Electronic giant closes down after 17-year operation

The halls and corridors which used to accommodate about 500 shops and stalls selling electronic products in Hailong Market, Zhongguancun, or Beijing's Silicon Valley, were almost deserted yesterday (July 7, 2016), marking the final day of its running for the past 17 years.

The closure of the landmark market is in response to the country's strategic transformation calling for closing the electronic vendors to leave room for technological start-ups and incubators.

In addition to its present contracts with more than 10 small-and-medium-size start-ups, such as IngDan and Zhongtong Innovation Electronics Technology Co Ltd, the Hailong Market will move on to attract more companies of similar type to settle down in the area.

Rather than putting an end to the operation of the colossal center, the closing of the Hailong Market is simply for temporary renovation. The upgrade will act as a facelift for the building before it reopens to its new clients, said an anonymous staff person working for the electronic market.

"The transformation is an irreversible trend influenced by the chronicles of the electronic market," he added.

Following the close of two other renowned electronic malls, the Zhongguancun E World and Pacific Ocean Square, respectively closed last year and five years ago, the transformation of Hailong Market will serve the innovative business model which is scheduled to take shape by the end of 2020.

Gone are the days when visitors flooded into electronic malls rummaging for electronic products by comparing prices among different shops and vendors during their golden age from 2003 to 2004.

The business of those electronic markets started to decline after 2005 and the renting was halved from about 10,000 yuan (US$1,496) to 5,000 yuan a month. Defeated by the popularity of online purchasing and suffering low credibility from a number of dishonest vendors in the e-markets, business in the malls became tough. Therefore, they were closed to leave room for the rise of innovation industries.

"My business stops today," said a vendor owner surnamed Yu in the Hailong Market. "I have stayed here for16 years and I feel so reluctant to leave."

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