Commercialisation is a broad and dynamic sector that has changed and evolved over time to meet the needs of consumers. So I thought, with the rush of Christmas upon us, what a better time to celebrate the positive impact commercialisation brings to retail.
Christmas is a time where shoppers are in need of some assistance and guidance, be it a quirky gift from a unique trader, or getting their car washed whilst they hurry to finish their Christmas shopping. Housing temporary products and services create variety and excitement, not forgetting increasing dwell time. The concept utilises every square foot of the mall, increasing the number of sales through the tills.
The food and beverage industry can take a lot from commercialisation, offering samples and increasing visibility – as opposed to being confined to a food hall – broadens awareness and drives footfall to the main bar or restaurant. For the landlord, supporting tenants to increase brand awareness and lift sales, will make re-leasing easier.
An important factor to consider when determining what products, services and brands to house in a centre, is the existing tenant mix. The offering needs to be in keeping with the current tenants to ensure they appeal to the footfall as well as being affordable. However, commercialisation managers should consider that allowing customers access to a similar product or service, increases the competition for current tenants.
An additional factor to consider is the schemes consumer’s expectations. Is the trader an attraction or an irritation to shoppers? Dependant on the centre, customers may not be impressed if they are being hounded and lured in by traders. This kind of experience would detract from the customer’s enjoyment and make them less likely to come back – the trader’s method of selling and approaching consumers needs to be considered.
Commercialisation units, if done well, can be extremely successful for the landlord, tenant and consumer. I’m looking forward to enjoying the commercialisation opportunities Christmas presents us with; Christmas markets, Santa’s grottos, Christmas wrapping and unique gifts/products, in the weeks to come!