ST : $60 million to reel in youth dollar

Dec 1, 2009

$60 million to reel in youth dollar

Orchard youth market landmarks to invest in events and makeovers

By Eisen Teo



THREE parties with an eye on the youth market have come together to sink $60million into wooing this audience.

The Heeren, Cathay Cineleisure Orchard and *Scape Youth Park, landmarks in the Orchard Road shopping belt targeting the young, want to put the money into events, renovations and promotions over the next four months.

These three places, forming Orchard Road's 'Youth Triangle' for their movie and shopping offerings, have drawn up these improvements to keep up with the revamp in the rest of the Orchard Road strip, and because their popularity among teens is flagging.

The plans they have announced come as a Straits Times survey last month indicated that the three centres had somewhat lost their sheen among the young, who now prefer Plaza Singapura, Vivo-City and Suntec City.

Even Ion Orchard, with its high-end boutiques, outdid The Heeren and Cathay Cineleisure Orchard in the survey.

Young people interviewed for the survey said they liked the other malls for their cavernous size, wider variety of goods and the fact that they were fresh.

Ion, in particular, scored on its novelty factor.

But the Youth Triangle, where retailers have reported a drop in revenues of between 10 per cent and 30 per cent in the last year, is not taking this lying down.

*Scape, for example, will build a $40-million, youth-oriented mall across the road from *Scape Youth Park.

Due to open next March, it will house dance and recording studios and new-media production and editing suites for budding young talent.

Its non-profit operator *Scape Co expects the buzz created by its youth facilities to attract traffic for its retailers.

The Heeren said the $20-million makeover of its facade was part of an 'ongoing process' to keep those aged up to the early 30s interested.

Its outdoor eating area and plasma TV screens broadcasting music videos and commercials, will be ready by Christmas. Next year, it will open its rooftop for use and build an extension.

Cathay Cineleisure will keep its formula of 24-hour movie screenings, game arcades and band performances.

But with Cathay's 75th anniversary up next year, the mall will launch youth-oriented activities and publicity campaigns on popular youth networking platforms Facebook and Twitter.

All three landmarks have packed this month with youth-flavoured events, ranging from The Heeren's fashion show to *Scape's skimboarding demonstrations.

The Straits Times spoke to 30 young patrons who say they are intrigued by the revamp.

Even so, they have ideas for what they want out of malls (see other report) and point out that events alone may not get them to spend more.

For them, value for money and creative retail discounts count.

For example, Yvonne Low, 17 and in her first year at Tampines Junior College, typically spends $30 to $50 on food and movies a week.

She said: 'I'll go and soak up the atmosphere with my friends, but we won't spend more than we normally would.'

Retailers agree. They say events held on the ground floor may not drive traffic to upper-level shops the way mall-wide promotions and discounts would.

Mr Muhammad Hafiz, 23, a sales ambassador in men's shop NewUrbanMale on the fourth floor of The Heeren, said: 'Cut-out coupons and redeemable points for spending would be good.'

Such discounts would work on people such as undergraduate Marcus Kan, 21.

He said: 'I have only so much to spend on clothes and movies after deducting for food and transport. But a good discount off a $100 to $150 item will persuade me to part with more money.'