Mega malls meet shoppers' demands
Developers have seized the initiative in bringing innovation to their modern retail malls, as shopping and entertainment become integral parts in the development of East Kowloon.
The rise of new complexes such as APM in Kwun Tong and MegaBox in Kowloon Bay provided a catalyst to the district's transformation with more local people given the opportunity to enjoy an increasingly sophisticated retail experience.
East Kowloon had long been regarded as a decaying district, with a major concentration of public housing estates and limited choices for shoppers. But the situation has changed in recent years with the completion of several office and commercial developments. Modern malls have sprung up to capitalise on the untapped potential of the district.
Maureen Fung Sau-yim, general manager of leasing for Sun Hung Kai Real Estate Agency, a subsidiary of Sun Hung Kai Properties, said the group developed APM because it felt the district's shopping market had tremendous potential for growth.
She said APM, which opened in 2005, had created a new concept in retailing and had emerged as a shopping mall particularly for customers aged between 19 and 39.
'It is a break from the traditional shopping mould and the first mall in our portfolio to carry no Chinese name. As the name suggests, APM is a blend of am and pm, or day and night, reflecting innovative late-night shopping,' she said.
Retail shops stay open until midnight at the mall, restaurants until 2am and entertainment spots until dawn.
Ms Fung said the mall incorporated an 'omni-lifestyle magazine concept', emphasising a different shopping experience each day for its youthful clientele. 'We stress change and different offers for shoppers. We like to create a unique shopping experience with something different in the merchandise mix and the mall presentation.
'Retailers understand our retailing strategy and keep their menu and products unique to provide customers with a total shopping experience,' she said. 'We have various celebrity shows and promotional activities to stage for customers.'
Ms Fung said the group had worked hard to build the mall's brand, making it a popular gathering place with trendy entertainment and lifestyle stores.
Its success means good rent returns, with this year's expected to reach about HK$300 million, up from HK$240 million in its first year of operation.
She pointed to East Kowloon's rapid transformation in recent years, with the completion of many office towers and companies relocating from other districts such as Causeway Bay, Tsim Sha Tsui and Quarry Bay.
This trend would drum up further retail demand in East Kowloon and the district could grow and rise as another 'Causeway Bay' for shoppers, she said.
The massive MegaBox in Kowloon Bay has become another retail hot spot in East Kowloon for shoppers in the neighbourhood and outside the district since its opening last year.
Czarina Man Ching-chi, general manager for marketing at MegaBox Development, a subsidiary of Kerry Properties, said MegaBox, with 1.1 million sqft, was the largest shopping mall in East Kowloon aimed at families and people from all walks of life.
Spread over 19 floors at Enterprise Square 5, the mall adopted a revolutionary 'big-box' strategy to include occupants that took up larger space - about 60 per cent of the retail space was taken up by tenants occupying more than 10,000 sqft each, she said.
MegaBox features four major categories of tenants. The fashion zone is between the ground and second floors with more than 200 international brands.
At the home improvement zone, B&Q from Britain and Spotlight from Australia are the two major anchor tenants.
The family zone on the fifth to ninth floors includes a concentration of electronics shops, the MegaKids corner showcasing childrenswear brands, and other retailers such as a supermarket and book store. The entertainment zone, spread from the 10th to 18th floors, features Hong Kong's first commercial Imax theatre, seven UA cinemas, more than 30 dining outlets and Hong Kong's largest ice-skating rink.
Ms Man said MegaBox was 94 per cent leased and the remaining space, mainly smaller shops, was available at an average rent of about HK$70 to HK$80 per sqft a month.
Since its soft opening in June last year she said the mall had injected fresh life into the shopping and entertainment experience in East Kowloon, and that shopper traffic was increasing.
'We provide one-stop shopping with a variety of offers at MegaBox. More people are coming to shop in Kowloon Bay. We have also witnessed an increase in customer length of stay at our mall,' she said.
'The prospect for growth in East Kowloon is promising with the massive housing and commercial developments in the neighbourhood, especially when the nearby Kai Tak [airport] redevelopment will create more business opportunities. Demand for shopping and entertainment will grow further as a result.'
Kerry Properties is controlled by the Kuok Group, the controlling shareholder of the SCMP Group, which publishes the South China Morning Post.
