The encyclopedia · Strategy & Leadership · Strategic decision · 2010–2015
Wanda opened 89 KTV stores in five years — and closed every one of them
Wanda's 大歌星 KTV chain peaked at 89 stores in September 2014; within a year all were shut as the group abandoned the KTV it had built to fill its malls.
Wanda Group · 万达集团 · 2015
What happened
Wanda Group incorporated its 大歌星 (Da Ge Xing) KTV chain in June 2010 and scaled it fast inside its own shopping malls: 89 stores by September 2014, one of China's biggest karaoke chains almost overnight.
The numbers never justified the footprint. In the first half of 2015, 86 stores took just 404 million yuan of revenue — while Wanda Cinema, the group's other entertainment arm, made 2.48 billion yuan in the same period. The reason was structural: 'The original intention of opening KTV was not to run it as a business,' one store manager said. 'Da Ge Xing was born in Wanda Plaza, and Wanda Plaza needs enrichment.' The stores existed to complete the mall's tenant mix, not to make money.
A closure wave began in 2015. By September that year the last Da Ge Xing had shut — a chain of 89 stores, five years old, wound down in its entirety.
Why it happened
- The chain was a mall amenity from day one, built to fill space rather than to earn.
- ¥404M of half-year revenue across 86 stores against ¥2.48B at the cinema arm showed the gap.
- When the KTV market cooled in 2015, an amenity with no economics was the first thing cut.
The lesson
Wanda built 89 大歌星 KTV stores to animate its malls, not as a business; when 86 stores took just ¥404M in half a year, every one was closed.
Aftermath
Wanda's entertainment focus shifted to cinema; China's KTV industry kept shrinking as mini KTV booths and apps took the market.
Sources
- 搜狐财经, 2015-07-17 — 万达大歌星89家KTV将全部关闭 (Wanda Da Ge Xing KTV incorporated June 2010; peaked at 89 stores in September 2014; closure wave began 2015; by September the last store would close; 86 stores took ¥404M revenue in H1 2015 vs ¥2.48B for Wanda Cinema in the same period; store manager: 'The original intention of opening KTV was not to run it as a business — Da Ge Xing was born in Wanda Plaza, and Wanda Plaza needs enrichment')
- 央广网财经, 2015-07-20 — 万达大歌星KTV全国关店 (national closure of Wanda Da Ge Xing KTV confirmed; chain founded 2010 with 89 stores at peak; revenue comparison with Wanda Cinema)
spotted an error? The club wants to know.
More like this
Cash Box ruled Beijing KTV for a decade — one store left of four
Esports hotels topped 10,000 in 2020 — by 2025 more than half had closed
Xiabu Xiabu launched a ¥250-per-head barbecue brand — it lasted less than two years
Somewhere, someone solved the problem this company failed at. 2nd Opinion →
Comments · 0
Sign in to join the comments.