18 December 2008
Shopping malls in the Middle East must adopt new marketing strategies and techniques to minimise the impact of any possible economic slowdown, says an expert.
They should aim to maximise the use of retail space, attract new customers and avoid mistakes made in the US and Europe, where malls are reeling from the effects of the global crisis.
"The current economic situation makes it more important for the industry to attract more footfall to their malls by adopting proper strategies," said Carolyn Feimster, President of CJF Marketing International.
"I have noticed that many malls in Dubai do not have space set aside for senior citizens, which can attract more footfall. Similarly, many malls in the region do not have a library or reading room that can attract more people.
"Malls could attract more tenants and shoppers by inviting government departments, police department health clubs, chamber of commerce offices and even educational facilities onto their premises.
"They can also improve footfall and sales by attracting temporary tenants who may later sign long-term leases."
She said mall owners should revise their lease terms and even slash rents to help tenants to continue as viable business units in a period of slowdown and falling sales. And more research and market surveys should be carried out.
"Malls have to research not only on their own customers and tenants but on the rival malls too," she added. "They need to identify potential geographic and demographic factors that prevent customers from shopping at their malls."
Feimster was speaking at Marketing Shopping Centres Successfully, a two-day seminar held in Dubai by the Middle East Council of Shopping Centres (MECSC). The event focused on ways to market a new or renovated mall and attract more customers.
A spokesman for Al Ghurair City who attended the seminar said the mall had already adopted new marketing strategies. "We have special promotions including scratch-and-win schemes for taxi drivers to encourage them to drop more customers at our mall," he said.
Another participant who was representing a major mall developer said he did not see any need yet for UAE mall owners to cut rents. "The impact of the global economic slowdown is not currently being felt in the shopping malls here," he added. "Next year some malls may have to revise lease terms if there is a sharp decline in mall business in the region."
An MECSC spokesperson said the event had been organised to enable mall operators to understand consumer behaviour through various means including market research and surveys and to establish the optimal tenant mix. The council represents mall owners, developers and professionals and is affiliated to the New York-based International Council of Shopping Centres.
Shopping malls in the Middle East must adopt new marketing strategies and techniques to minimise the impact of any possible economic slowdown, says an expert.
They should aim to maximise the use of retail space, attract new customers and avoid mistakes made in the US and Europe, where malls are reeling from the effects of the global crisis.
"The current economic situation makes it more important for the industry to attract more footfall to their malls by adopting proper strategies," said Carolyn Feimster, President of CJF Marketing International.
"I have noticed that many malls in Dubai do not have space set aside for senior citizens, which can attract more footfall. Similarly, many malls in the region do not have a library or reading room that can attract more people.
"Malls could attract more tenants and shoppers by inviting government departments, police department health clubs, chamber of commerce offices and even educational facilities onto their premises.
"They can also improve footfall and sales by attracting temporary tenants who may later sign long-term leases."
She said mall owners should revise their lease terms and even slash rents to help tenants to continue as viable business units in a period of slowdown and falling sales. And more research and market surveys should be carried out.
"Malls have to research not only on their own customers and tenants but on the rival malls too," she added. "They need to identify potential geographic and demographic factors that prevent customers from shopping at their malls."
Feimster was speaking at Marketing Shopping Centres Successfully, a two-day seminar held in Dubai by the Middle East Council of Shopping Centres (MECSC). The event focused on ways to market a new or renovated mall and attract more customers.
A spokesman for Al Ghurair City who attended the seminar said the mall had already adopted new marketing strategies. "We have special promotions including scratch-and-win schemes for taxi drivers to encourage them to drop more customers at our mall," he said.
Another participant who was representing a major mall developer said he did not see any need yet for UAE mall owners to cut rents. "The impact of the global economic slowdown is not currently being felt in the shopping malls here," he added. "Next year some malls may have to revise lease terms if there is a sharp decline in mall business in the region."
An MECSC spokesperson said the event had been organised to enable mall operators to understand consumer behaviour through various means including market research and surveys and to establish the optimal tenant mix. The council represents mall owners, developers and professionals and is affiliated to the New York-based International Council of Shopping Centres.
By VM Satish
© Emirates Business 24/7 2008
