THE BOX, Youth Energy Center, creates a new paradigm for offline retail business in China

What does an ideal weekend look like for young people in China today? Here’s a snapshot:

On Saturday morning, sunlight fills the room as a post-2000s youth eagerly prepares to head out. They call their pet, grab a skateboard, stuff a basketball into a bag, and cycle off to a bustling neighbourhood. There, friends are waiting, and the streets are lined with boutique shops and graffiti-covered walls, creating a vibrant, welcoming vibe. They play a quick basketball game, laughing as the pet chases the ball, then skateboard through wide streets, stopping at a cozy café to chat about the city’s latest trends and plan their next outing.

Image: Xiaohongshu @挥爪实验室HiPawLab @Mei Mei是条咸鱼

This scene highlights a shift—or even a dilemma—in China’s offline retail landscape. High-end malls are seeing declines. For example, Swire Properties' mid-2024 report, with five out of six of their luxury malls in mainland China experiencing negative growth, including a 19.6% drop at Shanghai's HKRI Taikoo Hui. Meanwhile, non-standard commercial areas like community spaces and pop-up markets are thriving, bustling with young people carrying coffee cups, bringing their pets, and enjoying the day.

Standardized malls filled with similar chains and stores are losing appeal for a generation seeking authenticity and richer experiences. Today’s youth crave something more engaging, something that breaks from routine. As we’ve covered community marketing and the Tiaohai Village case study, community spaces foster mental well-being by connecting people who share a similar mindset. For this younger generation, getting outside and engaging in real-world spaces is a form of self-care, especially in the aftermath of the COVID pandemic which impacts the shift in today's offline retail landscape in China. So, what type of space can draw them out? The Box, Youth Energy Center located on Chaowai Street in downtown Beijing, might give you the answer.

THE BOX: New hub for trendy youth

The Box has been transformed from a traditional mall into a vibrant retail and pop-culture hub, officially opening in September 2023. It features an open, multi-level "magic box" design with exposed structural elements and integrated LED screens, creating a versatile space for gatherings and events. With its innovative design and unique visual identity, The Box has quickly become a must-visit hotspot for Beijing's pop-culture community.

The outlook of The Box, an offline pop-culture community in Beijing . Images: COORDINATION ASIA (Shanghai) Architecture Design.

Interior space of The Box. Image: 大奕明亮atelierDYML.

This space design supports its focus on curated retail and hosting a variety of public events, fostering shared experience and emotional connection. Images demonstrated by COORDINATION ASIA (Shanghai) Architecture Design.

Young people's interests and trends shift quickly—new niche markets seem to emerge every few months. THE BOX’s Tenant Friendly department collaborates with brand owners to keep pace, regularly refreshing their offerings with new products, curated themes, and quarterly scene updates. This constant renewal gives young visitors a “blind box” experience each time they visit, with new surprises awaiting discovery. THE BOX offers a range of trendy and niche lifestyle brands, covering apparel, sports, pet products, fragrances, entertainment, and dining. With flexible pricing from ￥100 ($14) to￥1,000 ($140), it remains affordable for most young shoppers who visit.

THE BOX's rotating themes and curated events have become a draw for Gen Z, inspiring them to document their weekend visits on social media, complete with shopping tips and highlights. Image: posts from Xiaohongshu

Inside THE BOX, free-themed events and exhibits, like small street dance competitions and surf skateboard tutorials are popular with visitors and customers every weekend. It’s also pet-friendly with many pet-themed events staged regularly.

A Venom-themed street dance contest by THE BOX x MAGPARK.Image: Xiaohongshu @THEBOX 朝外

Surf skateboard free workshops by THE BOX and a sport influencer. Image: Xiaohongshu @THEBOX 朝外

The first-ever pet-and-owner theater workshop in China was held at THE BOX, where a theater director guided pet owners and their furry friends through fun, interactive theater activities. Image: Xiaohongshu @THEBOX 朝外

THE BOX partnered with TABO Chill to host a local pet-themed fair. Image: Xiaohongshu @小白熊露比 @踩云飘

On weekends, young people love to shop and take photos at this space, creating user-generated content that sparks conversations on social media and draws in more visitors. THE BOX has teamed up with Douyin’s local life team to target and engage local audiences effectively though diverse Douyin ad formats including in-feed ads. Besides, by officially livestreaming events taking place in THE BOX and selling exhibition tickets and to-store coupons on its social media accounts, The BOX encourages young people to visit in person or with their friends and engage in the experience.

THE BOX offers exhibition tickets and in-store discount coupons through its official Douyin account and WeChat mini-program. The mini-program also features a membership program where customers can earn points for offline purchases, as well as promotions for select brands, previews and booking of art-themed events.

Many young people don’t just simply visit this space to take photos and leave. By creating a social space driven by trendy cultural experiences and effectively bridging online and offline engagement, THE BOX taps into the spending power of the post-95 and post-00 generations through its affordable pricing strategy and membership program together with unique cultural and community experiences. According to Dickson Sezto, chairman of the Youth Power Group, the conversion rate at THE BOX is second visitor makes a purchase, resulting in an incremental revenue of about ¥7-8 million ($980K-$1.12m) each month.

However, will young consumers turn away from THE BOX if it relies too heavily on identity labels, reducing community brands it teams up with to empty slogans and mechanical imitations? While the long-term sustainability of year-old THE BOX’s offline business model remains to be seen, it has undeniably highlighted the potential and creativity of non-standard brick-and-mortar retail, which culturally resonates with a new generation of young consumers.