Retailers join Pokemon chase to catch ‘em all

SINGAPORE — “Gotta catch ‘em all,” retailers and mall managers are telling themselves as they target Pokemon Go players stumbling over each other to capture the virtual creatures in the latest craze to sweep Singapore and the rest of the world.

Pokemon Trainers - players who catch, train and fight with the pocket monsters - have been out in full force across the island since Pokemon Go fever hit Singapore the weekend before National Day. The sightings of Pikachus at Resorts World Sentosa (RWS), Slowpokes at ION Orchard, Bulbasaurs at Bugis Junction and other pokemons elsewhere have led to an increase in customer traffic as well as patronage.

Singtel, which says that more than half a million of its customers have downloaded the game app, released thousands of lures at Pokestops near its shops islandwide over the weekend to help players catch the little monsters and in the process ring up its cash registers. Market analysts said retailers and malls should ride on the phenomenon while it lasts.

Indeed, following the much-awaited launch in Singapore on Aug 6 after the game was made available in the United States and Australia last month, malls and visitor attractions were quick to activate promotions tied to the game.

Within hours, CapitaLand Mall Asia, a mall developer and operator with 17 malls across Singapore, launched #PokemonSTAR, an Instagram campaign that combines the game with its rewards programme. ION Orchard also announced plans to release lures at the mall until Aug 21. City Square Mall, owned and managed by CapitaLand’s rival City Developments (CDL), let loose lures at six of the Pokestops located around the mall on National Day. Meanwhile, RWS released lures at the 70-over Pokestops on its premises.

Ms Teresa Teow, head for retail management, Singapore at CapitaLand Mall Asia, said the promotion has been warmly received by customers. “During #PokemonSTAR, the average daily sign-ups for CAPITASTAR increased 43 per cent compared to July. We have also seen a 33 per cent increase in followers for CapitaLand’s Instagram account, with about 2,000 posts garnered on #PokemonSTAR,” she said.

Mr Chris Chong, chief executive of CapitaLand’s 50-per-cent owned Orchard Turn Developments that manages ION Orchard, said: “Since the launch of the campaign, we have observed brisk shopper traffic compared to the week before and seen many shoppers catching Pokemon in different parts of the mall.” He added that the mall has received good feedback from tenants such as Wrap & Roll, Seoul Yummy, Seek, Food Opera and Estee Lauder, who want to work closer with the mall operator to engage shoppers.

An RWS spokesperson said the lures have led to “increased visitorship to the attractions,” noting that many players prolonged their stay and boosted the takings of the resort’s retail outlets and restaurants.

Analysts say the Pokemon Go phenomenon will probably turn out to be a fad that will die down in a month or two, adding that businesses must be quick to jump on the opportunity.

“The barrier of entry for this game is almost zero for players - all you need is a smartphone and connection, while the barrier of entry for retailers is low as lures are not expensive,” said Mr Desmond Sim, head of CBRE Research in Singapore and South-east Asia.

“For the game, if you have a lot of street fixtures and art, it will become a Pokestop. Malls that have invested a lot in iconic street furniture will see a lot of Pokestops around it, for example ION Orchard,” he added.

Lures are objects put into Pokestops to help gamers get a higher chance of catching a Pokemon. Lure modules, which lasts 30 minutes each, cost 100 Pokecoins, or about S$1.48 apiece. They cost a discounted S$1.26 each for a bulk purchase of eight.

Ms Christine Li, director of research at Cushman & Wakefield, said: “If you are in the F&B businesses, this is probably a very cheap way to reach out to people who are not yet familiar with your brand. With social media going viral on the game, some screenshots can have a multiplier effect if they are being circulated. But retailers and malls should not have high hopes that the increased traffic will translate directly into sales. Its impact will be less direct.”

Mr Sim said: “At the end of the day, the phenomenon has created a lot of footfall. Even if the traffic does not translate to 100 per cent patronage, as long as out of 100 people, 20 or 30 people have consumed something from the malls, this is an improvement to businesses.”

“This is a global phenomenon. We are not sure how long this would last but the time is right and now. Make hay while there is sunshine and bank on this global wave,” he added.