Young, wealthy store their problems away(2)

In the West, the self-storage industry is already in full swing.

Maximilian Spitzy, general manager of Ministorage in Shanghai, said: "In the United States, you can expect to have one storage unit per 4,000 square meters. In the late 1990s, we introduced the idea of self storage to Europe. In 2008, we decided to bring the concept to China."

The company already has 35 self-storage facilities with a total of more than 250,000 square meters of storage in German-speaking Europe.

Learning from his peers' experience in Hong Kong, Spitzy decided the company had to buy its own property in the Chinese mainland when entering the market.

"Property prices in Hong Kong have risen so much that self-storage companies can't survive if they transfer that burden to customers. Therefore, we will always have our own property," he said.

Since Ministorage owns its properties, it can make building design decisions. Customers will also have more faith the company will not move or run away, Spitzy explained.

The current property that Ministorage owns in Shanghai is about 5,000 square meters, and the company plans to buy another two in the city. First-tier cities, such as Guangzhou, Shenzhen and Beijing, are also potential targets for expansion.

In Europe, 70 percent of self-storage customers are private individuals, with business people accounting for the rest. But in Asia, it's the other way around, with business accounting for 60 percent and individuals 40 percent, Spitzy said.

"There are more entrepreneurs and small companies in China. For a new startup, they don't want to spend a lot of money on a warehouse. So they rent 10 to 20 sq m at a self-storage company instead. We have many different customers. For example, China Mobile is one of our customers. They rented 100 sq m for server equipment," he said.

"We also have people who are moving to a new house. If the contract on their old house has already expired and the new one is not ready yet, they have to wait another two or three weeks before they can move in. So they just put their belongings in storage."

Trade show exhibitors are also a major segment of the self-storage industry.

"If a foreigner wants to attend exhibitions in Shanghai and has samples, he often sends them months earlier to make sure they clear customs in time. Once cleared, exhibitors can store their samples for the exhibitions," he said.

"We also have landlords as customers. Some of their tenants decide not to use the existing furniture in the apartment. Rather than having it renting out, many landlords prefer to spend a bit of money to keep the unneeded furniture in self storage," he said.

Most of the company's customers are young, adaptable and practical individuals who don't like crowded living spaces and prefer to store away off-season clothes.

"It's a very efficient and modern lifestyle. We target a specific group of people. Self storage is a lifestyle product. You just use it for two or three weeks to solve temporary needs. Ultimately, this is a luxury," he said.