CRITICAL SUCCESS FACTORS OF SHOPPING CENTRES IN HONG KONG

Abstract

Despite many years as a shopper's paradise, little is known about Hong Kong's critical success factors. The purpose of this study is to assess the ability of the empirical findings elsewhere in explaining the success of shopping centres in Hong Kong. This is achieved by comparing relevant success factors culled from retailing literature with those of two shopping centres in Hong Kong - Pacific Place and New Town Plaza. Pacific Place owes its success to short travelling time/distance, a large retail area, a good tenant mix, an efficient and effective managing agent, agglomeration economies and the presence of anchor tenants. Among the success factors, its short travelling time/distance, large retail area, and the presence of anchor tenants support empirical findings elsewhere. In the creation of a favourable store image and store atmosphere, the management differs from empirical findings elsewhere as to how this is to be done. Deviation too exists in the use of consumers' characteristics in strategic marketing decisions. The aspect of how a proactive attitude towards maintenance and management can contribute towards retail success is still open to research. New Town Plaza relies on short travelling time/distance, large retail space, the use of a research team, an efficient and effective managing agent, a positive store image, good tenant mix and the presence of an anchor tenant to achieve high customer patronage. The use of short travelling time/distance, large retail space and anchor tenants are inline with empirical findings elsewhere. However, aspects on how a positive store image, favourable store atmosphere and good tenant mix are to be created differs from studies elsewhere. This is also true in the use of the characteristics of shoppers for positioning and making of strategic marketing decisions. There is scope for research in how maintenance and management can contribute to retail success.