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UTM CRES/@mart market study

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Prepared by:

Centre for Real Estate Studies Faculty of Geoinformation & Real Estate

Universiti Teknologi Malaysia

Prepared For

Johor Land Berhad Kompleks Mutiara Johor Land, Jalan Bukit Mutiara,

Bandar Dato’ Onn, 81100 Johor Bahru

JOHOR MALAYSIA

Centre For Real Estate Studies (UTM CRES)

CRES/PDN/1/2016

15 MARCH 2016

MARKET STUDY & CUSTOMER

BEHAVIOUR ANALYSIS FOR PROPOSED

@MART KOTA TINGGI JOHOR


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TABLE OF CONTENT

No Content Page 1.0 Statement Of Purpose

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2.0 Term Of Reference

4

3.0 Background Of Study Area

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4.0 Project Background

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5.0 Site And Location Suitability Analysis 5.1 Traffic Flow Analysis 5.2 Accessibility Analysis 5.3 Competitors 5.4 Topography Analysis 5.5 Recommendation

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6.0 Demography Profile And Pattern 6.1 Demography Profile 6.2 Demography Behaviour Pattern

17 17 23

7.0 Trade Area Catchment Analysis 7.1 Gravity Model and Market share Catchment

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8.0 Existing Stock And Supply Of Commercial Property In Kota Tinggi Area. 8.1 Supply Of Shopping Complex In Kota Tinggi Area 8.2 Supply Of Existing Shopping Complex By Type In Kota Tinggi 8.3 The Competitors Of The Commercial Mart In Kota Tinggi 8.4 Comparative Analysis

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9.0 Pull And Push Factors/ Positive And Negative Impact

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10.0 Consumer Behaviour

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11.0 Proposed Rental Value And Suitable Development Size

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12.0 Summary And Recommendation

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1.0 STATEMENT OF PURPOSE

Centre for Real Estate Studies, has been appointed by Messrs Johor Land Sdn Bhd via a letter

referenced (03) DASB/JPH/CORR-JLB/2015 dated 04 November 2015 September, 2015 to undertake

this market study for the proposed commercial development of retail mart known as @mart, Kota

Tinggi, Johor Darul Takzim.

This document has been prepared to provide an outline of the study design and instrument for

the above said study. The study investigates a broad range of possible options and recommendations

for proposed project.

This report provides a market study analysis that required in the development of commercial

property within Kota Tinggi, Johor. The findings stated the estimation of market rental, competitor

analysis, proposed land area, built-up area and occupancy rate, general recommendation for product

mix and quality, and facilities and services to be included. It may help in the decision of the said

proposed development.


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2.0 TERM OF REFERENCE

The primary aim of this study is to provide assistance in the decision-making process in relation to the

proposed commercial development of retail mart known as @mart, Kota Tinggi, Johor. The scope of

works agreed by both parties as stipulated in the Agreement is set out as below:

TO IDENTIFY AND DETERMINE SITE AND LOCATION SUITABILITY

TO IDENTIFY DEMOGRAPHY PATTERNS

TO DETERMINE TRADE AREA CATCHMENT

TO REVIEW EXISTING STOCK AND SUPPLY OF COMMERCIAL PROPERTY

TO EVALUATE PULL AND PUSH FACTORS/ POSITIVE AND NEGATIVE IMPACT

TO PROPOSE RENTAL VALUE AND DEVELOPMENT SIZE


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3.0 BACKGROUND OF STUDY AREA

Johor is located in the southern region of Peninsular Malaysia and administratively divided into

eight districts with Johor Bahru serving as its state capital. Johor Bahru highly urbanized setting that

connects Malaysia to Singapore whilst acting as an international business hub and port of entry. The

close proximity of Kota Tinggi to Johor Bahru which is approximately 42-km north-east of Johor Bahru

had been the main factor contributing to its rapid development as part of the Johor Bahru growth

corridor.

Figure 3.1: Map showing the districts under state of Johor, Malaysia

The district of Kota Tinggi is located at the east of Johor state with 65% of its border is

surrounded by the sea. Kota Tinggi district have an area of 3,500 km2 (364,399 hectares) and consists

of 10 sub-districts. Figure 3.2 presented the sub-district of Kota Tinggi.

Altogether Kota Tinggi has a population of more than 200,000 and is experiencing moderate

urbanization. The administrative town of this district is also named Kota Tinggi. This study will focus on

the town of Kota Tinggi where most of the commercial buildings are located.


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Figure 3.2: Map of Kota Tinggi districts with 10 sub-districts (Majlis Daerah Kota Tinggi)

The proposed @mart site is located within 5 km from Kota Tinggi town, near to Taman Daiman

Jaya. Basically, the proposed site is cultivated with oil palm. The terrain of the site is quit undulating

especially the portion nearest to the Kota Tinggi and Mersing bypass. The client had identified four

adjacent sites for the proposed @mart. The sites have been identified as Site A, Site B, Site C and Site

D.

In an effort to identify the demographic pattern of the respondents for catchment analysis

purpose, this study segmented the respondents shopping preference according to distance from

proposed site. The radius distance was accordingly segmented from 0-5km, 5 km-10km, 10km-15km,

and lastly 15km-20km from proposed site.


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Figure 3.3: Radius portion for catchment analysis


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4.0 PROJECT BACKGROUND

The purpose of this study seeks to gain an understanding on the market behaviour of

commercial/retail investment within Kota Tinggi Johor. The study seek to evaluate significant impact

of proposed @mart development with the demand and supply of commercial property in Kota Tinggi

Johor. In return, the findings will be useful in decision making of proposed development.

Therefore, a comprehensive and relevant analysis is applied in order to achieve study objectives. This

section present the project background and the methodological approach adopted in assessing the

market behaviour of commercial property in Kota Tinggi Johor.

4.1 CONCEPT OF MARKET STUDY

Shopping centers in cities or towns are usually major building projects and are often the result

of major planning decisions to improve the vibrancy of the area and to bring shoppers into city centers.

These projects are complex because of the need to maintain the successful operation of existing roads,

pedestrian access and local premises during construction and often require demolition of existing poor

quality retail units.

In 2015, Malaysia's retail market suffered from the rapid depreciation of ringgit as well as the

introduction of the Goods and Services Tax, which significantly dented sales, particularly in the second

half of the year. While these factors will remain in play during the first quarters of 2016, we believe the

country's retail sales will recover in 2016 on account of sustained Malaysia's economic growth, rising

household incomes and accommodative monetary policy. That said, we note that precipitous

household debt levels pose a downside risk to our forecasts, especially over the medium term. With

reference to the project brief, we conducted a market survey for the proposed @Mart Kota Tinggi,

Johor. The market study dwells on several aspects, including suitability of site location, demographic

pattern, trade area catchment, market supply/stock/existing stock and pipe line, push and pull factors

and also rental value and business size (capacity).


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4.2 RESEARCH APPROACH

Figure 4.1 below presented the summary of research activities and the flow chart.

Figure 4.2: Study Flowchart and activities

Initial Phase

•Identification of market catchment

•Site evaluation

Study Methods & Data Collection

•Survey - Questionnaire

•Retail market and demographic data

•Observation

Data Analysis and Results

•Documentation of demographic profiles

•Statistical and content analysis

•Customer preferences product analysis

Recommendation

•Suitability of site location

•Demographic pattern

•Trade area catchment

•Market supply/stock/existing stock and pipe line

•Push and pull factors.

•Considerable rental value and business size (capacity).

Reporting the Findings

•The completion of Market Survey for the proposed @Mart Kota Tinggi

•Reporting and dissemination


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4.3 DATA COLLECTION AND ANALYSIS OF QUESTIONNAIRE SURVEY

Altogether 807 questionnaires were distributed within a 5 - 20 km radius of @mart purposed

project site. The distribution area included Kota Tinggi Town and Felda Tenggara. The questionnaires

were randomly distributed on the 26th and 27th of December 2015 and also 9th to 10th of January

2016.

Data analysis for the project was divided into 2 phases. Phase 1 involved analysis of

demographic profile using frequency, crosstab and chi-square analysis. The frequency analysis covered

attribute such as living quarters of respondent, gender, race, religion, ages, marital status, education

level, employment status the household head, number of household members, total monthly income

of household and monthly expenditure for groceries and foods.

Meanwhile phase 2, involved analysis of profile patterns, which delved into consumers’

behaviour and preferences for the proposed @mart. The analysis established choice tenant mix,

facilities preference, services and operations and also management initiatives attributes.


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5.0 SITE AND LOCATION SUITABILITY ANALYSIS

This section discusses the site suitability analysis of the proposed @mart. The Criteria

Weightage approach is adopted to derive the outcomes. Five criteria were selected which comprised

traffic flow, accessibility, competitors, market catchment and topography.


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5.1 TRAFFIC FLOW ANALYSIS

This analysis observes the total number of vehicles passing a given point in a given time. For

this analysis T-junction of Jalan Johor and Jalan Kota Tinggi was considered as the ‘given point’ which

would most impact due to its proximity to the development site.

The observation was carried out over a period of 2 weeks from 8am to 8 pm. The analysis

revealed wednesday night (~8.00pm) to be most congested.Figure 5.1 below presented the traffic flow

for two conditions of time which are are during the weekends and weekdeays.

Figure 5.1: Traffic flow for the study area.


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5.2 ACCESSIBILITY ANALYSIS

The proposed development site can be accessed via Jalan Johor, Jalan Senai-Jalan Kota Tinggi

and Jalan Kota Tinggi - Bypass. However from Jalan Kota Tinggi – Bypass, motorists will need to make

a U-turn to access the site. There is some concern that the U-turn is quite tight with insufficient room

for ingress. However there are plans to expand the said road and a road reserve has been established.

Please Refer Figure 5.2 for details illustration.

Figure 5.2: Accessibility analysis for the propose site.


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5.3 COMPETITORS ANALYSIS

Altogether there six shopping malls in Kota Tinggi Town. After much deliberation, 2 were

identified to be direct competitors to the proposed @mart namely KIP Mart and Econsave. Kip Mart

has a land area of 3.86 Acre with a built-up area of 115,999 sf and Building/ Land Ratio of 69%, while

Econsave has a land area of 5.06 Acre with a built-up area of 78,818 sf and Building/ Land Ratio of 35%.

Figure 5.3 illustrate the location and general view of the said competitors.

Figure 5.3: The competitors for @mart


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5.4 TOPOGRAPHY ANALYSIS

The proposed development area is flat in terrain and level to the road and is mostly cultivated

with oil palm with some paperback tress at the border fronting Jalan Kota Tinggi-Bypass.

Figure 5.4: Topography illustration

5.5 RECOMMENDATION

Based on the analysis from site investigation, observations and market survey carried out we

were able to recognise certain criteria which form the basis to establish the following

recommendations:

i. Based on the Traffic Flow criteria, all proposed development sites have the same range of the

traffic flow movements.

ii. Based on the Accessibility criteria, Site D has sufficient ingress after the U-turn at Jalan Kota

Tinggi-Bypass.

iii. Based on the Residential Area criteria, Site D is the closest to the future development

residential area to the north and east of the subject proposed.

iv. Based on the Competitors criteria, Site D also is the best area for development.

v. Based on the Topography criteria, Site D is flat in terrain and level to the road.


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As a result, this report recommends that Site D is the most suitable site for the development of @mart

Kota Tinggi. Figure 5.5 below summarised the criteria.

Figure 5.5: Recommendations on the site suitability


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6.0 DEMOGRAPHY PROFILE AND PATTERN

This section explains the findings and analysis from the survey conducted within the study area.

This section is divides into 2 parts. Part A explains the demography profile of the respondent and Part

B explores the demography behaviour pattern.

6.1 DEMOGRAPHY PROFILE

Figure 6.1 defines that the demographic profile of 807 respondents. There are 4 major

constructs namely gender, race, religion and age which formed the basis to ascertain the trade

catchment area.

Respondent Profile

Table 6.1 provide an overview of respondent profile in terms of gender, race, religion, and

age.

Profile Frequency Percentage (%)

Gender Male 387 48.0

Female 420 52.0

Race

Malay 766 94.9

Indian 16 2.0

Chinese 17 2.1

Others 8 1.0

Religion

Islam 766 94.9

Hinduism 19 2.4

Buddhism 14 1.7

Christian 4 0.5

Others 4 0.5

Age Below than 20 Years Old 120 14.9

Between 20-39 Years Old 450 55.8

Between 40-59 Years Old 215 26.6

60 Years Old and Above 22 2.7

Table 6.1: Respondents Profile


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Household Profile

Table 6.2 below defines that the household profile of 807 respondents. There are 4 major

constructs namely house leader employment status, capacity of household, monthly income and

monthly expenses.

Table 6.2: Household Profile

Profile Frequency Percentage (%)

House Leader Employment Status

Government 272 33.7

Private 279 34.6

Own Business 256 31.7

Household Capacity

Below than 3 Persons 139 17.2

Between 3-5 Persons 430 53.3

5-10 Persons 226 28.0

10 Persons and Above 12 1.5

Household Monthly Income

Below than RM 3000.00 456 56.5

Between RM 3,000.00-RM 5,000.00

235 29.1

Between RM 5,000.00-RM 10,000.00

101 12.5

RM 10,000.00 and Above

15 1.9

Household Monthly Expenses

Below than RM 300.00 91 11.3

Between RM 300.00-RM 500.00

263 32.6

Between RM 500.00-RM 1,000.00

275 34.1

RM 1,000.00 and Above 178 22.1


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Respondents Distribution

Figure 6.1: Respondents

Figure 6.1 reflects the distribution of respondents based on the random sampling approach.

The breakdown of the sampling recorded that Bandar Kota Tinggi had the highest at 63.7% followed by

Tenggaruh 5.1%, Bandar Ulu Tiram 4.1%. It then followed by Sedeli/Mawai, Tamana Saujana/PULADA,

Bandar Penawar and Bandar Tenggara both from 2.5% to 3.2% and finally 0.5 % of respondents were

from Penggerang.

Education Qualification

Figure 6.2: Respondents Education Qualification Background


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Figure 6.2 shows the respondents education level. 52% of the respondents had an education

level of up to the “form3-form5” range. This can be rationalized as a number of the respondents were

teenagers. 36% of the respondents had certificate to diploma education level while 10% had degrees.

Finally about 2% had uncertain level of education.

Household Income

Figure 6.3: Household Income

Based on Figure 6.3, 56% of the respondents had a monthly household income from

RM3,000.00 to RM5,000.00, while 29% had a monthly income of between RM5000-00 to RM10,000.00.

Only 2% had a monthly household income of RM10,000.00 and more.


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Household Expenditure

Figure 6.4: Household Monthly Expenditure

Figure 6.4 above, shows the sprinkling of respondents based on Household Expenditure.

Following this figure, most of the household expenditure is around RM 500.00-RM 1,000.00 monthly

which it cover around 34% of the respondents. While only 11% of respondents expend about RM 300.00

monthly.


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Marital Status

Figure 6.5: Marital Status

At 62% a majority of the respondents were married while the balanced 38% were single.


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6.1 DEMOGRAPHY BEHAVIOUR PATTERN

Figure 6.6: Demography Behaviour Pattern

Figure 6.6 above shows few of demographic patterns such vehicle mode, house distance,

visiting frequency and visiting factors. Vehicle mode is vehicle preferences that using by respondents

to mall. Driving own vehicle was the preferred mode for going to a mall.

There was no distinctive preference for favourable distance to a mall. Generally the

respondents would travel up to 8 km to go to a mall. In terms of visiting a mall, 64% of the respondents

visited the mall only up to 3 times a month with highest visiting factor which is multipurpose market.

Following Figure 6.6 above, most of the respondents (82% are using their own car). While,

about 18% used either motorcycle or public transport.


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7.0 TRADE AREA CATCHMENT ANALYSIS

The success of retail business is depending much on trade area catchment. This Section

determines the market catchment of proposed @mart. The gravity model is used to evaluate the

outcome.

7.1 GRAVITY MODEL AND MARKET SHARE CATCHMENT

The total number of population (250,000) for the year 2015 is based on the Growth Rate (per annum)

of 1.5. Meanwhile, 60,000 household population is calculated from the number of population divided

by Household Rate (per annum) of 4.2. As that, the number of potential household that reliable for the

proposed development is approximately 4,845 household population.

Figure 7.1: Gravity model


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Figure 7.2: Trade Area

Market catchment analysis is based on two key elements. The first element is shopper

household segmentation. The market segmentation was determined from the market survey

conducted. Figure 7.2 presented that market share for Heritage Mall is 8%, Plaza Kota Tinggi

16%, Econsave 19%, Kip Mart 48% and others 9% (marked in red). The survey revealed that,

most of retail market is grasp by Kip Mart due to some reason as explained in Section 8.0

Competitive analysis.

The second element is potential shopper which derive from an assumption that the

proposed @mart will tap the market segmentation from existing competitors. Figure 7.2

presented the percentage (marked in orange) and the volume of household (marked in yellow).


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8.0 EXISTING STOCK AND SUPPLY OF COMMERCIAL PROPERTY IN KOTA TINGGI

AREA.

This section discusses the existing of commercial property (mall) in Kota Tinggi. As it stands, mall

type of development is solely concentrated in the town of Kota Tinggi.

8.1 SUPPLY OF SHOPPING COMPLEX IN KOTA TINGGI AREA

Figure 8.1: Supply of Shopping Complex in Kota Tinggi Area.

In year 2015, the total area for existing stock is 36,731 sm with an incoming supply 13,006 sm.

there was no completed stock in 2015.

36731 36731

13006 13006

Q2 Q3

Supply of Shopping Complex in Kota Tinggi Area(s.m) for year 2015

Existing Stock Completion Incoming Supply


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8.2 SUPPLY OF EXISTING SHOPPING COMPLEX BY TYPE IN KOTA TINGGI

This section compare the details market outlook of the competitors. In particular this section

delves into the competitor land area, built-up area and ancillary area and resolves the relationship

between land area, built up area and rental derived.

Figure 8.2: Supply of Existing Shopping Complex by Type in Kota Tinggi

Figure 8.2 above indicates that the mall type of development is dominated by shopping center,

hypermarket and arcade. The data reveals that shopping center has a supply of 23,859 sm, followed

by hypermarket at 11,095 sm and finally arcade at 1,777 sm.

23859 23859

1777 1777

11095 11095

Q2 2015 Q3 2015

Supply of Existing Shopping Complex by Type in Kota Tinggi

Shopping Centre Arcade Hypermarket


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8.3 THE COMPETITORS OF THE COMMERCIAL MART IN KOTA TINGGI

This analysis looks into the standings of the competitor malls in Kota Tinggi. As of 2015 there

were 6 malls operating albeit with different types of retail concept from stand-alone commercial

buildings and to adjoining shop houses. A survey of all the malls were carried and the findings revealed

that Plaza Arison closed.

Figure 8.3: The competitor

Figure 8.3 presented the size of land area, built-up area and ancillary area for each of the

commercial mart in Kota Tinggi.

Land Area Built up Area Ancillary Area

Heritage Mall 52272 51401 0

Plaza Kota Tinggi 67759 199497 40222

Econsave Taman Daiman jaya 220534 78818 4140

Kipmart Kota Tinggi 168112 115998.8 387.54

Pasaraya Kini (shop Houses) 19211 35122 1848

Plaza Arison (Closed) 22000 94874.95 0

0

50000

100000

150000

200000

250000

The Competitors


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Details comparison of the six shopping complexes in Kota Tinggi and are tabulated in Table 8.1 below.

N0 Name Products Positive issues Negative issues

1. Heritage Mall

• Karaoke • Cinema • Song Mart (dry and wet

products)

• Attached to Hotel

• Parking issues, Security issues

2. Plaza Kota Tinggi

• Mary Brown • Clothes and accessories

(standard pasar malam)

• 5 Levels • Parking issues, Building services issues (lift and escalator shut down)

3. Econsave, Taman Daiman

• Supermarket • Clothes and accessories

(standard Pasar malam) • There is a request for Islamic

products retailer

• Within Taman Daiman

• Fenced in area

• Generally good accessibility

• No issues

4. Kipmart • Song Mart (dry and wet food products)

• Mary Brown

• In Kota Tinggi town and easily accessible

• Parking issues

5. Pasaraya Kini

• Supermarket • (dry food and clothes and

accessories)

• Actually in shop houses • Parking issues

6. Plaza Arison

Closed down

Table 8.1: Analysis of the Competitors

After studying the existing shopping complexes in Kota Tinggi, we can deduce that most of the shopping

centres are selling similar products of similar standards and quality. Of note is that most products are

of lower quality and be benchmarked against products sold at the night markets especially in terms of

clothing and accessories. Interestingly, there is only 1 cinema in Kota Tinggi. Of note there are very few

fast food outlets in Kota Tinggi. The list is tabulated in Table 8.2 below. In addition it is discovered that

altogether there are four dialysis centers in Kota Tinggi.

No Name of Fast-food Outlet Number

1. KFC 1

2. McD 1

3. Mary Brown 2

4. Secret Recipe 1

Table 8.2: Fast food information


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8.4 COMPARATIVE ANALYSIS

Based on our site and locational observations, we have narrowed down the direct competitors

for the proposed @Mart Kota Tinggi to Kip Mart and Econsave. Both Kip Mart and Econsave are single

story and are based on a similar retail model to that of @Mart. A comparative analysis was carried out

in terms of location and accessibility and tabulated as Table 8.3 below.

No Name Location Accessibility

1. Kip Mart • Jalan Mawai frontage • Kota Tinggi Town • Good visual • Near Bus Station Kota Tinggi

Good accessibility

2. Econsave • Taman Daiman • Sub urban • Not main road frontage

From Kota Tinggi Town

- Reasonably good

From Kota Tinggi Bypass

- there is no direct access now - There is a need to u-turn at

the Jalan Kota Tinggi Bypass/Jalan Johor junction.

3. Subject Site • About 3 km from Econsave • Located at the junction between

Jalan Kota Tinggi Bypass/Jalan Johor.

From Kota Tinggi Town

- firther distance compared to Econsave

Kota Tinggi Bypass

- There is a need to u-turn at the Jalan Kota Tinggi Bypass/Jalan Johor junction.

Table 8.3: Comparative Analysis

Comparatively, Kip Mart is better located than Econsave and this is signified by a higher retailer

occupancy (100%) compared to Econsave (90%). Subject site, although located near to Econsave is

locationally at a disadvantage as it is located further from Kota Tinggi Town and is very near to the

junction of Jalan Kota Tinggi Bypass and Jalan Johor. As such we can surmise that the direct competitor

to the proposed @Mart Kota Tinggi is Econsave.


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9.0 PULL AND PUSH FACTORS/ POSITIVE AND NEGATIVE IMPACT

This section discusses the pull and push factors for the commercial mart within Kota Tinggi area.

We have investigated a list of push and pull factors that are likely to attract the local community to the

proposed shopping mall. Figure 9.1 shows the list of push factors that may positively drive the local

community to the proposed mall. Based on our assessment, the push factor that is most likely driving

the crowd to the proposed mall is the government economic initiative through establishment of a Duty

Free Zone in the mall.

The Characteristics such as the security and employment opportunity can be supplementing the

activities that the mall can offer. The surrounding factors also known as neighborhoods factors are

essential to ensure the mall will receive notice from the locals. A safe, green and robust mall

surrounding which can be enhanced through green building features, recreational park and iconic

design will certainly help to capture the attention among the prospective visitors.

Figure 9.1: Push factor to the proposed mall


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Meanwhile Figure 9.2 shows the list of pull factors that may likely attract the local community

to the proposed mall. The important pull factors include accessibility, public transport, traveling time,

travelling distance, traffic polar, competitive mall, mall size, mall image and reputation, and anchor

tenant image.

Greater accessibility to the proposed mall will increase the volume of shoppers who come

various distances, hence pulling crowds to the proposed mall. Public transport, traveling time and

distance are the pull factors which ranked as slightly less to accessibility.

It is suggested the mall to have multiple access points and different access gates to allow the

visitor access the mall through different directions.

Figure 9.2: Push factor to the proposed mall


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10.0 CONSUMER BEHAVIOUR

This section presents the consumer behaviour pattern and factors that can contribute to the

volume of shoppers of proposed @mart Kota Tinggi. We have investigated a list of preference factors

that are likely to boost the notice of the local community to the proposed @mart Kota Tinggi. Then the

list derived consists of 4 factors which are tanent mix, facilities, services and operations and

management initiatives.

Figure 10.1: Consumer Behaviour Pattern Factors

10.1 TENANT MIX

Figure 10.2 suggests that shoppers prefer Groceries, Fresh Market, Hypermarket, Books &

Stationaries, House Appliances, apparels & Accessories, Electrical Appliances, Food Court, House

Furniture, Rental Space/Lot, Family Entertainment Centre and lastly Fact Food to be part of the mix in

the proposed mart.

Based on our assessment, the most important shopper drivers of the proposed mall are the

groceries and fresh market

FACTORS

Tenant Mix

Management Initiatives

Services & Operations

Facilities


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Figure 10.2: Consumer Behaviour toward Tenant Mix Preferences

10.2 FACILITIES

Figure 10.3: Consumer Behaviour toward Facilities Preferences

Figure 10.3 indicates that the proposed mall need to have certain facilities to make it attractive

to shoppers. The facilities include parking lot, surau, washroom, ATM, trolley, escalator/lift, building

finishes, UTC/RTC and lastly baby nursing & changing room.


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10.3 SERVICES AND OPERATIONS

Figure 10.4: Consumer Behaviour toward Services and Operations

Figure 10.4 indicates the importance of certain services and operation of the proposed mall to

make it attractive to shoppers. Interestingly, the respondents place high importance to hygiene and

comfort, product price, product quality and safety and security. The findings suggest that while

products sold important, the respondents find that hygiene and comfort to be paramount.

10.5 MANAGEMENT INITIATIVES

Figure 10.5: Consumer Behaviour toward Management Initiatives

Figure 10.5 shows that shoppers are more attracted to not only waqf services in the proposed

mall but also the inclusion of local produce in the good available for sale. Waqf services can include

dialysis services and a waqf counter.


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11.0 PROPOSED RENTAL VALUE AND SUITABLE DEVELOPMENT SIZE

This section discusses the size of the proposed mart and also the likely rental level. Such finding

were based on investigations carried out on the competitors. As mentioned earlier, we are of the

opinion that the direct competitors to the proposed mart are Econsave Taman Daiman and Kipmart

Kota Tinggi.

11.1 RATIO OF BUILT UP AREA ON MAIN BUILDING WITH LAND AREA

Figure 11.1: Ration of Built up rea with land area


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11.2 COMPETITOR’S CURRENT RENTAL AND OCCUPANCY RATE

Enquiries made on the rental levels and occupancy for shopping complexes in Kota Tinggi is

tabulated as Table 11.1 below:

No

Name Area sf Rental Levels RM Occupancy

2013 2014 2015

1. Plaza Kota Tinggi 300 - 750 2.30 psf -8.60 psf

2.30 psf to 8.60 psf

90%

2. Econsave - - - 20 90%

3. Kip Mart 144 9.80 psf – 14.70 psf

9.80 psf – 14.70 psf

100%

Table 11.1: Market Rental Analysis

Figure 11.2: Market Rental and Occupancy Analysis of Competitors

Figure 11.2.1: Built up area and rental rates


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12.0 SUMMARY AND RECOMMENDATIONS

This study commenced with the intention of investigating market behaviour of the proposed

@mart Kota Tinggi within Kota Tinggi Johor area. The study achieved the agreed TOR as presented in

Section 2.0. Details of the findings and the deliverables of the study have been discussed in Section 5.0

to 11.0. This section summarises the main findings of the research and provides the concluding

reflection.

Based on the analysis carried out we recommend the following:

LAND AREA AND BUILT UP

As mentioned prior, the closes and direct competitor is Econsave, Taman Daiman. As such we suggest

that development of @Mart should follow the model of Econsave which is the ratio of 35%.

PROPOSED SITE

Bas on the suitability analysis, we proposed the proposed @mart site is Site D

LAND AREA

The suitable land area is 14.32 acres .We however recommends a partial site development of 5 to 6

acres only.

BUILT UP AREA

Econsave has a built up land/building ratio of 39%, whereas Kip Mart has a built up land/building ratio

of 69%. However Kip Mart has issues in parking facilities, as such we recommend a land/building ratio

of 40%.

RENTAL RATES

Based on the rental data and analysis carried out, we recommend a rental range of RM 8 psf to RM 12

psf per month for retail outlets.


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PRODUCT BENCHMARK

Based on the survey carried out and product analysis of the existing shopping complexes in Kota

Tinggi, we recommend the following:

Download - MARKET STUDY CUSTOMER BEHAVIOUR ANALYSIS FOR …mart.pdf · this analysis T-junction of Jalan Johor and Jalan Kota Tinggi was considered as the ‘given point’ which would most

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