Friday, March 11, 2016

Leveraging the Ayala Land Advantage in the LRT Extension Project



Ayala Corporation should work out an agreeable arrangement with its partners in the LRT Extension project to leverage its core competence in real estate development and retail management.  

The undertaking is rich in prospects to strengthen Ayala Land's brand equity and expand its market reach further down the value pyramid through high quality mass market retail concepts.

It also has the potential to fuel progress in the architectural community by soliciting designs that reflect Filipino moderne, the Philippines' here and now as shaped by its rich historical and cultural heritage.

Because the project will span a diverse geography, Ayala could engage the communities that it expects to serve in different ways. Among others, it could identify financially healthy, viable and unique local business concepts that could be given fiscal and management assistance to take up retail space in the LRT stations. Of particular interest should be food concessionaires because most commuters have little time to spare going to and from their destinations that a quick bite could be welcome to them.

Further along the development timeline, these terminals could eventually be developed into retail and dining havens themselves, which reflect the Ayala brand of high quality and well-designed establishments, but with a lower spending market in mind. This should serve as a challenge to the company: to edify but at the same time engage markets it has not traditionally served with offerings that reflect local flavour, but at the same time adopt world class standards.

The purpose for such should be two pronged: one is to fill the gaps in the services and goods that cater to the markets in the locales of the train terminals; and two, to elevate and inform tastes as it does the former.
As with any new venture, it is always prudent to undertake market research to get at least basic information about the markets it aims to serve. The take-off point for development should be a compromise among what already exists, the gaps in the market, and where the company wants to take this market in the mid-term and long term future.

What excites me the most about this project is the prospect of promoting all things Filipino to Filipinos themselves to inculcate in patrons a sense of national identity, and pride in their patriotism. Architecture and interior design  are wonderful tools for achieving such. Always build with the end in mind, that you want your terminals and developments to be future heritage sites, a place where current and future generations can come back to ten, twenty years from now, to catch a glimpse of the social sentiments of the current times. 

Retail concepts could reinforce such, these terminals could even serve as tourist destinations themselves. The efficiency of travel in a train, married with the rich cultural and historical heritage as reflected in architecture, design, and retail and dining concepts are as good a way as any to see this country.

As traffic grows and the company realises ROI, it could give back by staging mini shows and roving "Philippine Patrol" in the stations, who promote Filipino consciousness among domestic and international visitors alike.

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