Increasing visitor frequency and spend are key objectives for shopping centre owners and retailers. Understanding your customers - their demographics, wants and needs - and creating a satisfying experience accordingly, is inherent in the marketing strategy.
It was interesting to read therefore of the imminent arrival of Louis Vuitton and Chanel, into two of Australia's most prestigious shopping malls. Louis Vuitton , the world's largest luxury brand, will open its first shopping mall store at Westfield Bondi Junction next month, and both Louis Vuitton and Chanel are set to open stores at Melbourne's Chadstone The Fashion Capital in November.
As reported in The Australian this weekend, the stores are opening as part of a longer term strategic plan for the brands and in response to trends indicating that most shopping occurs outside of the CBD centres these days.
Strategically - and most obviously - the Centres understand their demographics - they know they have customer segments which match the customers the luxury retailers are seeking.
However there are other benefits. For shopping centres, coveted brands will attract other high end brands,and Centre income via retailer rents can be enhanced by securing such retailers.
A consistent brand mix with some great brands will also add to each Centre's asset value.
And this is all before we contemplate sales revenue.
Sales revenue will be enhanced not only from the sales generated by the new stores but by the increased traffic they will attract into the Centre - an opportunity the Centres' existing retailers will warmly welcome and leverage.
Shopping centre owners are conscious of their brand mix and attracting new retailers not only enhances their existing retail mix but will improve their brand equity and asset value.
For retailers in shopping centres - new brands represent an opportunity to leverage.
For retailers not located in shopping centres, the strategic rationale described here can be applied by examining your neighbouring businesses and identifying ways to leverage visitors and activity.
Although most new and surrounding retailer businesses won't be luxury brands like Vuitton and Chanel, they can all represent strategic marketing opportunities for existing retailers.
Marketing Is Us founder and Director (and this blog's scribe), Anne Sorensen, was Marketing Manager for Chadstone The Fashion Capital from 2000-2002. Chadstone was the first Australian shopping centre to be valued at $1 billion.
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