Room 604, Block E Wang Fuk Court Tai Po N.T. 26 February 2005

Dr Lo Ka Shui Deputy Chairman and Managing Director The Great Eagle Group 33rd Floor, Great Eagle Centre 23 Harbour Road Wanchai Hong Kong Dear Dr Lo Being a patron as well as an aspirant of Langham Place (LP), I am writing to express my interest in contributing to your team for the LP. To be hands-on to tenants’ businesses Conventionally a “hands-off” approach would be adopted in the leasing of retail space for shopping malls, from as selective as Swire to as receptive as Henderson. Once the tenant is in, the lease or the shop unit would not be bothered until the lease is going to expire, and the “connection/network” with prospective tenants would be lost or vary from one leasing staff to another. It is mainly because most of the shop units are only viewed as a horizontal sub-division of the lettable area over that floor, and apart from their location difference reflected in rental and void period, they are basically treated “the same”. The Spiral deserves higher-valued trade – each shop as a profit centre But for LP, many of the shops could in fact be viewed as individual “profit centres”, unique in their location and attractiveness due to their specially designed layout/spatial condition against the circulation space. I consider many of the retail shops at the Spiral deserve higher-valued trade which could more seriously utilize the layout/spatial condition to attract more patrons to “walk into” the shops for the desire of “shopping” and not only “visiting” the shops. On the other hand, LP is certainly able to share the popularity of Mong Kok with the street shops and shopping centres at Sai Yeung Choi St South etc, but I wonder how much the existing tenants of LP could share the patronage from that location which has the gifted popularity. As the Mong Kok fans are well aware that many of the tenants at LP are clones from those Streets, would they pay for a mark-up at LP without hesitation if they could and are willing to find the competitive choices in a street’s distance ? I dare to say that if some of the tenants at the Spiral keep going in their current direction, they would soon find most of the patrons just “visiting” and not “buying” at their shops, which would then affect LP as well. That’s why introducing a “hands-on” approach is necessary for LP. The leasing team should not only be autonomous to fill in the shops with tenants and leases, but be inspired to explore the many new and exciting businesses so far with few merchandisers or unique positioning in HK like those that have been discovered by local media. If the tenancy agreement permits, the leasing staff of LP should directly involve in reviewing the tenants’ business performance e.g. turnover rate, profit margin & stock for individual type of items, average spending per patrons and timing etc, and recommend improvement and act as coordinator between the tenants and the shopping mall as to how helping hands could be offered by LP on a mutually beneficial basis. Results of increase in turnover/net profit could then be shared between the tenants and LP or reflected in next rent review. On the other hand, since Mainland travellers would continue to create physical and psychological support to the confidence of spending in HK people, Great Eagle would be in a more direct position to benefit if it could consider a sole investment or partnership in a hybrid daily living store with the concept of “PAIRS” carrying the message of “finding, giving and perfecting your life with another” targeted at lovers, peer groups and young couples/families. The products and services could be sourced from the selective merchandises of Japan’s Tokyu Hands, Loft, Beams, Hong Kong’s Ikea, Amazon, Homeless and like.

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A leasing team with pride to visualise and create To achieve the aforesaid business intelligence, it requires the development of a consistent and continuing system for the leasing team to review the tenants’ business, market information and methods to source new tenants. Continuous review of tenants’ businesses at the Spiral is particularly important because Mong Kok is forever the king of crowd for it is born to accommodate extremely high variety and mobility. Only would such a consistent, systematic and proactive way of handling tenancy matters and retail space be developed, could a commercial landlord possess a continuing success in its retail investment. Redefine teamwork between marketing, leasing and management strengths Conventionally, most developers have individual department/team for their leasing, marketing, management and repair or project staff. It is not uncommon to happen that leasing team has committed a date for handing over the shop to tenant with agreed user requirements and the management staff/contractor could not have enough time to complete the agreed utility work by that date for hand-over, resulting in delayed opening of an attraction for the shopping mall. Or, the details of marketing run-down including presence of celebrity could not be confirmed with sufficient time, thus resulting in poor manpower deployment for temporary access and crowd control, and even poor quality of works for backdrop. It is admitted that in this game interests of many parties are involved and it takes time to establish a culture of “teamwork” throughout the existing division of work by separate functional departments. However, it may be possible for LP to form many small temporary teams by floor level – while the functional staff remains in the family of their functional department, each one of them have shared responsibility with staff of other departments for the particular floor space. Each team could carry out the aforesaid continuous review of the tenants’ businesses and patrons’ shopping behaviour for that floor space which may also reveal new business opportunities for the non-retail areas/facilities of the mall. An example would be illustrated later in this paper. Unleashing the fascination of the shopping mall Now, given the over 95% tenants’ commitment to the retail space, there should be a “consistent” (what I mean is consistent in style/tone) plan on marketing the shopping experience it can bring to its patrons – belief in bringing various moments of love & happiness and preach this “Message” to the patrons through (a) visual perception – placement of lines & images, projection of lights & casting of shadows; (b) ambient sound – embracing “voices”; (c) human touch – the tenants and staff of LP; (d) physical touch – the bricks and mortar, bolts and nuts of LP; and (e) memories with LP – celebration, gathering, dating, events of various moments with LP, so that the patrons would gradually associate their various moments of love & happiness with their shopping experience at LP. Build up a unique shopping community/identity Conventionally, experience at shopping mall means mainly the tenant/trade mix, and in recent years, gimmick performing facilities, promotional decoration, architectural features, etc. Despite usually lagging behind the Japanese shopping trend, developers in HK eventually realise the importance of injecting from time to time new ideas to the shopping experience of their malls, where the competition is not only district-wide but extends to territorial-wide among large shopping malls. While this kind of competition is becoming more and more severe, regular change of typical decoration may just manage to offset the effect from competitors since HK people are easily attracted away by new things. Therefore, it would be important for LP to cultivate as soon as possible a shopping “community” with a clear and consistent identity as “Langham People” among the patrons. They would then “feel like going home” while shopping at the mall. This would be a long-term and effective counter-force against the becoming more and more severe competition from other shopping malls e.g. the coming-to-town APM, recently renovated Pioneer Centre.

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Bring the Patrons’ family member to life – “Lady Nadia" One way to have the patrons come back and feel like going home is to make them feel that they could always meet their lovely, cutie family member at LP – Nadia, the CG spokesperson created for LP. We could release regularly a few minutes’ Flash animation of Nadia’s “life & experience” e.g. from baby to kid, school girl, university student, office lady throughout her school days, office work and home life with parents, classmates, colleagues through the TV screen display at the Grand Atrium with the development story of LP (including removal of “Birds’ Street”) as background. Patrons coming back would gradually feel like growing together with her and develop a sense of familiarity with LP. Having got along with over hundreds of youngsters in 12 years, I must say that the current young generation, while always crying for respect and understanding from others, also always wishes to have a figure that they could feel comfortably to attach their emotion to. Nadia could be a healthy and positive figure who appeals to such youth groups to have LP as a trendy yet healthy activity place for them and their parents. Create a sense of superiority – “Langham Label” Landlords of shopping malls are used to launch marketing programme for the shopping mall as a whole, while tenants carry out promotion for their own shops. This works well for most shopping malls especially those with unfavourable location. But now for LP, it is not the concern. Instead, its concern should be to build up a perception that the shopping experience at LP is not the same as others. If hands could be put on the business of tenants as mentioned before, it is expected that the comparative strengths of tenants would soon be identified, and bolded as “LP recommends”. To draw a more complete picture, it would be to the co-existence of LP’s logo on the staff uniform/name tag of tenants, on the labels of tenants’ fashion/products recommended by LP, on the packaging/ handbag of tenants’ products, catalogue/packing sticker etc. To some patrons, it would be like possession of memorable collectibles which has been a trend in HK since the great response to McDonald’s first snoopy redemption campaign a few years ago. The strength of this strategy is that it could work well for the non-chain stores as well as chain stores at LP since the former would benefit from the patrons’ confidence in LP’s recommendations while the latter would benefit from making “product” differentiation for their LP store from other locations. Like an echo to the “Nadia” effect I mentioned above, the chain store at LP could then be developed into a place where the patrons could rest on for emotional attachment. The longest catwalk for fashion show – the Xpresscalators Since boutiques/fashion chain stores would be the core trade for the retail mix and the large amount of retail space of LP, seasonal preview of different shops/labels utilizing the architectural features of the mall would create a synergy effect which stimulates the sales of the tenants and becomes a regular attraction of the mall, from Generation Y to Generation X, from OL to young couples/families. I am sure it would arouse great “noises” in using the Xpresscalators at the Grand Atrium as catwalk since it was never been available in HK, and it would also only be available at LP in the foreseeable future among HK’s shopping malls.

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The largest party in the history of HK’s shopping malls – “Langham Night”

Even with the vision to revitalise the local community, it would still take years for LP to have its surroundings to follow given the long established domestic features of Mong Kok district. The streetscape would remain incompatible for any outdoor celebrating activities attracting mass public which most shopping malls are following elsewhere. Whilst the objectives of doing so are blurred, it is also an exhausting experience for the public as well as the shopping mall to bear during the outdoor activities. Instead of letting the public embracing the Langham giant outside, why not let them in and celebrate on the floor of Grand Atrium graced by the nine-storey high glass facades ? With the “Langham Community” implemented as previously mentioned, the “Langham People” meeting a pre-designed theme of patronage, say a particular group of shops or products over two months, would be invited to attend the “Langham Night” party after close of the mall at night. During the party, that particular group of shops would be responsible for the party and the highest-patronage Langham People would be announced and sharing of their recommended products, preview of new products, priority access to purchase of cross-over/limited manufactures etc could also be arranged. With the multimedia facilities, cafes and light refreshment shops surrounding at the Grand Atrium, the party would make the invited patrons develop a community tie to LP. Each party could be of different themes/lifestyle/shopping preference, thus building up different groups/levels of Langham Community. EMS and video communication as catalyst for “returned” purchase

The Spiral really brings a brand new experience to HK patrons by shopping spirally downward instead of horizontally upward & downward. It however also discourages climb-back shopping which as a result may stimulate impulse purchase (for the fear of missing a favourite product upstairs) as well as calm down impulse purchase (due to the thought of finding a more favourite product downstairs). To make up for the latter situation, mobile phone’s EMS can help. LP could house in its central computer server tenants’ EMS messages which contains photo, price and shop contact no. of their products so that they could send to the patrons who are interested in a product, but hesitate to buy it. The carrying of the EMS message with a patron on his mobile phone will, in psychological terms, reinforce his desire for “physical possession” of the product, thus coming back to the tenants for it. If mobile transmission stations are installed at LP, it is even possible to negotiate with the network providers for privileged charge or shared profit for the consumption of EMS given the considerable pool of patrons and tenants. Another strategy is to reinforce the vision of the product in a patron’s mind. Given information kiosks are already set up on some floors at the Spiral, we can add the video communication facility on them so that a patron who expressed interests in some products upstairs but hesitated to buy at that time can now be free to communicate with the tenant “face-to-face” to look at his favourite product again. This provides the tenant another chance to sell the product to the patron, and also reinforces the patron’s desire for “physically possession” of it. Customer Services Officer could stand by the terminal to share with the patrons the brand new shopping experience of using such video shopping services. Since the services are to save the patrons from going back to the tenant upstairs, the follow-up customer services would be to allow the patrons to pay the bill and pick up the product at the information counter downstairs.

Enhanced Messaging Services (EMS) is a “coloured” version of SMS for mobile phones to send and receive messages which can contain text, animations, pictures, icons and sound effects on GSM, TDMA and CDMA networks. Since EMS message is sent over the same infrastructure as SMS message, thus keeping investment to a minimum and allowing for quick and easy deployment of the service yet providing personal touch with tune or picture added to the message.

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Add the favour of “human touch” In recent few years the relationship between a shopping mall and its patrons is mainly enhanced through the customer service (or estate/property) officers standing by to serve the patrons’ enquiries or needs. The officers are like “Q&A” robots more than “human” who are in fact staff as well as the patrons of the mall. They are the most frontier staff who in fact meet with the tenants and “interact” with the facilities everyday. They deserve to be put on a more important role for LP. The best promoter for the tenants – customer service officer For example, the customer service officers should be encouraged to “shop” around the areas of shops he/she is responsible for, and to have communication with the tenants in order to get familiar with the shops and products sold. Since the officers meet with the tenants more frequently than the patrons do, the interaction between the officers and the tenants would build up a “partnership” which would show its power if the customer service officers could tell a wondering patron not only where I.T. is located inside LP, but also which of its labels/lines has changed season or where the customer service officers could share with the tenants any of his/her opinions as a patron of the products displayed and sold. The best promoter for the Mall – customer safety officer Another example is that the customer “safety” officers could be trained not only to safeguard the patrons from risky activities at the featured observation decks, but also to educate the patrons on how to appreciate the architectural features of LP and the views from where they are standing. With such “personal touch” established between patrons, tenants and the shopping mall, the unparallel shopping experience of LP would be able to be unleashed further.

Provision of disabled passages can be financially beneficial Being legally and socially responsible as to the provision of disabled facilities is not necessary to be a painful experience as the architectural intelligence already tells us that such communal facilities as the washrooms be put behind the u-turn of the disabled passages at the Spiral. But what if we have to wait for others using the facilities ? It would be nice if I could have a blendable chair beneath the railing on one side of the passages, and on the other having some shopping information, nicely designed posters etc to look at. The resulting in such human activities along the disabled passages reveals that there would be many captive audience leading to the opportunities of advertising revenue.

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The Grand Atrium’s jealousy of the Digital Sky I don’t know whether you have tried to look at the Digital Sky continuously for more than 10 seconds while standing at the Grand Atrium with your family members for the grand opening. If you did, I think you would know what I want to say. To those patrons, they may on one hand admire the fantasy that the Digital Sky brings to them, but on the other they may wish that the Sky be lowered to give their neck a rest. That exposes the limitation of the system to projecting impression-type images only, which contents requiring keeping the eyes on it would not be much appreciated. The concept of the Digital Sky is not to blame, but the nine-storey high headroom graced by glass facades is too magnificent to be ever thought of for HK’s shopping malls. Give the Digital Sky a magic cloth that can be changed into various hyperbolic paraboloids Given the concept of Digital Sky has been invested, I would suggest to step further to make it transformable by applying a layer of structurally designed nylon/tetoron-cotton cloth under the ceiling. While it is cost-efficient to install and can maintain the function of serving as a Digital Sky for projection, various hyperbolic, paraboloids forms can be easily changed into for various occasions, events, etc. If the hanging system at the ceiling allows, I dare to say that watching the process of transformation would become a very enjoyable entertainment to the patrons.

If entertaining facilities have to be made, make it interactive – “The Artists’ Alley” Another architectural feature to be made use of is the shallow staircases serving as a shortcut between Levels 11 & 12 of the Spiral. Given the unanimously good dimension for the staircases and the guaranteed downward pedestrian flow for the Spiral, a very innovative idea to capitalize on that “space” is to install some pressure sensors into the floor finishes of the staircases which would become a performing stage automated with spotlights shooting and audio clip (”commercial”) playing at the pressured spots and the patrons passing would become artists on stage taking the initiative to enjoy the show for themselves. The provision of the above facilities are centred on the same principle that the patrons should be regarded as the “blood & soul” of the Langham giant so that their interaction & response to the bodies (facilities invested) could then be capitalized on for the sustainable reward to the shopping mall.

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Memories with LP – Snow falling, Stars sparkling, Cupids flying, Lanterns rotating etc. Given the structural framework and projecting installations on each side of the glass facades, they could be further utilized to bring the infinitude of entrancing visualizations down to the glass facades which simply need a curtain to roll down on the outside: “Want to know what’s up inside ? Walk in.”

「 想 知 入 面 做 緊 乜 ？ 入 睇 咪 知 囉 ！」 中起こっているものが知りたいと思うか？ 步行。

With the above message appealing on the streets, passer-bys who have never seen would be attracted to become patrons, and patrons who have already appreciated would know it’s show time. Patrons standing at the Atrium would then feel like being in the embrace of LP. Snow falling and stars sparkling in Christmas’ time. Cupids flying on the Valentine’s and lanterns rotating in the fifteenth of August, and confetti streamers popped out at the end of countdown. Strategic Alliance with the developer of Roppongi Hills i.e. Mori Building Co., Ltd. Dr Lo you may have done business with Japanese before, and you know, having a long-term relationship with them sometimes worth more than a one-off lion’s share from other native people. Despite the commencement of the economic downturn in Japan since 1990’s, you could still see their products and ideas are traded successfully in the global market. I would suggest inviting the developer of Roppongi Hills, Mori Building Co., Ltd. to form a strategic alliance. According to the business philosophy of Mori Building, it aims at engaging in such urban revitalization projects as Roppongi Hills, and having Langham Place as a sister development with them will gain LP quality referrals from the high spending Japanese tourists market, and we could make use of the synergy effect to further invite other cities to form a ring of multiplex developments icons e.g. Changfeng Commercial City of Shanghai, CCTV Headquarters of Beijing, Taipei 101 of Taiwan, Berjaya Times Square Kuala Lumpur, Suntec City of Singapore, the Dome at the State Tower of Thailand etc. Details like having “patrons referral” program to provide reciprocal benefits or purchase discount at the shopping malls, advance booking of hotel room up to say one year at current rate/discount, exclusive/tailor-made souvenirs to hotel guests from other cities e.g. premium postcards of HK night scenes at various spots with location map and means of transport behind, etc (like an extension of the Langham Club for local patrons) can be worked out. In the history of Japan’s success, numerous occasions do we find of the fruits of learning and improving from others including our motherland, and it’s time for us to rethink and learn back from them whom we must admit are more service-/customer-centred. To move forward your belief and philosophy I learnt from media that part of the floors of LP’s office tower would probably be disposed of for reducing the financial pressure on the company. I guess if you have the vision to rejuvenate Mong Kok into a hybrid of retail-leisure-commercial comparable with Tsim Sha Tsui and Causeway Bay, you would choose to dispose of the middle floors to recoup the capital for further acquisition and refurbishment/redevelopment of neighbouring properties by centrifugation and eventually into a community ring connected by overhead links. It is because retaining the ownership of the lowest few floors and the top floors would enable the company to preserve the corporate identity of the project and the possible integration with neighbouring properties in future. While you must now be proud of your determined mind to put this bet yet excited to see whether your bet would be eventually rewarded, I really appreciate that you would still, after the ceremony with officials and authorities, stay for a while with your family among the patrons and observe their response to what LP has prepared for them.

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It would be my great pleasure if I could contribute with my various knowledge and experience and more importantly my passion for LP, and work with your staff in making LP not only a vision to be achieved for the company but also the dreams of many patrons who look for various memorable moments with their lover, friends and family. Look forward to having opportunities to work under you. Yours sincerely Ivan Tam BSc, MSc, Postgrad. Dip. MHKIS, MRICS http://www.hkgp.com/ http://artfete.school.net.hk/ Mobile phone: 9462 4987