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MAPPING
WHEN BRANDS SET UP
BUSINESS OVERSEAS, HOW DO
THEY INTEGRATE INTO LOCAL
MARKETS, YET RETAIN THEIR
IDENTITY? WE ALSO EXPLORE
INVESTMENT BRIGHT SPOTS
Mapletree is a real estate investment and capital
management company that believes in the value
of building strong relationships with our customers,
business partners and investors. Forging these
A P U B L I C AT I O N BY M A P L E T R E E G R O U P
relationships allows us to grow together with
our stakeholders and share the rewards of our
Value through collective success.
We appreciate the support we have received from
partnerships our business communities, and will continue to
create shared value in our partnerships.
www.mapletree.com.sg GOING GLOBAL / LOGISTICS / NEW MARKETS
HOTSPOT
Is volatility stifling the potential for
investors to find yields in the real estate
space? Definitely not: we explore the
INSIGHT
Mapletree Logistics Trust Management's
CEO, Ms Ng Kiat, shares why Australia is
booming right now, and how this logistics
contents
issue 04/17
bright spots around the globe growth is powering MLT's strategy
09
12
BUSINESS SPACE
Balancing between local flexibility and
keeping your core message resonant —
no easy task for a brand going global.
How can they pull it off, and what are
the advantages?
About Mapletree
Mapletree is a leading real estate development, investment and
capital management company headquartered in Singapore. Its
strategic focus is to invest in markets and real estate sectors
with good growth potential. By combining its key strengths, the
Group has established a track record of award-winning projects,
and delivers consistent and high returns across real estate asset
classes. Mapletree currently manages four Singapore-listed
real estate investment trusts (REITs) and six private equity real
estate funds, which hold a diverse portfolio of assets in Asia
The Gateway, a 519-bed student Pacific, the United Kingdom (UK) and the United States (US). As
Cover Illustration: Andre Chiote Photo: Datto (Business Space)
accommodation owned by Mapletree at 31 December 2016, Mapletree owns and manages S$38.6 billion
Investments, is located in close (~US$26.6 billion) of office, retail, logistics, industrial, residential,
proximity to the city centre of
corporate housing and serviced apartment, and student housing
Lincoln and is only a two-minute
walk to the University of Lincoln.
properties. The Group’s assets are located across 12 economies
Opened in 2015, it offers a total gross globally, namely Singapore, Australia, China, Germany, Hong
15
floor area of 11,960 square metres. Kong SAR, India, Japan, Malaysia, South Korea, the UK, the US
The Gateway contains a mixture of and Vietnam. To support its global operations, Mapletree has
en-suite cluster flats and studios in established an extensive network of offices in these countries.
an apartment setting and is within
immediate proximity to the University About Mapping
of Lincoln’s main academic buildings. BUSINESS SPACE RETAIL TRAVEL INSIDE MAPLETREE SPACE FOR RENT
Published by Mapletree, Mapping is a magazine focused on real
It is surrounded by recreational Each masters of Are you entering a Delve deep into Find out the latest A round-up of the
estate happenings and trends, with most of the stories angled
facilities as well as retail amenities.
to allow readers to better utilise and understand space in these
radically different new market? Here's San Francisco's updates from latest Mapletree
The property is a 10-minute walk from
contexts. We also profile tenants of Mapletree, their businesses, industries, learn how what you should unique spots, Mapletree's world, offices, retail,
Lincoln’s historic city centre with
main transport connections. as well as their approaches and philosophies on space utilisation three Mapletree consider as a brand, from quaint including exciting logistics, mixed-use
— which we hope will serve as inspiring examples. We hope this tenants manage to if you want to fulfill seaside towns acquisitions and and industrial spaces
magazine will be an engaging read. If you would like to provide keep "on-brand" as the wants and needs to high-tech engagement sessions available for lease
feedback on Mapping, or are a Mapletree tenant who would like they expand into of local shoppers museums and for youth beneficiaries around Asia
to be featured, drop us a note at _mapping@mapletree.com.sg. international offices amazing bakeries and staff
W E L C O M E N OT E H OT S P OT
The Search for
Yields Continues
IN AN ECONOMY WHERE YIELDS ARE DEPRESSED, INVESTORS
IN THE REAL ESTATE SPACE ARE LOOKING FOR DIAMONDS IN
THE ROUGH — AND FINDING THEM. HOTSPOT HIGHLIGHTS
THE TRENDS IN DEVELOPED MARKETS
We are living in interesting times. The world is more
interconnected and changeable than ever, and the economy is Left Cities from around
the world, from Frankfurt
responding accordingly. This makes real estate a challenge for (pictured) to Sydney, offer
lucrative opportunities to the
brands and investors, but opportunities are present if you look right investors
at things in a global context. That’s the theme of our cover
story — turn to Hotspot (page 3) to find out more.
On page 9, join Mapletree Logistics Trust (MLT) Management
CEO Ng Kiat as she expands upon this globetrotting angle. With
Australia's logistics industry going from strength to strength, MLT
explores the opportunities that abound Down Under.
But in an era of globalisation, how are brands managing to retain
their company culture when setting up in multiple locations? The
answer: through their spaces (page 12). Design your offices with
enough care and forethought, and employee productivity and
loyalty will follow regardless of location. Published by Novus Asia
Editor Daniel Seifert
Meanwhile, shoppers are noticing that the savviest brands adapt Creative Director Richard MacLean
Assistant Editor Amala Pillai
themselves as they enter new markets — turn to page 23 to find Chief Subeditor Mary Weaver
Senior Designer Khairunnisa Anis
out how. Photo Editor Haryati Mahmood
Junior Designer Erika Wong
To close off this jet-set issue, join us in Travel (page 27) as we CEO Simon Cholmeley
Chief Operating Officer
unwrap must-visit spots in San Francisco. From the friendliest
Marie Lyte
Creative Services Manager
Kwan Gek Lian
bakery in town to the best spot to snap the photograph of Golden Traffic and Production Manager
Pearlyn Kwan
Gate Bridge, our guide will have you itching to book a flight to Contributors Besides a year of stock market strong, stable returns. In particular,
Andre Chiote shocks, the end of 2016 saw bond investors are increasingly looking
California post-haste. MCI (P) 155/12/2016 yields in Europe hit record lows amid at gaining exposure to relatively
Printed by
low inflation, growth and interest niche real estate asset classes such
NPE Print Communications Pte Ltd rate cuts. Against the backdrop of as student housing and corporate
License Number: L004/12/2014
market volatility in stock markets housing, which are known to offer
and extremely low bond yields, sustainable, high returns regardless of
keen investors looking at potential economic cycles.
long-term investments are seeking Developed markets, such as
Copyright © 2017 Mapletree alternative opportunities. Europe and the United States (US),
Investments Pte Ltd. All rights
Photo: Getty Images
reserved. No part of this Because of this, real estate offer opportunities to new investors
publication may be reproduced,
stored in retrieval system, or investment trusts (REITs) and to gain exposure to these resilient
transmitted, in any form or by
any means, electronic, mechanical,
real estate investments are asset classes, with their transparent,
photocopying, recording or becoming ever more attractive relatively liquid and low barriers to
otherwise without prior written
permission of the publishers. because of their ability to produce entry market characteristics.
02 03
H OT S P OT
STUDENT SECTOR FLOURISHING STRONG STUDENT ENROLMENT local degrees given in both countries. Australia, there has been an influx University Student Enrollment (US)
Student housing is quickly transitioning A Wall Street Journal article pointed As the second-largest host for of capital along with more strategic In thousands
from a niche area of investment to part out that in the US, the number of international students after the US, partnerships being formed, which has
of the mainstream. As the hunt for international students enrolled in the UK continues to be the most led to significant growth in the student Forecast
yields continues in the current low-yield colleges and universities exceeded one in-demand destination for global accommodation sector. This has in turn
and low-return economic environment, million for the first time during the cross-border institutional and private led to the development of international 24000 15
student housing is becoming an 2015–16 academic year, a 7% increase from capital, attracting a total of almost campuses, which has further increased
attractive alternative for the savvy global the previous year and nearly double the US$9 billion in the last three years. the appeal of Australian universities.
22000
real estate investor. According to Savills, level of 10 years ago. According to the Despite the UK and US tightening 12
US$8 billion was invested globally in Institute of International Education (IIE), controls on student visa applications, THE PULL TOWARDS SILICON VALLEY
20000
the student housing sector in the first China and India account for the majority the large number of established, high- While funding in the tech startup
eight months of 2016. Student housing of international students and IIE believes ranking universities in both countries space has seen a decline in 2016, real 9
REITs focused on investing in either the that the US will continue to be attractive is expected to continue to draw estate investment shows no signs of 18000
US or the United Kingdom (UK) have to them, due to the lack of school international students. a slowdown. With some of the biggest
outperformed all REIT indices by 19 and capacity and concern over the quality of According to a Colliers report, in tech giants continuing to expand 16000
6
16 percentage points respectively, and
global cross-border investment in the 14000
sector accounted for 40% of all deals in
3
the last three years. What’s more, the
12000
severe imbalance between global supply
and demand for the asset class provides
10000 0
an opportunity for investors to earn
1980 1990 2001 2003 2005 2007 2009 2011 2020
sizable returns.
Growing populations and the
changing requirements of student Total enrollment % change
tenants are driving private investment in
this area. Additionally, schools, colleges Source: National Center for Education Statistics, February 2014
and institutions lack the land and capital
required to meet demand for student
housing. This opens up opportunities
for private companies and investors in
markets like Europe and the US, where
students are increasingly empowered
and sophisticated consumers.
For educational institutions, housing Below The US continues to
plays an increasingly important part in be an attractive hotspot for
international students
recruiting students, especially when two Left Investments in 2016
institutions are comparable on other may have dipped, but Silicon
Valley property is still strong
measures, but one stands out for quality,
comfort or innovative living spaces.
Photos: Getty Images
04 05
H OT S P OT
Mapletree —
Seizing Opportunities
Seizing the opportunity to expand, in
May 2016, Mapletree acquired Green
Park in Reading from Oxford Properties
Group in the UK. The deal followed
significant lettings to Thales and Bayer
for 111,000 square feet (10,300 square
metres) and 80,000 square feet (7,400
square metres) respectively earlier in
the year.
Left Australia is much in
demand for logistics spaces
Below The Lofts at City
Center, Alabama, US: proof
that student housing can be
both functional and fancy
Mapletree currently owns 13 corporate
housing and serviced apartment
properties in the US, Japan, Vietnam
and Australia, which are all managed by
Oakwood. It is developing two serviced
apartment properties in Japan and
Vietnam, which will be managed by
Oakwood upon completion.
In November 2016, Mapletree
acquired a portfolio of seven student
accommodation assets in the US
comprising almost 6,000 beds. This brings
Mapletree made its first investment in Mapletree's total to approximately 12,000
Photo: Getty Images
Germany in 2016 with the acquisition of beds across 32 projects located in the UK
Dachauer Strasse 641–655 in January and the US as of the first quarter of 2017.
2016. The seven-storey office building The seven assets are located close to
in Munich is located just 10 kilometres top-tier universities and are well-furnished
from the city centre, and is easily with fittings and excellent amenities,
accessible by the motorway and the local which include common rooms, games
railway station. areas, reading rooms, gyms and swimming
In Australia, Mapletree has pools, to name a few. The deal came not
purchased six office properties located long after Mapletree's earlier entry into
in core cities such as Sydney, Brisbane Investment Activity: Bond Yields their office spaces, Silicon Valley, and logistics properties is expected to the student accommodation space in
and Perth, and a serviced apartment Sunnyvale in particular, remains one of remain strong, driven by 3PL and March 2016, when it acquired a portfolio
asset in Brisbane. Student Housing (SH) Yields and Sector Comparison the strongest employment bases in the retailing, with e-commerce remaining of 25 properties in the UK comprising
US. This translates to a strong demand an emerging sector. almost 6,000 beds, spread across 12 core
university cities including London, Oxford,
SH Prime 10-year SH Prime Residential Office for housing in the Silicon Valley area as Manchester, Edinburgh, Birmingham
(Net Initial) Government (Net Initial) (Private Grade A employees of these companies desire to THE GLOBAL OFFICE SPACE SCENE and Liverpool.
yield Bonds yield net of Rented
bonds Sector) live close to their jobs. Indeed, the local Although 2016 saw some market
housing market, including the demand uncertainty, there remain pockets of
for serviced apartments, has grown opportunity in the global office leasing
UK 4.6% 0.58% 4.0% 3.3% 4.1% quite competitive as it tries to absorb and investment space. In Germany, for
the workforce influx. example, demand is on the rise.
Germany 3.8% -0.04% 3.8% 3.5% 4.0% Despite political and economic
LOGISTICS GROWTH DOWN UNDER uncertainty about the Eurozone since
Spain 6.3% 0.99% 5.3% 4.0% 4.0% Another hotspot is in Australia. Driven the Brexit vote, Germany’s economy
by the booming e-commerce sector, still grew by 0.4% in the last quarter of
Netherlands 5.0% 0.06% 4.9% 3.8% 4.2% logistics properties are expected to be a 2016. To date, the British referendum
growth driver for the economy in 2017. In has had no clear impact on the German
To further accelerate Mapletree's France* 4.5% 0.18% 4.3% 3.3% 3.3% particular, Sydney and Melbourne, the economy nor its office leasing sector,
corporate housing and serviced apartment
two most populous cities in Australia, which saw its one-year take-up increase
expansion globally, the company acquired
Oakwood Worldwide, a leading provider USA 6.1% 1.57% 4.5% 4.8% 5.4% have experienced strong demand for by 15% in the third quarter of 2016.
of corporate housing and serviced logistics properties in recent months. It is notable that this increase In the logistics space, Mapletree Logistics
apartment solutions in February 2017. Australia 7.0% 1.90% 5.1% 3.3% 5.3% Within Sydney, the outer west precincts occurred before the expected influx Trust (MLT) currently owns and manages nine
Earlier in 2014, Mapletree had formed experienced the strongest level of of financial service providers over the logistics properties in Australia, including
a collaboration with the latter, and also Coles Chilled Distribution Centre, a premium
*Refers to Paris
demand driven by third-party logistics longer term, as they consider a move
acquired its maiden US corporate housing cold store warehouse in Sydney.
property located in Sunnyvale, the heart of
(3PL), food supply and e-commerce firms. out of London into financial hubs like
Silicon Valley. Source: Savills World Research, bond yields as at 17 August 2016 Similarly in Melbourne, demand for Frankfurt due to Brexit.
06 07
INSIGHT
Seizing an
Australian
Opportunity
Photo: Getty Images
High demand for office space Above Office space demand
remains strong in cities such
continued in Munich, which posted as Glasgow
552,400 square metres of take-up
during the first three quarters of 2016.
Additionally, vacancy rates in Munich
and Stuttgart dropped to 3.1% by the
end of September 2016, with average
rent up 4%. Meanwhile in Australia, the
central business district (CBD) office
markets of Sydney and Melbourne AUSTRALIA IS A LARGE, GROWING MARKET FOR LOGISTICS Above Coles Chilled
are enjoying strong rental demand Distribution Centre, MLT’s
In the third quarter of 2016, there
REAL ESTATE, SUPPORTED BY FAVOURABLE MACROECONOMIC first Australian acquisition,
and declining vacancies, while CBDs was a strong demand for office space in is a premium freehold cold
in other Australian cities have low or tier-one locations, such as Manchester, FUNDAMENTALS. MAPLETREE LOGISTICS TRUST MANAGEMENT’S store warehouse located in
Sydney, New South Wales
negative rental growth. This trend is Birmingham and Glasgow. In smaller (MLTM) CEO MS NG KIAT DESCRIBES ITS STRATEGIC MOVE INTO
likely to continue in the short term due tier-one locations, such as Reading, THE COUNTRY
to strong migration and employment Leeds, Cardiff and Bristol, demand
growth in Sydney and Melbourne, and remained steady.
slowing population expansion in the
other cities. FINDING FORTUNE
According to the Australian Logistics above consensus of a 1.9% growth. The retail turnover, which increased 5% per
Photo: Mapletree Logistics Trust Management
In a world of weak global economic
DEMAND REMAINS STEADY IN THE UK growth, pinpointing the areas in Council, it’s full steam for the country’s population in 2016 increased by 1.42% annum in the same period. Domestic
Following the EU referendum result markets where strong growth can be logistics sector with total domestic freight while domestic consumption grew by consumption has emerged as a major
in the UK, the office leasing market achieved is absolutely crucial. Sectors projected to grow 80% between 2010 and 2.8%. The strong economic fundamentals engine of economic growth and will
has remained stable. According to the where demand outweighs supply, like 2030. Road freight tasks have continued to in 2016 are representative of an upward continue to be a driving force for the
Markit/CIPS UK Services Purchasing the student housing space in the US, grow and there has been strong growth in trend from as far back as 2004. According logistics industry.
Managers’ Index (PMI), surveyed Australia and the UK, and global cities domestic movements of bulk commodity to the Australian Bureau of Statistics,
business activity in the services sector where infrastructural modifications exports. But these are just some of the Australia’s population grew by 1.7% THE AUSTRALIAN GROWTH STORY
has rallied strongly since July and hit a support businesses, are potential high- reasons why Australia has become an per annum from 2004-2014, and real The Bureau of Infrastructure, Transport
10-month high in November. yielding sectors to keep an eye out for. attractive market for Mapletree. In 2016, disposable household income by 3.1% per and Regional Economics’ latest research,
the Australian economy grew by 2.4% — annum over the same period. This drove compiled in its Australian Infrastructure
08 09
INSIGHT
Strategy in Location BREAKING INTO THE MARKET “Amidst a challenging leasing
A look at four of Mapletree's
One of the key challenges faced by MLT environment, we have proactively
Australian properties
in building a presence in Australia was managed lease expiries and tenant
its existing established local players and retention to maintain above-market
high competition for assets. Australia’s occupancy rates. We have also
logistics property market has seen a been rejuvenating our portfolio
significant increase in investor demand by redeveloping assets with older
1
in recent years, leading to intense specifications into larger and modern
4
2 3 competition and compression of assets,” says Ms Ng.
capitalisation rates. “Notwithstanding As a case in point, Mapletree Benoi
What is WALE? this, we remain selective and disciplined Logistics Hub in Singapore was
Put simply, weighted average lease expiry or in our investment approach, maintaining transformed into a modern ramp-up
WALE, is a key metric used to measure a property
focus on acquisitions that will add value facility with a fourfold increase in floor
portfolio's risk of going vacant. It measures the
overall tenancy risks of a particular property 1 and provide long-term sustainable area and is leased to large global logistics
with multiple tenants and is used by real estate Coles Chilled Distribution Centre returns,” says Ms Ng. “Being new companies such as XPO Worldwide and
investment trust (REIT) investors to assess the comprises two blocks of single-storey to Australia, we had to build up an Schenker. In addition, MLT’s tenant
likelihood of a property or a group of properties cold store warehousing facilities
being vacated. Properties with long WALEs, which understanding of the local market base has been shifting toward consumer
located in Eastern Creek, 35km west
are typically five years or longer, tend to face the of Sydney's central business district including the investment and leasing sectors such as fast-moving consumer
least risk of vacancy. For this reason, most REIT (CBD). It is strategically located at market dynamics, as well as familiarising goods (FMCG) and food and beverage.
investors are partial to longer WALEs. the intersection of the M4 and M7
ourselves with its licensing and This has enabled the trust to benefit
Motorways, which provides direct
access to the Sydney airports and regulatory requirements, which required from the rising domestic consumption in
seaports, as well as the CBD and major much time and resources,” she adds. the Asia-Pacific region.
suburbs in Northern, Southern and Together, these initiatives will help
Western Sydney.
A TIME TESTED STRATEGY to enhance long-term portfolio value,
The trust’s focus has been on delivering drive organic growth and deliver
2 a competitive total return to unitholders higher returns for MLT. On the capital
Statistics Yearbook 2016, points toward “Over a quarter of our tenants lease MLT has favoured core logistics locations The Derrimut property on 365 in the form of sustainable, stable management front, MLT continues
an upward trend in the growth of space from MLT in multiple locations,” with access to key transportation Fitzgerald Road is located 15 distributions and net asset value to adopt a disciplined and prudent
the Australian logistics industry. The says Ms Ng Kiat, CEO of MLTM, in an infrastructure, modern building kilometres west of Melbourne's growth over time. Since listing, MLT’s approach to ensure a strong balance
CBD and within close proximity to
research cited an increase in freight interview with Mapping in April 2017. specifications, good tenant covenants major road networks and freeways. distribution per unit and net asset value sheet with diversified sources of funding.
movement from its main ports, namely “With a network of logistics facilities and favourable lease profiles. In addition, It comprises a single warehousing per unit have grown at a compounded To maintain stable distributions, MLT
Melbourne, Sydney, Brisbane, Fremantle across eight markets, namely Singapore, its Australian acquisitions are expected block, a service centre with a service annual growth rate of 5.0% and 5.3% hedges a large portion of its exposure to
pit for trucks, and a separate sales
and Adelaide. It also showed that coastal Australia, China, Hong Kong SAR, Japan, to be yield-accretive and enhance total office and two-storey administrative respectively as at 31 December 2016. interest rate and forex volatilities.
shipping volumes have picked up Malaysia, South Korea and Vietnam, this returns to the trust’s unitholders. office housing Bridgestone Victoria's There are three components to MLT’s “With this three-pronged approach
following a slump in the years of 2009 to has enabled us to better serve and meet Australia, with its growing and state headquarters. strategy, according to Ms Ng: growth and a resilient portfolio, we believe we are
2013, and continuing to grow. the requirements of our tenants as they scalable logistics property market, by asset enhancement and acquisition; well placed to continue delivering stable
With road and rail connections expand regionally.” offers attractive features such as a proactive asset and lease management; returns to our unitholders over the long
3
being improved to and from the Port The expansion into Australia is a long weighted average lease expiry and prudent capital management. term,” Ms Ng concludes.
The Laverton North property is
of Melbourne, even greater efficacy is natural progression of its plan to grow (WALE) profile with built-in annual
located approximately 15 kilometres
expected. The Port of Melbourne, the a geographically diversified Pan-Asian rental escalations, and freehold land to the west of Melbourne's CBD,
largest container and general cargo port portfolio. Geographic diversification tenure. “These attributes have helped within the William Angliss Drive
Industrial Estate. The Western Ring
in Australia, connects to South Australia, has enabled the trust to grow through strengthen MLT’s portfolio,” says Ms
Road and Melbourne's broader
the east coast of the Australian mainland, different economic and property cycles Ng. The portfolio in Australia has a arterial road network is directly
New South Wales and the mainland in the past 11 years since its public listing. WALE of about nine years and the accessible by Boundary Road towards
the north and Fitzgerald Road towards
port that transfers cargo to Tasmania. lease arrangements have fixed annual
the east of the property. The property
Improvements to the ports in terms of or consumer price index based rental is a refrigerated storage warehouse
capacity and operations, such as channel escalations, therein providing stable and equipped with freezer chambers with
anterooms, as well as an attached
deepening, also shows the commitment growing income streams for the trust.
administrative office.
of the government to improving facilities Since lease arrangements in Australia
Photos: Mapletree Logistics Trust Management
against growing the needs of the logistics typically provide for built-in annual
industry in Australia. rental escalations, the Australian 4
portfolio offers a good counterbalance The Ravenhall property located at
STRENGTH IN DIVERSITY to countries which have little or no 213-215 Robinsons Road is some 20
Faced with such positive circumstances, rental escalations, such as Japan. The kilometres north-west of Melbourne's
CBD, within the Orbis Business
Mapletree Logistics Trust (MLT) made its long WALE profile of MLT’s Australian Park and in close proximity to major
first logistics investment in Australia in Above Long WALEs, excellent portfolio also provides a counterbalance freeways. It is a modern office
2015. Since then, MLT has made further infrastructure and a strong to other North Asian markets like Hong warehouse with an internal ceiling
economy all make Australia an height clearance of approximately
headway and currently manages nine attractive market for Mapletree Kong and China with a shorter WALE 11 metres, and includes an attached
logistics properties in the country. Logistics Trust profile of about two to three years. double-storey office.
10 11
B U S I N E S S S PAC E
Global Brands,
make broad, sweeping design changes. coffee stations and replaced them with
Small tweaks to your space can have a fewer, but bigger ones. Just months after
profound affect on culture. In one case, the great coffee space revival, sales rose
the management-services consulting by 20% thanks to increased interactions.
One Culture
firm Sociometric Solutions, working for
a pharmaceutical company, found that ZERO IN ON YOUR CULTURE
when a salesperson interacted more with So how can companies jump on the
coworkers from other teams by 10%, their bandwagon? To start, you need to
sales grew by 10% too. So how could the articulate what your culture is, so that
pharmaceutical company design for more you know how it can be physicalised.
interaction? The answer: coffee. The It’s no good simply aping other brands
company removed their multiple existing that regularly make the covers of design
magazines. Dr Gabor Nagy, the research
programme manager at Haworth, reveals
that most companies simply try to
SEEDING YOUR CORPORATE Right The office of
MAN SE at Dachauer copy iconic organisations like Google,
CULTURE INTO YOUR Strasse 641, Munich, replete with quirky furniture and toys
Germany. Offer vibrant,
WORKPLACE IS ONE THING; relaxing spaces to like ping pong tables. “Problem is, if the
KEEPING IT CONSISTENT your employees (that organisation’s culture is not like Google’s,
also mirror your
chances are very high that such design
AS YOU GROW GLOBALLY culture), and they will
demonstrate loyalty conceptions will backfire.”
IS ANOTHER. HOW CAN The lesson: choose a space that reflects
BRANDS MANAGE THIS your culture; don’t reverse-engineer your
MONUMENTAL TASK, AND culture to fit a fun space. Hence why
WHAT ARE THE REWARDS? Sacha Klingner, Head of Communications
As more and more brands look to grow help to propagate the corporate culture.
into a global business, they are often Corporate culture may be a nebulous
at pains to stay consistent, and forge a concept, but it can come alive when
unified brand message that resonates showcased in corporate spaces. Three
in the same way with customers of Mapletree’s tenants, Bayer and Datto
everywhere. After all, when you think of in the United Kingdom, and MAN SE in
the term “brand recognition”, it’s likely Germany, are proof of this.
you imagine a company’s marketing
relationship with its consumers. THE BENEFITS
But internal marketing, and the First, it is worth emphasising the stakes.
image you portray to your employees, is Creating and maintaining a holistic
just as important. It is important for all corporate culture is by no means easy.
companies to devote the time and energy Should brands just let this slide as they
needed to this task. grow into new regions? Not according to
As an article titled “Selling the Brand a white paper written by the US office
Inside” from the Harvard Business furniture giant Haworth. According to “We would like to
Review notes, “It is a truth of business
that if employees do not care about their
their studies, organisational culture is a
more important factor than efficiency
create a friendly work
company, they will inevitably contribute or even performance when it comes to environment so that
to its demise. And it’s up to you to give
them a reason to care.”
office design. “The critical achievement
[objective] of workspace design is to
our employees and
So how does a brand inspire that? How integrate the various — and sometimes visitors alike feel
can they make sure employees know competing — cultures, values and
what their company stands for, and be behaviours of people to meet company
welcome, integrated and
energised to feel part of the team? One goals,” the authors wrote. “No matter close to our products.”
Photos: Dominik Gigler
way to achieve this is through the design how strong an organisation’s planned
Sacha Klingner
of the office space to appeal to all the procedures, culture trumps strategy
Head of Communications, MAN SE
employees across various regions, and the when the two are not aligned.” How does this multinational company, based in
design has to include elements that can This doesn’t mean you have to Germany, accomplish such diverse goals? Read
more on page 20
12 13
B U S I N E S S S PAC E
Left Spaces like these
are a chance for
Datto's employees
to relax, bond and
brainstorm — all
activities that benefit
the brand
Photo: Datto
at MAN SE, highlights how important it conspicuously lacking in others.
is for all corporate communications to This is the quickest way to risk an
convey a consistent picture, no matter “us versus them” mentality in your
where the office is. For instance, he own organisation, with one branch
says, “The MAN brand has always been jealous of another’s café/pool/rooftop
synonymous with quality and German recreational area. This does not mean
engineering excellence.” These positive you need to adopt a cookie-cutter
brand characteristics are mirrored in all mentality where each office, from Ho
Green Space for Fun divisions of the company. Chi Minh City to Sydney, looks the
Crafting a desirable workplace is made
Reducing your culture to a same — just make sure to remain
easier if the workplace is located in a
development that supports its aims. Green type might seem tricky, but many as fair as possible when doling out
Park in Reading, UK, where both Datto and frameworks already exist. One is benefits. This is why Datto’s Boston
Bayer are located, is one such space. True the Competing Values Framework, a office boasts an American-style
to its name, the area is lush and green, and
model of organisational culture that speakeasy, while their UK office is
is the perfect space for the many events
Building a Strategic Organisation
that it proudly hosts. In the first quarter subdivides culture into four types: home to an equally pleasurable pub.
of 2017 alone, Green Park saw language collaborate, create, control and compete.
classes, blood donation drives, book clubs A ‘collaborate’ culture might best benefit BRAND AMBASSADORS
and food festivals. There is even a nature
from a flexible environment and informal Whatever perks or rules you set up
walk hosted by a bird expert who will
spaces. A ‘create’ culture, one with a lack to bolster brand identity, don’t forget
keenly point out Green Park's chirpers, Architecture and design can provide a concrete way to facilitate — or even change — the
one by one. of enclosures and borders. A ‘control’ to loop in your most key asset: your
culture would be structured more workforce. If you want to craft a culture of an organisation. Getting the physical environment right is key in reinforcing these
While it is up to employees which of these
enticing events they want to participate formally with small individual spaces, shining culture backed by a great ideas, as well as motivating employees. So how do companies in Europe like Bayer, MAN SE and
in, the value to companies is clear. With a while a ‘compete’ company might benefit place to work, you need to bring them Datto create work spaces that frame their unique organisational visions and values?
Photo: Domink Gigler (MAN SE)
regular roster of attractions, a brand can from open desks that blend personal into the conversation, notes Ute
incentivise staff to join the happenings Bockstegers, spokesperson for Bayer.
space without creating disruptive
that most align to corporate culture.
communication barriers. “It’s so important that we actively listen
Once you have decided on your to them and take careful consideration // 16 “With our extensive use of glass and uninterrupted open spaces, the office is a collaborative and social place to work.” — Datto
key culture, be sure not to offer up of their needs.” Do that, and corporate // 18 “By incorporating a greater quantity and variety of meeting spaces we look to inspire more frequent teamworking, one-
office perks in one location that are culture is sure to follow. on-ones and impromptu meetings.” — Bayer // 20 “We would like to create a friendly work environment so that our employees
and visitors alike feel welcome, integrated and close to our products.” — MAN SE
14 15
B U S I N E S S S PAC E
HOW DOES A SERIOUS DATA
PROTECTION SERVICE
COMPANY CREATE AN OPEN,
ENJOYABLE SPACE, ONE
WHICH EMPLOYEES ARE
PROUD TO CALL HOME?
Q: What advice would you give other
companies who want to hardwire a strong
culture into their space?
A: Our suggestion is learn from other
locations, but don't be afraid to deviate. Colour
schemes, signage and branding and create a
sense of cohesion Ñ but no one wants to feel
like they're working in a cookie-cutter office!
Big Data,
Big Fun LEGO MEETS DATTO
While communication is key, just as
important is fun — and fun is built into
each office in different ways. Hence why
Right Glass and open the Green Park office boasts a pub and
spaces anchor the Green
Park office
beer garden. To add more of an American
Below A meeting space is feel, the Boston office swapped a pub for
modelled on a Scottish cafe
a speakeasy (“it shows how we like to
cater for different locations,” says Stuart).
Meanwhile the global HQ features
The world runs on data — a staggeringly built on transparency, which is embodied remodeled their own space based on a 60-foot Lego wall display. Such a
huge amount of it. And it is growing in our office design,” says Andrew Stuart, best practice from the previous UK commitment to eye-catching design runs
fast. In 2013, the world generated some Managing Director, EMEA. “With our office location. deep throughout the company.
4.4 zettabytes of data. By 2020, that extensive use of glass and uninterrupted What is common across all Datto’s The company’s goal is to cultivate
figure is set to be 44 zettabytes (for open spaces, the office is a collaborative offices however, is that there are plenty a community where individuals “feel
reference, one zettabyte is equivalent to and social place to work.” The end goal, of spaces to sit, meet and discuss. Some like they can be the best versions of
a staggering 44 trillion gigabytes). he continues, is simple: they want of these also cleverly weave in the themselves. It’s a lifestyle — check out
For today's businesses in particular, employees to take pride in the space and company’s history. The Green Park our hashtag #dattolife on Instagram —
it is vital that they protect their ever- enjoy working in it. space includes “the Tastie Tattie”, a as well as a workplace.”
growing data. Enter Datto, a provider meeting space modeled on a café in That lifestyle shines through in the
of backup, recovery and business FACE-TO-FACE SPACES Datto EMEA’s first home in Scotland. company's Green Park multi-functional
continuity solutions. That’s a motif that flows through But with offices in Sydney, Singapore, room, which offers a space to bond and
Working in that space, it is vital to Datto’s other offices. Austin McChord, Canada, the UK and across the US, brainstorm. Known simply as The Park, it
generate a culture of professionalism Datto’s founder and CEO, spent months how can these disparate locations feel is particularly popular on one day of the
and trust. building a staircase between floors in connected? Easy. “The Datto offices are week: “our famous Free Lunch Fridays”.
Hence why, when you enter Datto’s the company’s US office, to encourage constantly connected through Always- It's just one example of Datto's attitude
Photos: Datto
new EMEA headquarters (HQ) in Green departments to interact. On Video streams, so you can stop by for to a warm, welcoming and unique space.
Park, Reading, UK, what you see is what But pleasingly, Stuart shares, the HQ a virtual face-to-face with a colleague in As Stuart sums it up: “We say, ‘It’s not
you get. “Datto’s corporate culture is doesn’t call all the shots, and in fact has the States,” Stuart says proudly. work, it’s Datto.’”
16 17B U S I N E S S S PAC E
— it’s “our new home.” It’s also, she adds, many items will be recycled and, where
an opportunity to re-evaluate how they possible, employees are given an option
work, communicate and connect with to buy certain pieces; all proceeds will
each other. be donated to charity.”
By maintaining their position in There can be a stereotype that
Thames Valley, Bayer is able to retain its old, established companies work in
roots to the local community, while also old-fashioned, inflexible ways. Bayer
leveraging its strategic location. With proves otherwise in its goal to act as
high-speed trains to central London, an open, flexible company that listens
its connectivity to local amenities, to its staff. Hence why Ms Bockstegers
national and international travel routes notes that the spaces at Green Park
is unparalleled. This location acts as an are not set in stone. They may change;
attractive way to retain and entice talent. depending on how employees give
feedback on their new home. With
DESIGNING FOR GOOD such willingness to adapt, no wonder
So how does Green Park compare to Bayer was listed as one of the Great
Bayer’s global headquarters in Germany? Places to Work in the UK in 2016.
Delightfully, says Ms Bockstegers, it has
incorporated a key space — BayLab,
Bayer’s free science lab for school,
allowing students hands-on learning
about life science. Collaborating closely
with headquarters in Germany to ensure
a balance between the global brand
promise and local needs was key. “We feel
we have a commitment to enhance and
strengthen life sciences in the UK.”
Aside from a commitment to
employees and the wider community,
Bayer has a strong commitment to
the environment. Sustainability, Ms
Better
Bockstegers says, isn’t just a lofty
Bayer, one of the world’s most successful Below Inspiring buzzword, but a goal reflected even in
passion, innovation and
Life Science companies, boasts scores collaboration is key to its office spaces and materials. “One
of products and over 116,000 employees Bayer as a company. example of this is that we have a diligent
This culture has been
Science and
worldwide, and has a clear mission. It can physicalised in its offices, process in place to deal with furniture;
be summed up in just five words: “Science such as their new space in
Green Park, Reading, UK
for a Better Life.”
But as an employer, its maxim is this: Q: What advice would you give other
“Passion to innovate, Power to change.” companies who want to hardwire a strong
a Better
With these statements as their collaborative culture into their space?
A: With Green Park, our people were part
guidelines, Bayer can apply their goals of the design process to ensure they
to foster innovation, passion and would be provided with an environment
collaboration to its offices anywhere that suited their working needs. We
in the world. So how does that come knew our people wanted to work in a
Workplace
more collaborative space. We therefore
through in its UK office’s new space in designed each floor into three clear zones
Green Park in Reading? Ñ a desking zone; a formal meeting zone;
and a flexible, collaborative zone.
Different sized meeting rooms
EMBRACING A BIG MOVE
can accommodate the varying formal
Many companies would frown upon the collaboration needs of our people and
hassle of moving offices after 30 years. business. From small enclosed phone
But as Ms Ute Bockstegers, Bayer UK booths for a quick confidential call, to
sophisticated video conferencing rooms Ñ
and Ireland’s Chief Financial Officer
there are solutions for everyone. All floors
and Head of Operations, puts it, “This have breakout areas with facilities where
is a once in a generation opportunity people are encouraged to take a break,
WHAT ARE THE KEY TENETS THAT ALLOW BAYER have a coffee, or have a quick chat.
for us to create a space that is designed
TO BUILD A BUSTLING, EFFICIENT WORKPLACE By incorporating a greater quantity
Photos: Bayer
specifically for Bayer.”
and variety of meeting spaces we look to
THAT IS ALSO A POSITIVE SPACE FOR EMPLOYEES, Such is her passion for the move that inspire more frequent teamworking, one-
STUDENTS AND THE ENVIRONMENT? she doesn’t call Green Park her new office on-ones and impromptu meetings.
18 19B U S I N E S S S PAC E
Driving
From left Simplicity and solidity
are important brand unifiers for
the company, which is borne out
in its office design and rolled out
globally for uniformity
Success colour enhances the metallic, solid
appearance of the MAN corporate logo,
offers an opportunity for MAN to pay
tribute to its regional roots: a large photo
Through
and denotes permanence, he notes. on the wall of Watzmann, a mountain in
Meanwhile, the red accent intensifies the Germany’s Upper Bavaria region.
anthracite shading, and adds dynamism. Elsewhere, recreational areas
It might seem like a small thing, but offer an opportunity for staff to use
colours impart and shape identity, Mr exercise devices that improve balance
Design
Klingner says. They reflect corporate and coordination. To get some respite
philosophy and, through repetition and from work, employees can indulge
consistency, can allow consumers to in a relaxing back massage from the
achieve immediate recognition. company’s in-house team of professional
physiotherapists.
RECREATION AND INFORMATION Apart from comfort, MAN’s design
Meanwhile, MAN workers are living ensures employees are always up to date
brand signifiers too, thanks to the same with company views. Placed at the bistro
ash colour used in their uniforms. At the area is an “infoscreen”, a communication
same time, MAN SE's space does more platform that shares the latest group-wide
than showcase the brand: it gives comfort news, events and products. In the end, Mr
HOW DOES AN ESTABLISHED
to employees. A bistro on the ground Klingner says, “we would like to create a
POWERHOUSE IN THE TRANSPORT floor provides space for employees to friendly work environment so that our
WORLD ENSURE THEIR HEADQUARTERS network, chat and relax in a bright and employees and visitors alike feel welcome,
REFLECTS THE BEST OF THEIR BRAND? inviting environment. The space also integrated and close to our products.”
Not many companies can proudly look
back on more than 250 years of history
and expansion, but MAN SE can. A
supplier of trucks, buses, diesel engines,
turbomachinery and more, MAN is one
of the world’s largest commercial vehicle
manufacturers. Operating in more than
180 countries, it has a headcount of some
54,000 employees.
With such an impressive worldwide
spread, MAN is keen to ensure that
its identity does not get diluted, solidity, for a start, says Mr Klingner.
says Mr Sacha Klingner, Head of All of these are brought forth in the
Communications. “A consistent and MAN Group logo, which is used by
highly visible MAN brand building all companies in the MAN Group
identifier is very important when to create uniformity. By following
it comes to maintaining a positive architectural guidelines and strict
brand image.” More than simply 5,500 signage requirements that adhere
square metres of office space, MAN’s to a universal colour system, each of
headquarters in Munich, Germany, MAN’s many offices around the world
delivers an archetypal brand style that highlights MAN’s strengths. As for
Photos: Dominik Gigler
other MAN offices can look to follow. the logo, “Its form may not be altered Q: Why did you opt for a space in Dachauer Strasse 641 to set up your headquarters (HQ)?
and it is placed — if possible — on an A: The HQ office is now located close to the MAN Munich plant, which is the parent plant
STAYING SOLID and also the location of the head office of the MAN Truck & Bus division. There are around
anthracite background.”
9,500 employees at our Munich plant. The close proximity of the MAN SE headquarters
And what does that style evoke? There is much symbolism in even to the MAN Truck & Bus plant and offices ensures an intensive connection, as well as
Straightforwardness, simplicity and this simple choice. The dark grey efficient collaboration, between the holding company and the MAN Truck & Bus division.
20 21R E TA I L
Mapletree’s
Global Presence The World is
As of 31 March 2017
Your Oyster
THESE ARE EXCITING TIMES The world is growing smaller. Mass travel
FOR RETAILERS WISHING TO means that jetting across continents
UNITED to experience new tastes and products
KINGDOM
EXPAND THEIR REACH AND
GERMANY is easier than ever before, while mass
J A PA N ENGAGE NEW CONSUMERS. media is stoking demand for exotic, far-
USA
G R E AT E R BUT WHAT DOES IT TAKE TO away brands, a demand that is, in turn,
CHINA
SOUTH GO GLOBAL? easily supported by ever-more strongly
KO R E A
INDIA connected supply chains.
VIETNAM Mark Pagel, the author of the book
M A L AYS I A Wired for Culture, uses the following
SINGAPORE
example to illustrate the spread of global
tastes and culture. “Stroll into your local
Starbucks and you will find yourself part
Below Customer needs of a cultural experiment on a scale never
A U ST R A L I A are changing at an
ever-faster pace, and
seen before on this planet.” All this in less
brands can capitalise than half a century, growing from a single
on their desires by
entering new markets
outlet in Seattle to, as of 2016, over 24,000
Office Industrial/ Jiaxing Puchong Residential San Marcos
Singapore Business Park Jinan Senai
Shah Alam Singapore
Tuscaloosa
Waco
Jurong
Singapore Nanchang Subang Jaya West Lafayette
Australia Greater China
Brisbane Greater China Nantong Tanjung Pelepas Foshan
Perth Beijing Ningbo
South Korea Ningbo Corporate
Sydney Foshan Quanzhou
Anseong Xi'an Housing/
Germany
Shanghai Shanghai
Icheon Vietnam Serviced
Tianjin
Munich India Wuhan
Pyeongtaek Hanoi Apartment
Bangalore Yeoju Ho Chi Minh City
Greater China Wuxi Australia
Yongin
Beijing Xi'an
Foshan
United Kingdom
Xiaogan Vietnam Student Brisbane
Reading
Hong Kong SAR Zhengzhou Bac Ninh Accommodation Japan
Shanghai Vietnam Binh Duong Tokyo
Japan United Kingdom
Binh Duong
Aberystwyth USA
India Aichi Retail Birmingham Dallas
Bangalore Logistics Chiba
Singapore Edinburgh Los Angeles
Gifu
Japan Singapore Hiroshima Glasgow Mountain View
Greater China
Chiba Hokkaido Leicester Portland
Australia Foshan
Kanagawa Lincoln Raleigh
Sydney Ibaraki Hong Kong SAR
Tokyo Liverpool Redwood City
Victoria Kanagawa Ningbo
Kyoto London Seattle
United Kingdom Shanghai
Greater China Miyagi Manchester Sunnyvale
Aberdeen
Changsha Osaka Malaysia Nottingham
Bristol
Changshu Saitama Petaling Jaya Oxford Vietnam
London
Chengdu Tochigi Sheffield Hanoi
Manchester Japan
Chongqing Tokyo Ho Chi Minh City
Reading Osaka
Dalian USA
Photo: Getty Images
Vietnam Guangzhou Malaysia Vietnam Atlanta
Hanoi Hangzhou Pasir Gudang Hanoi Charlottesville
Ho Chi Minh City Hong Kong SAR Port Klang Ho Chi Minh City Eugene
22 23R E TA I L
control
stores in 70 countries. As Pagel notes, “For
the first time in history, your morning
cappuccino is the same no matter whether ambition heart
you are sipping it in Tokyo, New York,
Bangkok or Buenos Aires.”
Inspired by such success stories, it’s
no surprise that many homegrown
brands want to follow in these footsteps,
Photos: Getty Images; NTUC
capitalising on the momentum of local
achievement, to regional or global success.
But apart from becoming a household
name, what other advantages does going
global offer companies? And what should success
they bear in mind before taking such a
momentous step? After all, globalisation
brings greater exposure to new, emerging
economies, yet those markets offering the
Cooperative (Saigon Co.op), a Ho Chi
Minh City-based retail cooperative union,
that understands the local market, has a
strong track record and customer base,
Global Players
We look at three brands who have cleverly managed the complex transition into
highest growth are often those with the to establish outlets named Co.opXtra and adding in FairPrice’s expertise at new markets
highest level of uncertainty. With that in Plus in Vietnam. operating a hypermarket format, you have
mind, what is the game plan of retailers As Mr Gerry Lee, CEO of Co.opXtra, a partnership set to thrive in a challenging,
with global ambitions? explains: “NTUC FairPrice realises the ever-changing retail landscape. It is Charles & Keith
need to form strategic alliances in the important from the start to choose the This now-iconic Singaporean footwear brand
might have some 350 stores around the world
THE BENEFITS retail industry which is becoming more right market to enter. “Vietnam’s thriving thanks to its franchise model, but key to its
Let us start with the advantages. global and more competitive. Hence in economy, driven by a growing young success is control over its entire chain of
Expand into international markets, December 2010, Saigon Cooperative and population, booming middle-income operations, including branding, retail, supply
chain and design.
and you can expand sales — if you do NTUC FairPrice Cooperative started population and a strengthening domestic
Top Starbucks has become
it right. Diversifying your markets and a joint venture to launch a chain of an icon of a truly global market, is a market that provides a good
customer base brings fresh eyes to your hypermarkets in Vietnam. Both FairPrice coffee brand opportunity for Singapore’s homegrown
Above When NTUC
products and campaigns. That is good and Saigon are co-operatives and share FairPrice partnered brand to venture overseas,” Lee says.
news as it allows companies to extend the same philosophy to put the interest with a Vietnamese retail Yet simply picking a strong market Uniqlo
cooperative union, they When Japanese fashion retailer Uniqlo entered
the sales life of products that might find of customers high in the agenda of the both benefitted from is not enough. If you are not partnering
Singapore in 2008, it partnered with local group
waning support in established markets. co-operative’s business approach.” sharing expertise with someone, do your research, and enter Wing Tai Retail in a joint venture. Mr Tadashi Yanai,
Spreading geographically also means The partnership saw the brands the market willing to learn. Balancing Chairman and CEO of Uniqlo, praised Wing Tai's
"strong network and expertise in retail operations
spreading risk, which is increasingly more leverage each other’s expertise and this with brand consistency is key. Global
particularly in youth and mass markets" as well as
vital in a VUCA world (short for volatility, reap greater economies of scale in Japanese lifestyle brand MUJI has done "its ability to secure excellent store locations."
uncertainty, complexity, and ambiguity), their purchases, optimise efficiency this successfully by translating its overall
where financial fluctuations and natural by improving productivity and pool concept to local markets, following global
disasters can impact your bottom line. resources to diversify their food sources. guidelines that lay down a consistent feel
The benefits can also work two of marketing, products and store concepts. Putien
From a single humble outlet in Singapore's
ways, delighting customers in both HOW TO GO GLOBAL In terms of product standardisation, Kitchener Road Putien now has over 10
new and established markets. Take According to Lee, entering a new the company exports iconic MUJI items outlets around Asia. Fong Chi Chung, owner of
NTUC FairPrice as an example. In 2013, market is challenging as it involves that are well-recognised worldwide into this chain of Chinese restaurants, attributes
his success to a commitment to food quality,
the Singapore-based supermarket tackling a completely different business new markets outside of Japan; in this effective marketing and creating a positive
formed a strategic alliance with Saigon environment. As such, by having a partner way, customers are able to easily enjoy work culture for staff.
24 25T R AV E L
Left MUJI stores
are known for their
immersive, localised store
design, as well as their
high-quality products
Insead. This creates a homogenous
message and helps you stand out in a
crowded market. Secondly, understand
how consumer behaviour differs. As
retail consultancy Shopworks’ research
revealed, shopping is an emotional
experience, and only by understanding
and respecting local culture can one
create a locally relevant retail experience.
Thirdly, understand that sometimes it
comes down to timing, observed Kunal
Kothari, an equity analyst at Old Mutual
Global Investors. He said that one of the
key reasons behind international grocery
retailer Tesco’s failure in China is that it
MUJI Wows VivoCity the most popular products in their own entered the market in 2004, relatively late
In June 2014, Japanese retailer MUJI
country. It opened its first overseas store and behind rival brands which were able
opened to acclaim in Singapore's VivoCity
mall. With over 600 square metres of space in London in 1991, and has 414 stores in to use their first mover advantage to pick
to play with, says Mr Yuki Yamamoto, Japan and 344 stores overseas to date. more affordable store locations.
Director and General Manager of South
Most stores outside of Japan are directly
West Asia and Oceania Division, Ryohin
Keikaku Co., Ltd, the brand has recreated owned, whereas some countries are GROWTH IS GOOD
the "full Japanese lifestyle concept, operated on a partner basis. In the end, going global allows businesses
featuring garment, household and food
Said Mr Yuki Yamamoto, Director and to price their goods competitively without
departments" that have proven so
successful in their home market. General Manager of South West Asia and compromising quality. In an industry
Oceania Division, Ryohin Keikaku Co., Ltd: where retailers are out to sell the cheapest
Key to engaging customers is the store's
“To enter new market, there will be careful goods at the highest margins, Japanese
yagura (pavilion) living area, which
recreates the feel of a real home, allowing and in-depth feasibility study conducted. clothing giant Uniqlo places priority on
people to see how MUJI products would Apart from compliance to each country’s quality, not price. When interviewed
look like if you had them in your own
laws, business guidelines and regulations, by The Straits Times, Mr Tadashi Yanai,
home. While mirroring many concepts of
A Golden
their Japanese stores, Singapore's MUJI there is also the culture aspect that is of founder of Uniqlo said: "We want to sell
shops adapt to Singapore's climate and concern. MUJI is about lifestyle, [so] we good quality clothes to everyone, not just
travel habits. Thus, thick coats perfect try to understand the culture and lifestyle
for Japanese winters are replaced in a small percentage of wealthy people.
tropical Singapore by more cotton and of each locality. While introducing But to stay competitive, you need to have
Opportunity
linen materials. Japanese culture to each location, we also scale. My aim is to provide luxury for all."
practise localisation, for example, through So customers should embrace Photo s: MUJI; Thinkstock Images (opposite)
workshops or collaborations with local expansion too: it’s good for shoppers
designers and artists. There is adaptation everywhere, notes Stephen Springham,
in the cultural aspect.” Head of Research at real estate
What else can be done to negate the consultancy Knight Frank. “By bringing a
risks of penetrating new markets? Three sense of diversity, [new stores] lay down
strategies are key. Firstly, figure out a competitive gauntlet, which gives an
THEY DON’T CALL SAN FRANCISCO THE GOLDEN CITY FOR
›
your core message, and don’t dilute it, impetus to existing retailers to upgrade NOTHING. FOR BUSINESS TRAVELLERS ACCUSTOMED TO
notes Martin Roll, a brand strategist in their own propositions in response.” ROUTINE, IT OFFERS A PATH DOWN THE RABBIT HOLE,
an article for graduate business school When brands go global, everyone wins. WHERE AIMLESS NOSTALGIA MEETS MODERN PURSUITS A key city in the
state of California,
San Francisco is
a hive of business
26 and leisure alikeYou can also read
