Retailers as Growth Partners
As is the case for many other industries, the retail sector is changing rapidly—with challenges from the economy, technology, and pandemic intertwining with changing consumer behavior. However, for most retailers, physical space is still necessary; shops need the freedom to innovate and diversify, and consumers need somewhere they can see and touch a brand and its products. Therefore, the relationship between retailers and property owners remains one of the main factors to be considered.
EVOLUTION OF PROPERTY OWNERS’ ROLE
Fundamentally, property owners are responsible for providing space. However, what Retailers look for when renting it is traffic. Therefore, the property owners’ capacity to generate traffic is crucial when assessing a location. In order to enhance tenants’ business, property owners need to be “The developers” who can manage rental space effectively. Taking an even more supportive role, property owners might position themselves as a platform that prioritizes the co-creation of values, becoming a network both within and outside their area via connections. For example, Siam Piwat, a major Thai retailer, partners with the Pavilion Group to open “Discover Siam” to expand Thai SMEs to Malaysia. Nevertheless, In nowadays situations in which increasing competency for partners is the way to create sustainable growth, being a “Platform” might not be enough.
Empowering tenants' growth becomes the new Ultimate goal for property owners as business partners. Rather than focusing on earning a profit, enhancing the competency of the tenants by offering "Empowerment" is another level of the property owners' role that every business sector should aim to complete. Some ways to do this are helping the retailer pass on practical knowledge, sharing customer insight, and giving experience or data. All these can be applied to step up their tenants' marketing strategies and enables their brands to create their ideal customer experience.
Growing together as a community when looking for long-term success is vital. When doing business, seeking “growth partners” that help empower others to be better, compete, and grow businesses together must be the crucial first step.
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