MECSC delegates told to embrace change, high fashion

• Convention’s second day brings stern advice
• Regional malls that fail to adapt face extinction
• A continued retail boom will rest largely on luxury

Dubai, March 20, 2007: Delegates attending day two of the 12th annual Middle East Council of Shopping Centres (MECSC) Convention learned today that the way to achieve continued growth is to adapt to the changing desires and tastes of consumers, and to exploit the growing demand for luxury brands by working to create regional fashion capitals.

The event’s first speaker, Steve Kaufmann, Editor of the trade magazine Visual Merchandising and Store Design, regaled delegates with a number of cautionary tales, recounting instances of once-successful mega-malls in the US that have become what he described as "dinosaurs." These malls, he said, are "large and cold and slow to adapt to a changing environment, and are in danger of becoming extinct."

While pointing out that tastes in the US currently run to more modestly-sized "lifestyle centres," which emulate traditional Main Street-type shopping experiences, Kaufmann was full of praise for Dubai’s existing and upcoming large-scale retail development projects. "These malls are developed and built by people who understand fantasy and the fulfillment of dreams," he said. "And isn’t that what shopping is all about?"

Radha Chadha, founder of Chadha Strategy Consulting in Hong Kong, continued on the theme of fantasy in her address. Author of the book The Cult of the Luxury Brand, Chadha explained that the world is seeing the emergence of a new class system, one which rests on the ownership of luxury items. "You are defined by the Chanel suit you’re wearing, the Gucci bag you’re carrying," she said. "These are symbols of social position."

Chadha pointed out that India, awash in new money, is set to become one of the most significant consumers in the $80 billion global luxury market. And Dubai, she added, is poised to provide a place for Indians to shop. "This is not a matter of building more malls or bigger malls or more entertaining malls," she said. "It’s about evolving into a fashion capital. It’s tinkering with the cultural DNA of a city."

The premier event of its kind in the region, this year’s MECSC Convention is the largest yet, attracting over 300 delegates from around the world, along with more than 45 exhibitors from the region and beyond. Several leading retail experts are speaking at the event. The Leasing Fair & Trade Expo, running concurrently with the conference, has attracted record numbers of leading retail real estate companies. The event runs March 19 through March 20.