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View all search resultsIn the recent past, society has become more plugged-in than ever
n the recent past, society has become more plugged-in than ever. With the increasing utilization of gadgets, smartphones, iPads, tablets and the like, access to the Internet has become more convenient. In addition to this, wi-fi is easily available in most restaurants and coffee shops.
In line with this plugged-in environment, online shopping has become one of the growing trends in the community. Online shopping sites offer all kinds of merchandise, from branded goods, batik, electronics, gadget accessories and cosmetics to vitamins and supplements — you name it.
Although the vast majority of transactions are for low-risk and lower-priced merchandise, online shopping portals and social networks have ensured people stay attached to their gadgets even more. With busy day-to-day activities, not to mention traffic jams, online shopping is considered to be practical and is becoming a lifestyle choice for many. With just a click of a mouse, transactions occur, indicating that convenience and efficiency are becoming increasingly important.
How does this impact retailers and shopping-center owners? For some retailers whose products are more generic, such as books and CDs, this trend could have a negative impact and be a threat to their stores. However, for other retailers, such as those offering fashion accessories and cosmetics, the Internet offers an opportunity to increase sales and expand their shopper profiles.
Shoppers can check for the latest models and products online and compare the prices but they still have a need to touch and feel the products. With this ongoing trend, we have seen some fashion retailers increase their sales volumes through online shopping and experience a decrease in their store sales. Overall, however, they still benefit.
Although the trend is not seen as a threat to malls in Indonesia, this should be an early warning system for mall managers to spruce up their malls and think of creative ways to keep visitors “addicted” to their real stores.
What can malls offer that online shopping can’t? Basic human needs.
The need to interact; to socialize; to be able to dress up and be seen; self-actualization; to feel and touch. The need for entertainment, recreation and, most importantly, the whole shopping experience itself.
Service and ambiance is an important part of the shopping experience. Experience shows that customers turn into shoppers because of interception. Interception by sales attendants, who by sharing their professional views on products are highly appreciated by customers. Good relationships with customers, such as letting them know about new products, discounts and other promotional offers should constantly be communicated to the customers.
Ambiance and a detailed attention to the comfort and convenience of each mall will encourage customers to stay longer and so, in turn, spend more, especially at food and beverage outlets. Nowadays, cleanliness in bathrooms and the availability of prayer rooms are a critical part of consumer preference in choosing where they hangout and shop. Extra facilities, such as electrical outlets, cell-phone chargers and gift-wrap services, are small things that can make a big difference.
Shopping centers need to evolve to the space in which consumers are moving. Evolution is an important part of sustaining the retail business, such as creating events and regularly changing the “look” of the shops, and the mall itself.
Shopping-center owners need to get their act together by ensuring that customers get what they want and are willing to spend out for what they want.
Malls should also have a presence on various social networks including Facebook, Twitter and so on.
Malls should be wi-fi ready and provide access to customers looking for stores; for instance, a downloadable shopping-mall application.
Malls should be dynamic and evolve as fast as their customers.
Keep customers interested by regularly changing special themed occasions or decorations throughout the mall, providing a unique experience for visitors.
Offer a more exciting and interesting variety of brands. Particularly with the increasing interest from foreign retailers and new-to-market brands, mall owners should be ready and able to get those brands into their malls.
Be aware of what customers are saying about your mall; gather feedback and actually do something about it.
Consistently provide superior service to both customers and retailers.
Social media is rapidly growing and it could be a very powerful tool, especially with Indonesia boasting one of the largest populations of Facebook users. It can make or break your reputation.
So, social media should not be seen as a threat but should be treated as a friend and an opportunity to expand the market share. Portals that offer discounts on merchandise and restaurants are quite “friendly” to shopping centers as shoppers will still need to visit the stores or eat in the restaurants to utilize those discount coupons.
In short, physical stores will remain an essential part of the equation for successful global-brand retailers for their brand awareness. Shopping centers made of bricks and mortar will still be attractive to customers. However, center managers need to be attentive to customers’ needs and experiences. After all, the customer is king.
The writer is the head of Strategic Consulting & Retail at Jones Lang LaSalle Indonesia.
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