Pakuwon's Strategy to Liven Up the Mall

Changes in lifestyle and consumer behavior when shopping make the mall has decreased sales, even abandoned consumers. Old malls conventional concept that only provides space for sale is certainly marginalized because consumers want the mall as well as a place of recreation.

This fact is read from the results of BCA Securities research recently. Mentioned, long-standing shopping centers such as Metro Pasar Baru and Taman Mall Palem experienced the largest transaction decline in the first half of 2017. Meanwhile, there is an increase in transactions at new malls as it offers various facilities such as fitness center, entertainment venue, and even hotels.

According to Stefanus Ridwan, President Director of PT Pakuwon Jati Tbk., Manager of Gandaria City and Kota Kasablanka (both in Jakarta), the mall must realize that there has been a shift in consumer behavior in shopping. "In the past, consumers visited shopping centers only in terms of products and stores. But today, shopping activities are considered as leisure, not just buying goods after that home. Currently shopping activities must be based on experiential and entertainment-focused, "he said,

Recognizing this, Stefanus encouraged the malls he controlled to change the paradigm of the shopping center. Once a mall or store does not allow consumers to take pictures, now just the opposite. They are allowed to take pictures because it can be a free ad and become a word of mouth.

Stefanus asserted, now malls and tenants must be aggressive use of digitalization. Experience when shopping experienced by consumers will be a story that can be shared through social media. "We are focused on digitizing in all aspects, from management to marketing, because everything will be easier and faster controlled. We are working on big data to read trends, "he said. Pakuwon also implemented an omni-channel system that combines offline and online utilization. It was also with the tenant aggressively in utilizing social media.

For example, Kota Kota Kasablanka on the weekend of the number of visitors can reach 120 thousand people and 65 thousand-85 thousand people on weekdays. "If all these people use Instagram and share their shopping experience in social media, the effect will be so great," says Stefanus

In addition, Pakuwon also focuses on community development. If there is no community, it can create community. And from the hundreds of thousands of people who come, the mall managers must be able to create something. Like the current board games are becoming a trend in the restaurant, then it can be utilized optimally. "We cannot run away from what the public likes," he said.

What is also often done Pakuwon manager is doing benchmarking and study tour by visiting the mall or other shops, both at home and abroad. It could be a reference and if there is something interesting, it can be adopted in the mall managed by Pakuwon. "Creativity comes from 90% cheat and 10% modification. For example, in designing a mall architecture, we must be able to bring wow effect and uniqueness to provide a new experience for visitors. We need to see the direction of trend change. All that happens quickly and dynamically drastically, "says Stefanus.

How does the strategy appeal to the tenants? According to him, during the tenant behavior, they will not leave the mall. Pakuwon also looking for tenant that match the brand and good sales track record. It also sees its promotional strategy is already using omni-channel. When it is applied, usually the tenant will survive. For example, Ismaya Group is very aggressive in the utilization of digital promotions. "Currently the number of tenants in Kota Kasablanka is around 300 tenants in Gandaria City about 250," said Stefanus inform.

Currently, the occupancy rate of Pakuwon malls is above 90%. The number of visitors Gandaria City on a typical day 40 thousand-50 thousand people, and on the weekend about 80 thousand people. The visitors of Kasablanka City on a regular day 65 thousand-85 thousand people and on weekend 85 thousand-120 thousand people. "The increase in visitors in Kota Kasablanka from 2016 to 2017 is still very good, at 10%," said Lusiana, General Manager of Mal Kota Kasablanka, adding.

For the value of mall transactions per day, Stefanus does not mention the nominal. "The number of items purchased may be more in Kota Kasablanka, but total sales tend to be larger in Gandaria City. Segments in Gandaria City are higher than in Kota Kasablanka, "he said, adding that in 2017 Gandaria City sales rose 20% and Kota Kasablanka 18%.

Going forward, Pakuwon will maintain a balance between recurring income and marketing sales to maintain financial performance stability. This is quite safe because in the midst of difficult conditions, Pakuwon still can build. Currently, in addition to Jakarta, Pakuwon also manages a number of malls in Surabaya such as Tunjungan Plaza, Pakuwon Mall, Pakuwon Trade Center, and EastCoast Center. (*)