How to sell a Mall

It’s been said over and over: Nobody shops like the Filipino. When Ayala Land hosted an international shopping forum, industry people from abroad were "shocked" at what they saw: the number of malls and the number of people who go to the malls. In a day, half a million people troop to Ayala Center – a figure unsurpassed by other Asian shopping centers.

"Malling is part of every Filipino’s lifestyle," say Winnie Nazareth and Rowena Tomeldan, assistant vice presidents of Ayala Land for Commercial Centers Group. Yes, despite the economic crisis, people haven’t stopped shopping.

So perhaps it is in our blood to go out and seek the nearest place that displays a price tag. But it’s no accident that Ayala Center manages to sustain the numbers and develop consumer loyalty.

The two Ayala Land assistant vice presidents talk about marketing strategies that have made the center successful, the center’s future development, and the ABCs of selling a mall, creating an experience and building loyalty.

1. Give consumers variety .

Consumers are a varied lot. Two shoppers may belong to the same economic bracket, have the same educational and social backgrounds, but have very different shopping habits. One may go for mid-range Giordano and Kamiseta while the other for the more expensive Marks & Spencer. With Glorietta Center alone comprised of four "malls" – the quadrants meeting at the Activity Center in the middle – it has the A to broad C markets covered.

"Our goal in the past which we have successfully accomplished was to make this mall a really international-type of mall, as if shoppers were in Hong Kong or the US not just in terms of retail and food, but also in entertainment," says Nazareth.

So all the brands were brought in, from the mid-range foreign brands to high-end designer names. The variety has also put an end to the snob appeal of Ayala Center. These days, everybody – from the office secretary to the Cabinet Secretary – has something to fit his budget

2. Innovate, don’t imitate

New concepts are nothing new at Ayala Center. A past interview with the owner of Soup Kitchen – the first soup bar in the country – revealed that when he applied for store space in Glorietta, his concept was approved a short two weeks later despite the fact that there were numerous applicants before him.

According to Nazareth, Ayala Center has always been committed to giving the best and the latest. Applications are easily approved because the mall wants to bring "global and innovative" stores that consumers will like.

A mall that stays the way it is will lose its edge when a new one comes along. "There must be something new all the time. You have to have something that consumers will come back to.

3. Create a convergence zone

That’s what Glorietta means: a gathering place where people can hang out, sit still for a moment – until they spot one more sale sign at least – and just relax.

"Back in the 1970s, Glorietta was already there," says Nazareth. "This was when the Quad arcade was introduced. Glorietta wasn’t a building, it was an open-air plaza."

The next best thing to an open-air plaza on a breezy, overcast Sunday afternoon is probably the Glorietta Activity Center. It was a deliberate effort on the part of the mall to create a place for people to meet and watch shows.

The activities here change from week to week or month to month. But isn’t it getting a little crowded there, what with exhibits all the time? "It is, but surprisingly that’s what people want," says Nazareth. "People go to the mall because they want to feel that excitement. If you don’t want crowds, stay home, go out of town. But the regular Filipino shopper wants to be with other people."

4. Take a chance

While the retailer or restaurateur’s track record is extremely important, there is always room for the committed new entrepreneur who’s willing to soil his hands to make his business successful.

Nazareth recalls how Glorietta gave Kamiseta its first big break many years ago. Look at Kamiseta now. "We gamble with a lot of entrepreneurs. Some of them have done very well through the years and are now very big. Blued was another store that we took a chance on. When we met the owners, they were young upcoming entrepreneurs in their early 20s."

Tomeldan adds, "Because we’re open to new ideas, we are willing to gamble. It pays off in the end."

If there are the success stories, there are also entrepreneurs that fail. "That’s a risk we have to be willing to take," says Tomeldan. "If sales are not as expected – whether it’s a kiosk or a store – we guide them, we call merchandise consultancy, we give support in whatever way. Sometimes, the entrepreneur would rather close down. But we don’t just terminate the contract. We give them two years to really try it out and give assistance in every way."

And the success rate of Glorietta in terms of shops that make it and don’t? "Between 85 to 90 percent. Glorietta has been there for a long time so most of those who get space do very well."

5. Improvement is not a dead-end street

It may be inconvenient for a certain period of time for shoppers, but when a mall starts to renovate, you can be sure the new space will be a welcome improvement once the boards come down.

"Glorietta wasn’t built one time," says Tomeldan. "We renovated Glorietta 1 and 2 in 1991, Glorietta 3 in 1993, and Glorietta 4 in 1997. It was built in phases."

Take Glorietta 4. Does anyone still remember how it looked like before they put all those nice restaurants? Or how it was started on the heels of Glorietta 3’s renovation? Or how the Greenbelt project was begun right after G4?

Tomeldan says that within Glorietta, they are still improving the zoning of shops. "We are still in the transition period, moving stores to conform to the zoning. It’s a never-ending process, we are improving all the time."

Stores in Glorietta 1 are geared toward office workers; Glorietta 2 for the young, budget-conscious market; Glorietta 3 for young urban professionals; and Glorietta 4, with its foreign brands, for the upscale market.

Another improvement that Glorietta brought to industry is the cinema concept. In a way, Glorietta 4 single-handedly raised the standard for movie houses in Manila and other malls are now playing catch-up.

"We were the first to bring movie watching to a level that’s at par with the rest of the world," says Nazareth. "There was a time when people didn’t have a choice: the theater lobbies were dark, the seats were not comfortable and the sound system was mediocre."

Glorietta 4 also brought in art films that no theater dared to show because there was no money in it. So was this market for non-commercial films created by Glorietta or was it just waiting to be tapped? "It was waiting for a venue. There has always been a market for that. Remember, they used to show films like that only at UP Diliman?"

6. Research, research, research

According to Nazareth and Tomeldan, Ayala Land conducts heavy industry research here and abroad. Key personnel are sent abroad to study the newest concepts being developed by shopping centers, interact with developers, and then adapt these concepts to the Philippine setting.

"We don’t just open malls. It’s a planned approach, which is the reason why we can sustain the development."

Ayala Land also knows you as the consumer more than you think they do. They know for a fact that the average consumer goes to the mall at least three to four times a month (that’s how often I go in a week!). That he has a different set of behavior when in the mall on a weekday compared to the time he spends there on a weekend. They know that on weekday the shopper is normally by himself and with his family on weekends. That he has a purpose for being in the mall on, say, Tuesday, and he more or less just wanders around on a Saturday.

Gender-wise, there is no significant difference in their number, unlike many years ago when the women outnumbered the men with a 60-40 ratio.

"In the past few years, the male has been a prominent figure in the mall," says Nazareth. "I think men have more reason to go to the mall now since there are more shops that cater to their needs. Take Park Square 1, it’s a haven for the audio and gadget guy. The restaurants and cafes also attract a lot of men."

7. Give them a Mall with a view

It’s nice to be in a climate-controlled structure on a hot day. But people miss trees and being able to spend time in a park. Ayala Land knows this by experience, with its 1.5-hectare Greenbelt Park, where people would stroll and hang out and in the mini-parks it built around Glorietta.

With the Greenbelt Mall development of Ayala Land, there will be a 2.8-hectare park. Parking will be at the basement and in a carpark building, so there will be areas with footpaths and, as we used to say in the Eighties, a chance for HHWWITP (holding hands while walking in the park). And that’s without batting an eyelash!

The new Greenbelt building, facing New World Hotel, was designed "not to look like a mall." The architecture was designed in such a way that all the restaurants – about 50 of them on three levels – have a view of the park and an open space for al fresco dining, but diners will still be protected from the elements when it rains.

"Greenbelt will be the ultimate in terms of restaurants and entertainment," says Nazareth. "We call it an urban retail entertainment center.

The market is a mix of lifestyle boutiques and restaurants, catering to the A to C markets. "Most of the people we’re talking to for Greenbelt are well known restaurant operators and chefs from Malate down to Tomas Morato. And for office workers who have only 20 minutes for lunch or dinner, there will still be the fast food outlets at the mall."

Tomeldan adds that the lifestyle stores will be one-of-a-kind. Nike will build its flagship store there, and some of the big shops will have cafes on the side. "You won’t have the usual apparel stores because they’re already in Glorietta – we don’t want the shops to compete against each other but rather to complement one another."

Nazareth further differentiates the Greenbelt development from Glorietta: "If you want hard-core shopping, Glorietta is the place for you. Greenbelt is for leisure shopping, for hanging out with friends. Imagine if you’re in a group and one wants to go to Malate and another to Makati. With the new development, you can go there and choose from the top restaurants. We will not shortchange the consumers by giving them mediocre restaurants."

8. Go beyond the basics

Ayala Center believes that every shopper deserves more than what she needs. The new tagline "You Deserve More," according to Nazareth, "is actually a line that embodies our commitment. We’re giving you this today and we’re already thinking what to give you tomorrow and the next day. We gave them a small park, now we’re giving them a bigger park. We don’t want to give just the basic things."

9. Localize the mall

No two Ayala malls are the same. Just look at Glorietta and Alabang Town Center and Ayala Center in Cebu.

"Ayala Center is different from the way we developed Alabang," says Nazareth. "We don’t have a model for a mall. Alabang people are suburbanites. We know for a fact that the reason they live there is that they don’t want the crowds, they want a place that’s quiet, where they will possibly run into their neighbors in the mall. So we designed the mall specifically for them. We know they’d go there in shorts, in their weekend attire, that the atmosphere is more laid-back but at the same time they want the excitement of a mall."

In Cebu, they have also localized the Ayala Center to fit into Cebu’s environment. Nazareth reveals that it’s actually "more expensive because you’re designing according to the market and not using a cookie cutter approach."

10. Make shopping an experience, not a chore

According to Nazareth, when consumers are asked about the "image" of Ayala Center, they reply in terms of products. "Consumers cannot verbalize an image, they talk instead of the stores they go to, the restaurants they patronize."

If you put these together, they are actually describing their experiences at the mall. They say "it’s fun there, food’s excellent at this restaurant, it’s enjoyable to be there."

"We want our malls to be places where they can have ‘moments’ with their family and friends. When they want to celebrate, they go to Ayala Center. When they want a place to bond, they go to the mall. It’s putting all these activities and stores together in a way they want to experience them."