Focus on Portugal

In recent years, the Portuguese Republic has grabbed more headlines overseas for its role in the US-led war on terrorism than for anything else. But the country of just over 10.5 million people has been up to much more than that. This past 17th May, Portugal took over the presidency of the Committee of Ministers of the Council of Europe. Then, one week later, ex-prime minister António Guterres was chosen as the next UN High Commissioner of Refugees. These big positions are a testimony to the work this coastal nation has undertaken over the past two decades to revitalize itself.
Ever since its accession to the European Economic Community in 1985, Portugal has seen its commercial sector evolve and diversify. Urban development outside the traditional city centre hubs created new opportunities in the retail real estate industry, with shopping centres emerging as primary forces. With innovative retail formats and expanded choices at their disposal, consumers embraced new shopping habits. This, in turn, made Portugal an increasingly appealing market for local and foreign retail real estate investors. And while many Portuguese shopping centre marketers will gladly tell you that their industry is still young and growing when compared to other markets like the USA, a close look at the country’s schemes shows that the industry is, at the very least, a quick study.
This year, Portugal is proving to be a real force in shopping centre marketing, with five programmes named among the finalists of the ICSC Maxi Awards programme—the performance comes on the heels of the ICSC Solal Marketing Awards in which Portuguese companies took home five Merits.
Backed up by visionary developers such as Sonae Imobiliária, AM Management Portugal and NorteShopping, these shopping centres have as good a chance as any to walk away from San Diego’s Spreckels Theatre with a MAXI this coming October. Here’s a look at what they’re presenting.

Norte Shopping: Fashion Catalogue

The goal:
To communicate NorteShopping’s distinctive characteristics using media that would appeal to an upscale clientele. The initiative would also have to involve tenants and enable the centre to create a captive customer database, thereby stimulating shopper visits and increasing sales.

The strategy:
Playing up its commercial offer in fashion and decoration, NorteShopping developed a full-fledge fashion catalogue to unveil the latest style collection. The publication’s layout and imagery were designed to be distinctive and sophisticated, while the content was broad enough to cover all of the centre’s retail brand categories, including classic, fashion, sportswear, undergarments, kids, beauty, party and decoration. Marketers felt this approach would not only make it easier for readers to scan the publication, but also allow for a more natural integration of tenants.
NorteShopping printed 7,500 copies of its catalogue and thee were enclosed in the Visão weekly magazine, which was delivered via direct-mail to subscribers in the Greater Oporto and Northern Coast region. Another 29,000 catalogues were enclosed in the Público daily newspaper, while other copies were direct mailed to the centre’s database and to opinion makers, handed out at the NorteShopping information desk and in shops, as well as placed prominently in sitting areas. NorteShopping even made its catalogue available online at norteshopping.pt, its own Website.
Besides the exclusive catalogue, which took three months to develop, NorteShopping explored a more promotional angle by releasing a discount booklet insert. It contained vouchers for discounts of five to 40 percent, and details of limited-time gift-with-purchase offers.

The Results:
With 95 percent of fashion and decoration tenants participating in the catalogue project, NorteShopping was able to register 1,000 new records in its database, while 253 new people registered on its Website. The centre also reversed negative sales and footfall trends.

Centro Colombo: Hollywood Dream Cars

The goal:
To reinforce Centro Colombo’s position as a promoter of prestige and mediatic events.

The strategy:
Centro Colombo selected the Hollywood Dream Cars event, which presented an opportunity to host what was once a private collection of cars that were “Hollywood stars” in blockbusters movies.
Six famous cars were displayed: the Ford Anglia from Harry Potter, the Lincoln Continental from Batman, Herbie’s Volkswagen Carocha, Mr. Bean’s Morris Mini, The Flinstones’ Golf Cart and the Ford Taunus from Robocop.
Centro Colombo says each car was situated in scenery that related to the picture that made it famous, and set up against a backdrop that explained its history and role in the film.
Hollywood Dream Cars was unveiled in grand style during a “premiere” which VIPs (e.g. actors, models and telecasters) attended. National media was also present, including print titles such as Caras, Nova Gente, VIP, Auto Focus, 24 Horas, Público and Jornal da Regiáo. Portugal's three national TV stations—RTP, SIC and TVI—answered the call as well, while Antena 3 represented radio media.
Once up and running, the exhibition drew car lovers who could pose with their favourite ride and take home a souvenir picture. A professional photographer belonging to one of the centre shops took the pictures and 25 percent of the income reverted back to Centro Colombo’s budget.

The Results:
Centro Colombo not only hosted another high-profile event, it also increased its footfall by eight percent. The media coverage received achieved was more than eight times the investment Centro Colombo made in Hollywood Dream Cars.

Seven Sonae Imobiliária shopping centres: The World of Chocolate

The goal:
To develop exclusive and innovative events whose subject matter and scale could capture the attention of the media and visitors, while operating modestly enough to accommodate medium-sized shopping centres with limited budgets.

The strategy:
Sonae Imobiliária produced The World of Chocolate, a standard travelling event that could be customised to the specific needs of seven participating shopping centres. Working from the original Chocolate theme, each shopping centre made the event its own by approaching it from a unique angle. Using these sub-themes, such as The Sea,Trains and Stork, allowed the individual properties to show off their personality, underline their brand positioning and create fresh news for the media. The World of Chocolate invited shoppers to participate in various activities, including:
• Hands in Chocolate, a workshop space for children supervised by a promoter dressed up as a cake maker.
• Chocolate in Sculpture comprised of display cases revealing works  created for each centre.
• The Art of Chocolate featured a suitably-equipped kitchen where a cake maker and helpers could build, day by day, a mega-composition and explain to visitors how to work with the ingredient.
Closing the tour, MaiaShopping centre present a team of Portuguese cake makers who showed off the creations they planned to use later at the World Cake Making Championships.

The Results:
Public Relations campaigns and an online campaign delivered via the participating centres’ Websites (this involved a competition to win travel for four people to Switzerland), as well as internal and external communication helped Sonae reach its goal of media coverage and high footfall. A total of nearly 17,959 children attended the chocolate workshops, while the advertising value of the news coverage the centres received represented 156 percent of the cost of the event. Each shopping centre received coverage online, in the press and on TV, with four of them also getting valuable publicity on the radio.

Forum Algarve: Ice Skating for a Green Forest

The goal:
To find a new way for Forum Algarve to fulfill its mission of being a promoter of social, cultural, sports and solidarity activities that have a straight connection to the local community. The programme would be implemented for the 2004 Christmas trade period. 

The strategy:
Forum Algarve decided to support the reforestation of the Algarve mountains of Serra do Caldeirão, 40 percent of whose trees were wiped away by fires during the previous two summers. In addition to replacing what were once lush acres with a black mantle of smoke and charcoal, the century fires devastated houses and goods.
Forum Algarve partnered with the local municipalities of Loulé and S. Braéas (the closest to the centre), as well as with the Forest Producers Association of Serra do Caldeirão to develop the Environmental Solidarity Campaign—Recovery of Burned Areas in Serra do Caldeirão. The campaign would aim to raise funds to support the plantation of cork-trees in an area covering an estimated 500,000 square metres.
The partners came up with a novel idea for a region internationally associated with sun and the sea: a 250-square-metre ice-skating rink.
Visitors could enjoy 20 minutes of skating for a nominal charge—the equivalent necessary to buy and plant one cork tree, with all funds going directly to the reforestation cause.
To encourage participation, Forum Algarve created point-of-sale incentives. It recreated a miniature version of the Serra do Caldeirão to show visitors how the area was before the blazes destroyed it. Next to the model, the centre placed a photograph, statistics and maps exhibition focusing on the burned areas, not to mention images of the fires and personal/environmental damages.
Forum Algarve set up a highly visual ticket counter for the ice-rink, placing a large wall panel with 20,000 cork tree spaces. Whenever customers bought a ticket to the ice-rink, they received a little cork tree stamp to stick on the panel, as a symbolic act of planting a tree in the Serra do Caldeirão.
The solidarity campaign ran from 6th November 2004 to 17th January 2005.

The results:
• Forum Algarve’s campaign garnered much media attention, with prime-time segments being broadcast on all national TV channels.
• The centre and its partnered exceeded their goal, raising enough money to plant 638,207 square metres of cork trees in an enhanced green area of the Serra do Caldeirão.

Arrábida Shopping, ViaCatarina Shopping, CoimbraShopping and MadeiraShopping: Dress a Social Cause

The goal:
To promote the shopping centres’ social responsibility policy, involve the local community in primary catchment areas, strengthen tenant involvement and create a fashion-focused, flexible event that could be adapted to different spaces, target publics and areas of influence. By producing a common event, the centres would also generate budget synergies. 

The strategy:
The shopping centres opted to embrace breast cancer as their social solidarity cause, creating Dress a Social Cause. The campaign exhorted the public, particularly women, to put on, adopt and wear a social cause that affects women around the world.
With the support of several sponsors, each centre held a Dress A Social Cause event twice during the year: first in spring and then again in autumn (ArrábidaShopping only held the event once in spring), hosting a programme stand and a display.
The multi-faceted stand attempted to include themes, issues and organisations that women were likely to find interesting, including:
1. Food and Well-Being with nutritional advice by professionals;
2. Portuguese Anti-Cancer League Space, where representatives spoke about their personal experiences with breast cancer and provided information regarding prevention, treatment and psychological advice;
3. Know your Hair, which focused on aesthetics and dermatology;
4. Make-up and Manicure with professional advice and preparation services;
5. Model for a Day, offering space and photographic sessions with the objective of making a composite. Participants also had a chance to register with a modelling agency;
6. Let your Children Have Fun while you Dress a Social Cause, a space just for little ones; and
7. Merchandise space to sell T-shirts and pins. All proceeds went to the Northern, Central and Funchal regional branches of the Portuguese Anti-Cancer League.
The Dress A Social Cause display comprised of cases where the centres could promote its fashion offering. This was the space to highlight participating shops, with the shopping centres displaying 2,100 articles of clothing and accessories.
The partnering centres used PR, indoor/outdoor advertising and online marketing to promote Dress a Social Cause.

The Results:
Nearly all of the shopping centre’s tenants participated in the programme’s promotion, with donations to the Portuguese Anti-Cancer League totalling 18,172 euros. Media coverage was valued at 80 percent of the shopping centres’ 263,300-euro investment in the Dress a Social Cause programme (costs net of sponsorship support and donations amounted to just over 200,000 euros). n

A Marketer’sView
Tactics UK & EU asked Tiago Vidal of Sonae Sierra to offer his take on the current state of shopping centre marketing in Portugal. Here’s what he had to say:

Tactics UK & EU: If you had to give Portuguese shopping centre marketing a state of maturity, what would it be? In other words, in which stage of development is the marketing function?

Tiago Vidal: The marketing of the Portuguese shopping centres is one of the most developed function and this is a fact recognised internationally, mainly by the several awards and distinctions won in the ICSC Jean Louis Solal Awards and the Maxi Awards. This is a result of the high quality and competitive shopping centre market that exists in Portugal, mainly in Lisbon and Porto, that obliges each shopping centre to be very close to is clients and to be pro-active in [satisfying their needs].

Tactics UK & EU: In which area is shopping centre marketing most concentrated (e.g. advertising, special events, sales promotions, entertainment, community outreach)?

Tiago Vidal: I would say that in recent years the shopping centres have evolved from the traditional advertising and sales promotions to a one-to-one interaction with clients through special events, community involvement and creation of more and better services.

Tactics UK & EU: How marketing savvy are Portuguese consumers?

Tiago Vidal: Portuguese consumers have a strong loyalty to the brands they identify with and, at the same time, they like to be surprised and involved by the product providers and shopping centres.

Tactics UK & EU: What, if anything, makes Portuguese shopping centre marketing different from the same function in other countries?

Tiago Vidal: I believe that creativity is a strong point, as well as the quality of the tenant-mix.

Tactics UK & EU: How is the marketing function viewed in the Portuguese shopping centre industry?

Tiago Vidal: Marketing is well understood and respected when it is not seen only as [generating] publicity, but as having a bigger role within the organisation, mainly when the competition starts to be tougher.

New on the Scene

These shopping centres and other retail properties are among those introduced in the Portuguese market this year:

Name            Promoter            Location          GLA (in M2)

Centro Tejo (Phase 2)            Sonae Imobiliária            Seixal            39,200

CovilhãShopping            Sonae            Covilhã            16,859

Forum Viseu    AM Development            Viseu            18,500

Loures Shopping            Sonae Imobiliária            Loures            38,000

Setúbal Retail park          Sonae Imobiliária/            Setúbal            20,000
                                     Miller Developments

Source: APCC.

Market Links

Founded in 1984 as a not-for-profit organisation, the Portuguese Council of Shopping Centres (APCC) counts 58 members who represent 74 shopping centres comprising of a total GLA of nearly 1.7 million square metres (including some centres under construction) and housing a mix of small and large-scale retailers. These shopping centres are a vital part of the Portuguese economy, providing more than 65,000 direct jobs.
Under the direction of chair António Sampaio de Mattos of IN.Mont - Plano Imobiliário Lda., the council’s mission is to protect the legitimate interests and rights of owners, promoters and managers of commercial developments designated as shopping centres, enhance their standing and mediate with public administration entities in the preparation of legislation.
The APCC’s main activities focus on information dissemination (via a bi-monthly newsletter, the Shopping-Centros Comerciales em Revistra magazine, a directory and the council Website), training (conferences, seminars, technical tours of shopping centres), institutional relations, investigation (specific studies of the sector through technical committees operating in marketing and management, urbanism and legal areas) and public relations.
Council members are also affiliate members of the ICSC, while the APCC itself is part of the European Property Federation, a pan-European organisation based in Brussels.
For more information, visit www.apcc.pt.

DID YOU KNOW?
The city of Coimbra is the oldest seat of learning in Portugal. Founded in 1290, its namesake university is one of the oldest in Europe.