More Vision 2: Citysumers

MORE+ Vision n°2 September 2011 Vision by every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up Why retail must reach out to CitysumersMAPIC ® is a registered trademark of Reed MIDEM - All rights reserved - Reed MIDEM, a member of Reed Exhibitions, © 2011 Urbanisation is one of the biggest macro trends of our time, with Europeans increasingly choosing to live, work and play in the city. Inside As a result the retail real estate industry has returned the modern mall concept • The trend briefing to the city and retailers and landlords are chasing a growing urban population of • Interviews: trend leaders – linked by interests and attitudes that transcend borders. Greg Clark Among this new generation of ‘Citysumers’ (for City-Consumers), who number GDR in their hundreds of millions, are experienced and sophisticated urbanites, from Boxpark Berlin to Beijing, London to Los Angeles, who are ever more demanding and more open-minded, but also more proud, more connected, more spontaneous and Perella Weinberg more adventurous, eagerly snapping up a whole host of new urban experiences. ECE Hammerson So how can retailers and retail developments reach out and engage with this influential yet fickle urban tribe? • What is MORE+ Vision? • What is MAPIC? We’ve talked to four of you who shared with ‘MORE Vision’ their view in an exclusive interview - Together with key data, useful links and must-see video, it makes the second issue of MORE Vision. Follow us on

Vision by Follow us on every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up The trend briefing Where does the trend come from ?* The big cities are getting bigger. If it wasnt for China (43%), Africa (33%) and India (29%), the world would already be significantly more urbanised than the 50.5% it is today (CIA The World Factbook). Close to 180,000 people move into cities daily, adding roughly 60 million new urban dwellers each year (Source: Intuit). By 2050, the global urban population is expected to be 6.3 billion, or 70% of the global population at that time (Source: UN). By 2030, China will have 221 cities with more than 1 million people, and India will have 68. In 2010, Europe had 35 (Source: Foreign Policy). Serving Citysumers within their urban environments requires brands, retailers and mall owners to differentiate their offers from out-of-town malls and to tailor their products, environments and campaigns to appeal to savvy urban audiences and the sense of place. This can be for anything from practical reasons (offering appropriate shapes, sizes and features of urban goods and services), to showing the brand gets it (addressing busy and diverse lifestyles), to contributing to the quest for social and environmental sustainability.MAPIC ® is a registered trademark of Reed MIDEM - All rights reserved - Reed MIDEM, a member of Reed Exhibitions, © 2011 Here are just three drivers behind the Citysumers trend: • Urban boom: The huge and continuing increase in the number of urban dwellers all around the world. • Urban might: The ever-increasing disposable wealth and power of cities and those who live in them. • Urbane: The wider spread of urban culture and values across borders and beyond the cities. *Source: trendwatching.com a London-based, independent trend firm, scans the globe for the most promising consumer trends, insights and related hands-on business ideas. Its free monthly Trend Briefings get sent to more than 160,000 business professionals in 180+ countries.”

Vision by Follow us on every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up Opportunity 1: Selected links Selected video John Lewis Partnership is the official Forever 21, Times Square Urbane culture is the culture department store partner for the 2012 London Olympics and will have a Consumption-wise, the fast pace and ever-chan- dedicated in-store Olympics section at ging nature of urban life guarantees Citysumers its new Westfield Stratford City an endless number of new and fleeting social flagship, directly opposite the main connections, experiences and (commercial) temp- stadium. tations. In fact, urban culture is the culture these DKNY Fragrances are a popular way to days. In thriving mega-cities, whose economic and capture a citys essence and high-end cultural power already often surpass that of entire US fashion brand and retailer DKNY nations, Citysumers identities will often be closely released a fragrance "Love from New York for Women", while the city of tied to a citys culture, its brand, its heritage, its Beverly Hills created its own line of being. This means retailers delivering city-specific three scents to "evoke what life is like products, services and communications that truly for the Beverly Hills woman". capture a citys character can find a great, human American Apparel The controversial US How do you see it? and fun way to pay respect to Citysumers. fashion retailer promotes its vertically Share your view and join in integrated business model, highlighting the discussion! the fact that it minimises the use of sub- Can a shopping environment capture contractors and offshore labour and the city in the same way as a product? that knitting, dyeing, sewing, photography, marketing and design all Can the influence of Citysumer taste happen in its Los Angles facilities. This be taken to smaller towns or across shows that a ‘Citysumer’ heritage can borders? be transferred to the mainstream. Post your answer 4More links on trendwatching 4here Opportunity 2:MAPIC ® is a registered trademark of Reed MIDEM - All rights reserved - Reed MIDEM, a member of Reed Exhibitions, © 2011 Selected links Selected video Yahoo! Challenge, thrill and locate Uniqlo This August the Japanese fast- fashion retailer opened four pop-up Citysumers tend to be more open-minded. This stores around New York ahead of the means that a large urbane audience is up for opening of two city flagships. Two of the mobile-stores were moved around key retailers that challenge, thrill, titillate, or even shock holiday locations and New York festivals. (just as long as its done in the best possible taste ;-). At the very least, retailers and shopping Shaftesbury and Cap Co The London landlords for ‘retail villages’ Seven Dials environments need to show some personality, and Covent Garden successfully worked loosen up and embrace urban culture, in all its gritty together to be included in Vogue Fashion’s glory. Risky? Yes. But not as risky as being bland. Night Out event on 8 September this year, With online access making everything available to extending it beyond the West End. consumers from Copenhagen to Cairo, impose an Starbucks In August 2010 the coffee chain oft-forgotten scarcity through limited location How do you see it? launched a new range of ultra-premium, products. The upside? That scarcity will be reflected Share your view and join in single-origin coffees only available in the discussion! in Citysumers engagement, excitement, the sense limited quantities in metropolitan markets of a store or mall as destination and ultimately their including: New York City, San Francisco, Which retailers for you have willingness to pay premium prices. Los Angeles, Washington DC and Miami. successfully conveyed Yahoo! In December 2010 in San Francisco personality? Yahoo! installed digital screens in 20 bus Have you played, or would you shelters on which commuters played video play, a street game in a public games against each other. Passengers could realm space? choose which of the 20 specified neighbourhoods they would like to represent Post your answer and the winner was rewarded with a music 4here block party featuring the band OK Go. 4More links on trendwatching *Source: trendwatching.com a London-based, independent trend firm, scans the globe for the most promising consumer trends, insights and related hands-on business ideas. Its free monthly Trend Briefings get sent to more than 160,000 business professionals in 180+ countries.”

Vision by Follow us on every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up Selected video Opportunity 3: Selected links Ticketmaster Geomium is an iPhone app launched in Enabling contact September 2010 in London that informs the user of where their friends are, what events are on in their area, as well as feeding them special offers and promotions in the area. Best Buy In June Best Buy confirmed that it is to roll-out its shopkick walk-in rewards initiative to all of its 1,300 stores following a successful trial in August 2010. Shopkick provides unique reward incentives, offers and engaging gaming How do you see it? features for customers in-store. Share your view and join in Gowalla This Foursquare competitor the discussion! decided to curate its content for select Can shopping centres use location- cities via City Pages, providing a display based applications to bring people of popular places and whats "hot together at their venues or will they now.” Malls are featured, including soon be viewed as intrusive? Despite ever-increasing amounts of time spent online, audiences arent retreating into virtual worlds. Au those offering free Wi-fi. Do shopping centres do enough to Ticketmaster has added Facebook act as platforms for people to meet contraire, Citysumers will forever enjoy connecting with and engage? other, real-life human beings, and embrace the choice, integration to its interactive seat maps. the excitement, the frenetic pace, the spontaneity, the The feature allows users to share live Post your answer event plans by tagging themselves in 4here chaotic vibrancy offered by urban life. In fact, online their seat, thus allowing their Facebook (especially with smart phones being the new laptops), friends to see where they are sitting. increasingly drives and enables offline encounters, for 4More links on trendwatching which shopping centres are the ideal platform.MAPIC ® is a registered trademark of Reed MIDEM - All rights reserved - Reed MIDEM, a member of Reed Exhibitions, © 2011 Opportunity 4: Selected links Selected video Ralph Lauren Enriching the urban canvass Ralph Lauren In November 2010 the US luxury brand and retailer Surrounded by the urban panoply, many time-starved, showcased a four dimensional choice-rich, smartphone-clutching Citysumers look to display on the facade of its stores in New York and London to celebrate retailers and shopping centre owners to bring them the tenth anniversary of ever more varied and instantaneous experiences, RalphLauren.com. The images were especially if those experiences are fast-paced, combined with music and fragrances transient interesting, physical, interactive etc. Savvy, for an extra special experience. wired urbanites increasingly have temporary access to Snapgoods enables people to rent almost everything. Retailers and retail destinations other peoples belongings, while need to engage with super-spontaneous and seriously Rent the Runway allows women to space-deprived consumers who want to be more than rent designer dresses (with same-day How do you see it? simply sold to. delivery available in NewYork City). Share your view and join in the discussion! IKEA For one week in December 2010, Parisians waiting to catch the Have you seen a quirky bus had the opportunity to wait in promotion on the street which comfort as the Swedish furniture has inspired you? giant had decked out 12 (often Would you ever rent rather than crowded) bus stops with comfy sofas, buy to save money and space? shelves, lighting and decorations. Post your answer 4More links on trendwatching 4here *Source: trendwatching.com a London-based, independent trend firm, scans the globe for the most promising consumer trends, insights and related hands-on business ideas. Its free monthly Trend Briefings get sent to more than 160,000 business professionals in 180+ countries.”

Vision by Follow us on every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up The city expert’s view: Are Citysumers really dif- as residents and provide And what can develo- Greg Clark, city advisor and ferent and why do they the amenities and facilities pers do to enhance their strategist matter? they demand. centres? It’s important for people to Firstly, we have already see the bigger picture and to So what should retail seen the emergence of understand that urbanisation spaces look like to appeal mixed-use development wi- has been one of the pheno- to Citysumers? thin urban spaces which mena of recent times. We are Citysumers have taken an mix retail, residential and in a process of social and eco- active decision to live around leisure. The advantage for nomic change and this urbani- people and a lot of their work urban developers and ope- sation of Europe’s population and social time is encounter- rators is that city centre re- is going to become stronger, driven, so it’s vital that retail tail will continue to make so this is a transition that has environments and high sense even in the face of e- become and will remain fun- streets create those opportu- tailing and multi-channel re- damental and Citysumers will nities. Leisure plays an im- tail, it is very much become increasingly influen- portant role, such as cafes complementary. Invest- tial. Their needs are different and coffee shops, while the ment in public realm is also www.gregclark.com because they are living and offer will undoubtedly need vital in attracting those Ci- working in the core of their to be biased towards ser- tysumers to the retail and @TheBizOfCities cities and they are choosing vices – from hairdressing and leisure offer and here cen- to spend time and interact nail bars to specialist food, tre management – whether with those around them, so fashion and eating places. for a mall or open streets the retail and leisure offer There are opportunities for all environment – will really needs to match their needs sorts of retail niches. pay dividends. Guest view: Are Citysumers really dif- tures in terms of design and Citysumers are often star-MAPIC ® is a registered trademark of Reed MIDEM - All rights reserved - Reed MIDEM, a member of Reed Exhibitions, © 2011 Kate Ancketill, managing ferent and why do they service provision. They must ved of nature and greenery. director, GDR matter? provide for convenient pu- Developers could make Citysumers in advanced blic and private transport, more use of the excellent economies are likely to be with as broad a range of op- hydroponics now available. more culturally and ethni- tions as possible, including They should investigate in- cally diverse, to have higher secure storage for cyclists, teractive surfaces - walls, expectations in terms of in- whose numbers continue to walkways, large scale frastructure, transport and grow. Retail spaces should screens, all of which could convenience, and a want it provide interactive opportu- be used to communicate now attitude to retail with nities both for real-world so- with consumers and pro- late opening hours and on- cialisers (public vide a canvass for artistic demand home delivery op- entertainment and educa- expression. The building of tions. Their lives are tion spaces, for example), the future will reflect, in its increasingly integrated with and the digital equivalent for colour and interactive mes- social networks and those social networkers in the saging, the mood of the GDR is a research consultancy networks are increasingly form of public screens, inter- people passing through it. providing brands and companies with the thought leadership they need to interacting with the built en- active walls and other hi- It goes without saying that remain ahead in retail and hospitality. vironment. Self-promotion tech communication malls should have wifi, with Kate Ancketill will give a Keynote and personal brand building channels. Id advocate a mix geo-location available to vi- address at MAPIC, Cannes, France, is becoming the norm in di- of fast and slow options, the sitors. Contactless pay- Friday 18th November,11 am, Science Fact: Future Retail gital formats, and this is be- former using technology to ment systems and ginning to find expression in speed service up and pro- augmented reality gaming public arenas where crowds vide multi-purpose activities, and mall navigation should gather. and the latter to provide be on the developer’s radar, educational, culturally-rich as should audio signage. So what should retail experiential activities. There is a general trend to- @gdruk spaces look like to appeal wards malls being always- to Citysumers? And what can develo- open, digitally enabled and They should recognise and pers do to enhance their culturally integrated with reflect the mix of local cul- centres? the local community.

Vision by Follow us on every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up The brand/developer’s Are Citysumers really dif- high streets and out-of-town Of course the big problem is ferent and why do they centres all look the same. that retail development view: matter? That’s ridiculous. For Citysu- takes a long time, firstly be- Roger Wade, managing People want their local retail mers the retail offer has to cause planning takes so director of ‘pop-up mall’ centres to be vibrant and to be based first and foremost long and secondly because Boxpark reflect the local area but it around the retail, mixing in- many local retail offers are can be very difficult to re- dependents, food and the not controlled by a single build a high street if it has bigger brands – but those landlord, which makes brin- been left in neglect. What big names need to do so- ging change very difficult. they are looking for is loca- mething different for the lo- What we’re doing with Box- tions which bring together cation. For me it has to stop park is effectively a pop-up, shops, food and beverage being about the covenants we’ll only be in Shoreditch offers, experiences and and come from a retail base for five years so the plan- community services, which – if a tenant needs a short ning issues are much less then acts as the basis for re- lease, let them have it; if a complicated and we have generation. big brand comes in make the single ownership requi- sure that they are going to red to push forward with So what should retail bring something new. Most change. But what we can be spaces look like to appeal of the brands really buy into is a catalyst to effect change to Citysumers? the idea. on a high street which has I feel that a lot of people are needed regeneration for 40 bored with their retail cen- And what can develo- years and hopefully that will @BoxparkLtd tres looking the same, with pers do to enhance their mean a long-term legacy for the same brands making centres? the area.MAPIC ® is a registered trademark of Reed MIDEM - All rights reserved - Reed MIDEM, a member of Reed Exhibitions, © 2011 Investor reflections: Urban retail centres have performance in the social networking is Mark Faithfull, editor, Retail become increasingly popular company’s urban portfolio but becoming a vital way of Property Analyst among investors across warns would-be investors reaching out to urban Europe because they are in that even in Germany “You consumers. It is something a position to meet needs- have to be extremely focused definitely not to be missed. ” based requirements for the - we have become a major David Atkins, CEO of growing urban population, player in German shopping Hammerson, adds that while offering the single centres and we intend to developers and investors ownership advantages of develop that activity.” also need to be aware of the standalone centres. Alexander Otto, managing changing needs of Germany and the UK director of ECE, adds that Citysumers. In Birmingham arguably have some of the urban schemes enable the company’s flagship best examples of successful developers to get away from Bullring centre had six urban retail integration, with a fixation on dominant, restaurants when it opened, projects reaching out to super-sized centres scale but but having acknowledged influential Citysumers with stresses that a scheme that the company managed projects which should aim to be the pre- underestimated the dining retain authenticity. eminent shopping offer requirement has since Leon Bressler has expanded within its local environment. created a further restaurant Perella Weinbergs “ city centre level what you At quarter to improve and @markfaithfull1 investments in retail property want is to hold the dominant enlarge the food and in Germany, including the position in that town or city, ” beverage. “We learned our acquisition of Mfi, to become he explains. “There is also a lesson, reflects Atkins. “ ” At the second largest investor big change in the way such Aberdeen, which is half the and operator of German projects are asset managed. scheme size, we started malls. He cites strong Anchors are changing and with 26 restaurants. ”

Learn more about MAPIC Today’s intelligence for tomorrow’s business is a new initiative by MAPIC, The international market for retail real estate 16 – 18 November 2011, Palais des Festivals, Cannes, France. Vision Pavilion Every 2 months, MORE+ Vision will pitch a new trend that influences retail property strategy. MORE+ Vision is a multi- channel service composed of: • A general trend briefing, including a background on the trend, facts & figures, useful links, exclusive interviews with retail real estate professionals • An open and animated dialogue on MAPIC web platformsMAPIC ® is a registered trademark of Reed MIDEM - All rights reserved - Reed MIDEM, a member of Reed Exhibitions, © 2011 For regular upades, questions, comments … Join us on MORE Pavilion is a special MAPIC exhibition area, grandstanding four key trends for 2012: multi-channel, Jul. Nov. 2011 culture & shopping, SLOW and client gratification. The 2011 pavilion will mix with an exhibition of new retailing concepts Previous MORE+ Vision: Next MORE+ Vision: and innovative technologies. It will also spotlight the nature What is your Culture & Shopping of tomorrow’s shops and stores in a demonstration area social media strategy? developed by the Lille retail industries cluster (PICOM) called Register here The New Shopping Experience. Last but not least, retail Read it here if you wish to be notified social media strategy will be covered in a conference series, on the MORE Pavilion, throughout the duration of the event. Contacts Credits Contributors: Mark Faithfull • Joanne Archibald • Jean-Marc André Any questions on MORE+ Vision, Acknowledgement: MORE+ Vision wishes to thank the interviewees for their kind participation please contact Editor: jean-marc.andre@reedmidem.com Design: Frédéric Beauseigneur Want to advertise in MORE+ Vision, Source: “trendwatching.com, a London-based, independent trend firm, scans the globe for the most promising consumer trends, insights and related hands-on business ideas. Its free monthly Trend Brie- please contact wendy.genteuil@reedmidem.com fings get sent to more than 160,000 business professionals in 180+ countries.”

More Vision 2: Citysumers

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