Chongqing - On September 17, Chongqing Zhongshuge Bookstore officially closed its doors. Crowds gathered at the entrance, snapping photos. "I remember waiting two hours to get the perfect picture when it opened. I didn't think it would close down so soon," said a local resident, Zhou Fang, feeling nostalgic.

Chongqing Zhongshuge Bookstore. (Photo/Zhongshuge)

Beautiful bookstores attract, but can't fix business model

Zhongshuge Bookstore, a chain with locations throughout China, designed its Chongqing store to mirror the city's mountainous landscape. The store features mountain-shaped staircases, mirrored ceilings, and towering bookshelves resembling warm, lamp-like shades, creating a cozy and magical ambiance.

The Dujiangyan Zhongshuge Bookstore is located in Chengdu, Sichuan Province. (Photo/Zhongshuge)

Since its 2019 opening, Chongqing Zhongshuge Bookstore has attracted many with its unique design. Hosting over 100 events and serving more than 10 million visitors, it gained international recognition, winning the 2019 Best of Year Design Award and the 2020 ArchDaily Award for Best Interior Architecture.

"We're looking for a new location in Chongqing," said Jin Zhongshu, daughter of founder Jin Hao. She explained that Zhongdi Plaza, where the store is located, went bankrupt, and most shops had closed last year, but Zhongshuge stayed open as long as possible.

Li Hui, a sales clerk at the Chongqing Zhongshuge Bookstore, noted that while many visitors came to admire the bookstore's aesthetics, few made actual purchases. "The store covers nearly 1,400 square meters, and it's hard to cover such high operating costs without sales," Li explained.

Li Ran, Director of the Applied Economics Department at Chongqing Technology and Business University, highlighted the core challenge for many bookstores: high costs and low profitability. "Beautiful bookstores attract visitors, but they don’t solve the fundamental business model problem," Li said. 

This has led to a burst of capital bubbles in the industry. Coupled with the rise of e-commerce and low prices, nearly half of China's bookstores are losing money. 

According to OpenBook's 2022 Annual Report on the Book Retail Market, the physical retail channel saw a 37.22% year-on-year decline in 2022.

Independent bookstores thrive by embracing lifestyle experiences

While larger bookstores face challenges, not all physical stores are struggling. In Chongqing, smaller independent bookstores are thriving. At Razor's Edge Bookstore & Bar in Yuzhong District, long lines are a regular sight, with some patrons coming just for the food.

The Razor's Edge Bookstore & Bar is located in Jiefangbei CBD, Yuzhong District, Chongqing. (Photo/Jiang Ling)

"Bookstores can no longer survive on book sales alone," said Jiang Ling, founder of Razor's Edge Bookstore & Bar. With 400 square meters of space, only 300 square meters are dedicated to books, while the rest is used for dining and coffee. Book sales account for just 30% of overall revenue, with food making up the majority.

Bookstore manager Lyu Zuoyi adopted a unique, small-scale approach with his 50-square-meter shop, One Book One Week Store. It offers just one book per week, often signed or collector's editions, priced above 50 yuan (about USD 7).

Lyu also organizes reading sessions and author signings. Since its opening in 2022, the store has built a strong community of over 1,000 members.

Book lovers of One Book One Week Store. (Photo/One Book One Week Store)

Lyu explained that this model is more than just updating the book selection- it's about creating an entire experience around each book, akin to "developing new products + curating small exhibitions + event planning."

According to Li, these examples show that physical bookstores need to rethink their business models. "Bookstores should evolve from selling books to selling a lifestyle," Li said. This shift could turn visiting bookstores into a social activity. 

Li also suggests partnering with cultural venues like theaters or concert halls to offer joint packages and implementing membership systems to increase customer loyalty.

In the rapidly changing retail landscape, bookstores like Chongqing Zhongshuge must adapt to survive. The closure of this iconic space highlights the need for innovation in the bookstore business model. As independent stores in Chongqing show, survival lies in embracing experience over product - creating spaces that foster community, culture, and connection. The beauty of a bookstore may draw the crowds, but the experience beyond the books will keep them coming back.