Malls jostle to catch the eye of consumers

Amid saturation of the retail market in Nairobi with new shopping malls, the recently opened Two Rivers mall has, nonetheless, walked away with the crown, attracting immediate footfall as its two neighbouring malls suffer —one opening to empty corridors, the other losing a consumer base it had held for decades.

It’s a shift that reflects the changing appetites of consumers, and the fact that any producer can succeed, even in a saturated and competitive market, if they provide what consumers most want.

“Consumers want to find new stores and new types of products that they cannot find anywhere else. Beyond that, they also want to go into a mall not just to shop, but also for leisure and entertainment,” said Julien Garcier, Managing Director at Sagaci Research, which provides market intelligence across Africa.

Likewise, Knight Frank reported in its 2016 global report says “Kenya’s middle class are swelling thanks to so much growth in service industries. They are now living, working and shopping ever more in line with developed world expectations. As well as a modern retail experience and international brands, there is a rising demand for food and leisure outlets, now that shopping is increasingly combined with socializing.”

Two Rivers is now delivering on that need in a more comprehensive way than other malls, with the Hi-tide Water Park, log rides and water balls, and multiple other leisure facilities, adding a ‘day out’ experience for shoppers that sits beside new brands and eateries.

Ironically, that launch follows the closure of all such facilities at Village Market, its competitor mall set just five minutes’ drive further down Limuru Road. Village Market used to offer a water park, bowling allies, snooker hall, and mini-golf. It decided to trade in the leisure and pleasure space for more accommodation and shops, in a move that has also brought a two-year building programme (to date) seeing much of the mall swallowed by construction as Two Rivers opens with new offerings.

This has seen formerly loyal shoppers at the mall quickly moving to the better facilities now on offer.

At the same time, a smaller but brand new mall, Rosslyn Riviera has opened on the short stretch of the road between the two mega-malls, targeting an audience that needs a neighbourhood mall for daily shopping; where consumers can get in and out without lingering or exploring. But set so very close to such large options, and with no additional or different facilities, its corridors are so far empty.

“The challenge for Kenyan mall owners is to differentiate themselves. Two Rivers is a good example of a mall that has managed this not just with its leisure and entertainment offering to consumers, where they just do not go and buy something then leave but also with its stores,” said Garcier.

“Stores such as LC Waikiki can only be found in Two Rivers thus offering consumers something unique.”

Of the three adjacent shopping malls, it is Two Rivers that has cracked the concept of lifestyle shopping, offering consumers what they want. The mall has rolled out niche international brands such as Turkish Clothing line LC Waikiki, which is the brand’s first store in Sub Saharan Africa.

Other international brands setting the mall apart on the northern border of Nairobi include French retailer Carrefour, fastfood chain Burger King, as well as the mall’s dancing musical fountains and laser shows, which are also a first in Kenya.

The importance of these unique selling points has been highlighted by the rise of Two Rivers as its two neighbouring malls have suffered.

In order to attract and retain consumers, businesses need to stand out from the crowd.

An example of a company that was able to improve its brand position in a competitive market is Avis, a US car rental company. Since the company’s inception in 1946, it trailed behind the market leader, Hertz. In a bid to hedge its competition and to show consumers that it would offer the best service in the market despite being the second largest car rental company, it embraced the tagline; ‘When you are only No.2, you try harder,’. Its unique selling point was its greater efforts on not being a market leader.

This selling point was a success and within a year the company earned $1.2 million in profits – the first time it had been profitable in more than a decade. Indeed, in four years, its market share increased from 11 per cent to 35 per cent.

Thus, even older companies can still thrive in a competitive market where new entrants are threatening their existence by changing their marketing strategy in order to keep pace with the ever changing customer needs and preferences.

“There is the old and established malls such as Sarit Centre that have survived and will continue to survive the competition from new malls. Sarit has been around for over twenty years, it is well positioned in the city and is currently renovating to extend its offering to consumers,” said Garcier.

“It is developing new entertainment and leisure areas in a bid to keep up with the trend and adapt to consumers preferences. Thus old malls are bound to struggle if they do not adapt to the ever-changing trends or even market themselves to sell their unique product offering.”

-African Laughter