Retail rethinking: how was the MAPIC-2019 exhibition (photo-report)

How was the largest international exhibition of retail and development, which Ukrainian companies’ representatives became its participants, and what key trends in the industry were discussed by experts.

MAPIC is one of most respected international events in the retail and retail real estate sphere. This year, the event brought together more than 8,000 participants from 80 countries, including 2,000 retailers, 2,200 developers and 1,300 investors. Dmitry Dopiro, MAPIC official representative in Ukraine, told RAU, that over past few years, interest in the exhibition from Ukrainian companies has been stable: retail real estate’ brokers, retailers, developers and consultants come to the event.

“Participation in MAPIC is not only the contracts’ conclusion, the search for potential partners, but also the acquaintance with the experience of companies from around the world. The rapid development of information technology leads to the emergence of new concepts in retail, new ways of communicating with customers. New trends are widely discussed at MAPIC and the participation in the exhibition can be very useful for Ukrainian entrepreneurs”, – Dmitry Dopiro noted, adding that this year the exhibition was visited by about 30 Ukrainian businessmens and top-managers.

Ukrainian Retail Association’ delegates and Partner of the Association in the brokerage sphere – consulting company Retail & Development Advisor were also among them.

“MAPIC is one of most significant in the world events in the retail and the retail real estate’ development, which really affects the industry’ development. Brands find new partners for development and make decisions on entering new markets, developers present own projects, attracting investors and tenants, and retailers find new ideas and solutions to improve own business”, – Alexander Fialka, Partner of Retail & Development Advisor, commented.

It is curious that this year MAPIC launched the new project – Retailers Club – which contributed to the creation of unique business spaces with a number of advantages for retail’ representatives. Retailers Club provided an exclusive services range for retail’ guests at a loyal price, which was almost half the price of  standard event ticket. However, only representatives of retail, restaurant business, as well as entertainment and leisure operators could take advantage by the offer.

In turn, Head of the Ukrainian Retail Association Andrey Zhuk emphasized that in our country there are no events of this magnitude. “However, a few years ago, the Retailer Association  began holding own international exhibition Retail & Development Business EXPO, which is now the largest specialized event in Ukraine, hosting up to 2000 people in two days. The holding of this magnitude event would not have been possible without MAPIC experience’ researching, which is rightfully considered the leading event in the retail’ industry”, – Zhuk convinces.

By the way, the MAPIC exhibition zone is another pride of exhibition organizers.  It covers ​​12,000 sq. m squares on several floors and allows event participants to get acquainted with projects and innovative solutions of more than 750 exponents. At the same time, regional pavilions and two thematic zones dedicated to innovation and leisure also worked at MAPIC-2019.

The only exhibitor from Ukraine at the MAPIC exhibition was the company NAI Ukraine, which presented a number of Ukrainian projects in the retail real estate sphere. Large metropolitan megamalls of Vagif Aliyev – Lavina Mall, Ocean Mall, Blockbuster Mall and others – are among its. However, first of all, meetings with global brands that are not on the Ukrainian market and do not consider it as a direction for expansion, are important  for company at the exhibition according to  CEO and Founder of NAI Ukraine, Vitaliy Boyko.

“It is our priority goal. We seek meetings with decision makers in such companies, and we show at meetings real statistics of the Ukrainian economy, talk about other brands entry – especially its competitors, about these brands successes. And we can say that from meetings’ large number with almost all target brands, we managed to hold promising negotiations”, – Boyko says.

The second important goal is to meet with companies that are interested in entering our market, but who lose time in finding partners, according to him. “It is afraid to invest independently – it wants own brand to be present in Ukraine, but through a local partner. We are trying to convince retailers of the need for direct access. We are committed to the point of view that for both the country and shopping center’ developers, priority is working with brand owners. International companies make real investments in the country’s economy”, –  CEO NAI Ukraine notes. He adds that this year the company held more than 60 meetings with global retailers, including the iconic companies’ large number – Galeries Lafayette, Media Markt, Sephora, Starbucks, Deichmann, C&A and others.

It is worth noting that the large-scale conference program is MAPIC important part. This year, it consisted of more than 100 sessions dedicated to latest development sphere‘ trends, new retail concepts and modern retail facilities around the world. The Managing Director of Colliers International (Ukraine), Alexander Nosachenko also visited MAPIC-2019. He says that the event’ main topic this year was to rethink the very concept of retail, the retail real estate’ evolution with a greater emphasis on organizing diverse leisure activities.

“The MAPIC red line was the inevitable transformation of shopping centers into socialization places, the innovations and unexpected formats introduction, from augmented reality to coworking on first floors and coliving on the upper. The socialization method of retail spaces in the world is the most diverse. Post-Soviet countries have long practiced an abundance of all entertainment’ kinds, including large-format ones. It is not predominates entertainment in European projects, but it is large-scale catering zones. Additional services are offered increasingly, for example, dance schools or educational projects”, – Nosachenko told.

More than 70 representatives from different offices of the world worked with projects of own countries at the Colliers International stand, according to him. “Positive news is: the interest of new retailers in the Ukrainian market as a whole, in existing and future projects is active and substantive. Our country is still quite a risky market in the international arena, especially for those retailers who judge Ukraine only from the view’ point of statistical reports and news feeds. There is in these sources much more information about instability than about that H&M show in our country phenomenal results on the comparing to other countries in Eastern Europe. At the same time, there is the major brands’ number that are carefully looking at our country, have already seen modern SEC’s and projects under construction. Its entry into the market is possible in two to three years”, – Alexander Nosachenko said.

Despite some positive trends, Vitaliy Boyko believes that not only local companies, but also the State itself would pay more attention to the popularization of Ukraine at such international exhibitions. “The Government needs to understand that the retail market is 30% GDP. And the country does not participate in popularizing own retail market as the work’ promising place for international retailers who are predisposed to invest foreign money in the economy. Nevertheless, the Government is promoting such exhibitions as MIPIM, which are devoted to development, although the real estate’ share in the GDP of our country is less than 3%. It would not hurt to reconsider priorities”, – the top-manager is sure.

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https://rau.ua/en/riteyl-na-eksport-en/rdbexpo-1-2/-2/