By Klaus Striebich
The greatest challenge for our industry in the following years will be to stay in the minds of customers on a permanent basis. The intensity of competition will increase further, and consumer behavior is changing extremely fast; their demands and requests are becoming more and more specific and individual. Lifecycles of products and locations are shortened, which requires you to keep up with best-in-class operations and the latest technical investments, while reinventing your business and adapting to the customers’ needs or desires.
The market for the placemaking industry is bouncing back. After several years of having fewer and fewer new developments and being the “bad boy” within the asset-classes, but currently facing increasing purchasing power, reawakened and new desires, and a better economic environment (higher income, lowered interest rates, etc.), “new places” will be developed and appearing in due time. The change of many department stores in several countries – as an important part of the former marketplaces – combined with the hunger of international brands to grow in new markets and lots of innovations and new brands in retail, create many opportunities for the industry. Cross-border developments and learnings from other markets will push this to a new level.
Having an offer different from your competitors and quickly adapting to changes have always been necessary to be unique, as they help in achieving a USP (unique selling proposition) and are key for success.
The range of offers has widened: from just retail and gastronomy (seen as the basic needs of customers when spending money) to leisure, entertainment, culture, music (with “spending time” becoming a priority) or education, living and working. As a result, everything depends on the individuality of the customers and their wishes and desires, the opportunity to get any product or service at any place, anywhere and anytime.
The main task will be how to manage this level of complexity (within a real estate asset) and ensure that all the different offers and uses are linked while creating a positive impact on the neighbors and partners.
My recommendation for our industry is: “Let’s make it happen.”
Professional analysis and preparation are necessary, but please, let’s have fewer procedures, processes, internal hurdles or responses similar to ´maybe a problem´.
Speed and creativity are the beginning, flexibility is another important characteristic while courage in decision-making is a driver and the power of implementation will be the scorer.
Klaus Striebich
Klaus Striebich is Managing Director of RaRE Advise, and Head of the ACROSS Advisory Board.
