Mall operators juggle trade mix, harness technology to meet e-shopping threat

Mainland operators of retail centres are responding to the digital age by changing their trade mix and leveraging technology to better understand buyer profiles, industry observers say.

As the rise of e-commerce is inevitable, shopping centre operators are likely to move away from the traditional turnover of rents and towards fixed rents, said Lee Wee Liat, head of property research at BNP Paribas Securities.

Mall operators would follow the trend being adopted in Western countries of multichannelling, in which "clicks" and "bricks" can coexist, said the BNP Paribas report.

Consumer decisions involve a combination of online and physical channels for research and final purchase.

Several mall operators on the mainland already have technology teams in place and have digital strategies mapped out that could be implemented this year, Lee said in the report.

For example, Longfor has installed Wi-fi services in all its malls, which, with specifically tailored technology, allows the firm to track consumers' shopping patterns there.