Pokemon fever too good to resist for struggling HK retailers
In this article (5)
Major Hong Kong tourism and shopping hotspots have been rushing to cash in on the citywide Pokemon Go craze with numerous events being organised, centred entirely around the smash-hit mobile game, to reinvigorate the city’s lacklustre retail sector.
Three park and shopping mall operators — Ocean Park, Sun Hung Kai and Swire Properties — told the Post they were in talks with Pokemon Go’s developer Niantic over potential cooperation on future campaigns themed with the augmented reality game.
Niantic is part-owned by Japanese videogame giant Nintendo.
Since its launch in the city on Monday, Pokemon Go, which allows players to use their phones’ GPS and camera to capture virtual Pokemon in the real world, has been all the rage across the city’s most bustling districts.
“We are seeking collaboration opportunities with the game’s creator, with more details to be announced soon,” said Maureen Fung, director with Sun Hung Kai Development (China).
“We expect to see a double digit growth in our traffic and an 8-10 per cent leap in retail sales during the Pokemon Go event period,” Fung said.
A spokesman for SHKP’s APM mall in Kwun Tong said it had implemented more “Lure Modules” — a function that makes it easier for players to find and catch the Pokemon — around the shopping centre, and updated the whereabouts of the virtual monsters on its social media pages “on a frequent basis.”
Fung said the developer now plans to roll out Pokemon-related events at 12 of its shopping complexes.
The Pokemon Go mania comes as traditional retailers continue to struggle against their online counterparts, both in Hong Kong and around the world.
Terence Chan, head of retail, Hong Kong, at real estate consultant JLL, said the sudden rush in interest offered a great opportunity for outlets to cash in.
“We are seeking collaboration opportunities with the game’s creator, with more details to be announced soon,”
“It is a nice marketing tool for stores and restaurants, particularly those looking to attract youngsters,” he added.
Another leading property developer, Swire Properties, is utilised its Facebook and Instagram accounts to help customers spot Pokemon at its three flagships Cityplaza, Pacific Place and Taikoo Place.
“We have a large number of Pokestops and a few Pokegyms,” said a Swire Properties spokesperson.
“Additionally, we have approached Niantic Labs for further potential collaborations.”
Pokestops and Pokegyms are where players can train and battle their Pokemon.
Elsewhere, six shopping arcades operated by Sino Group, including Olympian City in Kowloon and Citywalk in New Territories, are running promotions.
While a spokeswoman for Ocean Park revealed that the 39-year-old theme park had already become involved in discussions with US-based Niantic before the game even landed in Hong Kong.
“The talks are currently underway and may take into account issues like copyright,” she added.
But at least one leading retail site owner said he would not be relying on luring and accommodating gamers to turnaround its fortunes.
Chiu Kwok-hung, chairman of Fortune Real Estate Investment Trust told local media on Tuesday that his malls did not intend to join hands with Pokemon Go as “an influx of people who don’t actually shop in the malls will in turn hinder your business”.
Questions & Answers
Q.Which specific companies are actively discussing potential partnerships with Pokemon Go's developer, Niantic?
Which specific companies are actively discussing potential partnerships with Pokemon Go's developer, Niantic?
Ocean Park, Sun Hung Kai, and Swire Properties have all confirmed they are in talks with Niantic regarding future cooperation for campaigns themed around the augmented reality game. These discussions aim to use the game's popularity to boost retail traffic.
Q.What are some of the immediate actions taken by shopping centres to capitalise on the Pokemon Go craze?
What are some of the immediate actions taken by shopping centres to capitalise on the Pokemon Go craze?
SHKP’s APM mall has implemented more “Lure Modules” and frequently updated the whereabouts of virtual monsters on social media. Swire Properties is using Facebook and Instagram to help customers locate Pokemon at its flagships, while Sino Group is running promotions.
Q.What are the anticipated financial benefits for Sun Hung Kai Development from these Pokemon Go initiatives?
What are the anticipated financial benefits for Sun Hung Kai Development from these Pokemon Go initiatives?
Maureen Fung, director with Sun Hung Kai Development (China), expects to see a double-digit growth in traffic and an 8-10 per cent leap in retail sales during the Pokemon Go event period across its 12 planned shopping complex events.
Q.Has every major retail site owner embraced the strategy of using Pokemon Go to attract customers?
Has every major retail site owner embraced the strategy of using Pokemon Go to attract customers?
No, at least one leading retail site owner has not. Chiu Kwok-hung, chairman of Fortune Real Estate Investment Trust, stated his malls do not intend to join hands with Pokemon Go, believing an influx of non-shopping people would hinder business.
Reader pulse
Is embracing Pokemon Go a good strategy for retailers?
20,640 votes so far