All Outlet Eyes Turn to Asia - Value Retail News

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Simon lends the voice of experience in Asia
Simon Property Group’s U.S.
outlet centers have long been
destinations for international
travelers. Since the 1985 opening
of Woodbury Common Premium
Outlets, Simon has been introducing
visitors from all over the world to the
benefits of upscale outlet shopping,
the 71-center portfolio’s consistent
concept. The thrill and benefit of
saving money on designer brands
has universal appeal, yet quality tenants
and upscale environments are
a big part of why outlet shopping is
a primary activity for travelers and
shoppers who understand outlet
authenticity.
More than 10 years ago Simon decided
to expand into Japan, a country
whose shoppers were already
traveling en masse to the developer’s
Premium Outlets in the U.S.
The company now has eight outlet
centers in Japan, two in Korea and
one opening in November in Malaysia.
Each center is an extension of
Simon’s global outlet portfolio and
is cross-marketed whenever pos-
ICSC launches Outlets Asia
ICSC is launching the first conference
in Asia exclusively for the
outlet sector. Outlets Asia will be
July 28 and 29 at the Shangri-La Hotel
Suzhou. The focus of the 1 ½-day
conference will be on the prospective
Asian markets for outlet centers and will
include discussions by industry experts
from the U.S. and Europe, as well as
from Asia, on brands, Asian preferences,
economic trends, investors and
planning policies.
The emphasis for this conference will
be on China, which is booming with
some three dozen planned outlet projects.
The conference will be followed by
a tour of Suzhou He Shun Outlets and
Changshu Outlets.
Suzhou is in the heart of China’s
prosperous Jiangzhe region that surrounds
Shanghai.
“Since China is host to more new
outlet projects than anywhere else in
Asia, it seemed only logical to launch
10 InternatIOnal Outlet JOurnal SummEr 2011
sible. Having centers in Asia has not
diminished shoppers’ desire to come
to the U.S. to shop in the original
Premium Outlets, says John Klein,
president of Premium Outlets, the
outlet division of Simon Property
Group.
IOJ recently conducted an email
interview with Klein on outlet development
in Asia.
IOJ: What are some fundamental
differences and similarities in developing
outlet centers in Asia and
the U.S.?
Klein: Universally, shoppers enjoy
finding savings on quality brands.
However, each country has its own
culture that requires appropriate
tailoring. Asia is a large region made
up of very different countries that
need to be addressed as such.
IOJ: How about the differences and
similarities you’ve noted in Asia
– Japan vs. Korea vs. Malaysia vs.
China?
Klein: Japan’s outlet market is fairly
mature, while the Korean market is
still emerging as it enjoys increased
the series in Suzhou in the booming
Jiangzhe region which now has the biggest
concentration of outlets in China,”
explained Tan Guan Heng, director of
ICSC Asia Pacific.
Conference topics will include the
state of the global outlet industry;
consumer shopping patterns; outlets’
role in fashion; outlet development
fundamentals; mapping Chinese outlets;
assembling the right tenant mix; marketing
outlet centers.
“There will be learning opportunities
for insiders and outsiders alike,”
Tan said. “For local investors and retail
executives, the series provides an ongoing
opportunity to learn about best
practices, planning, operations, regulations
and other fundamentals essential
for success.
“For international investors who have
already climbed the outlet curve in their
home markets, Outlets Asia series is a
rare opportunity to get the real story
international awareness. Malaysia/
Singapore have very sophisticated
retail developments, but Johor
Premium Outlets will be the region’s
first true outlet center. We have
welcomed many shoppers from this
region so there is great excitement
and anticipation for the opening.
China has a number of projects that
have developed over the last several
years, but the definitions, standards,
and authenticity of outlets overall
are lacking in clarity. There is also
a much larger role of government in
China.
IOJ: The biggest challenge?
Klein: Finding a strong local partner
has been key to success in navigating
each market’s issues.
IOJ: What is your No. 1 key for success
in Asia?
Klein: There is no one single key; it
requires being completely engaged
in delivering the finest brands, in
high quality developments and
locations, with a unified marketing
strategy, and a cohesive operations
team. c
behind the headline numbers,” he said.
Tan pointed out, for example, that
both China’s rich and not so rich support
China’s €7.5 billion luxury market.
“There are hundreds of millions aspirational
Chinese already buying a piece of
the middle class,” Tan said, adding that
Westerners familiar with outlet retailing
will also get a chance to see some of the
innovative ways Asians have adapted the
concept.
But Tan reckons the biggest concern
for international players coming to Suzhou
will be site selection. “We expect
attendees will leave Suzhou for home
with some answers,” he said, “or at
the very least, they’ll leave with a lot to
think about on the flight home.”
With the support of the local government,
Outlets Asia’s launch event is also
endorsed by Suzhou Hi-Tech Industrial
Development Zone Administrative
Committee and the China Famous Business
Development Association. c