Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
Insights<br />
differences with duty free goods, quality<br />
assurance differences (think baby products,<br />
healthcare and drugs) and daily price<br />
variation such as with gold.<br />
<strong>IAG</strong>: How have the new openings of Galaxy<br />
phase 2 and Studio City affected retail in<br />
Macau?<br />
GS: The new openings of retail portfolios<br />
offer a wide range of choices to both locals<br />
and tourists. Quite a few international<br />
brands have entered Macau for the first<br />
time. With environmental and political<br />
policy changes, Macau is stepping into a<br />
“new normal”, which means apart from<br />
gaming as the major revenue, non-gaming<br />
sectors such as retail and MICE are playing<br />
more important roles. The increased<br />
diversification is a healthy and positive<br />
direction that Macau is heading in.<br />
<strong>IAG</strong>: Are the tastes of the mainland visitor<br />
maturing compared to a few years ago?<br />
GS: Definitely. The middle class clusters<br />
have been growing rapidly with China’s<br />
booming economy in the past few years<br />
and Chinese people’s brand awareness is<br />
growing. More and more shopping malls<br />
are opening in China with international<br />
brands and Chinese people travel more<br />
to Hong Kong, Macau and destinations<br />
outside China. Visa requirements for<br />
travelling Chinese are relaxing. A few years<br />
ago Chinese people might look for brands<br />
with big logos that are easily recognizable<br />
on the street to show off, but now they<br />
are looking for subtle luxury symbols that<br />
makes them feel different. Things like<br />
luxury designer labels, limited editions<br />
and so on. While there is no doubt the<br />
overall brand awareness of mainland<br />
tourists in Macau is still behind those<br />
from Hong Kong and Macau – especially<br />
with more and more mainland tourists<br />
from second and third tier Chinese cities<br />
entering Macau – catching up the gap<br />
won’t be too far away given all the rapid<br />
changes in China.<br />
<strong>IAG</strong>: There are plenty of high-end offerings<br />
in retail for the VIPs, but what about midrange<br />
for the growing mass floor player?<br />
GS: Types of retail offerings are all about<br />
supply and demand. Usually retail mix<br />
positioning and planning is implemented<br />
and confirmed before retail professionals<br />
approach retail brands to come into the<br />
malls. The whole planning, leasing and<br />
opening process generally takes around<br />
two to four years. Therefore, what you see<br />
now reflects the market demand two to<br />
four years ago, which explains why there<br />
are plenty of high end offerings for VIPs in<br />
the current retail mix at most malls. With<br />
the “new normal” market, I believe the<br />
retail mix will be inclined to become more<br />
affordable. However, the retail mix also<br />
depends on the whole positioning of the<br />
property and its branding. If the property’s<br />
“A few years ago Chinese people might look for brands<br />
with big logos that are easily recognizable on the<br />
street to show off, but now they are looking for subtle<br />
luxury symbols that makes them feel different.”<br />
<strong>December</strong> <strong>2015</strong> inside asian gaming 25
Change language