Leveraging CapitaMalls Asia’s Expertise to Enter New Markets |
Singapore retailers venture overseas with giant mall developer |
Issue: Nov 10 |
Bigger markets, better opportunities and greater growth – the overseas markets brim with prospects for local retailers. That was what struck Singapore jewellery retailer, Soo Kee Group, when it embarked on a feasibility study trip to Beijing and Shenzhen in 2008 with CapitaLand Retail, now known as CapitaMalls Asia Limited (CMA).
“We witnessed the abundance of opportunities in China and the potential of the market,” says Angelina Lau, Deputy General Manager of Soo Kee Jewellery. “The study trip also provided us with a platform for retailers to learn from one another’s experience in conducting business in China, which we found very beneficial to our China venture.”
Today, Soo Kee Group has a presence in three CMA malls in China. “CapitaMalls Asia provided Soo Kee with a platform to propel our brand into the China market. The professionalism of the team at CMA enabled plans to be executed in a very organised and swift manner,” says Lau.
Soo Kee Group also operates in three CMA malls in Malaysia. In Singapore alone, Soo Kee has 16 outlets in CMA malls under its key brands: Soo Kee Jewellery, SK Jewellery and Love & Co. Having a long term tenancy relationship with CMA in Singapore has given them the added assurance to take the leap abroad.
This is especially so when foreign regulations can prove daunting at first. CMA has stepped in to ease the teething issues. “CapitaMalls Asia representatives assisted us in many ways to reduce the impact of the new challenges. With some trusted local contacts provided, we were able to kick start our operations in China,” Lau commends. “CapitaMalls Asia is one of our important strategic partners in our overseas ventures.”
As CapitaLand celebrates its 10 successful years in business this year, the Group also celebrates its tenants’ success stories overseas.
Over the last three years, CMA has stepped in to bridge the gap and open the doors for Singapore retailers who dream of expanding overseas. The feasibility study trips it co-organises with SPRING Singapore have been instrumental in the process, according to Chng Chet Siew, Senior Vice President of Regional Investment and Asset Management, Leasing of CMA.
“These feasibility study trips give tenants confidence in us as a landlord. During these trips, they witness for themselves that we have been able to bring our best practices in mall management overseas. Through these trips, they are also able to understand the overseas markets better.
“For those tenants who are fully convinced after the trips, we will then follow up with them to identify suitable malls based on their brand’s positioning, price point and mall tenant mix that will give them the synergy as our malls are wide ranging in terms of market positioning,” Chng adds.
For the Managing Director of M)phosis, Hensley Teh, the study trip was a turning point in the brand’s expansion plans. He was impressed with how well-run CMA’s overseas malls were. Some of the malls were even drawing M)phosis’s target clientele of young working women. The trip inspired Teh to set up M)phosis’s first shop in China in Raffles City Beijing.
“The trip really helped us to gain confidence. I was truly impressed by the organisation and management of those malls. We probably would still not have established a presence in China if it wasn’t for the help we received,” Teh shares. “The whole process of starting up in China, in Raffles City, was expedited because of the qualities we’ve come to expect from the Raffles City brand.”
Indeed, Teh’s testimony is a reflection of the effort CMA takes to ensure the success of tenants’ expansion overseas; from introducing relevant overseas consultants to tenants, conducting further market research prior to expansion, to even going the extra mile for the tenant once a decision is reached.
For instance, when IT megastore Challenger set up its first Malaysia branch, a 30,000-square-foot store in The Mines in Selangor, Chng’s team even helped with recruitment and promotions.
“CapitaMalls Asia has been supportive in assisting and working with us to overcome many issues. We are appreciative of the support given to us and efforts put in,” says Business Director of Challenger Technologies, Tan Wee Ko. “CapitaMalls Asia has a very good track record in operating retail malls in Singapore. That’s why Challenger believes that CapitaMalls Asia would also be able to make its overseas malls equally successful.”
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