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Friction Free

Newsdesk by Newsdesk
Tue 16 Dec 2008 at 16:00

Macau Studio City

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The 80/80 Rule

At least 80% of Macao Studio City’s visitors will pass 80% of the stores, says Taubman

Macao Studio City’s casino is an essential component in creating the buzz factor that will attract visitors to the venue. But the property is designed in such a way that all the components, including the entertainment and retail, feed from each other, says Richard Hamilton of Taubman Asia.

“The upper level of the property is where the theatre will be located, and the gathering area for the audience will overlap with the retail mall to further integration and crossover of traffic,” explains Mr Hamilton.

“We have what we call the 80/80 rule,” he adds.

“That means 80% of customers pass 80% of the stores. This project will have its iconic stores taking advantage of 1,200 feet of frontage on the Cotai Strip.

Flagship stores

“Our brands will be similar to what you see at the Four Seasons. We won’t look like The Venetian [mall] in any way. The difference between us and the Four Seasons [mall] is that I would describe the Four Seasons stores as more like airport stores, in that they’re fairly small, selling more the accessories range. Our stores will be more the full line range like you might see in stores in Canton Road [Tsim Sha Tsui, Hong Kong] and central Hong Kong,” he explains.

“In some instances they will be ten times the size of what’s in the Four Seasons. Typically they will be five times the size of those in the Four Seasons.”

Mr Hamilton says Macao Studio City will be catering to shoppers who are already sophisticated consumers of brands.

Retail therapy

“The Chinese customer in my experience is very well informed. They will know where the full range is available. They will want to see the full range. We notice that in the turnovers achieved by the big stores in Hong Kong, where there’s 12 [Louis] Vuittons. The best stores on a rate per square foot are the biggest stores.

“The customers want to see everything. Even if I’m not a customer for a Louis Vuitton trunk and I’m still at the key ring stage [in terms of affordability] I still like to see the trunk, even when I buy the key ring. Maybe it’s an aspirational thing.

“Each element—the convention space, the hotels, the theatre, the shopping—all needs to be best in class. It all needs to be adding to the foot traffic,” says Mr Hamilton.

“It’s everything within the resort that keeps people moving around the property, that holds people for longer periods within the property and that offers overlap within the respective

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Newsdesk

The IAG Newsdesk team comprises some of the most experienced journalists in the Asian gaming industry. Offering a broad range of expertise, their decades of combined know-how spans multiple countries across a variety of topics.

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