Cape Town, Wednesday, 31 July 2024 – Malcolm Horne, Group CEO of Broll Property Group, shared the stage at the annual SACSC (South African Council of Shopping Centres) Congress in a panel discussion alongside Matt Clark, Head of EMEA Retail at AlixPartners, and Mike Coppin, Director & Co-Owner of Food Lover’s Market. The panel explored the latest trends and innovations shaping the retail and real estate sectors, with Horne highlighting Broll’s strategic initiatives in disrupting the market.
Innovating with Technology
“Our focus has always been on staying ahead of market trends by integrating cutting-edge technology into our operations,” said Horne. “We utilise advanced data analytics and AI to provide our clients with actionable insights, allowing them to make informed decisions and enhance their operational efficiency.”
Broll’s comprehensive approach across the continent involves breaking down organisational silos and fostering a connected ecosystem. This enables businesses to leverage data more effectively, anticipate market shifts, and adapt quickly to changing consumer behaviors.
Building a Future-Ready Ecosystem
Horne emphasised the importance of creating an agile and responsive business environment. “We are committed to developing strategies that enable businesses to navigate and respond to macro trends instinctively. By placing data at the heart of operations, we help our clients build next-generation businesses that are interconnected and predictive.”
During the discussion, Matt Clark highlighted key industry trends, stating, “The pandemic certainly expedited the growth of online shopping (e-commerce). However, retailers, especially in the online food sales sector, are struggling with profitability unless they have an extraordinarily inexpensive delivery system. They are often unable to accurately articulate online P&L. Digital drop-offs are a concern, with Google search CPCs increasing by 40-50% for retailers over the past five years, highlighting the need for optimised digital marketing strategies. There is also a noticeable shift back to brick-and-mortar stores as consumers seek more tangible shopping experiences.”
The Role of Technology in Customer Engagement
In South Africa, technology plays a crucial role in enhancing customer engagement and optimising property management. The shift towards online shopping, accelerated by the COVID-19 pandemic, has been significant. Sectors like apparel and groceries have seen substantial growth, while the adoption of digital tools and platforms has enhanced customer experiences. In Ghana, the rise of e-commerce is noticeable, especially in fast food, electronics, and fashion sectors, despite challenges with online payment systems and delivery logistics. Kenya, as the third-largest e-commerce market in Africa, has seen a surge in online trading, with supermarkets and restaurants leading the way.
Global brand trend: Sephora’s Use of AI
To illustrate the potential of AI in enhancing customer engagement, consider Sephora’s innovative use of AI technologies. Sephora introduced a Virtual Artist tool that uses augmented reality (AR) to allow customers to try on different makeup products virtually. This AI-driven tool provides personalised product recommendations based on the user’s preferences and previous interactions. Additionally, Sephora deployed AI-powered chatbots on their website and mobile app, assisting customers with product inquiries, order tracking, and personalised beauty advice. These chatbots provide instant support and enhance the shopping experience. Sephora also utilises AI for predictive analytics to forecast trends and manage inventory more efficiently, ensuring that their stock levels and marketing campaigns align with customer preferences.
Adapting to a Changing Landscape
The real estate industry is experiencing significant shifts, driven by technological advancements and changing consumer expectations. Broll is actively addressing these changes by fostering data sharing and collaboration between landlords and retailers. This partnership approach helps tailor offerings to meet the specific needs of the market, ensuring that businesses remain competitive.
Looking Ahead: The Future of Real Estate
As the industry moves forward, Broll is poised to lead the way in delivering innovative solutions. “The next big disruption in retail will be driven by hyper-personalisation and AI integration,” Horne stated. “AI is steering the course of digital consumer interaction towards unprecedented levels of individualisation.” Broll focuses on optimising the retail experience, from personalised shopping to seamless digital interactions, to ensure clients are always ahead of the curve.