10 Takeaways from Mapic 2016
MAPIC, the international show for Retail & Real Estate professionals, just closed its 22nd edition Friday, 18 November. Developers, investors and retailers all over the world gathered in Cannes to share vision and insight, close deals and pave the way for future global retail real estate development.
During this edition, the retail and real estate industry was highly focused on how to deliver a high-quality customer ‘experience’ in order to create magical and memorable emotional experiences in retail destinations.
A few years ago, a vast majority of retail property companies were already building “meeting places” where visitors would enjoy sharing and connecting with their community. Food and Beverage was logically a key issue to address in achieving this goal, and we discovered many vibrant new developments popping up since then, such as Markthal, from Klepierre, in Rotterdam.
It appears as though retailers and developers have to go even further today in order to engage visitors in shops and shopping destinations – increasing dwell time and creating enhanced and unique experiences that will seduce the customer to purchase.
Three powerful trends were discussed in Cannes as being the key elements in enriching this customer journey:
- FOOD AND BEVERAGE,
- O2O (ONLINE TO OFFLINE),
- FEC (FAMILY ENTERTAINMENT CENTER)
For each of these main drivers of the retail industry, we spotted insightful companies and experts who shared their expertise through stands, keynote sessions and conferences. We’ve wrapped them up into 10 takeaways.
FOOD AND BEVERAGE
1 – If food and beverage have always been a key driver to boost footfall, the restaurant of yesterday no longer qualifies. New food concepts that are built on quality, culture, craftsmenship and experience, are what’s wanted nowadays. “We are in the era of quality”, Vincenzo Ferrieri, owner of Italian chocolate food concept Cioccolatitaliani, said.
2 – New retail schemes built around F&B are more and more popular among developers. For instance, this is the case for Foodtopia, a spectacular new food and entertainment destination in Frankfurt, managed by ECE, set to open by the end of 2018.
3 – Deliveroo Roobox is also an insightful initiative from one of the leading on-demand delivery services for restaurant food. Charlie Farr, Property Acquisitions Manager, explained at MAPIC that Roobox is a custom-built kitchen that brings restaurant brands to new areas, where large residential populations are currently underserved. 150 Rooboxes are planned by December 2017. Opportunity ahead for property developers!
O20 (online to offline)
4 -Offline retail still remains very strong and accounts for 94% of the total global retail sales. As a consequence, we have recently seen more and more digital pure players such as Amazon, opening pop-up stores and traditional outlets in malls and high-street.
5 –“Pure Players are at the end of their growth phase”, said François Loviton, Head of Retail at Google France. They will find new customer touch points to keep growing their business in the physical retail environment. This revolution is powered by a « clicks to bricks » move which drives the customer in-store to validate the digital product, see it, touch is, feel it and understand it.
6 –“As both customers and brands are no longer making a difference between online and offline, why should retail property companies do so?”, Manuela Calhau, Marketing Director at SONAE SIERRA asked, during a MAPIC talk dedicated to O2O. Malls have to figure out how to manage customer data, which is undoubtedly the fuel for the future, but not thoroughly mastered by shopping mall operators yet.
7 – Pop-Up Stores are becoming a powerful lever not only for existing brands seeking to test new markets, but for digital brands looking to go physical without the typical associated risks of long term leases. Marketing platforms such as Storefront, Nooks, My Pop Up Stores, or Pop Up Places consolidate locations available in high streets, shopping malls and transit zones that match brand positioning and strategy. These platforms enable online players to easily set-up pop-up stores in relevant physical environments – reducing costs and overall risk.
FEC (Family Entertainment Center)
8 – Major shopping malls are committed to offering more creative and experiential environments to their visitors. Developers have to make sure that they will provide their customers with things to see (the educational side of modern retail venues), things to do (the edutainment part) and finally, things to experience. It turns out that theming and storytelling are the two most effective ways to provide consumers and families with a more vibrant experience, according to specialists such as Paragon Creative or The Leisure Way. These specific companies are experts in designing themed and scenic places for museums, malls and theme parks. It is also the best way to engage visitors on social media platforms since people love to share their experience with their communities.
9 –There is a whole exciting new lot of educational and recreational activities to feature in malls and shopping centres. Many of them were at MAPIC 2016 to meet developers. Bounce (free jumping and trampolines) and Walltopia (climbing walls) were among the specialists showcased this year. Even traditional activities such as bowling are now providing malls with more tailored and interactive solutions, such as QubicaAmf, the global leader in bowling and mini-bowling.
10 -The challenge is finding innovative ways to increase shopping centre dwell time in order to encourage 7 visitors to spend more time and money in shops. Retail investors are expecting that leisure activities will drive additional business to these centres, making them a day-long destination for the entire family. The way these leisure activities within the mall interact and connect to food courts and stores themselves, will be pivotal in providing a profitable outcome for all stakeholders.
This article has been also published on Global Real Estate Experts