ICSC New York Next Generation Breakfast Program October 18 ... · Simon Property Group for a...
4
1 Deborah Weinswig, Managing Director, FGRT [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2017 The Fung Group. All rights reserved. October 18, 2017 Takeaways from the ICSC New York Next Generation Breakfast Program Source: Twitter The FGRT team attended the ICSC New York Next Generation Breakfast Program on October 17, where a panel of five real estate business leaders spoke about the emergence and impact of disruptive retail concepts. Top takeways include: 1) Today’s consumer expects the store to be a place of engagement and community. 2) The pop-up shop format is particularly popular among direct-to-consumer brands and brands that offer “retail as media” concepts. 3) The customer shopping journey should be natural, and store positioning is important. The FGRT team attended the ICSC New York Next Generation Breakfast Program on October 17, where a panel of five real estate business leaders spoke about the emergence and impact of disruptive retail concepts. The speakers discussed consumer engagement, the omnichannel experience, Gen Z shoppers and lease terms, among other topics. The speakers at the event were Ryan Engel, Director of Business Development & Real Estate, Peloton; Brandon Fox, Director of Real Estate, Honeygrow; Gregory Knoop, Chief Development Officer, KidZania USA; Elizabeth Layne, Chief Marketing Officer, Appear Here; and Andrew Neelon, Real Estate & Strategy Manager, Bonobos. Cynthia Kernan, Vice President of Leasing for Westfield, moderated the panel. Here, we share key takeaways from the event.
Transcript of ICSC New York Next Generation Breakfast Program October 18 ... · Simon Property Group for a...
1 DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
October18,2017
Takeaways from the ICSC New York Next Generation Breakfast Program Source:Twitter
TheFGRTteamattendedtheICSCNewYorkNextGenerationBreakfastProgramonOctober17,whereapaneloffiverealestatebusinessleadersspokeabouttheemergenceandimpactofdisruptiveretailconcepts.Toptakewaysinclude:
1) Today’sconsumerexpectsthestoretobeaplaceofengagementandcommunity.
2) Thepop-upshopformatisparticularlypopularamongdirect-to-consumerbrandsandbrandsthatoffer“retailasmedia”concepts.
3) Thecustomershoppingjourneyshouldbenatural,andstorepositioningisimportant.
TheFGRTteamattendedtheICSCNewYorkNextGenerationBreakfastProgramonOctober17,whereapaneloffiverealestatebusinessleadersspokeabouttheemergenceandimpactofdisruptiveretailconcepts.Thespeakersdiscussedconsumerengagement,theomnichannelexperience,GenZshoppersandleaseterms,amongothertopics.
ThespeakersattheeventwereRyanEngel,DirectorofBusinessDevelopment&RealEstate,Peloton;BrandonFox,DirectorofRealEstate,Honeygrow;GregoryKnoop,ChiefDevelopmentOfficer,KidZaniaUSA;ElizabethLayne,ChiefMarketingOfficer,AppearHere;andAndrewNeelon,RealEstate&StrategyManager,Bonobos.CynthiaKernan,VicePresidentofLeasingforWestfield,moderatedthepanel.Here,wesharekeytakeawaysfromtheevent.
2 DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
October18,2017
1. Today’sConsumersExpecttheStoretoBeaPlaceofEngagementandCommunityAndrewNeelon,RealEstate&StrategyManageratBonobos,saidthattoday’sconsumersexpectretailtobefarmoreexperientialthantheydidjustafewyearsago.Retailstoresusedtobeabletoserveasjustdistributioncenters,butconsumersnowexpectmoreastheybouncebetweenchannelsbeforecompletingapurchase.Retailersneedtoenableaseamlesstransaction,sowhatshoppersseeonlineiswhattheyseeinstores,Neelonsaid.InBonobosstores,associatesuseiPadsbothtoengagecustomersandmaketheonline-offlineexperienceseamless.
ElizabethLayne,ChiefMarketingOfficeratAppearHere,addedthatnearly79%ofGenZersandmillennialswillpayforanexperience,suchasgoingtoRefinery29tohaveanInstagramphototaken.RyanEngel,DirectorofBusinessDevelopment&RealEstateatPeloton,saidthatthecompanyintendedtobeapure-playretailerinitially,butthatchangedwhenPelotonbeganreceivingagreatmanylettersfromcustomerswhowereasking,“WherecanItrythatbike?”Pelotonlauncheditsfirstpop-upshopatTheMallatShortHillsinNewJerseyinSeptember2013.Thecompanydiscoveredthatcustomerswerereturningtothestoretwotothreetimesaftertheirinitialpurchasetoengageandconnectwithotherswhohadpurchasedthebrand’sbikes.Theinitialpop-upatShortHillssoldmorethan400bikesinfourmonths—morethanonebikeaday.Whatstartedasaretailexperimentisnowpartofthecompany’splan,andPelotonwillendthisyearwith33stores.Engelhighlightedthatinteraction,educationandengagementallhappenin-store.
2. ThePop-UpShopFormatIsParticularlyPopularAmongDirect-to-ConsumerBrandsandBrandsthatOffer“RetailasMedia”Concepts
AppearHereisbilledas“Airbnbforshort-termretailspaces.”ItsChiefMarketingOfficer,ElizabethLayne,saidthatinterestinanddemandforshort-termleasespaceisgrowing.Lastyear,thecompanybookedabout4,000pop-upshopsinthreecities—NewYork,ParisandLondon—withanaverageleaselengthofonemonth.Thecompanyiscurrentlyworkingwithlandlordstosignastandardagreement,withonlinesigningandbookingtosimplifytheprocess.AppearHererecentlysignedanagreementwithSimonPropertyGroupforaprojectcalled“TheEdit,”whichisapermanent,carved-out,plug-and-playretailspaceforpop-upsinSimonmalls,wherethegroupcanrotateinnovativeproducts,typicallyonaquarterlybasis.
Laynehighlightedthatdirect-to-consumerbrandsarethefastest-growingcategorywithinthepop-upspace,withbrandssuchasGlossier,CasperandAwaytestingphysicalretailintheformofpop-upstodeterminetheviabilityofaphysicalpresence.Asecondgrowingpop-upcategoryis“retailasmedia.”Layneexplainedthattheconceptisacreativewayforbrandstousepop-upstomarketthemselvesandpromoteevents.Forexample,WarnerBrothersrecentlylaunchedapop-upcalledGetAnimatedInvasioninNewYork’sSoHoneighborhoodtopromoteitspresenceatNewYorkComicCon.Additionally,BeatsbyDretookoveraspacetopromotealisteninglab,influencereventsandnewrecordadvertisementsforKanyeWestandDemiLovato.
3. TheCustomerShoppingJourneyShouldBeNatural,andStorePositioningIsImportant
CynthiaKernan,VicePresidentofLeasingforWestfield,saidthattheshoppinglandscapeischangingtoalignwithhowconsumerswanttoshop.Forexample,manyluxuryretailersnowwantamorediversemixofco-tenantsinmallsinsteadofbeinggroupedtogetherwithonlyotherluxuryretailers.Thiscreatesamorenaturalcustomershoppingexperience,Kernansaid.Customersmaywanttogetacoffeewhileshopping,
3 DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
October18,2017
thenpickupflowersatamarketandthenrunintotheApplestoreaftershoppingforaluxuryitem,shesaid.
Kernanaskedeachofthepanelistsaboutstorepositioning,andwhichretailersweretheirfavoriteco-tenants.GregoryKnoop,ChiefDevelopmentOfficerofKidZaniaUSA,saidthathewelcomesstoresatallpricepointsthatcanattractparentswhiletheirchildrenareexperiencingKidZania.HedescribedKidZaniaasa“fiscalaccelerator”foramall.Thecompany’sspacesaverage80,000–100,000squarefeet,andchildrentypicallyspend2.5–4hoursatKidZania,wheretheylearnbyrole-playingoneofthe100differentoccupationsthespacefocuseson.Knoopemphasizedthateverychildisaccompaniedbyaguardianon-site,soKidZaniawelcomesadjacentstoresthatkeepparentsoccupiedandhavingfun.Theseincludefoodconcepts,fitnessconceptsandimmersiveexperiences.
Neelon,fromBonobos,saidthatstorepositioningisalwaysimportantandisdependentonthemarketanddemographic.HesaidthatBonobosenjoyshavinginnovativeco-tenantssuchasTeslaandWarbyParker.EngelsaidthatPelotonsees“innovationas[its]product,”so,intermsofbrandpositioning,tech-drivenbrandssuchasApple,foodconceptssuchasTrueFoodKitchen,athleisurebrandssuchasLululemonAthletica,andfamilyclothingretailerssuchasVineyardVinesareallcomplementary.Engelsaidthatasabrandgetslarger,adjacenciesarenotasimportantbecausethebrandcanstandonitsown.BrandonFox,DirectorofRealEstateatHoneygrow—arestaurantchainthatoffersfullycustomizablestir-frysaswellassaladsandcold-pressedjuices—saidthatthecompanylikestobelocatednearFlyWheelSportsandLAFitnesslocationsthathaveaccesstoplentyofparking.
4 DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
October18,2017
DeborahWeinswig,CPAManagingDirectorFGRTNewYork:917.655.6790HongKong:852.6119.1779China:[email protected]
ErinSchmidtResearchAssociate
HongKong:2ndFloor,HongKongSpinnersIndustrialBuildingPhase1&2800CheungShaWanRoad,KowloonHongKongTel:85223004406London:242–246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NewYork:1359Broadway,18thFloorNewYork,NY10018Tel:6468397017
FungGlobalRetailTech.com
