Karl Kalcher, CEO, MindFolio

Straight Talk

MindFolio CEO Karl Kalcher imparts his marketing gospel

By Michelle Daniels

Karl Kalcher didn’t mince his words when he sat down with Tactics UK to discuss the art and science of creating a great guest experience in the shopping environment. Leaving generic slogans aside, Kalcher offered insight into the principles that drive him in his role as founding CEO of MindFolio Ltd., a marketing practice specialising in guest and brand experiences for retail and shopping spaces, attractions, casinos, and hospitality and leisure destinations.
“Any shopping centre faces the same problems as, say, a theme park,” says Kalcher. “You start off with something pristine, really well thought through and orchestrated, but then the original team, the original owners of the identity, drift away one by one and operational realities take over. [It] obviously has to happen, but this also means operational compromises, operational acquiescence, and if there is nobody to push back, it carries on.” 
Kalcher has had plenty of opportunities to push back.
Born and educated in Austria, he won scholarships to study in the UK and then the USA, where he studied marketing and operational behaviour before returning to the UK to join international footwear brand Clarks Shoes, responsible for a $200 million turnover of Clarks children’s division. Kalcher then joined the LEGO group, and was senior vice president at LEGO prior to establishing MindFolio Ltd. 
Responsible for new business development and global licensing, in addition to managing a variety of businesses, alliances and innovation projects, Kalcher has worked across Scandinavia, Germany, the UK, Korea and the USA.  His leadership served such initiatives as two $170 million projects to build LEGOLAND branded family parks in Windsor and California.
These projects taught Kalcher the meaning and value of a brand, which is something he feels some marketers still lack.
He says a major issue currently facing the shopping centre industry is the confusion between a logo and a brand. 
“A logo you can purchase, but a brand has to be earned,” says Kalcher.
“What I have learned over the years is something very simple, [at least] as a starting point.  Everybody says, ‘we have to stand for something,’ but if you accept that you have to stand for something, by definition, you also have to not stand for something [else].  Start with what you do not stand for; it makes the job much easier.  What does your brand not stand for? When you know the answer to that question, you have a base plate to build your brand on.”
The ‘know your brand’ principle is one that has been crucial in the US, where a frenetic building pace has intensified competition between malls in certain several key markets. Just as important has been the need to pay attention to merchants, as Kalcher explains.
“In my opinion, some of the newer centres in Europe are now comparable with shopping centres in America. There are still things that the Americans do particularly well, but it’s a very different market.  I think in their interaction with retailers, they are much more proactive.  In the States, there might be four or five shopping centres in the same area, so they have to create a point of difference. In Europe, the catchment areas are much more defined. Meadowhall is a good example, it has the monopoly on Sheffield.  I think that’s why European shopping centres find it easier to develop themselves and flourish.”
He went on to say that his firm has spent a lot of time in the US working with ‘sick’ malls. 
“How do we turn a ‘sick’ mall into a ‘healthy’ mall?  That’s where the fun begins, because with choice modelling, we simulate malls on screen and it’s very exciting,” Kalcher notes.
“I think our centres, and the rest of Europe to an extent, have not even begun to think about convenience.  I can’t believe how little effort is being made when it comes to convenience.  There is still a belief that if you just put some great retailers into a shopping centre, it will fly. Not true. Equally, if you think all you need to do is make a nice place, a comfortable environment, that doesn’t work either.  There is a magic relationship that needs to be observed.”
Kalcher says people talk about concepts and guest experiences, and they are a little dazed if they think that it’s all about serenity and a relaxing atmosphere. 
“You need to get the basics right. There is no point having lavish floral displays if the toilets are in dire need of refurbishment and the car park is badly lit.”
Ultimately, every shopping centre in the world wants to captivate its guests, making them stay longer, spend more, come back more often and tell others about it.  Is there a magic formula?  Not really, though a touch of magic will always help!