Market research in shopping mall planning

MARKET RESEARCH IN SHOPPING MALL

PLANNING

DR SUKRU ASLANYUREKRETAIL VISION LTD, ISTANBUL

LAST WORDS AS FIRSTDOING MARKET RESEARCH IS THE FIRST DECISION TO BE MADE IN MALL PLANNINGMAKE RESEARCH YOUR BEST DISPLAY OF «BOSS EGO»:THE COST OF NO «RESEARCH FIRST» IS HUNDREDS OF TIMES GREATER THAN MARKET RESEARCH ITSELFMAKING THE BEST USE OF RESEARCH RESULTS TAKES COURAGE, WISDOM, MATHEMATICAL SKILLS AND ABILITY TO MANAGE A TEAMNO OTHER SKILL CAN REPLACE ENTRPRENEURIAL SPIRIT.

MALL DEVELOPMENT OBJECTIVES

PROFIT

SUSTAINABILITY

BRAND DEVELOPMENT

SOCIAL ISSUES

DEVELOPER

VARIABLES: OUTSIDE AND INSIDE• ECONOMY • SOCIETY

• POLITICS• CITY

FINANCE

TEAM

TENANTSDESIGN

STEPS AND TOOLS IN RESEARCH

SCIENCE FIRST

LOOKING AT THE MARKET: AN EAGLE’S VIEW

AREA OF STUDY

1.GEOGRAPHY

2.ECONOMY

3.SOCIETY AND CULTURE

4.RETAIL PROPERTY AND BUSINESS

5.TECHNOLOGY AND BUYING BEHAVIOUR

TOPICS AND TOOLS 1.URBAN DEVELOPMENT AND LOCATION DATABASE

2. INCOME , EMPLOYMENT , SAVINGS AND VALUE ADDED

3.FAMILY; LEISURE; CONSPICUOUS CONSUMPTION; EDUCATION ,CUSTOMS

4.SUPPLY OF RETAIL PROPERTY AND THE STRUCTURE OF DEMAND

5.DIGITAL MEDIA , COMMUNICATIONS, CUSTOMER EXPERIENCE MANAGEMENT

PLANNING PROCESS

1. phase: THE MARKET

2. phase: REGULATIONS

3.phase: MONEY MATTERS

BRAND POSITIONING

BUILDING PERMISSION

ADMINISTRATIVE & INFRASTRUCTURE

TARGET MARKET CONSERVATIONCONSTRUCTION AND PROJECT MANAGEMENT

SHARE OF WALLET

LOCAL CHARACTER

MARKETING AND CONSULTANCY

TENANT MIX COMPETITION RETURN ON INVESTMENT

STEP BY STEP RETAIL IS DETAIL

Resim eklemek için simgeyi tıklatın

RESEARCH 1: GEOGRAPHIC INFORMATION SYSTEMS (GIS): LOCATIONS TELL THEIR STORY

RESEARCH 2: GEOGRAPHY AND ECONOMICS: HAND IN HAND

TURKEY 2013

•€ 148-178 BILLION • %55 UNOFFICIAL•3 MIO EMPLOYED

ORGANIZED RETAIL•%35-50. •550.000 EMPLOYED

REGIONAL DISTRIBUTION•İSTANBUL %40 • NEXT 6 PROVINCES %30-40•OTHER (74 PROVINCES) %20-30

AN ANALYSIS OF TOTAL INCOME AND RETAIL EXPENDITURE IDENTIFIES THE SHARE OF REGIONS, CITIES AND SPECIFIC LOCATIONS IN TERMS OF THE SIZE AND NATURE OF THE RETAIL BUSINESS TODAY AND TOMORROW

GEOGRAPHYMONEYTIMESPACE

RESEARCH 3: DNA OF HUMAN LIFE MONEY, TIME, SPACEG

MT

S

3D «MARKET SEGMENTS» I

TARGET MARKET SEGMENTS CAN NOW BE DEFINED NOT BY RECTANGLES BUT 3D CYLINDERS OF DIFFERENT SHADES OF COLOUR

A + A1 A2 BX B1 B2 CX C1 C2D E

“GREAT BRITISH CLASS SURVEY” BBC -1

1. Where you live2. Tastes and areas of

interest (a) Activities (b) Choice of music ( c) Food 3. Education4. Social

relationships/groups 5. Media preferences6. Social influence and power7. Profession

“GREAT BRITISH CLASS SURVEY” BBC -2 8. Family history9. Vacation preferences10. Money 11. Demographics12. Opportunities( for career and jobs)13. Class ( Lower working, Middle working, Top wage earner, Medium wage earner, Low wage earner, Upper class)

RESEARCH 4: RETAIL PROPERTY AND BUSINESS

TURKEY 2013

RETAIL PROPERTY• RETAIL CENTERS 330 MALLS / 9 MİO M2. • DOWNTOWN RETAIL: ????

ORGANIZED RETAIL• CHAINS: 300 FMCG +300 OTHER• LOCATIONS: 30-3000 STORES• AVE. SIZE (NON-FOOD) 80 STORES *200 M2 =16000 M2

NON-FOOD BRANDS IN GROWTH FASHION, LEATHER AND ACCESORIES ELECTRONICS AND HOMEGOODS FOOD SERVICE

THE NATURE, SIZE, VALUE AND DISTRIBUTION OF RETAIL PROPERTY AMONG REGIONS, CITIES, LOCATIONS AND BRANDS

STRATEGY MATTERSDEFINING THE BUSINESS

DEFINITION OF TRADE AREAPRIMARY TRADE AREA ( e.g.0-10 km)SECONDARY TRADE AREA (e.g. 11-30 km)TERTIARY T.A. (e.g. visitors

SHARE OF WALLET AND TENANT-MIXSHARE OF WALLETULI CATEGORY SHARE IN TRADE

AREA

A-D-E %12

B-C- %14

N-S %6

F-G %17

M-N-R %5

P-S %10

T-Y %8

W-X- %12

FMCG %5

TENANT MIX (% OF GLA)TENANT TYPE % OF SPACE

ANCHORS %25-50

FOOD %50

NON-FOOD %50

MEDIUM SIZE 10-20%

SPECIALTY 30-50%

FASHION %70

NON-FASHION

%30

SERVICE 5-15%

FINALLY: MONEY MATTERS

FINANCIAL

ASPECTS OF

MALL

DEVELOPMENT

ADMINISTRATIVE AND INFRASTRUCTURE COSTSLOCAL GOVERNMENT PLANNING PERMISSIONS

REGİSTRATION, LICENSING AND LEGAL DOCUMENTS

ENVIRONMENTAL PROTECTION AD DEVELOPMENT

LOCAL INFRASTRUCTURE ( ROADS, SQUARES, GREEN AREAS, SEWAGE ETC)

ENERGY PROVISION

SOCIAL AWARENESS ISSUES

UNEXPECTED COSTS

SHARE IN TOTAL DEVELOPMENT COSTS DEPENDS ON LOCAL CONDITIONS. 3-20%

CONSTRUCTION AND PROJECT MANAGEMENT COSTSARCHITECTURAL DESIGN 1-3%

INTERIOR DESIGN 0.5-1.5%

BRAND DEVELOPMENT 0.25%

PROJECT MANAGEMENT 1-2%

STRUCTURE 20-35%

ENGINEERING 25-60%

FURNISHINGS 10%

DIGITAL EQUIPMENT 1-2%

MARKETING, CONSULTANCY AND MANAGEMENT COSTSoMARKET RESEARCH

oLEASING AGENT

oMARKETING COMMUNICATIONS DURING CONSTRUCTION

oTENANT ALLOWANCES AND SUPPORT

oLAUNCH CAMPAIGN

oCONTRIBUTION TO MARKETING FUND

oMANAGEMENT SOFTWARE AND OFFICE

oMANAGEMENT FEES TOTAL 5-10% OF CONSTRUCTION

RETURN ON INVESTMENT

WHAT DO WE GET IF WE INVEST?

WHAT WE MAY GET IN RETURN- 1TENANT MIX RENTAL INCOME

FIXED RENT

% RENT AVERAGE

€10 3% €15

€10 6% €20

€20 7% €30

TENANT TYPE

% OF SPACE

ANCHORS %25-50

FOOD %50

NON-FOOD %50

MEDIUM SIZE

10-20%

WHAT WE MAY GET IN RETURN- 2TENANT MIX

TENANT TYPE

% OF SPACE

SPECIALTY 30-50%

FASHION %70

NON-FASHION

%30

SERVICE 5-15%

RENTAL INCOME

FIXED RENT

% RENT

AVERAGE

€50 8% €65

€70 10% €85

€10 - €10

RETURN ON INVESTMENT COMPARED

INVESTMENT PAY BACK PERIOD

LIFE-STYLE AND FESTIVAL

CENTERS4-8 YRS

RETAIL PARKS 6-8 YRS

REGIONAL + MALLS

10-12 YRS

LOCAL RETAIL CENTERS

8-10 YRS

HOW DIFFERENT TYPES OF PROJECTS WILL PAY BACK ON INVESTMENT ( i.e. Rate of return on capital) WILL DEPEND ON ALL OF THE ABOVE.

FIRST AND FOREMOST, ON THE QUALTY OF MANAGEMENT.

THANK YOU