Be first and unexpected: MTR Malls executive shares retail secrets

A decade-long retail shopping industry veteran, Leong's main responsibility is to take care of the shopping mall rentals of MTR, one of the fastest growing developers and operators, with 13 malls in Hong Kong.

What is the difference between MTR station retail and MTR-owned shopping malls?

Station retail is more traditional grab-and-go business, which is fast expanding, while shopping malls focus on the experimental—more like the ‘third place’, the marketing concept that Starbucks created.

The shopping mall is changing its business model: it's not just for shopping, but refers to anywhere outside the office or home where you continue to go, that gives you a sense of emotional ownership and attachment, and which keeps you going back.

How do you keep the shopping mall experience sustainable?

Shopping malls have to really click with people, be it through the ambience or infrastructure.

MTR-owned shopping malls differ from other malls in Hong Kong, as ours are well-integrated into the MTR railway and property model, which is part of the town planning of Hong Kong.

In the past 30 years, Hong Kong has created lots of new towns, like Heng Fa Chuen, Telford, Tsing Yi and Junk Bay, where we have created thoroughfares of seamlessly integrated public transport and community.

Hardware is important, but software is equally vital. What are the software developments of MTR shopping malls?

With hardware, when you have finished, every now and then you can do some renovations, but there is only so much you can do.

However, software is a very important part in which we focus on an 'experiential approach' for our customers.

The best marketing strategies are those that anticipate customers’ needs. This is what inspired us to put so much effort into our washrooms. The washroom is a very important anchor for a shopping mall—it is naturally related to your everyday life, like eating, clothing, living, transport. If the washroom experience is not good, you do not want to go back.

We are well-known for providing hotel-standard washrooms, with a doorless public lounge, a nice interior and ambience area with wifi, sweets and newspapers. In the past, public washrooms were mostly functional. In this respect, we have been walking ahead of our competitors.

A washroom is intrinsically related to everyday life, which is very, very important. We are seeing it from the human point of view, as doing shopping business is not a pure science, but also needs a humanity-based approach. We all need to go to bathroom many times a day, hence we want to provide a ‘feel-good’ environment. 

Some shopping malls uses cinemas as their anchor, but washrooms are equally important. Our shopping malls are very consumer-driven and put the shoppers at the centre of the experience.

How do you get normally reluctant shoppers like men to enjoy being at the malls?

Men enjoy privacy and space. If they feel better and have more space, they feel respected and taken care of. For example if there is ample free parking, they will not feel they are being ripped off.

But they come to spend, and if we respect them as customers, they will be happier when shopping with their girlfriends and wives. We do relationship-building with our customers through birthday gifts, Chinese New Year red packets, VIP events and concert tickets.

We nurture an emotional attachment through ongoing social media and EDM marketing, and engage our customers and offer special goodies. We make our malls an integrated part of their lifestyle, otherwise why should they keep going back?

What is the edge for Hong Kong malls, here and in China?

There were quite a few Japanese department stores in Hong Kong in the '80s and '90s, but the past 10 years has seen lots of shopping malls popping up.  

We used to follow lots of influences from Japanese and European malls, but as Hong Kong people have become more cosmopolitan, with lots of fusion between East and West, we have developed deeper insights with our international exposure. This is very important for Hong Kong, and part of the evolution and mutual influence of shopping malls in China.

Competition in the Hong Kong shopping mall sector is very intense, thus we recruit best-kept-secret brands and restaurants, and boutique hotels to our malls. We stick to a golden rule of 20-30 per cent fresh offerings.

What are the attractions of the retail marketing industry for you?

I have always been in the retail property industry for over 10 years. The marketing industry is very attractive, with its own charm. It's more glamorous, visible, and louder than a lot of trades—say investment banking or trading.

We have to be very close to the pulse of the world and the industry to attract outgoing and dynamic people who like to mingle and do networking.

The retail industry is also very charming and magical, with lots of materialistic attractions, but it is also a demanding and tiring 48-hour job. But it is always fun and important to be the first and to be unexpected, so it works both ways.