With the development of information and communication technologies and because of the surge in demand for digital goods and huge market profits，a series of digital malls were formed in major cities at the beginning of the new century. In these digital malls，a large number of small businesses （e.g.，electronic vendors） sell electronic products and provide after-sale and other peripheral services as their main business mode. In the second decade，the digital malls are under significant pressures from both internal and external factors，and their survival space becomes increasingly compressed. Guangzhou，as the largest electronics distribution center in South China，has encountered big challenges in transforming the business model of digital malls as well. Based on the history of Guangzhou digital malls and relevant empirical materials，this article presents an in-depth analysis of the rise and fall of two digital malls （Guangzhou Buynow and Guangzhou Pacific） in order to understand the difficulties and reasons for the decline of Guangzhou digital malls. Supported with survey data about university students’ consumption intentions and habits of electronic products，the article also proposes some transformation strategies for digital malls.