May 24, 2016 - This week, the Fung Global Retail & Technology team is attending the annual ICSC ... point, every sin
MAY 24, 2016
Reconnaissance from RECon Day 2 • This week, the Fung Global Retail & Technology team is attending the annual ICSC RECon convention in Las Vegas, Nevada. RECon bills itself as the global convention for the shopping center industry, and the three-‐day event provides networking, deal-‐making and educational opportunities for retail real estate professionals. • Today’s presentations focused on technology, tourism and leadership, and Bobbi Brown, Founder and Chief Creative Officer of Bobbi Brown Cosmetics, gave the keynote address. • Brown stressed that success is a team effort, and urged attendees to “be a sponge” and absorb knowledge and to have no fear.
This week, the Fung Global Retail & Technology team is attending the RECon convention in Las Vegas, which is produced each year by the International Council of Shopping Centers (ICSC). Attendees use the three-‐day event to network, make deals and learn about the topics and trends affecting the industry across the globe. During Day 2 of RECon, we had the opportunity to speak with executives from Chain Store Age and attend the Bobbi Brown luncheon and keynote speech. We also met with a number of industry leaders, including Mike Niemira, Chief Economist for The Retail Economist; Tom McGee, President and CEO of ICSC; and Meredith Darnall, SVP of Strategy and Analytics at General Growth Properties. Many retailers are struggling with their identities as Deborah Weinswig, Managing Director retail continues to be challenged. Ethan Song, CEO of Fung Global Retail & Technology, and Co-‐Founder of Frank + Oak, explained that: “We was interviewed by Chain Store Age on live in a world where industries are crossing over. May 24 at RECon 2016. We’re talking about gray zones. It’s not so clear if you’re a technologist, if you’re a retailer, if you’re a brand or if you’re a service. You almost have to rethink your key competency and what value you bring to the market.” The solution, he said, is innovation. “Innovation needs to come from every single touch point, every single unit of your business,” he noted. These sentiments were echoed throughout the day’s program, as industry leaders are continuing to seek solutions that will help them keep up with today’s ever-‐evolving consumer.
DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL & T ECHNOLOGY
[email protected] US: 917.655.6790 H K: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved.
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MAY 24, 2016
BOBBI BROWN KEYNOTE Bobbi Brown’s keynote presentation on Day 2 focused on her company’s culture and the role of fear in business. When she launched her company in 1991, Brown’s mission was to create “simple, flattering and wearable makeup,” i.e., lipstick that looks like lips. This idea quickly garnered the attention of the beauty industry and, in 1995, the Estée Lauder Companies acquired the Bobbi Brown brand. Today, the brand is present in more than 73 countries and 68 freestanding stores. Brown gave an inspiring talk built around three key pieces of advice: “be a sponge,” have no fear and know that success is a team effort. She noted that her brand’s mission also extends to the company’s corporate culture: take care of yourself and give back. Brown said her company is about empowering women to feel confident, and that a big part of this includes the link between healthcare and beauty. She encouraged the audience to not smoke, to eat well and to live positively. MORE HIGHLIGHTS FROM MONDAY At an event Monday, we learned that 25% of all deals originate or are somehow related to RECon, although retailers appear to be cutting back on the expense of sending employees to the conference as they focus spending on experiential retail initiatives. This is especially the case in apparel, where sales are currently under pressure. Other retail sectors, such as convenience stores, food and drugstores, and movie theaters, appear to be faring much better. As the retail industry continues to focus on developing its online strategy, it is notable that many pure plays that are going physical are not yet profitable. One of the day’s key takeaways was that companies need to put their efforts into becoming all-‐channel brands, because the consumer wants to be able to shop and access branded material anywhere, at any time. Much of the day’s discussion centered on in-‐store technology. One major topic was the use of beacons and property-‐specific apps to simplify the shopping experience and collect shopper data. Bill Taubman, COO of Taubman Centers, discussed how some of these technologies were being implemented in some of Taubman’s properties. We look forward to attending the final day of RECon 2016 on Wednesday, and to sharing more highlights from the presentations and our meetings with retail leaders.
DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL & T ECHNOLOGY
[email protected] US: 917.655.6790 H K: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved.
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MAY 24, 2016
Deborah Weinswig, CPA Managing Director Fung Global Retail & Technology New York: 917.655.6790 Hong Kong: 852.6119.1779 China: 86.186.1420.3016
[email protected]
John Harmon, CFA Senior Analyst
Amanda Byrne Marketing Associate
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DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL & T ECHNOLOGY
[email protected] US: 917.655.6790 H K: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved.
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