Real Estate Investor Magazine South Africa June 2016

1 Clear identity and super convenience Time is now a luxury, and therefore clear focus is necessary. Super-convenience and clarity are now required, as consumers need to easily identify the shop and the product allowing for easy, quick and focused shopping. The future is for brands that position themselves at a pitch-perfect level in this respect. In certain cases, a simple store colour change, which has had the correct positive association in the consumer’s eye, has driven staggering trading increases. 2 From replicate to create The once high demand for brands to roll out replica stores, irrespective of location, is over. Consumers are now demanding differentiation, and that brands, be they shopping centres or stores, innovate to provide a unique and different experience and place themselves with a higher degree of integrity and adapt to provide more local flavour. Consumers are tired of sameness, desire fresh change and are more willing to spend money on appealing new concepts. 3 Personal branding and luxury The current rejection of replication aligns with the growing personal branding trend. Self expression and original style are now mainstream and celebrated. Resultant personal adornment and grooming is increasing. It is reflecting in the significant rise and success of boutique fashion, luxury brands, hairdressers, sunglasses and accessories stores. The connection between the brand and the consumer is now far more intimate than it has ever been, and retail needs to fully understand, connect with and serve the personal brand. Global luxury brands cleverly understand this by propping up the personal brand with international status. 4 Wellness movement A value shift is underway and consumers are increasingly seeking life balance and contentment. This is an important, growing trend, which has driven increased health and lifestyle choices. Key areas that are continually adapting as organic, natural and durable alternatives gain momentum are cosmetics, food and the home. This evolution opens opportunities for food, spas, health and beauty, home furnishings, bathroom and kitchen design. The trend marks the emergence of a new retail category distinct from general health and beauty. 5 Information overload and virtual vanity Technology and resultant social, knowledge and shopping platforms have caused an information overload. Therefore retail players must be highly strategic with online marketing efforts to successfully win their slice of virtual attention. Interestingly, online shopping in South Africa has not surged in line with international trends, as SA shoppers still show a preference for the tactile shopping outing. However, chosen shopping destinations seem to be increasingly driven by online and price comparison influences. Virtual vanity has become rampant as a result of easy, quick and wide social exposure – so much so that people are recording their lives rather than living their lives. The mall and retailer should therefore focus on becoming the physical backdrop of choice for online personal promotion. The surge in mobile communications supporting these trends has marked the emergence of a new cell phone retail category distinct from general electronics, with different trading patterns. 6 Malls as ‘The Third Place’ Malls have the perfect opportunity to capitalize on their natural positioning as the ‘third place’. Unlike the first place (home) and the second place (work), the third place is important for civil society, democracy, civic engagement and establishing feelings of a sense of place, says Ray Oldenburg, an American urban sociologist in his influential book ‘The Great Good Place’. Malls should focus on providing a lifestyle trend-driven and tranquil community meeting point with a social, relaxation, design and shopping experience comprising care, ‘human touch’, greenery, water features and a tactile experience that cannot be duplicated on-line. ‘Malls as the third place’ is a growing phenomenon not only in Europe, but also in South Africa. RESOURCES Clur Research International JUNE 2016 SA Real Estate Investor 43

Real Estate Investor Magazine South Africa June 2016 | Page 45