Knight Frank Retail - Tiger Talk June 2011

Shopping Mall Golden Rules In Design
Presented by Knight Frank Vietnam
16th June 2011
Viet Nam
Outline
I. II. III.
IV. V.
Changing of Vietnamese shopping habits Hanoi retail market update Moving to Shopping CentresLocal retailers positive trend in Hanoi Proactive movement towards modern retail formats Golden rules for a successful shopping centre
I. Changing of Vietnamese shopping habits - Hanoi

Hanoi: Population: 6.5 million people 20-24 age group= 25% population 9% of total Vietnam GDP
Vietnamese retailing industry needs big guys

(Vietnam Business & Economy News, 6th of June 2011)
Vietnam Consumer Spending 1995-2009

1400000
1200000
1000000 800000 600000 400000 200000 0
Hanoi- Consumer Spending in Billion VND Vietnam Consumer Spending in Billion VND
Investors will keep injecting money in retail (Vietnam News, 24th of January 2011)
Source: Ministry of Trade
I. Changing of Vietnamese shopping habits - Hanoi
Hanoians have a collective mindset The role of advertising is critical in Hanoi

Price promotions is the most appeal to Hanoians
Tougher economy impacted does not affected Hanoians consumption habits
II. Hanoi Retail Market update

Total Retail Space is 456,000 sqm Average Occupancy: 93%
Shopping Centre in CBD achieve 100% occupancy

Rental Rate by Retail Projects
Max rate Min rate
*Survey includes Department Stores & Shopping Centres

In USD
Highest rates achieved in CBD is $185/sqm/month Retail sales is expected to increase by 23% compare to 2010 Rental rate is more stable in Hanoi compare to HCMC
Shopping Centre Source: Knight Frank Market Research
Department Store
Hypermarket

Trend of retail lease space turn to long term investment.
Retail market share by square metre QII 2011
Retail podium 4% Supermarket 18% Shopping Centre/ Department store/ Hypermarket 47% Electronic mart 18%
Mo Market Commercial Center: 25,000 sqm Hang Da Galleria: 7,000 sqm Keangnam Retail Podium: 10,000 sqm
Incredible promotion campaigns on rental price to attract new tenants move to non-CBD area
Wholesales 13%
Source: Knight Frank Market Research

Significant New Supply 2011-2013
Habico Icon 4
IPH
Keangnam
Vincom Village
SAVICO Plaza
PICO Mall
2011
Source: Knight Frank Market Research
2012
2013
7
III. Moving to Shopping Centres Local Retailers Positive Trend in Hanoi

Domestic vs. International Brands
23%
77%
Domestic vs. International Brands in selected segments
Domestic International 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Jewelry Cosmetics Textile Shoes & Handbags
International Domestic
Percentage figures are based on retail brands surveyed in the following retail objects in Hanoi: Parkson Viet Tower, Vincom City Towers/ Galleries, The Garden Mall, Fodacon Building, Grand Plaza
8
IV. Proactive Movement Towards Modern Retail Formats

Shopping Centres create advantages for
Retailers SC increases length of customers stay SC increases higher turnover Retailers benefit of tenant mixture Retailers benefit from SC marketing
SC targets all types of consumers

Architectural attractive location Customers Security & Cleanliness
SC is recognised as one shopping destination
Air conditioning
Parking opportunity
Common opening times

Occasional& seasonal events
Entertaining features (cinema, food court, etc.)
to provide comfort & suitability which reflect the consumers modern lifestyle
9
V. Golden Rules For a Successful Shopping Centre

Location
Although a great location may not guarantee success, a bad location will almost always guarantee failure
Anchor Tenant
The greater the tenants market share, the more positive the tenants influence on the centres image
Feasibility Study
Study must include socioeconomic, financial, marketing and physical targets
Tenant Mixture
Ratio of domestic & international brands must match consumers preferences in terms of products, quality and price Factors that decide over Shopping Centers level of success
Centre Management
Qualified and experienced management posses knowledge which contributes to the centres success
Centre attainability
SC must provide a convenient access for shoppers adequate transportation links, parking and opening times
Centre Design
Centres atmosphere must invite visitors to spend a maximum of time
Effortless Business
As consumers time becomes more valuable, SC should provide easy navigation for shoppers inside the centre
10
Thank you for your attention
Present by Mr John Gallander Country Managing Director
Special Thanks to Mr. Gregor Tatsios
11
Viet Nam Track Record
KHAI THONG PLAZA, D1, HCMC

Total Area:
Developer: Type: Service provide:
THE GARDEN SHOPPING CENTER, HN

Total Area:
Developer: Type:
53,641 sqm
Phuong Trang Investment Corporation Shopping centre Market research & consultancy
57,000 sqm
Bitexco Land Shopping centre
Service provide:
Exclusive marketing agent
Viet Nam Track Record
THIEN SON PLAZA, D7, HCMC

Total Area:
THE FLEMINGTON TOWER, D.11, HCMC

Total Area:
15,000 sqm
Thien Son Co., Shopping centre Consultancy & leasing agent
7,000 sqm
Bao Gia Joint Stock Company Shopping centre Consultancy & leasing agent
Singapore -Track Record
ORCHARD CENTRAL
Total Area: Developer: Type: 38,000 m2 Far East Organization Shopping centre Total Area: Developer: Type:
ILUMA
28,000 m2 Jack Investment Shopping centre
Service provide:
Consultancy & leasing agent
Service provide:
Consultancy & leasing agent
Singapore -Track Record
AMK HUB
Total Area: Developer: Type: Service provide: 50,000 sqm Singapore Labour Foundation , NTUC Income & Fair Price Shopping centre Management Service provide: Total Area: Developer: Type:
SUNTEC CITY MALL

100,000 sqm Suntec REIT Shopping centre Consultancy & leasing agent
Worldwide offices
Australia, Bahrain, Belgium, Botswana, Cambodia, China (Hong Kong/Macau), Czech Republic, France, Germany, Hungary, India, Indonesia, Ireland, Kenya, Malawi, Malaysia, Monaco, New Zealand, Nigeria, Poland, Russia, Singapore, Spain, Tanzania, Thailand, Uganda, United Kingdom, Ukraine, Zambia, Zimbabwe
Associate offices
Bermuda, Brazil, Canada, Caribbean, Chile, Italy, Netherlands, Portugal, Romania, South Africa, USA
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Find us
Knight Frank Vietnam Hanoi Office 5th floor 40 Phan Boi Chau Street Hoan Kiem District, Hanoi Tel: (844) 3 9411 638 Fax: (844) 3 9411 639
Knight Frank Vietnam Ho Chi Minh Office Suite A, 7th floor VTP Office Building 8 Nguyen Hue Blvd District 1, Ho Chi Minh City Tel: (848) 3 8226 777 Fax: (848) 3 8277 856
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Shopping Mall Golden Rules In Design

Presented by Knight Frank Vietnam

16th June 2011

I. Changing of Vietnamese shopping habits - Hanoi

Vietnamese retailing industry needs big guys

Vietnam Consumer Spending 1995-2009

Source: Ministry of Trade

I. Changing of Vietnamese shopping habits - Hanoi

Hanoians have a collective mindset The role of advertising is critical in Hanoi

Tougher economy impacted does not affected Hanoians consumption habits

II. Hanoi Retail Market update

Shopping Centre in CBD achieve 100% occupancy

*Survey includes Department Stores & Shopping Centres

Shopping Centre Source: Knight Frank Market Research

II. Hanoi Retail Market update

Source: Knight Frank Market Research

II. Hanoi Retail Market update

III. Moving to Shopping Centres Local Retailers Positive Trend in Hanoi

IV. Proactive Movement Towards Modern Retail Formats

SC targets all types of consumers

SC is recognised as one shopping destination

Common opening times

Entertaining features (cinema, food court, etc.)

V. Golden Rules For a Successful Shopping Centre

Thank you for your attention

Present by Mr John Gallander Country Managing Director

Special Thanks to Mr. Gregor Tatsios

Viet Nam Track Record

KHAI THONG PLAZA, D1, HCMC

THE GARDEN SHOPPING CENTER, HN

Exclusive marketing agent

Viet Nam Track Record

THIEN SON PLAZA, D7, HCMC

THE FLEMINGTON TOWER, D.11, HCMC

Singapore -Track Record

Consultancy & leasing agent

Consultancy & leasing agent

Singapore -Track Record

SUNTEC CITY MALL

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