As the largest existing liyuan (courtyard complex) in Qingdao, Taixing Li has reached a 95% tenant occupancy rate and welcomes more than one million visitors annually. Its strategy for drawing foot traffic from the street into the inner courtyards offers a compelling case study for urban renewal.

For many long-time Qingdao residents, Zhongshan Road is affectionately known as the "Grand Avenue," while Weixian Road, which runs adjacent to it, ranks as the city's second most bustling commercial strip, earning the nickname "Second Avenue." In bygone days, the area's business magnates and white-collar elites alike invested in property here, making it something akin to Qingdao's own "Xintiandi."

Located at No. 19 Weixian Road, Taixing Li is composed of an L-shaped courtyard to the south and a traditional hui (enclosed) courtyard to the north. It stands as the largest and most well-preserved liyuan complex in Qingdao and was the first renovation project launched under the city's historic district protection and renewal initiative. Since reopening with a fresh look in April 2023, the central challenge for operators and tenants alike has been figuring out how to lure visitors into the inner courtyards and create a sustainable flow pattern within the distinctive "L-plus-enclosed" layout.

Today, the complex houses 37 small businesses, ranging from local food purveyors and cultural-creative craft shops to interactive experience venues and nighttime bars. With tenant occupancy at 95%, the mix balances daytime exploration with evening entertainment, and annual visitor numbers have surpassed one million. Taixing Li's operational playbook may well offer inspiration for other liyuan revitalization projects across the city.

Leveraging Online Traffic to Draw Visitors Indoors

As a uniquely Qingdao architectural form, the liyuan's appeal lies not in viewing it from afar but in venturing inside. Visitors pass through street-facing shops or archways, move along corridors and past skylit courtyards, and then delve deeper into the inner yards. This layered progression leaves the hustle and bustle of the street behind, gradually guiding guests into the heart of the complex.

"When the block first opened, the street-facing stores filled up quickly," explains Cao Lin, operations manager at Taixing Li. "Now our focus is on bringing diverse businesses into the inner courtyards to turn foot traffic into sustainable revenue." She acknowledges that in this era where attention is currency, recruiting tenants for the inner yards requires more than just an attractive business concept. "We also assess whether the owner has the ability to promote their business on online platforms and whether they come with their own digital following," she adds.

Gulu Call Restaurant is a prime example. Tucked away on the second floor at the corner of the inner courtyard, guests must pass through an archway and climb the stairs to discover this hidden gem. Upon entering, guests are greeted by a pink, feminine decor that leans into an adorable aesthetic. Despite its secluded location, the restaurant enjoys steady popularity, drawing a steady stream of young visitors through savvy social media management and collaborations with online influencers.

Shisan Yue Hanfu Beauty Salon had already built a solid reputation in its niche before joining Taixing Li. The business confidently opted for a second-floor spot, banking on the goodwill it had cultivated over time. "Our clothing and makeup services focus on traditional Chinese styles, which photograph beautifully against the liyuan architecture," says the store's manager. "During peak season, we serve 70 to 80 customers a day, working from morning until night." Drawn by the old town's steady visitor flow, the owner opened a second outlet at Shangjieli MALL this summer.

Operating hours serve as a key gauge of a commercial complex's economic performance. To expand the nighttime economy, Taixing Li has rolled out a "coffee by day, bar by night" hybrid operational model. During the day, cafés and cultural craft workshops operate as usual, hosting salons, themed workshops, and other cultural events. After dark, these venues shift into bar mode, catering to young people's need for nighttime social interaction. From craft beer taps to cocktail-focused lounges and even coffee-and-electronic-music bars, Taixing Li has built a "tipsy business matrix." This includes low-alcohol bars ideal for quiet conversation as well as specialty cocktail bars that celebrate distinctive cultural themes, all tailored to the old-town atmosphere and creating a "one courtyard, one style" evening strolling route.

Curating Events for the Younger Crowd

If the business mix provides the foundation for keeping people engaged, then events serve as the catalyst for drawing crowds in the first place. Taixing Li regularly hosts community activities and themed markets to build momentum and foot traffic over time.

The complex organizes "Electronic Ibuprofen" community events beneath its covered walkways. Its monthly "Night Wanderer" intellectual property market, held at month's end, has become the anchor event for pulling in nighttime visitors. Activities such as all-participant NPC challenges and Night Wanderer parades offer young urbanites a bespoke "heterotopia" experience. The event has now run for eight editions, with themes ranging from "All Night Long" and "Stranger Things" to "Interesting Drunk."

In the L-shaped section, Taixing Li has made "Under the Corridor, No Rush" a regular mini-market. This initiative not only attracts residents and tourists alike but also serves as a recruitment tool for attracting new tenants. "I discovered through participating in the 'Under the Corridor, No Rush' themed market that the businesses and customer base here fit perfectly with our products, so I decided to set up shop," says Dan Bao, founder of GNOME Gnome Kingdom. Last month, she was still lugging her handmade dolls to various pop-up markets; now she calls Taixing Li home.

"Beyond the regular community activities and themed markets, we also coordinate with Shangjieli's signature IP events to keep driving traffic to the block," Cao Lin says. "During the beer festival, for example, the sunken plaza at Taixing Li hosted all kinds of performances. We partnered with the Zhanqiao 1903 Beer Station, Zhongshan Road No. 1 Tsingtao Beer Garden, and Picha Yuan to create a linked route where visitors could follow a themed map and collect stamps while enjoying drinks and leisure throughout the journey."

By combining online promotion, a thoughtful business mix, and a steady calendar of events, Taixing Li has cracked the code for turning an architectural treasure into a thriving commercial destination.