Gurugram, India, March 14, 2022 (GLOBE NEWSWIRE) -- China News
Key Findings
- The growth in the market will be driven by growth in IT and Finance Sector as they major occupiers of flexible workspace in China. The IT sector and Finance sector in China have been growing with a rate of 27.4% and 7.5% respectively in 2019.
- It is expected that during the forecast period 2019-2025F, flexible workspace market in Chengdu, Guangzhou and Hong Kong on the basis of supply will grow with a CAGR of 15.1%, 15.1% and 14.4% respectively.
- Emergence of new regional players such as Hi-Coffee in Chengdu and Compass Office and Garage Society in Hong Kong are driving the supply of flexible workspaces in these cities.
- It is expected in the coming years; companies are going to shift their focus from rental to non-rental revenue streams such as Business Concierge, Accounting, HR, payroll and Task Management services and others in order to bring profitability and sustainability in business. This in turn will drive the demand of flexible workspaces by enterprises and MNC's to save costs or provide mobility for staff.
In-Organic Growth: Flexible workspace operators with heavy financial backing have been following the strategy of mergers and acquisitions in order to expand their regional presence. For instance, Ucommune has acquired 6 flexible workspace operators in 2018 and WeWork acquired NakedHub in 2018 because of which it expanded to 23 new locations in China.
Increase in Enterprise Demand: There has been a rise in demand of flexible workspace by enterprises that are looking for customized office solutions on flexible terms. Enterprises are following 'hub and spoke' model wherein the corporate head office acts as a hub and flexible workspaces act as spokes.
Movement from Asset Heavy to Asset Light Model: Flexible Workspace Operators are shifting focus from lease model to asset light model such as joint venture revenue sharing with landlords, franchise model and management model. Companies such as Ucommune and MyDreamPlus promote asset light model and loss making SOHO 3Q sold 11 asset heavy locations and plans to expand using the asset light strategy.
The report titled "China Flexible Workspace Market Outlook to 2025 – Driven by Rise in Co-working Supply and Shift towards Non Rental Revenue (Concierge, Accounting, HR, payroll and Task Management services)" by Ken Research suggested that the China Flexible Workspace Market has been increasing due to rise business travelers, changing business strategies, growth in finance and IT sector, expansion in tier 2 cities, increasing number of localized operators, increasing average centre size and increasing demand from MNC's and well known local companies. The market is expected to register a positive CAGR of 13.7% and 15.4% in terms of supply and demand respectively during the forecast period 2019-2025F.
Key Segments Covered:-
- By Type of Flexible Workspace
- Serviced Spaces
- Hybrid Spaces
- Co-Working Spaces
- By City
- Shanghai
- Beijing
- Shenzhen
- Hong Kong
- Chengdu
- Guangzhou
- By End Users
- Enterprises
- MSME's/Start Ups
- Entrepreneurs/Freelancers
Key Target Audience:-
- Flexible Workspace Operators
- Office Brokers/Aggregators
- Commercial Real Estate Companies
- Venture Capitalist and PE Firms
- Real Estate Consultant
- Office Furniture Providers
- ICT Providers
Time Period Captured in the Report:-
- Historical Period – 2016-2019
- Forecast Period – 2019-2025
Companies Covered in the Report:-
- Flexible Workspace Operators
- Ucommune
- Regus
- WeWork
- MyDreamPlus
- Distrii
- Kr Space
- SOHO 3Q
- The Executive Centre
- People Squared
- Compass Office
- Servoffice
- Atlas Workspace
Key Topics Covered in the Report:-
- Need Pain Points Leading to Emergence of Flexible Workspace Industry in China
- Existing Gaps in China Flexible Workspace Market
- Value Chain Analysis
- Emerging Business Model
- Revenue Streams
- Organizational Structure of Flexible Workspaces
- Marketing Strategies
- Supply-Demand Analysis and Supply-Demand Gap Analysis, 2016-2019
- Competitive Landscape in China Flexible Workspace Market
- Supply-Demand Analysis and Supply-Demand Gap Analysis, 2019-2025F
- Success Case Study
- Analyst Recommendation
- China Flexible Workspace Market
- China Joint Office Market
- China Bespoke Office Market
- China Serviced Office Market
- China Hybrid Flexible Workspace
- Shanghai Coworking Market
- Beijing Coworking Market
- Hong Kong Coworking Market
- Shenzhen Coworking Market
- Chengdu Coworking Market
- Guangzhou Coworking Market
- Shanghai Flexible Workspace Market
- Beijing Joint Office Market
- Regus Coworking Centers Hong Kong
- China Office Market
- Hong Kong Serviced Office Market
- Beijing Serviced Office Market
- Shenzhen Bespoke Office
- Chengdu Joint Office Market
For more information, refer to below link:-
China Flexible Workspace Market
Related Reports:-
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