technologies and innovations.
How can we lead industrial renewal in the future concerning the deep integration of sci-tech innovation and business innovation?
With the rapid development of new technologies like AI, it is crucial to accurately empower business innovation with long-term sci-tech innovation and identify breakthrough points that align with the laws of development.
“I am looking forward to seeing new forms of intelligent machines based on AI by 2024, catering to the needs of various specific fields. At the same time, we can also observe the maturation of virtual technology and information technology, with a proliferation of downstream hardware applications for AI. In my opinion, the future will witness a greater integration of the virtual and physical realms in the commercial consumer environment and work environment, increasing our interaction with virtual digital scenes.” Based on the development trends of 2023, Liu Bo has provided a predictive scenario for the integrated development of “sci-tech innovation + business innovation” that he anticipates to see in Jing’an.
In 2023, during the 6th China International Import Expo, the West Nanjing Road Functional Area presented its vision of becoming the “best partner for entrepreneurial innovation and startup”. As for 2024, how can we assist enterprises in finding the “tipping point” and utilizing sci-tech innovation to drive industrial renewal in the valuable 6.7 square kilometers of the Functional Area? Xu Xing revealed the plan.
After the first quarter of this year, a batch of urban renewal projects will commence on the east and west sides of the Functional Area, continuously improving the integrity of the entire block.
“Each project update will bring about green upgrades and provide new territories for the application of sci-tech innovation. Therefore, I believe that in 2024, the West Nanjing Road Functional Area will be a place where science and technology empower industries and innovation leads the future.” Xu Xing expressed his confidence.
Jing’an District will continue to build the most efficient enterprise services, the best business environment, and the widest space for development, providing full support for entrepreneurs to invest and start businesses here. Additionally, it will create conditions for cutting-edge sci-tech achievements to “enter into people’s homes” and benefit the lives of more individuals.