Page 19 - Hang Lung Properties 2012 Annual Report

ҁϓ݄ʈlᗭ׉༈ഃ يุ௰୞ே੶ࢨɛ
จd קאޟΕʔఘfуԴ༈ഃ يุԨ ڢุ
ᛆʱ౳dҢࡁ͵ʔึൖʘމᘩن࿁˓f
ɛࡁ͵࿁ਠఙБุٙ༶Ъ౷ཁπϞႬ༆f
ਠఙԨ ڢ̙ಁ˾ٙਠۜdϾ݊ՈϞ৷ ܓत
Ѝٙ༟ପfՉ̹ఙ݊ऋವʱ׼ٙjኹϞ࠰
քՅ€ Chanelձ༩׸ ೮۾€Louis Vuitton 
ഃۜ೐ٙ৷၌ਠఙdʔึ༧ԷνϞӜဧီ
€Walmartໝ˒ٙ౷ᖯਠఙᘩنfϤ̮dЗ
ໄɰ݊ዹतርᓃf຅ɓ࢕Ѭໝරږήݬe
ணࠇձ݄ʈѩጲɪ࠱ٙਠఙ ܔϓʿϓ̌і
ˏΥቇॡ˒ࣛd̴ک̙वИᚥ܄fɛ ࡁ࿁
ਠఙٙ׀༐೻ܓ຅್ʿʔɪ࿁৷ॴࣛༀۜ
೐ছ੶डdШᐼϞɓ֛ٙ኏޸ਿ๟f
౬̩༑Ⴍdɓ͇ࡈݔ ᒅيਠఙϓ̌ఢ֛ή
ЗܝdอԸ٫کʔ࢙׸Ҫ̴Ү ࡀf຅್d
வ݊৿ணჯ΋٫ ڭܵᙆᙂdึʔᓙΪᏐ
௰อٙऊ൬ᒈැЪ̈౤ʺձҷࠧfவ݊Ң
ࡁίɪऎࠦ࿁ٙܿ኷d׵Չ˼ή˙ɰБਗ਼
ν݊f
͍ν͉ɛᅰϋۃᅠࠑd̹ఙਞၾ٫௰୞ึ
ʱϓᙊ࢕ձ፩࢕fίlzήd٫ܝ ึˢ ٫ۃ
εfவࡈ ତ൥ίɪऎഃɓᇞ̹۬ʊ̙ͦ
ທdԨ͍ίɚᇞ̹۬̈ତfҢࡁٙͦᅺ݊
ᆽڭ࿩ɨӊධيุѩϓ הމ ί̹۬ٙˇᅰ
ᙊ࢕ʘɓdޟЇ௰λٙɓ࢕dޫΪவ̙і
ॶ௰ɽٙऊ൬ᕘd༰৷ٙఊЗॡکږ ᎇʘ
ϾԸf
ɪ˖੻̈ٙਬɓഐሞdɗʕ਷lzήਠุي
ุ̹ఙԱ್ᕼɽdჃჃ͊༺ཱིձf
͉ɛ૧ሞࠑٙୋɚᓃd݊Ң ࡁձʕ਷ִ݁
֜ࡰٙᗫڷf௰ ڐɓԬዚ࿴ҳ༟٫ΣҢ౤
̈Ϥਪᕚiఱவ ࡈίlzήᐄਠٙࠠ ࠅ ᗫ
ᒟd˸ɨ݊Ңהࡁમ՟ٙͭఙf
construction! No wonder the end products are suboptimal if not
outright horrendous. Even if such properties are not strata-titled, they
can hardly be considered as competitors.
There is also a general misunderstanding of industry dynamics. Malls
are not commodities which are fungible; they are highly differentiated
assets. Not only is the market highly tiered or segmented – luxury
centers with the likes of Chanel and Louis Vuitton do not compete with
mass facilities with say a Walmart – it is also location specific. Once
a well situated, well designed and well constructed shopping center
is built and succeeds in attracting the right clientele, it tends to retain
customers. Loyalty is obviously not as strong as seen in high fashion
brands but a good measure of it does exist.
In other words, once a shopping center is successfully established, it
will not be easy for newcomers to dislodge it. That of course assumes
that the leader is vigilant and continuously upgrades and changes
according to the latest consumer trends. Such is our challenge in
Shanghai and soon also elsewhere.
As I have written several years ago, the result of all that is the bifurcation
of market participants – there will be clear winners and losers. On the
Mainland, there will be far more of the latter than the former. We have
seen it happen in first tier metropolises like Shanghai, and the same
is emerging in tier-two cities. Our goal for each and every property of
ours is to be among the very few winners in each city – in fact to be the
best – for such will take the lion’s share of consumer dollars. Higher unit
rents will then follow.
Given the above, the conclusion can only be that the market for
commercial real estate in Mainland China is wide open. It is far from
being saturated.
A second issue that I would like to address relates to our relationship with
Chinese government officials. Recently a few institutional investors have
asked me about it and here is our position on this important aspect of
doing business on the Mainland.
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