MAHB to make shopping at KLIA an experience

[Raj 0]

MAHB to make shopping at KLIA an experience

By Surin Murugiah

31 Oct 2005

 

Malaysia Airports Holdings Bhd (MAHB) has re-strategised to enhance the attractiveness of its retail outlets at the Kuala Lumpur International Airport via the improvement to its concept and layout.

 

MAHB chief executive officer Datuk Bashir Ahmad says it has engaged a UK consulting firm to undertake a study towards introducing more effective methods of optimising the available retail space at the main terminal building.

 

He says the entire exercise is to ensure that the retail outlets could maximise earnings as well ensure that KLIA has a competitive edge over other international airports, especially those within the Asian region.

 

It is learnt that the three designated areas for primary development are the satellite building, domestic contact pier and main terminal building.

 

Ongoing works at the domestic contact pier, where MAHB plans to have the Flying Emporium with a retail space of 1,600 square metres, would be completed before Christmas.

 

The retail space at the satellite building has been proposed to be segmentised into four categories of zones, namely luxury brand, contemporary lifestyle, gifts & basics and great deals.

 

Bashir tells FinancialDaily that when fully implemented, the combined improvements to KLIA would provide for a greater variety of merchandise for passengers at the airport.

 

In order to generate higher revenue, he says, MAHB has to look beyond relying on airport charges on airlines and airport tax on passengers, and instead optimise income from commercial retail space and advertising.

 

He says the contribution from commercial retail income is now 35% of revenue, but it should ideally be at 50%.

 

Bashir says experience shows that duty-free liquor, cigarettes, perfumes and chocolates top the shopping list of travellers.

 

He says it is imperative that certain products highly sought by travellers be strategically located to create a better shopping experience.

 

“Those wishing to purchase liquor and cigarettes will go the mile to look for them, so even if they are located at the back it does not matter.

 

“But there have also been requests for other items like toys, bigger book shops and good restaurants, and these must be addressed,” he says.

 

He says major international airports have a layout concept where passengers walk through retail outlets to reach the check-in areas and departure gates or when walking out.

 

That type of layout would not only increase passenger comfort but would generate retail income for the airport operator, he says.

 

Bashir explains that MAHB is in talks with several top-notch booksellers and other high-end product retailers, as well as exploring ideas to introduce innovative sales approaches.

 

He says one measure MAHB would take is to ensure retailers sell their goods at prices comparable to, or where possible lower than, those sold at, for example, KLCC Suria.

 

“If we created a shopping environment where travellers knew they could buy quality products at cheaper prices, then a passenger waiting to board his or her flight would be encouraged to browse around and shop,” he says.

 

He is quick to qualify that certain businesses would not be able to offer lower prices, especially food and perishables that involve higher transportation and storage costs.

 

Bashir says changes to KLIA in terms of improving retail areas would not cost MAHB too much as the retail outlet operators themselves would invest in the refurbishment of their stores.

 

He says the works are expected to be completed by the middle of next year, and start contributing towards earnings thereafter.

_________________

 

RAJ

Edited November 4, 2005 by raj

[Jamie H 0]

This is all fine and dandy, but I think there are many other issues MAHB need to address in order to spruce up the overall experience of a pax transitting in KLIA:

 

1)Entertainment Entertainment Entertainment!!! Correct me if Im wrong, but the last time I was there, every single bloody TV set was airing TV3 There should be some variety to cater for pax of all age groups ie MTV, HBO etc etc. Furthermore, internet access is woeful; just a tiny internet access centre off the forest of the satellite building. SUggestion: Build a bigger one or at least introduce Wi-fi Access in the eateries such as Starbucks or Delifrance

 

2)Transitting Pax coming off a long haul flight just want to relax and unwind. My suggestion here is to create a health centre offering spa-like facilities ie massage, swimming pool or even a Zen-like quiet room. Also, maybe create a lounge bar or something with live music.

 

As much as it hurts to, MAHB need to set their egos aside and learn from our neighbours, the Singaporeans and even the Dutch. Changi and Schiphol, even with the KLIAs, Incheons, Chek Lap Koks and soon Suvarnabhumis, are still in my opinion the best and ultimate airports to transit in. Why? Fun fun fun......you could spend a day transitting there and still not get bored!!

Edited November 6, 2005 by Jamie H

[Raj 0]

AGREED!!!

[Izanee 0]

spot on jamie...its not difficult to do...its not brain surgery or rocket science

[Raj 0]

But at least they are doing something about it..very slowly maybe but at least they do realize what could or should be done to be the best..although what Jamie said is very true and they should consider that to be done..

 

thanks..

[Rozhan 0]

When KLIA first started operations, there was a video games centre situated at a lot leading towards the viewing gallery, and Mofaz had a sports merchadise store or something at a lot facing the viewing gallery, plus one or two others I can't remember. 7 years on, all of them has closed down!

 

There is nothing exciting at KLIA nowadays, except for viewing the planes. Even the viewing gallery has become warm as I guess they have closed down even the air-conditioning in that area.

[Raj 0]

damm no air-cond..must be terribly hot in there...

got any idea why the game centre and the shops close down??

 

bankcrupt??

[Radzi 2]

damm no air-cond..must be terribly hot in there...

got any idea why the game centre and the shops close down??

 

bankcrupt??

14170[/snapback]

 

If you're a passanger, you will not pass thru that area while getting to the planes. That area is basically unknown to most people, so no traffic, no sales, no profit. Not a good way of doing business.

 

[Rozhan 0]

I had a chat with shop tenant at KLIA Sattelite side. Among others, the business hours at KLIA shops are dictated by MAB, and rental for retail space reach RM 1 million / month for a particular outlet Must be one of those luxury goods store. His little 'stall' cost RM 20k / month

 

I noticed that one shop had something familiar... those necklace with wooden beads found in abundance at Kuching and Kota Kinabalu handicraft shops, and Filipino Market (KK) One can get 3 pieces for RM 10 at KK with some bargaining, but that KLIA shop had it for RM 39.90 each, based on the sticker price.

 

[Raj 0]

Rozhan,

 

In my opinion, the reason why the price is high is because the shop retailers have to make profit as well as have enough money to pay MAB for the rental space..

Afterall maybe be rental price in KK is cheaper compared to KL..

so maybe that's why price gotto be high as well...

just my opinion..

[Rozhan 0]

Raj, I wasn't complaining about KLIA prices.... just feel sorry that some people may get fleeced by outrageous prices for certain items, including food and beverage items. Afterall, buying things there, as in any purchase transaction, is a willing buyer, willing seller thing. If one is willing to pay, then he or she is free to buy at the asking price.

 

Personally I don't go shopping at KLIA, of all places. And the nerve of KLIA to have Membeli-belah di KLIA (Shop at KLIA) campaigns from time to time on TV3 talkshows, like there is so much to shop there in terms of variety, and access to sattelite building (where most shops are located) if one is to travel domestic. I'm within a radius of 3 km from Mid Valley Megamall, where just about everything can be found at sensible prices

[Raj 0]

Roger that Rozhan...

 

Yea, not many people bother to shop there..