Why Khorgos Mall?
Back in the 1990’s, China decided to bolster its international expansion by reestablishing a shorter trade connection between China and European countries. With this objective in mind, China began enhancing economic relationships with post-Soviet Kazakhstan and other Central Asian countries – de facto, a transit getaway. Compared to ocean and sea routed delivery schedules a container from East China by 2025 should be able to reach any given European country in 15 days. This alternative got its present name as Khorgos Dry Port, a border point where China meets Kazakhstan. This location sits along the ancient “Silk Road” trade route (now referred to as Trans-Asian Railway).
Khorgos has been granted status of free economic zone (FEZ). This “Silk Road” trade route initiative between China and Kazakhstan will generate billions of USD in trade annually by 2025. Both countries agreed to invest up to $2.6 billion into the infrastructure of Khorgos FEZ. The area itself is 300 hectares, and zoning is primarily for logistics, manufacturing, and tax free individual trade. Since the opening of Khorgos in 2012, there has been an estimated 9.46 million visitors and over $878 million worth of trade.
Phase I – Khorgos Mall
In the summer of 2017, we will erect a 50,000 square foot off-price luxury retail store. Operations will be structured to mirror TJ Maxx, Marshalls, and Century 21 in the United States and McArthur Glenn outlets in Europe.
We are projecting 1,500 customers per day with to our store where prices will be approximately 50 - 80% lesser than nearby markets. Sales projections show $401 million per year.
Phase II – E-Commerce
We will open an Internet based shopping mega store where all merchandise will be warehoused and distributed from Khorgos tax free zone – this will reduce delivery lead time to a few days instead of a few weeks for residents of Russia, Kazakhstan, and China.
Our projections show an internet based luxury outlet with warehousing in Khorgos FEZ may bring in at least $300 million in aggregate sales per year.