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Retail
or BreMake
10 million pageviews per month
2.1 million Instagram followers
$1.2bn valuation
$100m+ sales
Where are we now?
2008 2018actual
National Retail Tenant Trading Density (m2)
Source: Broll Research
2018adjusted for
inflation
-28%
R2170
R3790
R2730
R4000
R3000
R2000
R1000
R0
2008 2018
Retail Space per Person (ft2)
Source: General Growth Properties / Own calculations
USA
25
Chin
a 3
UK 6South
Africa
4.5
Australia
12
Canada
17
France
5
R4000
R3000
R2000
R1000
R0
2008 2018
Retail Space (ft2) per $1000 Spend
USA
1.5
China
1
UK
0.8
South
Africa
2.8
Australia
1.3
Canada
1.5
France
0.6
Source: General Growth Properties / Own calculations / US Census / BLS
2017: 8000+
2018: 5800+
2019: 5900+ announced
20-25% of all malls
USA Store Closures
Source: Business Insider
Source: The Local Data Company / PwC
2018: 5833 store closures
2018: 3372 store openings
That is 6.7 stores closing
every day
UK Store Closures
Dunkin Doughnuts
Baskin Robbins
Standard Bank
River Island
Boardmans
La Senza
Famous Brands
Edgars
SA Closures
R82 000
R80 000
R78 000
R76 000
R74 000
R72 000
R70 000
R68 000
Source: StatssSA
Retail Trade Sales (2015 prices)
R million
201920182017201620152014
Econom
ic a
nd P
oliti
cal Ris
k
Market Potential +
+
Closing Window of Opportunity
Source: A T Kearney 2017
Cash constraints
Brands and Media are different
Online
Community evolution
Cash constraints
R380 000
R360 000
R340 000
R320 000
R300 000
R280 000
R260 000
R240 000
R220 000
2008 2018
-10.6%
Average Salary Increase (white-collar)
Source: Broll Research
Per Capita Income in SA Households
R50 000
R45 000
R40 000
R35 000
R30 000
R25 000
R20 000
R15 000
R10 000
R5000
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Source: News24
Cash constraints
Brands and Media are different
Online
Community evolution
Brands and Media are different
Why Social Media?
Traditional Brand Marketing
New Inbound Marketing
Why Social Media?
Traditional Brand Marketing
PurchaseAwareness Consideration
Dis
cover
Search
Share
Share
Research
Research
Comments
Peer
Review
Trust
Trust
Decide
Purchase
EvangeliseEvangelise
Buyers
Influencers
Why Social Media?
Traditional Brand Marketing
PurchaseAwareness Consideration
Dis
cover
Search
Share
Share
Research
Research
Comments
Peer
Review
Trust
Trust
Decide
Purchase
EvangeliseEvangelise
Buyers
Influencers
Choices are made using different:
Processes
Criteria
Cash constraints
Brands and Media are different
Online
Community evolution
Online
China USA
Ecommerce Share and Growth
Source: eMarketer
UK
35%
South
Africa
23% 12% 2-3%
20% Growth
30%
15%
11%
Internet users 51%
Smartphone
penetration60%
Active social
media users40% 28%
Mobile social
media users38% 38%
South African Digital Adoption
Source: Hootsuite
South Africans Buying Consumer Goods Online
Hootsuite 32.5 million ($2.9bn in value)
Statistica 21.5 million
Source: Hootsuite
Meet Harry’s
80%
70%
60%
50%
40%
30%
20%
10%
0%
2010 2011 2012 2013 2014 2015 2016 2017 2018
Gillette
Dollar Shave Club
& Harry’s
USA Razor Wars
Source: iab
Direct-to-Consumer
Immersion
Conversation
Data
… Owning the relationship
Cash constraints
Brands and Media are different
Online
Community evolutionCommunity evolution
Principles of Urbanism
Principles of New Urbanism
Walkability
Connectivity
Mixed-Use
Quality Architecture
Increased Density
Green Transportation
Sustainability
Quality of life
And so?
Retail / Mall Strategy
Previously …
Asset-centricPresently …
Customer-centric
Customer-centric Retail / Mall Strategy
Malls are brands
Retail is tech too
Experiences build relationships
Customer-centric Retail / Mall Strategy
Malls are brands
Retail is tech too
Experiences build relationships
Customer-centric Retail / Mall Strategy
Malls are brands
Retail is tech too
Experiences build relationships
Relevance
Preference
Excellence
Dependence
End