The Commercial Ecology and Social Mechanisms of Shops in Guangzhou’s Urban Villages: A Literature Review and Empirical Survey

Abstract

This paper investigates the business operations of shops in Guangzhou’s urban villages, aiming to clarify how grassroots commerce interacts with urban renewal. Urban villages, as transitional spaces, accommodate dense clusters of small retailers that sustain affordable services and migrant livelihoods, yet their survival strategies remain underexplored.Recent research has shifted from viewing urban villages mainly as governance problems to acknowledging their economic and social roles. Studies emphasize spatial restructuring, long-tail economic dynamics, and institutional change, showing how shop operations are embedded in broader urban transformation.Nonetheless, gaps remain. Existing studies focus heavily on macro policies, with limited attention to micro-level practices. They also lack longitudinal depth and rarely connect shop operations to issues such as social stratification perceptions or customer base positioning.This study addresses these gaps through a field survey of shop operations in Guangzhou, documenting operating conditions, business models, and client targeting. Findings reveal that shop resilience depends on both regulatory frameworks and community hierarchies, highlighting the importance of inclusive renewal strategies.Looking ahead, shop operations in urban villages are expected to evolve from informal survival units toward more formalized and digitally integrated enterprises, playing a vital role in Guangzhou’s pursuit of sustainable and high-quality development.