It is a new world, constantly unfolding and changing. Today’s success for traditional Mall investments require an authentic alignment and focus behind building a consumer centric ecosystem that builds Capital Value via Brand Equity.
We wish them every success on their journey!
By Nassos Lezos, Theodoros Pantis and Yula Mega.
Nassos Lezos is the Managing Partner & CEO of My Spectrum International. Theodoros Pantis is a My Spectrum partner based in Athens. He leads the Assets & Retail Division internationally. Yula Mega is head of Strategy across My Spectrum’s Divisions and is based in Athens.
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A matter of belief.
Our shopping center reinvention model lies at the heart of our belief system and philosophy as a collective genius of solutionists, connectors and value catalysts for performance here at My Spectrum:
- We believe in the power of brands to create exponential value.
- We are reinventing the traditional shopping center management paradigm and offering.
- We are destination “builders” bridging the needs of shopping center owners, consumers and tenants.
- We are experts in turning around performance or accelerating growth and provide a one stop solution for our Shopping Center clients.
- We treat and manage Shopping Destinations not just as real estate but also as content and media generating authentic experiences and additional revenue streams.
- We speak the language of consumers, advertisers and real estate.
Embracing a consumer-driven connection economy.
As many property and commercial real estate investors know too well the times where a property was developed into a Mall and was an instant success due to the novelty of the concept is long gone.
The new game is all about customer (visitor) loyalty, engagement and satisfaction and this requires a new ecosystem framework that is rich in conversations, stories, experiences and offerings. The future belongs to those operators and tenants willing to break from yesterday’s patterns and practices and fully embrace a consumer-driven future within a new connection economy.
The new formula of Capital Value stems out of building Brand resilience and Brand Equity.
Shopping centers are asked to define and position themselves as resilient, lifestyle destination Brand ecosystems with a strong and differentiated Brand positioning based on consumer trends and insights able to deliver unmatched service and experience.
Mall developers and architects need to think out-of-the-box in order to create a real unique center, to provide a whole new reason for customers to be there, to be spending on not just goods but also on the unique leisure experiences. Within a well-established connection economy, these experiences are shared and become the customers’ version of the Brand storytelling.
The winning centers will no longer be “shopping” centers. Instead, they will be lifestyle and entertainment centers, where shopping is an accompanied by product (and a desirable outcome) but not necessarily the reason to go there in the first place.
Shopping center reinvention calls upon the ancient “agora” concept and embraces multi target audiences, multi occasions, and simultaneous experiences.
The lifestyle destination Brand Ecosystem.
When consumers visit malls, they are looking for experiences that go well beyond traditional shopping. Furthermore, the e-commerce revolution and the rise of digital technologies are fundamentally reshaping consumer expectations and shifting the function of stores toward useful and entertaining customer experiences.
In terms of strategy this means:
- Differentiating the consumer offering, with a focus on experience and convenience.
- Communicating and treating as a “mega” Brand.
- Transforming the mall experience by leveraging technology and multichannel strategies.
- Exploring of new formats and commercial real estate opportunities.
- Managing more like content and media, instead of real estate.
The new Brand ecosystem positioning needs to define the destination Brand in the following key areas as they relate internally (inside the 4-walls) and as they are communicated externally (outside the 4-walls):
EXPERIENCE PROPOSITION.
What is the unique Experience offering for both, tenants and visitors? A reinvented lifestyle Brand ecosystem offers a clear value proposition in terms of experience by design in terms of architecture, attractions, events, ambience, interaction, and service. It goes without saying that the tenant experience is as important as the visitor / shopper experience.
CONVENIENCE PROPOSITION.
A differentiated convenience proposition includes the right mix of available convenience services relevant to the consumer target audience. What are their needs and special requirements? How are those met via asset and service offerings that go beyond meeting needs but also create a “wow” factor worth talking about it? The idea here is real pampering through innovative services, tools and behaviors.
TENANT MIX PROPOSITION.
In such an ecosystem, the tenant mix is not selected randomly or by chance. It is designed to meet clear differentiation but also consumer (visitor target audience) needs. In that sense the tenant industry mix is designed both along its width and depth scales. An ecosystem targeting young families with children would build depth in tenant industry sectors targeting families and children (e.g. Kids fashion, entertainment, toys, home accessories, kid friendly dining options, etc.) versus an ecosystem targeting business audiences that would aim to expand the industry offering of technology, office supplies, male fashion, more sophisticated dining options, etc. Furthermore, the tenant mix proposition is also influenced by business objectives, architecture, as well as location and time of launch (first to market or intense competition) resulting in the appropriate mix of first to market, anchor, local and international tenants.
EXPRESSION PROPOSITION.
We already mentioned that the new model requires treating the shopping center as a big scale lifestyle Brand and that is predominately shown via the way it goes about to communicate and talk about itself. Big brands invest in Marketing and Communication, they seek purposefully signature activation opportunities to be talked about, they intentionally build genuine relationships with local communities and most importantly they have a consistent and deliberate tone and share of voice competing in a sense with other brands in the market.
The marketing catalyst.
The reinvention framework is a Marketing driven model driving consumer and tenant recruitment via differentiation and brand relevance as well as revenue productivity via building asset value.
Footfall is the critical inflection factor for the success of any shopping center and Consumer Marketing is the key catalyst across the three different stages of footfall: acquisition, engagement and loyalty. Even though the mix of marketing strategies may vary across the different footfall stages, some remain constantly present to ensure excitement, experience and differentiation resulting in a 12-month calendar of engaging activations:
- 360 ° Communication
- Media Partnerships
- Signature Events
- Seasonal Celebrations
- Sales Periods
- Ambience & Decorations
- Loyalty Programs
- Signage
- Big Data
- CRM
Marketing is not only leveraged to drive footfall and visitor engagement. Tenant Marketing plays an equal role in driving tenant recruitment and engagement. From the first point of tenant contact to managing the day-to-day tenant relationships, Tenant Marketing has a lot to say in creating a culture of authentic, participatory, transparent business relationships that thrive within the ecosystem:
- Trade Communication
- Tenant Advisory & Audit Boards
- Consultation
- Technology – one place – solutions
- Co-activations
- Retailer Community Portal
- Innovation Launches
Marketing also plays a big role in generating new revenue streams outside the traditional GLA income scope by enabling the lifestyle destination Brand ecosystem to turn footfall and visitor engagement into media currency. After all, the destination ecosystem has everything advertisers want: new (unexploited) communication tools, consumers at a relaxed mood, and a multi-occasion opportunity environment. This is a win-win strategy for both the advertisers and the center as it enables further commercial space productivity and top line revenue growth via:
- New innovative leasing concepts
- Sponsorships (Assets, Services & Events)
- Branding
- Pop up Stores
- Promotional Stages
- Experiential Activation
On top of revenue productivity, Marketing & Advertising Revenue projects further drive footfall, dwell time, visitor engagement, and ultimately shopper spending.
The winning formula.
The winning formula of success is consistently creating and executing appropriate strategies across the different Brand life stages (Introduction, Engagement, Maturity, Reignition) in order to maintain more visitors, visiting more times, spending more while leasing more space.
This simple top line driven consumer centric formula, if managed appropriately, ignites and fuels viable value across the stakeholder chain of a destination Brand, allowing for sustainable investment returns:
CONSUMER VALUE.
Crafting a distinct and unambiguous consumer-centric value proposition and brand promise delivering on experiences that go well beyond traditional shopping by integrating consumer occasions.
TENANT VALUE.
Connecting consumers’ individual and collective values and aspirations with sellers’ collective engagement space offerings.
INVESTOR VALUE.
Reinvigorating Shopping Centers and transforming destination investments into consumer-driven viable returns.
WE ARE SOLUTIONISTS AND CONNECTORS.
Connecting the right strategy, tools and networks to our client’s needs, providing a one stop solution via hands on engagements. Delivering end-to-end growth support across the different phases of our clients’ journey via a highly integrated service model.
WE ARE VALUE CATALYSTS.
Igniting and fueling viable value across the stakeholder chain of a business organization:
Customer Value: Bringing FMCG consumer and customer centric capabilities across industries, crafting a distinct and unambiguous customer-centric value proposition delivering on experiences that go well beyond traditional interactions.
Organizational Value: Working together with our clients to build best in class organizational transformation delivering best capabilities for best service, viable integration, and growth, building the business of tomorrow, today.
Investor & Shareholder Value: Reinventing and transforming business investments into customer-driven viable returns.
WE ARE DESTINATION BRAND BUILDERS.
We believe in the power of brands to create exponential value.
We are reinventing the traditional shopping center management paradigm and offering.
We are destination “builders” bridging the needs of shopping center owners, consumers and tenants.
We are experts in turning around performance or accelerating growth and provide a one stop solution for our Shopping Center clients.
We treat and manage Shopping Destinations not just as real estate but also as content and media generating authentic experiences and additional revenue streams.
We speak the language of consumers, advertisers and real estate.