Wan Hu Storage company (COURTESY OF WAN HU STORAGE)

Beijing housewife Liu Lifei described how she and her family started to feel claustrophobic in their apartment. Sharing 90 square meters of space with her husband, parents-in-law and child, they felt increasingly crowded, especially with son Yangyang growing up. But, the ultra-high housing prices in Beijing made the family's dream of moving into a bigger apartment simply unattainable.

To add to the squash, she found a lot of things were cluttering up the small apartment. They were either outdated, like the bunch of toys her son played with when he was young, or things which were not used frequently, like outdoor stuff. She didn't want to throw them out for sentimental and pragmatic reasons. That was when she had a brainwave.

"The thought of finding a storehouse came into my mind," Liu said. She discovered Wan Hu Storage, a company near her apartment providing storage services for individuals, families, enterprises and small e-commerce companies. It totally won over Liu, whose notion of storehouses used to be based on images of Chinese traditional warehouses, which tended to be old and shabby.

"The hi-tech security equipment and flexible and convenient services at the storehouse were beyond my expectations," she said. "It was the first time I began to use their services."

A man works at a self-help warehouse in Shanghai in January 2012 (CFP)

Making space 

Self storage, or mini storage, is an industry originating in the United States in the 1960s. Storage units are rented out to businesses and individuals usually on a short-term basis. According to statistics compiled by SpareFoot Storage Beat, a U.S. online news service covering the self-storage industry, there are over 54,000 self-storage facilities in the United States.

In China, on the other hand, 84 percent of people have no conception of self-storage, said Shen Shaoji, President of the China Association of Warehouses and Storage. However, "with China's real estate industry growing, the middle class expanding and the Internet and e-commerce developing rapidly, the self-storage industry has great opportunities and market prospects," Shen added.

Being the capital, Beijing has a large population. By the end of 2015, its permanent population had reached 21.7 million. If every single Beijing resident needed just 0.01 cubic meter of storage space, the requirement in the capital would reach 217,000 cubic meters. Despite the potential, however, Wan Hu Storage, is only one among just a handful of mini storage companies in the city. The industry is new to China.

"According to a survey we conducted, self-storage could create at least 30 percent more residential space for individuals and families," said Ren Zewei, CEO of Wan Hu Storage. "We lease out a variety of units to residential customers. The most popular size currently is 5-7 cubic meters. We can also tailor individual units to the clients' requirements."

Ren views self-storage as being essential for modern families. While residential complexes are equipped with recreational facilities, schools and even clinics, regrettably, they neglect storage, he said.

"Besides, due to high housing prices and a mobile population [who would like to stash their belongings in storage when they are on the move], the need for self-storage definitely exists. It can help families find space and lead a less cluttered and more relaxed life," Ren said.

Modern self-storage places a great deal of emphasis on security, thanks to the Internet and technological evolution. Wan Hu Storage, for example, is equipped with an intelligent security system. Customers can keep their belongings under surveillance 24 hours a day by simply using a phone app.

Backup for minnows 

Differing from U.S. and European self-storage businesses, where the clients are mostly individuals and families, a large portion of the facilities in China is rented by small e-commerce companies.

Yu Hongbo is the CEO of one such small e-commerce company in Beijing which sells noodles online. The first client of Wan Hu Storage, he has two 20-cubic-meter units that provide a reserve for his company's products.

"The e-commerce industry in China is developing very fast, and there is fierce competition. Logistics, supply chain management and storage are very important links for the industry's survival and growth, especially for small companies," Yu said.

The logistics of e-commerce mainly comprises two segments: storage and delivery. Self-storage can satisfy both.

One major reason is that self-storage rentals are far cheaper. "I have chosen Wan Hu Storage because it is much more cost-efficient compared to getting my own warehouse in this location," Yu said. "We small e-commerce companies need to reduce costs as much as we can."

"Apart from providing storage service, self-storage can also act as a third party to deliver goods for small e-commerce companies," Ren added.

Statistics show 20.65 billion parcels were delivered in China in 2015, up 48 percent from 2014. About 70 percent of deliveries were generated by domestic e-commerce. The high-speed growth of the industry is linked to better delivery services.

At present, only a few large e-commerce enterprises have their own delivery system and can self-deliver the orders they receive, such as JD.com. Most small e-commerce companies depend on logistics companies.

These, however, are small-scaled and scattered. "It is extra work for us to try and contact logistics companies," Yu said.

So, enter self-storage companies, which can pack ordered goods and directly deliver them for e-commerce companies. "We are now trying to provide a one-stop service for e-commerce clients in storage and delivery to guarantee the integrity of their supply chain and help them solve back-end storage and delivery problems," Ren said.

Sharing economy 

The average monthly rent at Wan Hu Storage is 128 yuan ($19) per cubic meter. Ren said clients like Liu and Yu enjoy a lower cost by co-sharing.

"Self-storage is a symbol of China's sharing economy. Once storage space is shared, every participant benefits from the process," Ren said.

The sharing economy concept was introduced by Premier Li Keqiang in his Government Work Report this year. The Boao Forum for Asia this year also discussed the development of peer-to-peer online service platforms, which are forming the foundation of China's sharing economy.

"I want to cooperate with other self-storage enterprises and have all units in cities linked through redistributions and the Internet," Ren said. "By sharing storage space services, clients can find the units best suited to their needs in the fastest and most convenient way and at the best prices."

Copyedited by Sudeshna Sarkar 

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