FOR Marketing Perspective -- June 15 checked

Sweet mix of shopping and entertainment

Rudijanto Contributor Jakarta

So popular are Jakarta's malls that no one dares to predict what would happen if they closed for a month. The socio-economic as well as psychological impact would be interesting, to say the least.

The launching of new products would be postponed in the absence of a suitable venue -- a mall is the perfect place to grab consumer attention.

Family outings in the city would be limited and thousands of teenagers would stay at home, spend less money -- maybe more time on the phone.

Until such a day, malls remain crowded, bustling with life and energy. When some places were said to be at risk of terrorist attack, people may have stayed away for a few days. Then, they were lured back -- by the cappuccinos, by the perfume counters and bakeries and florists. Mostly, though, they were driven by the deep need to unwind at the end of the day, or week, with their friends or partners.

With a population of 12 million and a rapidly developing mall culture, Jakarta presents a huge opportunity for developers, who build malls in the most unlikely of places. Often, within a stone's throw of an existing mall.

Jakarta Governor Sutiyoso indirectly encouraged developers when he said that the city needs around 200 malls. Currently Jakarta has 70 shopping malls and trade centers with a total retail space of 1.5 million square meters.

A number of malls will open this year, others will follow in the next few years. Newly opened malls such as Plaza Semanggi are curiously close to Plaza Indonesia and Plaza Senayan.

Property consultant Jones Lang LaSalle has warned of oversupply, particularly with the addition of one million square meters of retail space in 2005. Such an oversupply is expected to result in the vacancy of 21 percent of total retail space available in 2005.

Jones Lang LaSalle national director Lucy Rumantir was quoted by Sinar Harapan as saying that there would be more vacant retail space in 2005 than in the entire retail history of Jakarta. Even during the crisis in 1998, she said, vacancy only reached 19 percent.

Competition to attract tenants can be tough for mall managers, and also attracting visitors or shoppers. Thus, malls are trying out all kinds of new strategies.

Plaza Senayan's manager of advertising and promotion Natalia A. Hatmarini said that the key was simply to "be yourself". She revealed that Plaza Senayan was strengthening its image as the center of fashion and lifestyle.

International trendsetters such as Aigner, Bvlgari, Louis Vuitton, Gucci, Christian Dior and Boss are located on the first floor. The second floor continues to focus on fashion through the presence of Morgan De Toi, Alta Moda, Esprit and Guess.

Several cafes and restaurants, including Kafe Roti, Spoon Asian Kitchen and Saint Cinnamon are inviting spots to catch up with friends and colleagues over mouthwatering food, and drinks.

After all, Plaza Senayan targets the young and trendy, executives, celebrities and the fashion-conscious.

Surrounded by other CBD malls, with one mall, STC Senayan, located right next door, Plaza Senayan's management works hard to make shopping as exciting as possible through various thematic programs.

"We have at least six fixed programs annually, including Independence Day, Idul Fitri, Chinese New Year and Plaza Senayan's Anniversary, and two thematic programs per month. We design those programs six months in advance," said Natalia.

Welcoming school vacation season this month, Plaza Senayan has launched a program called Plaza Senayan Super Sale Today (Pssst). The program offers discounts of up to 70% from stores within the mall from June 10 to July 10.

Another CBD mall, Plaza Indonesia, which also claims to be the "leading fashion center" works hard to retain its market. Plaza Indonesia's sale starts on June 14 and ends on July 14.

International sought-after brands such as Versace, Lafayette, Ermenegildo Zegna, Plein sud Jeans and GF Ferre offer discounts during the sale period from 10 to 80 percent. Even restaurants, such as Taichan Restaurant, Kuppa Thai Restaurant, and Prima Taste Restocafe are offering up to 25 percent discount.

Another mall in Jakarta that is taking steps to retain and develop its market is Mal Kelapa Gading (MKG). Almost everyone in Jakarta is aware of the recently held Jakarta Fashion & Food Festival (JFFF) that was beautifully and creatively envisioned by PT Summarecon Agung Tbk (Summarecon), the developer of Kelapa Gading Permai and MKG, in cooperation with the Tourism Office of Jakarta Special Administrative Region (Pemda DKI) and the Indonesian Designers and Fashion Businesses Association (APPMI).

The five-day festival (on May 19 to May 23 this year) becomes a valuable asset, not only for MKG in drawing more crowds to the mall, but also for Pemda DKI in attracting more tourists in the years to come. The involvement of national and international designers and models constitutes JFFF's selling point.

Planned as an annual event, JFFF is expected to strengthen MKG's concept of 'Fashion-Food-Entertainment'. Its journey from family mall to fashion center also reflects MKG's ties with the Kelapa Gading Permai community.

"When we started with MKG 1 some years ago, many people in Kelapa Gading area had small kids. Now, those kids have grown up, that is why MKG follows their growth by adding MKG 2 and MKG 3," said MKG's technical advisor Ng Kui Lai.

MKG' journey is reflected in MKG 3 that has a strong focus on fashion. MKG 3's The CatWalk on the first floor presents the boutiques of famous Indonesian designers,including Prajudi, Poppy Dharsono, Musa, Anner Avantie, Agnes Budisurya, Parang Kencana, Rudy Chandra, and Kanaya Tabitha.

Located on the same floor, Bridal World accompanies those formerly small children of the community and beyond to an important stage of their grown-up life, marriage. Seen in this way, the presence of Julia Bridal World, Yohannes Bridal, Ricky L. Bridal Style, and others strengthens MKG's strong ties with the community.

MKG 3's Fashion Hub on the second floor presents Boy London, Fashion Park, Mambo, Maybelline, ID Girl, SepakBola, and The Loft. Aimed at attracting young people, this area also provides various accessories for youths as well as entertainment, shows and a place to hang out.

The future operations of more malls have forced existing mall managements to be diverse in their crowd-drawing programs. However, no one is worried about too much competition.

"I think each mall has its own market segment and identity. Hopefully, we can work together to make Jakarta a shopping destination," said Natalia of Plaza Senayan.

The JFFF itself aims to secure the participation of all businesses in Kelapa Gading area. Ng Kui Lai expects win-win cooperation with other malls in the area. The MKG is not the sole player in Kelapa Gading area, with other players like Kelapa Gading Trade Center (KTC), and Sport Mall.

"We want them to participate in the JFFF so that we can draw more people collectively to Kelapa Gading area," said Ng.

With more malls to enter the market, tougher competition is inevitable. However, the spirit of cooperation among existing mall managements is strong and Jakarta may soon be described as a paradise for shoppers, on account of its variety of malls.