Malls out to reel in young shoppers

Source : Sunday Times – 28 Jun 2009

Young people in Singapore are the new darlings of retailers, going by the efforts made by malls to woo them.

While they lack earning power, they have ’staying power’ – they linger longer and hang out in groups.

The 1980s saw a rash of malls, but only a few became youth hangouts. There were the Centrepoint Kids, and a teen haven nestled at Far East Plaza, still a popular hangout.

Today, it is the ‘malls the merrier’ for young peoples, whose pick of hip places includes The Heeren, Cathay Cineleisure, Square 2 and new player Iluma at Victoria Street.

Other malls with youth enclaves include Marina Square, Suntec City and Bugis Junction.

Not to be outdone, Ngee Ann City and Orchard Central are also carving out space for the younger clientele.

By the end of the year, Ngee Ann City will have a lifestyle cluster called Eighth Floor, comprising 19 hip stores and food and beverage outlets modelled after Tokyo’s trendy Aoyama district.

The new Orchard Central – its soft opening will take place this Thursday – has a retail section of more than 30 small stalls called The Ramp, which is a platform for budding entrepreneurs to showcase their wares.

‘The country just became a giant shopping mall, but I’m not complaining,’ said private university student Maia Goh, 23, a confessed shopaholic who shops for clothes online or at Orchard Road.

Retailers and mall operators agree that the youth dollar can be a burgeoning one, provided the right buzz can be created.

‘This is definitely a growing market. Youth these days are more independent and will choose their own hangout places and what they will spend on,’ said Cathay Organisation’s chief executive officer Suhaimi Rafdi.

The company owns two youth-oriented malls, Cathay Cineleisure and The Cathay, which target those aged between 14 and 35.

Ms Chua Chor Hoon, senior director and head of South-east Asia research at property consultancy DTZ Debenham Tie

Leung, said it is a common strategy for malls to differentiate themselves and target niche groups, like youth, tech buffs or high-end fashion fans.

Must-haves in a youth-oriented mall: entertainment outlets like cinemas, gaming arcades, karaoke, cheap and unusual food and beverage outlets, and one-of-a-kind shops selling edgy fashion.

Location and the competition may be decisive factors.

‘Youth today are fashion- conscious and have more spending power due to more affluent and doting parents.

‘Malls that are near educational institutions have a ready catchment of students,’ Ms Chua said.

While their spending power may not match that of working adults, they make up for it in numbers since they hang out in groups.

At Cathay Cineleisure and The Cathay, the average time spent by young people in the malls is 50 per cent higher than that at some other malls, said Mr Suhaimi.

But young people are more selective about what they spend on and are also more sensitive to trends, said a spokesman for Iluma, the new seven- storey mall in the Bugis area that caters to the youth, tertiary students and young professionals.

‘It’s not so easy or straightforward to tap on the youth market successfully,’ she said.

Still, retailers are banking on the willingness of young people to spend despite the economic downturn.

Mr Alfred Tan, 37, who runs FuncDeko, a popular shop in Far East Plaza selling vintage fashion and knick-knacks, said: ‘Youth today are resourceful and have the time to get the cheapest deals from shops, blogshops and flea markets.’

Indeed, online shopping is a big competitor for the youth dollar, said Dr Lynda Wee, chief executive officer of retail consultancy and training firm Bootstrap.

‘They have more options. They may not spend their dollar at the mall. But they want to hang out, so malls have to be more like social hubs selling services too,’ she said.

Ms Elim Chew, founder of pioneering streetwear store, 77th Street, felt that what will attract young people are the ‘intangibles’. These include a sense of association, vibrancy, buzz and high energy.

Dr Wee agreed. ‘Malls that have targeted youth have not quite raised the bar,’ she said. She cited youth-oriented malls and areas like APM Mall in Hong Kong and Harajuku in Tokyo as having the ‘It’ factor.

Successful youth-oriented malls like APM do not keep to the regular hours of the working adult. Its retail shops stay open till midnight, its restaurants go on till 2am, and its entertainment and karaoke outlets open till dawn.

Undergraduate Suffian Rahiman, 24, bemoaned the fact that there are too many big international labels here, rather than smaller independent designers.

‘There are very few mid-price options for young men who want classic and fashionable clothes,’ he said.

There is also a perception that Singapore’s retail scene is saturated.

But, going by their pitch, mall operators and retailers seem determined to cater to the youth-oriented crowd. Nor are they worried about the increasing competition.

‘The cake is big enough for everyone who can improve and do their best,’ said Ms Chew.