THE FALL OF RETAIL by next decade..? I dont know why i always cannot sleep. Am i thinking too much? Looking deep into the future trend how are we gonna live our life a decade later. As the Gen-Z that is growing up today, besides INTERNET they do NOT know anything. I dont think they even heard of these words before; - Lastic, - Walkman - Mini Compo - Atari or micro genius, - ice cream stick - guli LOL... These are the few that i can remember of at the moment at these crazy hours.. Those were the days. Im thinking to myself that, when all these gen Z grow up, what do they know besides Iphone, Ipad, Facebook and Internet? They live in the virtual life and everything for them is INTERNET. Eating, sleeping, friending, talking, living, everything... Without a phone, practically they are a WALKING DEAD. What relates to the future of Real estate investment that i am currently thinking is the SPENDING BEHAVIOUR of the future trend. As we can see the fall of retail spaces in the States & Europe today that is because of CONSUMER BEHAVIOUR CHANGE. Businesses are closing down and we see more and more ONLINE RETAILERS growing. Ebay, Amazon, Google, Yahoo, Taobao, Alibaba, Facebook pages,to name a few Giants. These giants changed the culture of spending habits thru technology improvement thus traditional businesses being obselete. Will these happen to Malaysia? 5years? 10years? 15years? As we see more and more shopping malls are going to be completed soon. Will these malls really perform? Do people really spend when they visit a mall during Weekend? Or just merely walking around lepaking and cooling in the airconditioned building for free to avoid the weather or just window shopping. We can see a shift in the spending habit today as the grown up people are squeezing their cashflow due to rising inflation, and the younger generations are only comparing prices in the retail and the buy them from internet. You may be one of them. I personally started ONLINE CONSUMING since 2003 when i was in UK which was 11years ago. Ebay and Amazon was alredy around there since late 90s if you are not aware. The mainreason i used to purchase online is because of CHEAPER than retail & CONVINIENT that it can be delivered to my doorstep. Back to malaysia, as for SERVICE sector i am not too worry, but for consumer goods....? FMCG (Fast Moving Consumer Goods) im also not worry. But what about allllll the rest? Even food & Groceries can be purchased via Appstore today in Korea or Japan. TAOBAO, Ebay Msia, Lelong, Mudah, Zalora, Groupon, FB pages, pre order blogs, even a teenager today is able to create a simple blog or page to start doing PRE-ORDER trading business. Clothes, toys, games, collectables, household, electronic, gadgets, accesories, medicines, foods, garments, hobbies & sporting goods...? Basically EVERYTHING can be ordered via internet today and the price of buying online is always 20-30% cheaper compared to retail. The COST of setting up business in a retail shop comparing to INTERNET is way too UNEXPLAINABLE. The reason people chooses Internet is because of saving costs on RENTAL and LABOUR. These are the 2 main factor that kills the retail industry. And the lead time of delivery efficiency with modern & advance logistic transportation service today is definitely a competitve advantage. Target market audience thru internet is to reach the world for GLOBAL SCALE & running 24hrs 365days. Internet Improvement, Mobile technology, Logistic services and Payment gateway are definitely the ice breaking point for the future spending behaviour. Perhaps, no longer people will spend money at shopping malls. And when businesses doesnt perform, revenue doesnt increase, same goes to the rental, and when the rental of a mall doesnt increase, some malls may survive, some maybe going down, and the favourite one continue to prosper and grow bigger. These may not happen today in malaysia YET, but if you read the link below, that is alredy happening in the west. So, what are the trends and shift of patterns for our future and upcoming Investment appetite? As we Malaysia is only growing and developing stages, what is the next move? The MOST COMMON move; - Buy walking distance to Transportation - Buy walking distance to Shopping Malls, - Buy a premium neighbourhood - Buy a favourable address that is up & coming. - Buy reasonable size between 800-1200sf - Buy LIFESTYLE properties CURRENT situation we are facing; 1. Residential category is being pressured and monitored closely. 2. Comercial shops will see a slowdown as future spendings are all moving into malls. Rent stressing. 4. Offices? Buildings & Buildings are coming up into town with excess of incoming 100million lettable square foot. Not wise...!! Vacant after Vacant RISK! 5. Industrial perhaps? Light weight or Medium weight scale factory/warehouse will perform bcos we are SME base. 6. Most favourable still LAND 7. Micro-units like Studio or Soho is just a complimentary investment product that only get rental without much appreciation. I personally think, that we need to keep monitoring the market closely as it evolves, especially following the direction of our Government, monetary & banking ruling policies. Just gotta observe closely where is the government heading, what are the government planning ahead, what are they stopping and what are they encouraging. ECONOMY = POLITICS = CRONISM = MALAYSIA BOLEH Do NOT follow where the mass go, Follow where the GOVERNMENT & TYCOONS go If you SIMPLY follow the mass, You will live your life SIMPLE, They make SIMPLE decision, Because they think SIMPLE, Their life is fated to be SIMPLE, So god made them make SIMPLE decision, So they live their life SIMPLE, So do you live your life SIMPLE, Because u simply follow the SIMPLE, So your investment portfolio is SIMPLE, So as your Investment return will be SIMPLE, So as to your bank accout balance is SIMPLE, Conclusion is; THINK SIMPLE = LIVE SIMPLE ThinK DEEP.................. JL™
Posted on: Mon, 08 Dec 2014 21:52:29 +0000
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