CHINA
- The Chinese market is booming, and is a prime target for retail. However to be successful, retailers need an effective strategy to control the Chinese’s cultural parameters, administrative and legal
- Money is not important in China; it’s experience that brings you success
- Retailers must educate employees, as many of them come from the countryside
- Finding a good local partner, for example through a joint venture, can facilitate business implementation, notably for dealing with complicated Chinese bureaucracy.
Source: “How to successfully expand your business in China?” panel (top photo), November 18, with Lucy Wu, China Chain Store & Franchise Association; Mario Manna, Camicissima Shangai Trading; Mario Bauer, Vapiano Franchising International; Jia Hao, Wanda Group; and Richard Li, Aeropostale.
ITALY
- Italy is the fourth economic power in Europe, with over 14 million square metres of shopping centres
- Italy accounts for 6.5% of total investment in commercial real estate, just behind Spain and France
- Recently, an Italian shopping centre was sold 135 million euros for a net yield of 5.6%
- North Italy is very dense in population; the south is more heterogeneous, with many small villages. As such, the north is more suited to the installation of large shopping centres, unlike the south, where smaller malls are more successful. “Small can be beautiful in Italy!”
Source: “Shopping Centres: The Italian Way” panel, November 18, organised by CNCC, the Italian Council of Shopping Centres, with Massimo Moretti, CNCC; Jerry Boschi, Projektmanagement Italia; Raffaella Pinto, CBRE; Valeria Di Nisio, Eurocommercial Properties; Guglielmo Pelliccioli, Il Quotidiano Immobiliare; and Roberto Zoia, IGD SIIQ.
THE UK
- The UK hosts more international retailers than any other country in Europe. It is also the 3rd country in Europe for retail spending, and the 2nd in Europe for retail spending by person
- As a long term strategy, international retailers tend to set up first in London, and then turn to the rest of Europe
- Albeit a stable and transparent market, the UK is also a very competitive one, so it’s tough to implement a first international retail base there
- London rents are due to rise in 2017, which may threaten its role as ‘first base’ for international retailers, to the benefit of other EU capitals, such as Paris.
Source: “United Kingdom: a boarding gate to Europe for international retailers?” panel, Novembert 18. Speakers: David Harper, Harper Dennis Hobbs; Justin Taylor, Cushman & Wakefield; Alice Roudaut, Hammerson; Jeffrey Weinhaus, Equinox.
Research for this post was provided by Enguerran Chancel, Samy Buekenhout & Nicolas Coville.
