With the retail property market in Thailand being more competitive than ever before and sluggish retail sales, flat rental growth, the impact of e-commerce all realistic concerns, developers are needing to think outside the box to be successful.
The term ‘placemaking’, much like ‘retailtainment’ before it, has become a trend in the retail industry in Thailand as developers look to stay ahead of the competition. While there is no firm definition as to what placemaking is, experts agree that it is about creating an environment that people enjoy by incorporating and integrating several potential elements into a mall.
“Thai retailers have been taking notice. So have developers, with a focus on placemaking now a genuine retail trend. One of the key elements of placemaking is the scale—the bigger, the better. Some smaller malls are declining simply because they cannot offer diversity and variety. We are now witnessing the trend of making a place a ‘destination’,” tells Jariya Thumtrongkitkul, Associate Director, Head of Retail Services for CBRE Thailand, to Retail in Asia.
Em District in Bangkok is one example of placemaking. It combines 3 shopping malls, Emporium, EmQuartier and the upcoming EmSphere, and then uses different concepts that complement each other to create a larger place people want to visit. Gaysorn Group is doing something similar with its Gaysorn, Gaysorn 2, and Amarin Plaza retail complexes that will be connected.
The improvement and implementation of innovation and technology at shopping centres in Thailand is another key element of placemaking. Apart from that, a great emphasis is being placed on restaurants and cafes since these continue to be successful even as retail struggles. In some cases, food outlets are using technology to entice more customers.
“We are also seeing that the proportion of F&B outlets in malls is greatly increasing as gourmet and savoury experiences cannot be replaced by the online shopping experience. Many restaurants are now using tablets as a menu instead of traditional paper ones,” says Jariya.
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