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Slide Notes
I was fortunate enough to attend the Westfield Asian Express Retail Study Tour
The people on trip were a mix of Retailers, Business consultants, Logistic experts, development executive a, designer and an Architect.
Some of the companies that were represented were
Grilled, Soul Orgion, Myer, Bupa,
Over the course of the trip we visited some 40 major shopping centers and retail precincts and heard from over 30 retail experts about the Asian retail landscape.
Thursday 30th Oct - Sunday 9th of Nov
Today I want to take you through some of the broad themes.
Around Urbanisation/ Autheticity/Customization/Delivery/connected customer and ofcourse Digital.
I will end of some fun slides.
#AEST2014
Published on Nov 18, 2015
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#AEST2014
WESTFIELD ASIAN EXPRESS RETAIL STUDY TOUR
I was fortunate enough to attend the Westfield Asian Express Retail Study Tour
The people on trip were a mix of Retailers, Business consultants, Logistic experts, development executive a, designer and an Architect.
Some of the companies that were represented were
Grilled, Soul Orgion, Myer, Bupa,
Over the course of the trip we visited some 40 major shopping centers and retail precincts and heard from over 30 retail experts about the Asian retail landscape.
Thursday 30th Oct - Sunday 9th of Nov
Today I want to take you through some of the broad themes.
Around Urbanisation/ Autheticity/Customization/Delivery/connected customer and ofcourse Digital.
I will end of some fun slides.
Photo by L'Ubuesque Boîte à Savon
10 DAYS
- SYDNEY
- SHANGHAI
- HONG KONG
- MACAU
- SINGAPORE
We left Sydney on Thursday 30th Oct and arrived back on Sunday 9th of Nov
As you can see from the number of places we went to the pace was fast and the leanings were plentiful.
I think for me the biggest take out initially was the sheer size of the economy in Asia and the population.
As you can see from the number of places we went to the pace was fast and the leanings were plentiful.
I think for me the biggest take out initially was the sheer size of the economy in Asia and the population.
Photo by -AX-
SHANGHAI
Asia has 270 cities with populations greater than 750,000
The United States has just 59.
Asia's market is almost twice that of Europe and the US
There are growing numbers of affluent and online consumers.
The United States has just 59.
Asia's market is almost twice that of Europe and the US
There are growing numbers of affluent and online consumers.
1.35 Billion People
50% middle class by 2020
The middle classes are expanding beyond the largest cities more rapidly and in greater numbers than any market has ever witlessness.
China
1.357 billion
India
1.252 billion
United States of America
316.1 million
50% middle class by 2020
460 million online consumers
Shanghi is now more expensive than NY
Photo by @yakobusan Jakob Montrasio 孟亚柯
Retail Sales over 3 trillion $US
Increasing disposable incomes
China Market Overview
Increasing disposable incomes - 14% per year for the last 20 years
A massive middle class 135.7 million in 21013 and 314.7 by 2020
An evolving consumer culture
The key target for international retailers.
Chinas economy is larger than the combined value of Russia Brazil and India
The Chinese are travelling the greatest love of the Chinese tourist remains shopping, many Chinese consumers distrust Chinese-made luxury goods sold in their own country, fearing rip offs
Shanghi is now more expensive than NY
Increasing disposable incomes - 14% per year for the last 20 years
A massive middle class 135.7 million in 21013 and 314.7 by 2020
An evolving consumer culture
The key target for international retailers.
Chinas economy is larger than the combined value of Russia Brazil and India
The Chinese are travelling the greatest love of the Chinese tourist remains shopping, many Chinese consumers distrust Chinese-made luxury goods sold in their own country, fearing rip offs
Shanghi is now more expensive than NY
Photo by Chrisser
FAKE EVERYTHING
CONSUMERS SEEKING AUTHENTICITY
There was much talk about consumers seeking Authenticity.
The Chinese are travelling the greatest love of the Chinese tourist remains shopping, many Chinese consumers distrust Chinese-made luxury goods sold in their own country, fearing rip offs
How do we make sure we are the first stop for their shopping needs.
The Chinese are travelling the greatest love of the Chinese tourist remains shopping, many Chinese consumers distrust Chinese-made luxury goods sold in their own country, fearing rip offs
How do we make sure we are the first stop for their shopping needs.
Photo by Jean-François Chénier
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AN example of the counterfeit product being sold in a shopping center in
Asians are transforming from savers to spenders
They have the adopted the “What about Me’ Approach
They are gaining access to and credit card facilities
They are very aware of brands and what they want
The evolving consumer is growing in maturity and in an on line environment.
Asians are transforming from savers to spenders
They have the adopted the “What about Me’ Approach
They are gaining access to and credit card facilities
They are very aware of brands and what they want
The evolving consumer is growing in maturity and in an on line environment.
BMW or NOT
BMW or NOT
HERITAGE
1989-2104
Two-thirds of shoppers in developing Asia agree that access to leading branded goods is the heart and soul of their ideal apparel shopping experience. These newly affluent consumers place so much value on it that they are four times more willing to pay for access to branded apparel than shoppers in developed nations.
This means retailers need to be able to demonstrate the heritage and authenticity of their product.
Guarantee authenticity: Businesses can help assure consumers of the authenticity of their products by providing product information and demonstrations both in-store and online, and by posting online authentication guides to help consumers identify counterfeits.
Retailers are celebrating their history
Example in Macu at the Venetian Lord Stows Bakery is sited as one of the top 10 reasons to go to Macu.
Lord Stow died in 2006 but his legacy lives on.
In 2013, Macau's 35 casinos raked in $US45.2 billion ($50 billion) in revenue - far out-stripping Vegas's $US6.4 billion - to cement its position as the world's casino capital
This means retailers need to be able to demonstrate the heritage and authenticity of their product.
Guarantee authenticity: Businesses can help assure consumers of the authenticity of their products by providing product information and demonstrations both in-store and online, and by posting online authentication guides to help consumers identify counterfeits.
Retailers are celebrating their history
Example in Macu at the Venetian Lord Stows Bakery is sited as one of the top 10 reasons to go to Macu.
Lord Stow died in 2006 but his legacy lives on.
In 2013, Macau's 35 casinos raked in $US45.2 billion ($50 billion) in revenue - far out-stripping Vegas's $US6.4 billion - to cement its position as the world's casino capital
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In many shopping centers they are celebrating their heritage on their directories and in center.
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Another example of the authenticity and celebrating of heritage is the Loius Voution store in Hong Kong
The LV store is a Crystal Pavilion that appears to float on the water off the integrated resort at Marina Bay.
It has a museum inside the store to show case the histroy of the cases.
Inside the building are three levels of retail space. The main floor is retail space primarily selling accessories and women’s fashion. The upstairs has an outdoor patio to allow patrons to admire views of the Marina Bay and the Singapore skyline.
There is an underground passage on the bottom floor that connects the store to the main Marina Bay Sands complex. In the walkway are various art works portraying a similar island theme. Lastly, at the entrance to the main Marina Bay complex on the bottom floor is a mural replete with iconic images of Singapore and a book shop.
The LV store is a Crystal Pavilion that appears to float on the water off the integrated resort at Marina Bay.
It has a museum inside the store to show case the histroy of the cases.
Inside the building are three levels of retail space. The main floor is retail space primarily selling accessories and women’s fashion. The upstairs has an outdoor patio to allow patrons to admire views of the Marina Bay and the Singapore skyline.
There is an underground passage on the bottom floor that connects the store to the main Marina Bay Sands complex. In the walkway are various art works portraying a similar island theme. Lastly, at the entrance to the main Marina Bay complex on the bottom floor is a mural replete with iconic images of Singapore and a book shop.
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Louis Vuitton pays homage to its history and has a wide selection of antique travel trunks scattered throughout the top floor. These iconic travel trunks were the first products sold by Louis Vuitton in the mid-19th century, and these trunks bring memories of transoceanic voyages by ship and transcontinental travels by train.
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Another retailer we met was Bosideng
Virtually unknown outside of its native country China , where it operates over 10,000 retail outlets,
we met with Bosideng Chairman and CEO Gao Dekang he was so proud of the origins of his company he showed us through his private museum
n his factory's museum that showcases the history of Bosideng, it's a bicycle and a sewing machine.
He shares this heritgae within his store and for his staff the celebrate.
Virtually unknown outside of its native country China , where it operates over 10,000 retail outlets,
we met with Bosideng Chairman and CEO Gao Dekang he was so proud of the origins of his company he showed us through his private museum
n his factory's museum that showcases the history of Bosideng, it's a bicycle and a sewing machine.
He shares this heritgae within his store and for his staff the celebrate.
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RETAILTAINMENT
ENTERTAINMENT AND EXPERIENCE
In addition to the desire for authenticity the new wave of Asian shoppers also wants to be entertained and have unique experiences.
Thsi is really no different for us in our deisre to
The trends helping to create this change include changing demographics, such as an aging population and increased urbanization, which means more people living in smaller spaces and a greater need for public spaces in which to socialize and congregate
Transforming the mall experience by leveraging technology and multichannel strategies.
Also simple uses of activities.
Example here Marina Bay Sands Golndola - which is recycled sustainable water.
Thsi is really no different for us in our deisre to
The trends helping to create this change include changing demographics, such as an aging population and increased urbanization, which means more people living in smaller spaces and a greater need for public spaces in which to socialize and congregate
Transforming the mall experience by leveraging technology and multichannel strategies.
Also simple uses of activities.
Example here Marina Bay Sands Golndola - which is recycled sustainable water.
Photo by kfcatles
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Example of digital screens that allow you to be in the way finders and interact with the directories then share with many through we chat.
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Customization at Nike in Shanghai
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in store Dj's
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The theater of a Fendi Vendi Machine - trail differ things to catch your costumers eyes, this was not operational but intrigued the consumer.
Pizza Vending example
Pizza Vending example
BESPOKE EXPERIENCES
FUTURSISTIC TECHNOLOGY
Some of the Asian new ideas trends are, this was a Versace activation where you could pick a handbag and try it on
Other things that are now being trailed in Asia are
Cooking with the Stars
Custom couture
VIP airplane parking in the large centers
The virtual valet
Social media and in in large Theater movie
Also opportunities for people to Workout - i.e. go a round with a pro you play golf.
This was a Versace activation where you could pick a handbag and try it on
Other things that are now being trailed in Asia are
Cooking with the Stars
Custom couture
VIP airplane parking in the large centers
The virtual valet
Social media and in in large Theater movie
Also opportunities for people to Workout - i.e. go a round with a pro you play golf.
This was a Versace activation where you could pick a handbag and try it on
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In center theater ;
Authenticity
Heritage - London Borough Market
Authenticity
Heritage - London Borough Market
EVOLUTION OF RETAIL IN CHINA
DEPARTMENT STORES-SHOPPING MALLS-LIFESTYLE CENTRES
Brands rapid expansion in labels
Pop ups
Pop ups
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Casino in Malls
Apartment blocks
Iceskating Rinks - elements in HK
Macua Venitain Casino This area of the hotel features electronically controlled sky similar to Caesar's Palace in Las Vegas
total size of The Venetian Macao is equivalent to 56 football fields. That's big enough to park close to 100 Boeing 747 jumbo jets!
There are 51 Italian gondolas with serenading gondoliers that ply the waters of three indoor canals and outdoor lagoon. If you spend just 5 minutes in each of the 350 Grand Canal Shoppes, it would take over 29 hours to shop them all.
tenant sales per square foot reached $6,399 in the fours seasons luxury precinct $2,289 across all three Macua properties.
I Singapore tenant sales average $1,423 psqft
Apartment blocks
Iceskating Rinks - elements in HK
Macua Venitain Casino This area of the hotel features electronically controlled sky similar to Caesar's Palace in Las Vegas
total size of The Venetian Macao is equivalent to 56 football fields. That's big enough to park close to 100 Boeing 747 jumbo jets!
There are 51 Italian gondolas with serenading gondoliers that ply the waters of three indoor canals and outdoor lagoon. If you spend just 5 minutes in each of the 350 Grand Canal Shoppes, it would take over 29 hours to shop them all.
tenant sales per square foot reached $6,399 in the fours seasons luxury precinct $2,289 across all three Macua properties.
I Singapore tenant sales average $1,423 psqft
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Ralph Lauren Store in Hong Kong their flagship store in the Landmark building
this Ralph Lauren store has a bar with complimentary drinks and snacks for customers. Whether that shopper is just buying a necktie or a three-piece made to measure suit, he can order from the bar free of charge.
A full time shine shiner so you can leave your shoes on a Friday night then come back Monday.
3 levels of retail with each room having a separate theme.
this Ralph Lauren store has a bar with complimentary drinks and snacks for customers. Whether that shopper is just buying a necktie or a three-piece made to measure suit, he can order from the bar free of charge.
A full time shine shiner so you can leave your shoes on a Friday night then come back Monday.
3 levels of retail with each room having a separate theme.
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Hong Kong People come from far and wide to shop in Causeway Bay, and they’ll rarely leave without stepping foot inside its grand prize – Times Square. Sitting on top of a MTR Causeway Bay Station exit, the district’s largest shopping mall has 230 stores spanning mid-price to luxury fashion and accessories, electronics and toys, two department stores, a supermarket and over 20 restaurants dishing out top-grade Chinese, Korean, Japanese and Western fare.
CLEVER USE OF SMALL SPACES
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shangahi
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Biggest Mistakes Retail in Asia
- Not knowing yourself
- Going it alone
- Fail to Register TM
- Understand E-Commerce
- Real Estate
Photo by melina1965
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Exmple of the investments that are made but they didn't research the customer
Barbie Matell Store opened in 2009
6 story lifestyle $30M
36,000 square foot Shanghai HUAIHAI ROAD shut its doors less than two years later.
Issue was they didn't localise – they designed it to meet needs of very young as well as adult customers it included day spa, cocktail bar, restaurant and an adult clothing section.
They didn't factor in the local market what customers wanted or how much they would be prepared to pay.
Barbie Matell Store opened in 2009
6 story lifestyle $30M
36,000 square foot Shanghai HUAIHAI ROAD shut its doors less than two years later.
Issue was they didn't localise – they designed it to meet needs of very young as well as adult customers it included day spa, cocktail bar, restaurant and an adult clothing section.
They didn't factor in the local market what customers wanted or how much they would be prepared to pay.
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AS it stands today in a prime shopping strip
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How progressed they are in some regards yet how primitive in others.
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Customs - New retail shop opening in China
SINGLES DAY
- 11/11
- 24 hours
- 10.7 Billion
Singles' Day is the world's biggest online retail sales day.
Singles’ Day, an pseudo-holiday in China on Nov. 11 (the date is composed of all single digit 1′s), was adopted in 2009 by Jack Ma, founder of e-commerce giant Alibaba, to celebrate the young and cash-flush.
The numbers are pretty mind-boggling: $2.3 billion in goods sold in the first hour, $10.7 billion sold overall, a 60 per cent increase on last year. Black Friday in 2013 was $1.46 Billion
For comparison, Adobe predicts Australians will spend $189 million in 24 hours during the Click Frenzy online shopping event next Tuesday.
Photo by sinosplice
DELIVER TO ME
HANDS FREE-DRONES-LOGISTICS
on the trip we heard much about logistics and went to visit a warehouse in China.
What I found most interesting was the compliance and auditing of undesirable practices.
85-90 % of Chinese factories that produce for the middle lower cost consumer product brands and retailers do not pay legal waged and nearly all work excessive hours.
There is a general feeling that records are falsified to ensure "Comply or Die" attitude.
There are many new organisations that are working to support these factories become compliant and manage their risks.
One of these big risks is the damage to brands that use these factories.
Delivery the last mile from Warehouse to delivery - there is much importance on the humble delivery guy - usually on bike.
There may be a move to drones but not yet.
Unlike some of our thinking around delivery to a local delivery points lockers etc the further you get it from the home the less appeal it has.
What I found most interesting was the compliance and auditing of undesirable practices.
85-90 % of Chinese factories that produce for the middle lower cost consumer product brands and retailers do not pay legal waged and nearly all work excessive hours.
There is a general feeling that records are falsified to ensure "Comply or Die" attitude.
There are many new organisations that are working to support these factories become compliant and manage their risks.
One of these big risks is the damage to brands that use these factories.
Delivery the last mile from Warehouse to delivery - there is much importance on the humble delivery guy - usually on bike.
There may be a move to drones but not yet.
Unlike some of our thinking around delivery to a local delivery points lockers etc the further you get it from the home the less appeal it has.
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- Apartment living has its benefits when it comes to delivery into properties with smart suppliers buying fridges etc, due to the apartments being manned it does make it easy.
Online Sensorship
Baidu, Inc. BY-doo in English.
Chinese web services company headquartered in the Baidu Campus in Haidian District in Beijing
Asia's answer to Google.
Unlike Google where you are not sure of the quality of ads. this is a different proposition because of the online sponsorship and fear of fakes etc people buy from the ads.
Trevor and I have both met with come of the senior leads in Baidu as this would enable us to connect with the Chinese Consumer before they come to Australia. Also a great opportunity to sell on line for us.
Chinese web services company headquartered in the Baidu Campus in Haidian District in Beijing
Asia's answer to Google.
Unlike Google where you are not sure of the quality of ads. this is a different proposition because of the online sponsorship and fear of fakes etc people buy from the ads.
Trevor and I have both met with come of the senior leads in Baidu as this would enable us to connect with the Chinese Consumer before they come to Australia. Also a great opportunity to sell on line for us.
The Connected Consumer
The impact of technology
The role of technology has fundamentally changed
Today the connected customer is Asia is a
Consumer
Creator
Critic
Producer
Spectator
Community Manager
Collaborator
Gone from
Physical Store "Customers will come"
Online - "we need to sell on line"
multi Channel - "We need to sell across all channels"
Omni Channel - " we need to create a seamless connected experience"
China has the largest online population in the world with 618 Million users. Amazingly this is only 49% of the populations their capacity for growth is enormous.
Examples China Singles DAY
The role of technology has fundamentally changed
Today the connected customer is Asia is a
Consumer
Creator
Critic
Producer
Spectator
Community Manager
Collaborator
Gone from
Physical Store "Customers will come"
Online - "we need to sell on line"
multi Channel - "We need to sell across all channels"
Omni Channel - " we need to create a seamless connected experience"
China has the largest online population in the world with 618 Million users. Amazingly this is only 49% of the populations their capacity for growth is enormous.
Examples China Singles DAY
Photo by Robert Scoble
WE CHAT
WeChat. chat service has long been a dominant force in China, where it continues to grow and is now used by an impressive 73% of the online population aged 16-64
could quickly become the first non-US social platform to achieve the type of international reach previously enjoyed only by names like Facebook.
Outside of China, WeChat has in fact become the fourth most popular mobile chat app, with a penetration of 13%. Although it still has some ground to cover compared to WhatsApp (39%), Facebook Messenger (37%) and Skype (37%), forecasts show that WeChat should hit the 35% mark by the start of 2015 – representing an extra 90 million users.
could quickly become the first non-US social platform to achieve the type of international reach previously enjoyed only by names like Facebook.
Outside of China, WeChat has in fact become the fourth most popular mobile chat app, with a penetration of 13%. Although it still has some ground to cover compared to WhatsApp (39%), Facebook Messenger (37%) and Skype (37%), forecasts show that WeChat should hit the 35% mark by the start of 2015 – representing an extra 90 million users.
Click to add more text here
In terms of technology I think you will all like this one MBS store have their POS linked to Center Management.
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we went to SIngtel and saw some amazing new technology in Singapore.
Imagus Technology is a world leader in the development of cutting edge image analysis and facial recognition solutions. Based in Brisbane
For the past few years, Dr. Lovell and his company have been developing a facial recognition app for the glasses, which allows users to match in real time the faces it views through the glasses with those in a database. United States Defence Department has pre-ordered 500 for beta testing.
What they showed us was their ability to ID people from washing it against images in the Web with levels of accuracy I have not seen before.
Imagus Technology is a world leader in the development of cutting edge image analysis and facial recognition solutions. Based in Brisbane
For the past few years, Dr. Lovell and his company have been developing a facial recognition app for the glasses, which allows users to match in real time the faces it views through the glasses with those in a database. United States Defence Department has pre-ordered 500 for beta testing.
What they showed us was their ability to ID people from washing it against images in the Web with levels of accuracy I have not seen before.
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Through the lens of a camera the use of heat mapping to show in real time numbers in malls etc.
Door traffic counters to the 21 centenary
Door traffic counters to the 21 centenary
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Technology
Optimeyes system
Quivity
The software can analyse images and distinguish men from women and segment them by age,
Advertisers can use the information to screen adverts in locations and at times of day that will be most effective at reaching their target audience.
VidiReports is an extraordinary breakthrough in audience measurement. VidiReports software automatically provides instantaneous and continuous audience data for immediate use and for consolidation by VidiCenter, Quividi's datamining service. To digital signage network operators and content providers VidiReports offers an audience measurement solution which is accurate and extremely easy to deploy.
Phase 2 - it can change image
Optimeyes system
Quivity
The software can analyse images and distinguish men from women and segment them by age,
Advertisers can use the information to screen adverts in locations and at times of day that will be most effective at reaching their target audience.
VidiReports is an extraordinary breakthrough in audience measurement. VidiReports software automatically provides instantaneous and continuous audience data for immediate use and for consolidation by VidiCenter, Quividi's datamining service. To digital signage network operators and content providers VidiReports offers an audience measurement solution which is accurate and extremely easy to deploy.
Phase 2 - it can change image
