make or bre - sapoa

Retail

or BreMake

10 million pageviews per month

2.1 million Instagram followers

$1.2bn valuation

$100m+ sales

Where are we now?

2008 2018actual

National Retail Tenant Trading Density (m2)

Source: Broll Research

2018adjusted for

inflation

-28%

R2170

R3790

R2730

R4000

R3000

R2000

R1000

R0

2008 2018

Retail Space per Person (ft2)

Source: General Growth Properties / Own calculations

USA

25

Chin

a 3

UK 6South

Africa

4.5

Australia

12

Canada

17

France

5

R4000

R3000

R2000

R1000

R0

2008 2018

Retail Space (ft2) per $1000 Spend

USA

1.5

China

1

UK

0.8

South

Africa

2.8

Australia

1.3

Canada

1.5

France

0.6

Source: General Growth Properties / Own calculations / US Census / BLS

2017: 8000+

2018: 5800+

2019: 5900+ announced

20-25% of all malls

USA Store Closures

Source: Business Insider

Source: The Local Data Company / PwC

2018: 5833 store closures

2018: 3372 store openings

That is 6.7 stores closing

every day

UK Store Closures

Dunkin Doughnuts

Baskin Robbins

Standard Bank

River Island

Boardmans

La Senza

Famous Brands

Edgars

SA Closures

R82 000

R80 000

R78 000

R76 000

R74 000

R72 000

R70 000

R68 000

Source: StatssSA

Retail Trade Sales (2015 prices)

R million

201920182017201620152014

Econom

ic a

nd P

oliti

cal Ris

k

Market Potential +

+

Closing Window of Opportunity

Source: A T Kearney 2017

Cash constraints

Brands and Media are different

Online

Community evolution

Cash constraints

R380 000

R360 000

R340 000

R320 000

R300 000

R280 000

R260 000

R240 000

R220 000

2008 2018

-10.6%

Average Salary Increase (white-collar)

Source: Broll Research

Per Capita Income in SA Households

R50 000

R45 000

R40 000

R35 000

R30 000

R25 000

R20 000

R15 000

R10 000

R5000

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Source: News24

Cash constraints

Brands and Media are different

Online

Community evolution

Brands and Media are different

Why Social Media?

Traditional Brand Marketing

New Inbound Marketing

Why Social Media?

Traditional Brand Marketing

PurchaseAwareness Consideration

Dis

cover

Search

Share

Share

Research

Research

Comments

Peer

Review

Trust

Trust

Decide

Purchase

EvangeliseEvangelise

Buyers

Influencers

Why Social Media?

Traditional Brand Marketing

PurchaseAwareness Consideration

Dis

cover

Search

Share

Share

Research

Research

Comments

Peer

Review

Trust

Trust

Decide

Purchase

EvangeliseEvangelise

Buyers

Influencers

Choices are made using different:

Processes

Criteria

Cash constraints

Brands and Media are different

Online

Community evolution

Online

China USA

Ecommerce Share and Growth

Source: eMarketer

UK

35%

South

Africa

23% 12% 2-3%

20% Growth

30%

15%

11%

Internet users 51%

Smartphone

penetration60%

Active social

media users40% 28%

Mobile social

media users38% 38%

South African Digital Adoption

Source: Hootsuite

South Africans Buying Consumer Goods Online

Hootsuite 32.5 million ($2.9bn in value)

Statistica 21.5 million

Source: Hootsuite

Meet Harry’s

80%

70%

60%

50%

40%

30%

20%

10%

0%

2010 2011 2012 2013 2014 2015 2016 2017 2018

Gillette

Dollar Shave Club

& Harry’s

USA Razor Wars

Source: iab

Direct-to-Consumer

Immersion

Conversation

Data

… Owning the relationship

Cash constraints

Brands and Media are different

Online

Community evolutionCommunity evolution

Principles of Urbanism

Principles of New Urbanism

Walkability

Connectivity

Mixed-Use

Quality Architecture

Increased Density

Green Transportation

Sustainability

Quality of life

And so?

Retail / Mall Strategy

Previously …

Asset-centricPresently …

Customer-centric

Customer-centric Retail / Mall Strategy

Malls are brands

Retail is tech too

Experiences build relationships

Customer-centric Retail / Mall Strategy

Malls are brands

Retail is tech too

Experiences build relationships

Customer-centric Retail / Mall Strategy

Malls are brands

Retail is tech too

Experiences build relationships

Relevance

Preference

Excellence

Dependence

End