A study on tenant mix planning in shopping centres to strike a balance for the needs of local and mainland shoppers

Abstract

Tourism is one of the most important industries generating substantial revenue to the economy of Hong Kong. Shopping centres, as the important property developments in Hong Kong for many decades, make significant contribution to attract visitors. Hong Kong's tourism industry had experienced rapid growth under the implementation of Mainland China's Individual Visit Scheme (IVS) in the past ten years. Many shopping centres in Hong Kong then developed new marketing and customer services strategies to suit the shopping needs of Mainland visitors.

Among all the key elements for shopping centre industry, tenant mix is one of the significant changes in shopping centres. Mainland and local shoppers usually have different expectation in tenant mix of shopping centres. Mainland shoppers appreciate that shopping centres provide a wide range of goods and services, but local shoppers feel that the choices are limited and most of them suit for Mainland visitors’ taste. Therefore, it has the significance of choosing shopping centres as an area of study for the essential of well-balanced tenant mix for both local and Mainland shoppers.

The purpose of this thesis is to examine the significance and most critical determinants of tenant mix in shopping centres in Hong Kong in order to strike a balance for the needs of both local and Mainland shoppers. Literature review on various theories on shopping centre, personal interview with Property Managers of retail property management and questionnaire survey with shoppers will be conducted. Information collected will be summarized for the analysis of an optimal tenant mix planning. Findings of the research showed that a well-planned tenant mix is critical for the success of shopping centre.

In order to adapt to the changing environment, shopping centre owners and retail property management should conduct frequent review on the market conditions and customer needs in order to timely define appropriate strategy for tenant mix.