Binkert 5.0 Flashcards
What kind of challenges over the past 200 years did appear according to goods?
- goods been offered through more channels
- faster and cheapter
- opportunities for companies to interact with existing or potential customers
- therefore also more challenges
What are first, second and third places?
- home
- work
- leisure
Was heisst Einzugsgebiet?
Catchment area
What does cascading mean?
the more stores you have the more income you can generate -> in ebisquare you can eat sushi -> then also do your shopping
What will Shopping Malls look like in the future?
What should our economic goal be?
The Donut Economy:
- life on the ring (donut)
- Kate Raworth puts people and the environment at the center of the economy
- mindfulness and sustainability instead of abundance and waste
Why EbiSquare became the Mall of Switzerland.
What Paradigm Shift did appear?
- Meaningfulness: from quantity to quality
- Society: more empathy, more community, search for meaning
- Lifestyle: more part-time jobs, smaller but more beautiful, less but better, more urbanity instead of suburban idyll, regional beers instead of expensive Bordeaux wine
- Authenticity: travel, nature experience, Demeter
- Sustainability: LOHAS, Havelaar, …
-> Icons of status are “out”. Bluff is not working anymore
Shoppingcenters become cities. Cities become shoppingcenters
What is the Pareto Principle?
- named after Vilfredo Pareto
- 80-to20 rule: 80% of the results can be achieved with 20% of the total effort.
What are the 4 Ps?
- Promptness (Schneller)
- Proximity (Näher)
- Pleasure (Schöner)
- Purpose (Sinnvoller)
How is the current situation with our shopping malls?
- average age: +30
- big variety, no clear concepts
- no one-size-fits-all solution -> location, positioning and profile
- renovation jam
- revitalization not necessarily yields more rental income
-> a reviltalization boom must take place
= as much space as necessary (before as much as possible)
= as much fulfilment of needs as necessary (before as much consumption as possible)
Revitalization boom for shopping centers. What following recipes must be observed?
we must bring life back to shopping:
- the right product for the target customer
- the right concept for the location
- the right brand mix for the customer
- the right format for the particular area
Shopping center: What changes of usage will happen?
- new and exciting concepts
- higher quality of the mix of offers
- proximity to the consumer and satisfied customers
- retailers who look after assortments
What do most retailer deliver to succeed?
- Market proximity: knowledge and experience of local market
- Customer proximity: can take care of the individual customer acquistion
- assortment mix
- refines manufacturer’s offer through product-related services
- offers the goods of the manufacturer in demanded lot sizes
Cost and return
What happens when rents fall?
- bank charges decline
- maintenance can be reduced
- amortization period be extended
- land becomes cheaper
What does Brick and Mortar Retail mean?
Ziegel und Mörtel -> physische Shops
Shopping centers: How can you recognize risks?
- through SWOT
- high ROI stands for high risks
- longterm assumption important
analyze:
- disposable (verfügbarkeit) income of the CH population
- probability of occurrence of falling rents
- competition between space providers
What turnover must a shopping center generate in order to be profitable?
- expected return for retail is around 10%
- consr. cost CHF 400m + 100m land value + 100m soft costs + risk 60m
2/3 of their real estate value
How much can retailers pay of their turnovers?
15%
How many rolexes must a jewelry store sell per day to break even?
Assumption: List price Rolex = CHF 10’000 / Presentation table with two chairs and back-office part need 5m2/ rent = CHF 1’000 / m2 = 15% of sale
rental costs = 5’000 p.A.
annual turnover must therefore be CHF 33’333
i.e. a rolex every 100 days
How many salads must a greengrocer sell per day to break even?
Salad costs CHF 2
space 5m2
rent CHF 500/m2
rental costs = CHF 2’500
annual turnover must be = CHF 16’667 (15%)
CHF 56 per day or 28 salads
Why can online trading not do it all?
- for some it is important to feel the cloths
- long wait, and then the size does not fit
- some rather buy and be able to take clothes with them
make better use of the PoS (Point of Sales)
- real added value = knowledge about his behavior and his preferences, combined with the intuition of a real person
Radical transparency: Why is it ok?
- millennials are trendsetters for the entire consumer economy
- they are better informed than ever before
- 33% of millennials review blogs before buying
- millennials focus more on authenticity and quality
- Digitalization is driving this trend forward
it is hard to be radically transparent withouth a digital presence -> traditional brands need to reassess their process to keep up
Shopping: What are trends?
Always and everywhere, fast, individualized and efficient shopping:
- online trade
- global trade
- internet of things
- virtual and augmented reality
- automation
- experience orientation
- top advice, remote or real
- convenience
- city tourism
- etc.
What are conculsions about shopping malls?
- obviously, we can’t do withouth stores in the future
- the store is no longer just a place to buy products
a store now plays several possible roles:
- as an interface between people
- as a small corner store with an exclusive premium selection
- as “guideshops”, “physical touchpoints”, “styling lounges” … for the big players
- as a place to get to know materials and shapes in reality
- as a place to look for ideas and inspiration. Co-creation of products, experience and exchange
- as a convinient place to return or exchange online purchases
- as a meeting place where groups of friends can try things out
