Main Topic: Conspicuous Consumption at the Mall

Hosts: James Stanworth , Stephen Huang , Clyde Warden

American shopping malls have spread aroundthe world, but in Asia, the Japanesedepartment store model is dominant. Malls have succeeded in attracting a youngmarket segment, but have been unable to dislodge the night markets as the preferredlocation for spending money. Rather than buying many things, the tweens comingto the mall are often on dates, going to a movie, or traveling with classmatesand showing off some sophistication. Mall owners appear to lack a clear positioningstrategy, which makes the locations dependent on promotional events and movieblockbusters.

Tiger City is one of numerous attempts (Dream mall is the biggest on Taiwan ) to import the Western mall model. These formats have not taken off, but they do attract a strong number of young people. Conspicuous consumption is paramount as groups of young people shop and buy products that are all a bit expensive. Working House is a perfect example of the upscale look these malls would like to have, with a large amount of New Age visuals and Ikea aesthetic (Click here for a Working House DM ). 

The mall is a great contrast with the night market—another place young consumers often visit. Clyde, Stephen, and James visit Tiger City in this show and cover some of the special marketing features of a mall format in a Chinese setting. Clyde has a guided tour through Tiger City using ConsumerCam (video 2).

Throughout Greater China, people have a lot of places to go now, and this is not so popular.

Photos:

• 1) Promotional area bumps right up against a main road. 1) Promotional area bumps right up against a main road.
• 2) Isles are made narrow by islands of product. 2) Isles are made narrow by islands of product.
• 3) Stands full of product encourage consumers to touch and dig. 3) Stands full of product encourage consumers to touch and dig.
• 4) Inside out retailing is strong inside the mall. 4) Inside out retailing is strong inside the mall.
• 5) Bras are everywhere (an emphasis on hedonistic consumption). 5) Bras are everywhere (an emphasis on hedonistic consumption).
• 6) FCUK. Be careful how you read it, you could end up in court. 6) FCUK. Be careful how you read it, you could end up in court.
• 7) Expensive stores are grouped near another entrance. 7) Expensive stores are grouped near another entrance.
• 8) Deep discounts, here 50%, are common. 8) Deep discounts, here 50%, are common.
• 9) Second floor sale on bras. 9) Second floor sale on bras.
• 10) More bras. 10) More bras.
• 11) Buy one, get one free. 11) Buy one, get one free.
• 12) Groups of classmates checking out Working House. 12) Groups of classmates checking out Working House.
• 13) A themed store. 13) A themed store.
• 14) Inside in servicescape. 14) Inside in servicescape.
• 15) A reminder to get your receipt (supporting tax collection). 15) A reminder to get your receipt (supporting tax collection).
• 16) Even in this theme store, large signs showing discounts is important (20% off). 16) Even in this theme store, large signs showing discounts is important (20% off).
• 17) The Lolita sexy underwear store. 17) The Lolita sexy underwear store.
• 18) A totally inside out servicescape 18) A totally inside out servicescape
• 19) Kids game area near restaurants downstairs. 19) Kids game area near restaurants downstairs.
• 20) Japanese photo booths. 20) Japanese photo booths.
• 21) Complete with instructions (in Japanese). 21) Complete with instructions (in Japanese).
• 22) Inside the photo booth. 22) Inside the photo booth.
• 23) Membership cards (here for 100 yuan) are common to build loyalty. 23) Membership cards (here for 100 yuan) are common to build loyalty.
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ConsumerCam:

Show Links:

• Tiger City Website.
• Working House Website
• FCUK Website
• Compass Magazine Introduction to Tiger City.
• Compass Magazine Introduction to Golden Class.
• A blog entry on the Golden Class experience.

Bottom Line:

• Customers mainly made of teenagers and early twenty some things (tweens).
• Part time jobs gives young people money, and credit is easy to get.
• While it looks Western, do not assume this format is so popular.
• The design emphasizes the generation of renao feelings.
• Inside, space is purposely limited to increase the crowding effect.
• With a couple theme stores and a few high-end stores, the mall is mostly emphasizing discounting.
• Inside out retailing, where sale items are pushed out into the walkways, is everywhere.
• In the end, the inside is not at all like a Western mall, but more influenced by local retailing.