Organised by Reed MIDEM, the International Retail Property Market will be held in Cannes from 14 to 16 November. With over 8,600 participants in 2017 including 2,100 retailers, MAPIC is the leading international leasing platform for key property players to build life place destinations and take the pulse of the market.
In a recent article for the New York Times, Joel Bines and David Bassuk of Alix Partners LPP commented, “Don’t bet against retail; the destruction it is going through is, as in the past, of the creative variety.” In the same article, they also drew attention to the “disrupter du jour: Amazon – which collected more than 40 cents of every dollar spent online last year. Few retailers have figured out yet how to compete effectively with Amazon, but some perspective is necessary. Just 8.9% of retail sales in the United States last year were made online- including Amazon. In other words, 91.1% of the $5,7 trillion consumers spent at retailers last year still passed through brick-and-mortar locations. Yes, the share of the retail sales taking place online will continue to increase for some time – but not forever.”
The current worldwide sales forecasts from eMarketer show that e-commerce sales account for one-tenth of total retail worldwide, with notable discrepancies by territory, from 17% in the UK to 3,2% in Italy. Asia-Pacific will be home to more than half of the world’s digital buyers this year. Approximately 61.7% of Asia-Pacific’s internet users and 28.5% of its population will make a purchase digitally this year. By comparison, roughly one-quarter of digital buyers worldwide live in North America and Western Europe this year.
In this rapidly changing context, the role of the physical store is evolving. E-commerce is now part of the retail sales channel in the same way as the physical store: the two are complementary and self-feeding if designed according to the same and unique logic that puts the customer experience at the centre of the device.
The theme of MAPIC 2018 will be Physical in the Age of Digital. Through a gold-standard conference programme featuring over 100 speakers; it will treat the online to offline convergence, the emergence of new physical demands, innovation as a key driver to embrace retail transformation and magnifying the customer experience.
In the digital world, the consumer is constantly seeking emotional engagement through new physical and social experiences. Retail locations are re-evaluating their spaces to focus on social and community uses. While shopping centres understand the potential of leisure, they need to know which type to focus on. The first MAPIC Leisure Summit on Tuesday November 13th, will take a half day to look at the different issues relating to the integration of leisure, including how to source solutions, how to set up in a retail location, as well as different business models and international trends. The summit will then look at a different perspective: what if culture and education were the future of shopping centres? As authentic, vibrant places, shopping centres diversify their offer and especially their activities to create new experiences and attract new customers. Culture is one the new pillars. Exhibitions, concerts, museums, cinemas … all represent strong, motivating forces for consumers.
The rise of wellness, the art of taking care of oneself and a more diverse retail mix, is behind the emergence of wellness locations in shopping centres. For the first time at MAPIC, a dedicated conference session will explore the best innovative beauty and wellness services to create customer value.
As purchasing patterns evolve and consumers become increasingly autonomous, unpredictable and connected, new economic models are emerging. How Property Players & Retailers Match?, is a panel session that will focus on the successful models of the sharing economy and the online second-hand market. In response to these new models from the digital world, shopping centres are looking to make their spaces available for new players as the last link in the purchasing chain. Even when digitally connected, the consumer will always need a physical point of contact.
Nathalie Depetro, Director of MAPIC noted: “Since the beginning of commerce, merchants and retailers have had to innovate to survive the obstacles brought on by industrial, sociological and technological developments. We must use this fact as a driving force to create the new retail mix of tomorrow. MAPIC is the rendez-vous point to gather information and expert advice as well as to select those new key partners that can accelerate innovation for both retailers and developers alike.”