FOR Marketing Perspective -- June 15

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.