Supaluck Umpujh, the woman <i>Fortune</i> magazine nicknamed the "iron butterfly" of Thai retail, is setting a new benchmark by moving into entertainment to develop arenas in Bangkok with an investment cost of 10 billion baht this year.
The Mall Group is joining hands with AEG, a sports and live entertainment company, to combine the entertainment, Mice (meetings, incentives, conferences, exhibitions), music, live performance, sporting and cultural event segments.
"I want to be the queen of the entertainment business, which my father worked in the past three decades," said Ms Supaluck, chairwoman of The Mall Group.
Two joint venture companies are already established -- The Em Live Co and Bangkok Arena -- with The Mall Group controlling a two-thirds stake and AEG one-third in each.
The Em Live Co will handle the development of Em Live arena at The EmSphere near The Emporium mall, while Bangkok Arena will manage Bangkok Arena at Bangkok Mall in the Bang Na-Trat Road area, opposite Bitec.
AEG is responsible for the management and operation of these two arenas, as well as working collaboratively with the Mall Group and its alliances to offer and market a wide range of events, including entertainment, music, live performances, sports, Mice events, and arts and cultural events.
A budget of 10 billion baht will be allocated to build all entertainment facilities at The EmSphere and Bangkok Mall. Of the total, 6.5 billion baht will be used to build Bangkok Arena, with 3 billion baht for Em Live, with the remaining funds allocated to other entertainment facilities.
Em Live at The EmSphere will be built to accommodate 6,000 people and is scheduled to be opened in 2021. Bangkok Arena at Bangkok Mall is scheduled to open in 2022, with a capacity of up to 16,000 people.
"As the Mall is not the biggest company, each of the steps we're doing have to be prominent and differentiated. This is our winning formula," Ms Supaluck said.
Based in Los Angeles, AEG has over 150 arenas, stadiums, theatres, clubs and convention centres on five continents, including The O2 Arena, the Sprint Center and the Mercedes-Benz Arenas.
AEG entertains more than 100 million guests annually.
Adam Wilkes, president and chief executive of AEG Asia, was in Bangkok Thursday. He said the two companies got to know each other quickly in only six months before becoming strategic partners.
"We share the common vision to create the best possible immersive experience in entertainment that cannot be copied," he said. "Southeast Asia is going through a transformation. As incomes rise and spending power increases, consumers in the region are demanding more sophisticated entertainment experiences."
Mr Wilkes said the two significant developments will be game-changers, giving events greater opportunity and helping Bangkok and Thailand become the most important retail and entertainment hub in Southeast Asia.
Over the last decade, Bangkok and Thailand have seen rapid urbanisation and changing consumption trends.
Bangkok has also been named the world's most-visited city, welcoming more than 38 million international travellers in 2017, and is expected to receive 42 million this year, he said.