Check the brand before you buy

Some foreign investors treat market analysis seriously, as an integral part of the investment process; while others – do not. Many investors check the indexes necessary for the analysis of the value of assets within their field of interest. But they often have completely different approaches to marketing. However, we believe there are certain key factors that always need to be taken into consideration. For shopping centres already in operation the main factors are their results on the local market: market penetration, competitive environment and the mall’s positioning. When it comes to refurbished first-generation shopping centres, it is also necessary when selling them to look at the results generated by marketing in the past and what the future plans are. We are also often asked to prepare an assessment of the market position and the results from the marketing point of view as part of the due diligence process. Here it is useful to have an insight into the market research carried out over the previous six months in order to paint a picture of what is currently happening on the market. If repositioning forms an additional part of the plan, it is worth remembering that a successful process eventually boosts both the footfall and sales – but before this can happen, a good plan involving a strong vision for the centre’s brand could be used as a powerful tool for leasing. Repositioning is not just about selective modernisation and acquiring a few new tenants. It is mostly about creating a strong brand. and when it comes to launching a new shopping centre, marketing activities guarantee that a suitable awareness is built – we need to be able to assess how effective our campaign is in terms of creating a relationship with customers and building the significance of our brand, as its value has an impact on the value of the asset and its long-term sales growth dynamics. The marketing strategy and KPIs (key performance indicators) have to be clear formulated and implemented from the very beginning. They should ensure that certain goals are reached rather than merely be a response to a temporary situation.