Large retailers are following the global trend to give shoppers diverse experiences by turning their malls into destinations where shoppers can do pretty much everything.
The retail property market in Thailand has remained challenging. Slow retail sales and flat rental growth are contributing factors. The booming online shopping market is drawing more and more millennial shoppers.
On top of that, Thai consumers have become more sophisticated and demanding, the traditional brick-and-mortar shopping malls will have to learn how to adjust themselves so they can keep up with changing consumers' demands.
These facts have made "placemaking" a frequently discussed topic among retail professionals in Thailand, despite variable definitions.
Placemaking is about creating an environment that people choose or prefer to visit and return to by incorporating and integrating several potential elements into a mall. Thai retailers, as well as developers, have been taking notice. Placemaking is now a genuine retail trend.
The first key element of placemaking is scale -- the bigger, the better. Some smaller malls are declining simply because they cannot offer diversity and variety. We are now witnessing the trend of making a place a "destination".
For example, The Em District in Bangkok combines three shopping malls: Emporium, EmQuartier and the upcoming EmSphere. The concept is being undertaken by the same developer, using different concepts which complement one another. For convenience, all three locations are linked by a skywalk.
Also, One Siam by Siam Piwat, syndicating its 3 existing projects -- Siam Paragon, Siam Center and Siam Discovery -- in order to make it a destination and draw shoppers, especially tourists, into the whole project.
Another example is Gaysorn Group, which is combining three retail centres: Gaysorn, Gaysorn 2, and Amarin Plaza. These are to be linked by pedestrian bridges and named Gaysorn Village. Completion is expected around 2020.
Other elements that are being emphasised are experience, entertainment and excitement. New concept tenants such as Bounce Inc, an indoor trampoline and rock climbing park, are embracing this idea. Recently launched, The Marvel Experience Thailand is a new anchor at Mega Bangna, attracting tourists into the mall.
Also, B2S, a local bookstore chain by Central Retail Corporation, has opened its first "Think Space" concept at Central Festival EastVille, with a total area of 30,000 sq ft as a place for new ideas, inspiration and networking.
Many landlords are allocating and improving public and green spaces in their malls in order to organise more social and marketing events such as pop-up markets, F&B fairs, art exhibitions, charity events, fashion shows, and concerts.
The last key element is innovation and technology. Thailand's first smart car parking system at EmQuartier is one example. A leading coffee and convenience store chain also implemented the "E-Wallet" mobile application where customers pay for their orders and collect points or stamps. Many brands also use Line business accounts to inform customers about new products, promotions and to bring customers to their stores. Many restaurants are now using tablets as a menu instead of traditional paper ones. Moreover, high-tech Imax theatres, digital-integrated lounges, and online booking are available for the convenience of movie lovers.
Although online sales are rising, many people still prefer to shop in-store as it gives real-life interaction and new experiences. While online retail continues to pose a challenge to retail centres, real estate owners and developers are more and more adopting the placemaking concept and strategy into their malls to ensure continued appeal to the consumers. Shopping malls nowadays will not be just places for shopping but also places for creativity and excitement.
Jariya Thumtrongkitkul is associate director, head of retail services, CBRE Thailand. She can be reached at bangkok@cbre.co.th Facebook: CBREThailand Twitter: @CBREThailand LinkedIn: CBRE Thailand and website: www.cbre.co.th