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Are Retail Malls Dying?
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Merrill Pereyra
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Presented March 2016 at the Malls Asia conference
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Are Retail Malls Dying?
1.
THROUGH AN F&B
LENSE: SHIFTS IN THE FOOD LANDSCAPE MERRILL PEREYA QSR PROFESSIONAL, AUTHOR, CONSULTANT, MOTIVATIONAL SPEAKER & IDEA GENERATOR © 2016 Expand Your Brand
2.
WHO AM I? I
expand and commercialize franchise operations, specifically in Quick Service Restaurants (QSR). Brands include: • Domino’s Pizza (Indonesia) • Healthy Habits (Australia and New Zealand) • McDonald’s (Saudi Arabia, Pacific Islands and SE Asia). © 2016 Expand Your Brand
3.
WHO AM I? ASIA
PACIFIC INDIA SAUDI ARABIA AUSTRALIA & PACIFIC ISLANDS A strategic and performance-focused executive with more than 25 years of leadership in Asia, the Middle East, South Pacific and Australia. Expertise lies in leveraging global resources, capabilities and relationships to gain advantage in growing brands in new countries. © 2016 Expand Your Brand
4.
WHO AM I? Whether
your business is a small business wanting to grow into new territories, you want to franchise or you want to move globally, Expand Your Brand will provide you guidance and valuable tips on how a business can benefit, avoid the pitfalls and fast track to expanding the brand. © 2016 Expand Your Brand
5.
July 1998 ARE MALLS REALLY
DYING? “The retail guys are going to go out of business, and e-commerce will become the place everyone buys” – Marc Andreessen, American entrepreneur, investor and software engineer © 2016 Expand Your Brand
6.
THE GROWTH IN
E-COMMERCE 2014 2015 2016 2017 2018 2019 China 12.4% 15.9% 19.6% 23.8% 28.6% 33.6% S. Korea 10.3% 11.2% 12.1% 13.0% 13.9% 14.7% Japan 5.9% 6.7% 7.5% 8.2% 9.0% 9.7% Australia 5.6% 5.9% 6.3% 6.6% 6.9% 7.2% India 0.8% 1.7% 2.6% 3.6% 4.4% 4.8% Indonesia 0.8% 1.4% 2.2% 3.1% 3.9% 4.4% Other 3.0% 3.2% 3.4% 3.4% 3.7% 3.8% Asia- Pacific 8.2% 10.2% 12.4% 14.9% 17.6% 20.4% Worldwid e 6.3% 7.4% 8.6% 9.9% 11.4% 12.8% Note: includes products and services ordered online via any device, excludes travel and event tickets. Excludes Hong Kong Source: eMarketer Dec. 2015 Retail Ecommerce Sales as a Percent of Total Retail Sales in Select countries in Asia-Pacific and worldwide, 2014-2019 For the first time, the Asia- Pacific region not only has the largest digital retail market in the world, but its share of global digital retail spend holds an outright majority of the world market. © 2016 Expand Your Brand
7.
Alibaba, the most valuable retailer,
has no inventory Uber, the world’s largest taxi company owns no fleet AirBnb, the largest accommodation provider owns no real estate Facebook, the most popular media owner creates no content THE INTERNET IS CREATING PROFITABLE BUSINESSES © 2016 Expand Your Brand
8.
MOBILE SPEED CONTINUES
TO GROW 5G mobile broadband, set to launch in 2020, will unleash speeds that are faster than 4G and create waves of innovation that will disrupt every industry. © 2016 Expand Your Brand
9.
STORES WITH OMNICHANNEL
STRATEGIES WILL THRIVE According to the International Council of Shopping Centers (ICSC) over 198 million shoppers still visited a brick-and-mortar location between November 1 and Dec 25, 2015, despite the 13% growth in online sales during that period. © 2016 Expand Your Brand
10.
MULTI CHANNEL, OMNICHANNEL
– NOW SOCIAL…..? Facebook and Twitter’s “Buy” buttons and Instagram’s “Like2Buy” is now creating avenues of shopping through social media. © 2016 Expand Your Brand Source: Joe Skorupa, Retail trends and predictions for 2015
11.
The need to
provide seamless online to in-store experiences continues to grow. Birchbox’s Soho location offers hair, makeup and nail services in its store. Urban Outfitters New York City branch has an on-site salon and coffee shop, in a move to turn the location into a destination, rather than just a store. MORE ECOMMERCE SITES ARE SETTING UP OFFLINE © 2016 Expand Your Brand Source: Joe Skorupa, Retail trends and predictions for 2015
12.
Aimed at the
ultimate consumer convenience, none actually makes food but connects restaurants and customers. TECH-DRIVEN DELIVERY IS CHANGING THE F&B INDUSTRY © 2016 Expand Your Brand
13.
IN-STORE VS ONLINE
STATISTICS - USA 78% of customers prefer to shop in-store Consumers purchase at online retail websites an average of 2.2 times per month. Average time spent at a brick- and-mortar store 54 minutes 38 minutes Average time spent on a single retail website Consumers spend significantly more per month in a physical store than online $1,710 $247 73% want to try on or touch merchandise before they purchase Source: ICSC, Shop Visible© 2016 Expand Your Brand
14.
BRICK-AND-MORTAR STORES ARE
STILL BEING VISITED 48% 37% 35% Of consumers have ordered online and picked up their purchase in-store Of use the internet to locate or research items, but prefer to make purchases in-store Of consumers have ordered online and returned their purchase in-store Source: ICSC, Shop Visible© 2016 Expand Your Brand
15.
1 in 20
consumers make a purchase after browsing an online store 1 in 5 consumers make a purchase after browsing a physical store CONSUMERS BROWSING ONLINE VS IN-STORE Source: ICSC, Shop Visible© 2016 Expand Your Brand
16.
The retail landscape
is globalizing and digitizing, and customers are increasingly demanding and in complete control of their shopping destiny. So how do you stay meaningful while everything around you is changing? A shift in thinking. MALLS MUST CHANGE © 2016 Expand Your Brand
17.
CONSIDER NEW TECHNOLOGIES
& CREATE CUSTOMER ENGAGEMENT Use Beacon-triggered messages to lure shoppers into retail stores for snacks and meals © 2016 Expand Your Brand
18.
USE NEW TECHNOLOGY
TO KEEP A SHOPPER LONGER ON THE PREMISES From virtual fitting rooms to interactive window displays, merchants are continuously finding ways to use Augmented Reality to draw attention and improve experiences. © 2016 Expand Your Brand
19.
IF YOUR FORMAT
DOESN’T WORK, CHANGE IT Spain’s shopping mall Las Arenas de Barcelona has been constructed out of a former bullring and is a destination in itself – with views from the roof, the restaurants and a rock museum inside, in addition to the regular retail therapy. LAS ARENAS DE BARCELONA, SPAIN © 2016 Expand Your Brand
20.
CREATE A DESTINATION, NOT
A MALL Westfield Old Orchard in Chicago has demolished its food court and replaced it with a single outlet called Wilde & Greene, incorporating a grocer, supermarket, restaurants and bar. WESTFIELD OLD ORCHARD, CHICAGO © 2016 Expand Your Brand
21.
Provides consumers with
lifestyle recommendations from both cultural and technological perspectives. The store offers concierge services, with every section helmed by an expert in a particular field. The travel section’s concierge desk books holidays and is headed by a former journalist who has visited more than 100 countries and written several guidebooks. CULTURE CONVENIENCE CLUB, JAPAN CREATE A DESTINATION, NOT A MALL © 2016 Expand Your Brand
22.
CURATE SHOPPERS LIFESTYLES
WITH EXPERIENCES Restaurants can provide unique social experiences that consumers can't enjoy by clicking "buy" on their smartphones. DEVIL ISLAND PRISON RESTAURANT, CHINA & A380 FLIGHT RESTAURANT, TAIWAN © 2016 Expand Your Brand
23.
Evoke consumer emotions instead
of offering ease of purchase. Let online be ‘convenience’ and ‘fast’. EVOKE SHOPPERS EMOTIONS THAN CONVENIENCE VOGUE CAFÉ, DUBAI & FRAGRANCE BAR, ITALY © 2016 Expand Your Brand
24.
At their Experience Center
in Atlanta, Porsche teams an auto showroom with an upscale restaurant called 365. It looks onto a driver development track. EVOKE SHOPPERS EMOTIONS THAN CONVENIENCE PORSCHE, ATLANTA © 2016 Expand Your Brand
25.
A hybrid concept
between a lingerie store and an automated store/vending machine. Customers select their lingerie products on large touchscreens/tablets and receive them via transparent aero-propelled tubes. UNDIZ MACHINE, FRANCE CREATE EXPERIENCES YOU CAN’T FIND ONLINE © 2016 Expand Your Brand
26.
Besides great shopping, Westfield
London boasts a phenomenally successful champagne bar, a Flight Simulator and an upmarket teeth-whitening kiosk. CREATE EXPERIENCES YOU CAN’T FIND ONLINE WESTFIELD LONDON © 2016 Expand Your Brand
27.
ADVANTAGES QSR HAVE
IN MALLS 1. Most QSR brands want to scale their brands – and do this fast 2. Building permits and approvals are easier to obtain with malls and shopping centers 3. Foot traffic is higher in malls 4. Malls provide easy access to utilities 5. Quick and fast set up of the project © 2016 Expand Your Brand
28.
The big question
is this; is the future of the shopping center actually not about shopping at all? Perhaps it’s a place you go to meet friends, dine and be entertained in a myriad of ways, and shopping is an adjunct, not the purpose of the visit. THE FUTURE OF THE MALL IS NOT SHOPPING © 2016 Expand Your Brand
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Whatever happens, the
retail center, like retail itself, will be transformed in the next few years. It is time for malls to spice up their relationship with customers. We do not have to kiss the malls goodbye. WE CAN STOP THE MALLS FROM DYING © 2016 Expand Your Brand
30.
Always ask yourself
if your efforts are truly providing a more enjoyable experience for your customers. Stick with that strategy, and you’ll be just fine in the future. CUSTOMER EXPERIENCE MATTERS © 2016 Expand Your Brand
31.
Q & A
32.
BREAK FOR LUNCH?
33.
Q & A
34.
THANK YOU www.merrillpereyra.com
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