This afternoon began with a fireside chat with Chris Chong, CEO of Retail and Workspace CapitaLand Investment and Low Ngai Yuen Chief Merchandise and Marketing Officer at AEON Group.
CapitaLand Group (CapitaLand) is one of Asia’s largest diversified real estate groups. CapitaLand’s portfolio focuses on real estate investment management and development and spans over 260 cities in over 40 countries.
Aeon is a general retailer that operates retail, health and wellness, general financial services, property development, and service/specialty store businesses in Japan, as well as in China and across ASEAN markets.
In this rapidly evolving business environment, Aeon recognises the importance of leveraging technology to significantly transform our existing businesses, while seizing new business opportunities, and building a prosperous future together with local communities.
The discussion began with key learnings for CapitaLand. Chris spoke about how shopping centres, specifically across Asia were shifting and evolving from simply ‘provisioning’ to ‘experiential lifestyle hubs’.
“We’ve needed to keep pace with our shopping centre assets. Where once, a shopping centre was anchored by a couple of large tenants, a supermarket and then specialty, they now are far much more.”
“Today, you’re heading to the shopping centre to go to the gym, grab a coffee and have lunch with friends at a great restaurant. You’re getting your car washed, catching a movie or attending a medical appointment.”
“We now work with lifestyle architects to develop, and often redevelop older centres into smaller, Lifestyle centres.”
Such formats emerged in the late 1990s and were often referred to as boutique malls, often located in prosperous suburban areas. Lifestyle centres are designed to maximise activities people can do while on a shopping spree. They combine the features of a shopping centre or commercial development with shopping functions and leisure activities.
The entire centre eco-system is important when designing these lifestyle centre experiences.
“While food brings us back each day, you need more than just a ‘F&B’ offer. Food should not just be considered a necessity; it should also create new discoveries. Think ‘Pop-Ups’, temporary tenants, local food providers, local food brands and cooking classes. A truly localised and bespoke offer.”
“We plan our centres, even the smaller ones, to reflect the broader community. We have centres that are focussed on premium/luxury brands, different food offers or are positioned around sports and lifestyle offers. In total, around Singapore we would have eight to nine micro markets.”
“We share our data with our clients so that they can curate an offer that connects with the community it serves. A supermarket, for example, is a necessity, but we have worked with FairPrice to add a communal experience.”
In February this year, ‘FairPrice Finest’ opened its first experience supermarket that pays tribute to the heritage of its location at ‘CQ @ Clarke Quay’. It showcases its commitment to continuously reinventing and elevating the retail experience.”
The supermarket features an extensive assortment of local foods and themed merchandise from local artists. It also offers a new ‘Grocer Food Hall’, which provides a food experience zone where customers can indulge in a variety of culinary options. The ‘Grocer Bar’, which offers an in-store bar where shoppers can enjoy an extensive list of wines and craft beers. An ‘Experiential Zone’ – where customers can participate in cooking classes, demonstrations and other activations.
“We have also recently added a ‘You Pick, We Cook’ option, where customers can select their cut of beef and cooks will prepare it to their liking.”
Chris concluded by outlining six key areas and priorities retailers should be focused on in the next five years.
- Tap into the latest technologies and emerging trends to inform and cultivate the next generation of customer segments.
- Collaborate with private and public sector stakeholders to drive industry-wide initiatives.
- Collectively drive progressive initiatives to build talent, ensure carer progression and promote upskilling of workforces to support retailers’ business transformation.
- Think ‘out of the box’ by marrying retail and passion themes, such as arts and heritage to create new and unique experiences through collaborative partnerships.
- Develop and activate memorable and unique ‘retailtainment’ experiences to engage shoppers beyond conventional transactions.
- Promote vibrant shopping environments and transform traditional centres into dynamic social hubs.
