Reconnaissance from RECon Day 2 - Deborah Weinswig

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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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LONDON:   242-­‐246  Marylebone  Road   London,  NW1  6JQ   United  Kingdom   Tel:  44  (0)20  7616  8988    

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FBICGROUP.COM  

 

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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