SISCRAB, the boutique shop (Photo/Qiu Xiaoya)

Chongqing - Have you ever found that you can not only buy trendy clothes but also enjoy a cup of coffee in a clothing store, visit a flower shop to buy a bouquet and still take home a simple meal, or go to a bookstore for a book and discover you can spend just a little more to see an exhibition?

Last year, the National Development and Reform Commission, the Ministry of Commerce, and other departments jointly issued measures to create new consumer scenarios and cultivate new growth points for consumption. These measures encouraged the development of new shopping scenes and promoted the diversified and integrated development of shopping consumption.

Today, mixed businesses have emerged in many physical stores in Chongqing, with many merchants offering consumers diverse experiences by combining different consumer scenarios.

New favorite for physical stores

After work, do you order takeout or head to a small local shop or food court for a meal? For Wang Yang, a post-90s white-collar worker in Chongqing, a new option has emerged—dining at the supermarket.

On the evening of February 17, Wang went straight into a supermarket near his company. "I've been coming here to eat since the end of last year. You can eat and also shop around in the supermarket—it's really a two-in-one experience," Wang said.

Supermarkets integrating dining options is not a new trend. Several physical retailers, such as Freshippo, IKEA, and Sam's Club, have attracted customers and increased profits through this model.

A representative from Freshippo, also known as Hema in China, said that from the start, Hema has used the mixed business model of "supermarket + fresh food dining", offering everything from seafood cooked to order to barbecue and hotpot.

Not only that, but the mixed business trend is spreading to more physical stores.

In July last year, SISCRAB, a boutique shop run by Chen Meilin and Chen’s friends, transformed from solely selling clothing to incorporating a coffee corner.

When visiting the store, the 300-square-meter space features stylishly displayed fashion and accessories and a cozy coffee area perfect for relaxing or chatting.

Chen, one of the store owners, explained that both the store's décor and product offerings were completely different from before. The new store is not just a clothing shop but a comfortable and enjoyable social space.

Moreover, businesses combining bookstores + dining, movies + art salons + dining, and theater performances + dining have also gained popularity on social platforms.

According to Li Ran, Director of Applied Economics at Chongqing Technology and Business University, the rise of mixed business models is a precise response to the changing needs of modern consumers.

"Consumers are no longer satisfied with a single shopping experience; they seek social interaction and emotional connection. This has pushed businesses to transform, using the mixed business model to create more revenue in limited spaces."

Achieve synergy effect

The mixed business model has indeed brought growth to many physical stores.

"The combination of the two businesses was originally intended to use the higher-frequency coffee consumption to drive the lower-frequency clothing sales," said Chen.

In the past, clothing stores in malls were single-category, and customers would typically browse and leave, often staying for less than five minutes. Now, even if customers don't buy clothes, they can sit down and enjoy a cup of coffee, leading to longer visits and a significantly higher chance of making a purchase, Chen added.

Chen noted that the store set up a less than 20-square-meter space for the coffee and relaxation area, but the foot traffic has visibly increased, and customers' willingness to spend has noticeably improved, creating a synergy effect.

Jiang Ling, founder of Daofeng, a place for both reading and drinking, shared a similar story, saying, "Aside from selling books, providing more diverse consumer options is something every physical bookstore must consider."

The bookstore occupies 400 square meters, 300 of which are dedicated to book displays. The remaining space is used for dining and coffee. After relocating to MixC Mall, the store will continue its multi-business integration.

Jiang even shared a calculation: Of the bookstore's total sales, books account for only 30 percent, while 70 percent comes from dining. In terms of profits, books contribute even less—under 10 percent.

"As the mixed business model becomes the new trend for physical stores, many businesses now view dining as the universal partner," said Li. With dining being a daily, high-frequency activity, it can more effectively drive repeat purchases and open up new profit growth opportunities for businesses, Li added.

Must meet consumer needs

In fact, the mixed business trend in physical stores didn't come about by chance.

In June last year, the National Development and Reform Commission, the Ministry of Commerce, and other departments jointly issued measures to develop new consumer scenarios and cultivate new growth points for consumption. These measures encouraged the development of new shopping scenarios and promoted the diversified and integrated development of shopping consumption.

In August of the same year, the State Council unveiled a guideline on boosting high-quality development of service consumption, emphasizing service quality improvement, the enrichment of consumption scenarios, and the optimization of the consumer environment.

"Policy support has made the mixed business model a new favorite for physical businesses, and many merchants have turned their attention to this." However, according to Li, while successful examples of mixed business models are abundant, true mixed business is not just about combining things randomly. The exploration of business combinations must meet the actual needs of the consumers.

Li suggested that businesses clearly distinguish between the primary and secondary elements, ensuring that the core business accounts for at least 60 percent and the secondary business serves as a supplement. For example, a clothing store should primarily focus on selling clothes, with additional services accounting for only 10-20 percent.

Additionally, Li pointed out that while the mixed business model is innovative, consumer needs will continue to evolve. Businesses must closely monitor market dynamics, adjust their strategies timely, and continuously introduce new business combinations to provide consumers with richer and more comprehensive experiences, creating new consumption highlights.

(Qiu Xiaoya, a reporter from Chongqing Daily, contributed the Chinese version of this report.)