Introduction
The essay is an attempt to investigate how customers shopping at MetroCity differ from those shopping at the Kanyon, two of the leading shopping malls in Istanbul, Turkey. The writer deemed it appropriate to investigate these two malls in particular because of their unique situation: the two shopping malls are situated side by side. In order to achieve this, the essay shall endeavor to assess the differences in the shopping characteristics of customers visiting the two malls, and how these variations could influence the choice of the shopping mall.
Having lived in Istanbul for several years I have witnessed the constant development of new shopping malls around the city. The development of these malls in Istanbul is a result of urbanization, leading to growth in population, and hence an increase in demand for easily accessible and compact leisure centres such as malls.
Malls do not only provide various shops but also leisure facilities such as gyms and cinemas. However, In Istanbul, almost none of the several malls are located in the same region and as such the fact that Kanyon and MetroCity are not only in the same region but only a couple of hundred meters apart grabbed my attention. In this essay I will be looking at the various features of a mall that attract customers, including the differences in the design of the two malls, the services offered, as well as the similarities and differences in goods sold. Ultimately the study endeavors to reveal whether the two malls target certain groups of customers.
Kanyon has been designed with the high socio-economic group in mind, while MetroCity mainly targets the middle class consumers. Kanyon has been designed as an open-air shopping mall and started its operations 3 years after MetroCity.
History of Levent
Prior to embarking on an evaluation of the different factors that influence the decision by consumers to either shop at the Kanyon or MetroCity, there is need to first understand the background of the area where these malls are located. Levent is located on the European side of Istanbul and is one of the main business districts of the city. It is home to large clusters of skyscrapers and private mansions in Istanbul. There are also many businesses located in the region and as such, the area has managed to attract a wealthier crowd. However, Levent was not always a densely populated business district. In fact, until around the 1960s, the area was a âresidential settlement outside of the cityâ1.
Figure 2 clearly shows how the area has changed visually and in function from a residential area to a business district in 40 years. From the 1960s onwards there was a dramatic rise in the construction of high-rise buildings and mansions in Levent. At the same time, the area witnessed a rapid population increase2. The development of Levent was as a result of âthe unplanned and uncontrolled physical expansion of an urban area (Istanbul) into the surrounding countrysideâ3 otherwise known as the process of urban sprawl. The process led to the building of sky-rise buildings which included mainly offices, new roads and eventually the development of public transport methods, that is, the metro, in order to accommodate the travel demands of the rising population.
Development History of Kanyon and Metrocity
MetroCity is a shopping mall that opened on April 30 2003 in the financial district of Levent4. Besides the shopping mall, the financial district has other three additional towers. Two of the three towers are made up of 205 apartments located in the two 26-floor residential towers. In addition there is a 24-floor office building5. The complex is directly connected to the Levent Metro station. The complex occupies an area of 60,000 mÂČ. MetroCity has a parking lot capacity of approximately 1,300 vehicles.
Kanyon, like MetroCity, is a multi-purpose complex also located in the Levent Business District of Istanbul. Built three years after MetroCity, it opened on the 6th of June 2006. The complex is built on 250,000mÂČ piece of land and has a 26-floor office building. The residential building includes a total of 179 apartments spaced on 22-floors6. Unlike MetroCity, Kanyon has 9 theatre halls and has a larger parking lot with a total capacity of 2,300 vehicles. A reported $210 million7 was invested in building this upmarket complex.
Transport
The unique location of Istanbul calls for an advanced transportation system to allow easy access to the different parts of the large city, whether one lives on the Asian side or the European side. In order to support commuters in Istanbul many new motorways and bridges and a public transport network revolutionised by the introduction of fast Catamaran sea buses, light railways, and modern trams have been built. With an improved transportation system, Istanbul hopes to reduce its traffic problems, in addition to encouraging people to travel through public means. An observation of travelling habits in Istanbul is that people from the European side are less likely to visit the Asian side, and vice versa.
Levent has access to major roads, both of the bridges, metro and other public transport services. Due to their identical location, both shopping malls have the same level of accessibility. This is illustrated below in figure 3. As such, it is important to examine additional factors in order to distinguish the type of people shopping at the two malls. One way of achieving this is by exploring the method of transportation used by the visitors to the two malls.
Both malls have access to the Metro, which runs from Hacı Osman to ĆiĆhane. Upon exiting from the Levent station, visitors have direct access to the two malls.
Accessibility greatly influences peopleâs choice of malls. MetroCity and Kanyon have become very successful in part due to their location and access to all means of transport. Thanks to their ease of access, customers are willing to travel long distances to visit both malls. Easy access to malls is necessary because in comparison with shops, malls need a large population and therefore, they have to attract people from the whole urban area and beyond.
Results of the present survey indicate that the average distance travelled by shoppers to both of the malls is 10-20 km. However, Kanyon has a greater number of people travelling 20 km or more to reach the shopping mall. This suggests that although on average the two malls are equal, nonetheless, people are more willing to travel a further distance to reach Kanyon rather than Metrocity. This is also the case because wealthier people tend to live in larger houses outside of Istanbul.
Car Park
Observing the type of vehicles in the parking lot of the two malls would serve as an indicator of the socio-economic status of individuals visiting the two malls. Due to the higher socio-economic status of the crowd visiting Kanyon, one would expect to find such luxurious cars as BMWs or Mercedes Benzes in the shopping mallâs parking lot. On the other hand, a majority of the individual shopping at MetroCity are from the middle class and as such, one would expect to find such cars as Renaults and Fords in the parking lot to the malls, because these types of cars are more popular with the middle class.
Even though MetroCity does not target customer from the higher economic class as Kanyon does, nonetheless, the shopping mall also has a valet parking option. In fact, many of the malls located in Istanbul provide valet services at their malls. It is clear that this option is aimed at the richer clientele who shop at these malls. However, one would expect the valet service at Kanyon to be used more frequently than the one at MetroCity, as it has been discovered that customers of Kanyon are wealthier with better cars than those who shop at MetroCity. From the survey, it was discovered that on average, about 30% of the shoppers at Kanyon spend 80-150 TL. This shows that people are more likely to make use of the valet service offered due to their willingness to spend more money.
Type of goods
Before comparing the types of goods sold, it is important to first understand a number of terms. There are two main types of goods: low order goods and high order goods. Convenience or low-order goods are bought frequently, usually daily, and are not sufficiently high in value. Although the frequency of purchasing high-order goods is less, nonetheless, such gods often require a population with a higher threshold8. High order goods are generally more expensive and bought from large shopping malls where people can shop around and are exposed to a larger variety and choice.
Kanyon has a smaller variety of stores, as it is more of a socialisation venue as opposed to a shopping menu. This is evidenced by its many restaurants and large food court. In addition, the shopping mall has high end stores that target the wealthier members of the society. For this reason, the price of goods at these stores is usually above average. A number of the shops are designer boutiques and are said to sell âluxury brandsâ9. It is also the only place in Turkey where one can find the famous department store âHarvey Nicholsâ. This means that a wealthier crowd would find Kanyon more attractive for shopping in comparison with Metrocity, owing to the presence of such upscale shops as âHarvey Nicholsâ.
On the other hand, Metrocity houses the famous Turkish department store, Boyner, as seen in figure 5. Unlike the âdesigner onlyâ Harvey Nichols, Boyner includes a range of affordable products. As such, Metrocity would be a more appealing shopping destination for the middle class in Istanbul.
Another important observation worth of mentioning is that the two malls share in common very little stores. Appendix 1 and 2 shows the type and quantity of shops in Kanyon and MetroCity. From the two appendices, one can observe that the two shopping malls have about the same number of stores. As a late entrant into the market, Kanyon appears to have pursued this strategy on purpose not only to differ itself from MetroCity but also in order to aim its products to a specific niche of the market This assertion can be supported with the data from the survey conducted. By analysing the average amount of money spent by each shopper, one can then decide which of the two malls sells their products at a higher price.
When asked, âHow much do you typically spend at the preferred mall?â 50% of those who chose Kanyon replied that they spend between 30 to 80 TL. A further 30% of the respondents stated that they spend 80-150 TL. This is in comparison with MetroCity where only 18% of the shoppers spend between 80 to 150 TL. This is an indication of a clear separation between the two as it becomes apparent that customers are spending more money at Kanyon.
To further understand the type of people these malls target, an investigation into the supermarkets operating in them can be carried out. Kanyon is home to the supermarket âMacrocenterâ whereas Metrocity has âMigrosâ. Although both supermarkets are operated by the same holding, however, the prices of products at Macrocenter are higher. Nonetheless, the researcher deemed it necessary to conduct a survey on the prices at Macrocenter and Migros.
After a visit to both supermarkets, as expected the prices of certain products were higher in Macrocenter. In addition, the survey revealed that Macrocenter sold more imported products in comparison with Migros. This suggests that a wealthier clientele is expected to shop at Macrocenter and that foreigners are expected to shop at this particular supermarket. Imported products are mainly aimed at foreigners or expatriates and as such, with a higher number of international products being sold at Macrocenter, it can be said that these are mainly intended for foreigners such as expatriates and/or tourists.
Furthermore, as they target an international based clientele, the people shopping there are more likely to earn more in comparison to those shopping at Migros. This means that their disposable income is also higher and for this reason, they are in a better position to shop at a high end supermarket such as Macrocenter. Imported products are also aimed at those who travel often and recognise such products; these would be the people who can afford to travel abroad and again such a group would have a higher disposable income.
Aesthetics
The aesthetics of a mall proves to be important when a shopper is deciding on where to shop. A majority of the respondents to the current survey said that the reason why they preferred Kanyon was due to its more âpleasantâ environment. The architectural design of Kanyon is modern and ambitious and as such, a lot more shoppers are attracted to it. Figure 8 shows that Kanyon has a very dramatic architectural structure, and this tends to draw peopleâs attention. In addition, unlike most malls in Turkey, it is actually outdoors. The open structure of the building gives a more relaxed atmosphere that is not only ideal for shopping but is also a good setting for the many restaurants located in the mall.
Most shoppers are discouraged to go shopping in crowded shopping malls, which can be stuffy. Due to its open structure, Kanyon allows for a comfortable setting for shopping or socialising despite it being crowded at times. In addition, the shopping mall provides its shoppers with the privilege of outdoor shopping. Since most of its walkways are covered, shoppers are comfortable shopping even under bad weather conditions such as rain or snow.
When Kanyon was being built a lot of emphasis was put on its architecture. Its developers partnered with different groups including TabanlıoÄlu Architects and The Jerde Partnership of Los Angeles. This was a smart move as a more aesthetically pleasing structure would not only attract more people but it would also pull the high end consumers that Kanyon targets. With this target group, there is the likelihood additional spending on shopping in companions with the middle income earners, because their disposable income is higher. Overall, a building such as Kanyon creates a positive atmosphere for shoppers, and this is beneficial to the mall.
On the other hand, MetroCity is a middle range shopping mall. The ordinary structure of the mall is not aimed at the high class individuals but at the average income earners. When the shoppers at MetroCity were asked why they preferred MetroCity, the majority replied that this was due to its competitive pricing. Available data supports the statement that Metrocity mainly targets the average income earners because the main reason why a majority of the shoppers prefers this mall is due to its affordable prices. As previously noted, shops in Kanyon tend to be more designer based, and this is with a view to targeting the wealthier crowd. On the other hand, in MetroCity, items sold in shops are better priced and as such, a larger number of people can afford to shop here.
By comparing the interior of Kanyon and MetroCity, a clear difference between the two malls is evident. Whereas Kanyon is open and spacious, on the other hand, MetroCity is seen to be dark and clustered despite its glass roofs. The types of people who frequent MetroCity are least concerned with the structure but more focused on the prices in the shops. From this comparison, it is evident that the structure of Kanyon is aimed at attracting a high class clientele and that MetroCity relies on its shops and pricing policies to attract customers.
Services
The type of services offered at a mall will also affect the clientele. By and large, both Kanyon and MetroCity offer similar services but at different qualities. Kanyon has a cinema and although MetroCity lacks one, instead, it has an ice-skating rink. The cinema attracts a wider age group of people at the Kanyon, and more so the teenagers. In addition to the cinema there are countless restaurants at the Kanyon. MetroCity has a larger food court with many fast-food chains and there are no sit-down restaurants situated inside. In contrast, Kanyon has several well-known, popular restaurants such as House Café, which can be seen in figure 8.
The restaurants at the Kanyon serve mostly international cuisines, and this has caught the eyes of a number of travel writers. For example, in one of her articles, AyĆe Ăzyılmazel calls these restaurants ârestaurants imported from Europeâ10. A good example of these restaurants is Wagamama. In addition, she was concerned that âwithout the knowledge of a foreign language, one would not be able to understand the menusâ.
These two aspects of the restaurants of Kanyon show that it is a tourist friendly mall, but perhaps not suited for the average Turk. The knowledge of a foreign language is associated with a better education and as such, the upper class visitors to these restaurants are expected to be acquainted with a foreign language. In addition, people who frequently the Kanyon are also expected to be more open and exposed to the international culture. For example, Kanyon has restaurants serving Eastern food such as Sushi Co and Wagamama as well as restaurants serving Italian food including Mezzaluna Express. There are also other restaurants such as House Café and Kitchenette that serve a mixture of foods.
Both Kanyon and MetroCity have fast-food restaurants, though Metrocity has more of these than Kanyon. In addition, there is a clear difference in the style in which the food courts are laid out. For example, MetroCityâs food-court (shown in figure 9), is what one would expect in a mall, whereas the food-court in Kanyon is unlike any other. It is less crowded and is made up of a mixture of quality restaurants with fast-food chains.
From this simple observation between the two different food-courts, it can be said that people who eat at Kanyon are looking for better quality food in a trendier environment. The layout of the food court and other restaurants in Kanyon is of a better standard than that of Metrocity. Overall, the prices of the restaurants at the Kanyon are higher in comparison with those at the Metrocity, a further indication that the upper class shoppers are attracted to the Kanyon, and not the Metrocity.
Type of People
The Kanyon is more likely to attract the upper class, while the middle class income earners are more likely to shop at MetroCity. Shoppers frequenting the Kanyon are a mixture of businessmen, wealthy families, and teenagers. Kanyon aims to get a attract individuals of a high social setting to their mall as it has many high-end shops and posh restaurants. Both Kanyon and MetroCity are located in an area in Istanbul where a lot of businesses are located. As a result, a majority of the shoppers at the Kanyon and MetroCity are businessmen. Kanyon intends to appeal to a larger audience including international shoppers.
Kanyonâs website has both Turkish and English options. By providing two language options, this in effect enables the mall to open itself to a wide range of people, including tourists. For example, a visit to the website gives one the feel of an international environment. In addition, the mall itself could also have been located in any country. The average clientele is more likely to shop at the MetroCity due to the relative affordability of its products.
Conclusion
While undertaking this survey, the writer was able to observe the different elements that shopping malls include in order to attract specific types of customers. The data collected during this survey also has supported the initial hypothesis by the writer that the two malls are aimed at two different socio-economic groups. With the aid of the data collected and the observations made, the writer came to the conclusion that with a more visually appealing architecture, more luxury brands and more upscale restaurants, the overall environment of Kanyon is intended to draw in a higher socio-economic group of visitors. In addition, evidence suggests that Kanyon is also aiming at an international market such as expatriates and tourists.
Including a higher number of respondents in the survey would have helped to the researcher to better understand why shoppers choose one mall, and not the other. With more information on money spent at the malls, the researcher would have had a more definitive conclusion in investigating the variation in the pricing of products sold at both the Kanyon and Metrocity.
The Kanyon mainly attract the upper call while MetroCity is more popular with the middle class income earners. Most of the shoppers who frequent Kanyon are more likely to be the wealthy families, and business men. These are the individuals with a high social setting and as such, they are in a potion to afford the products on sale from the high-end shops at the Kanyon, as well as afford the food at its pricey restaurants. Both Kanyon and MetroCity offer almost the same services to their clients, but the quality of these services differs.
For example, although MetroCity does not have a cinema like Kanyon, nonetheless, the shopping mall provides its customers with an ice-skating rink, and this has in effect helped the shopping mall to attract a lot of customers. In addition, both Kanyon and MetroCity have restaurants but the difference is that in the case of MetroCity, there are more of fast-food chains. On the other hand, Kanyon boasts of such popular restaurants as House CafĂ©. Research findings from the current study also revealed that aesthetics play a crucial role in the choice of the mall. For example, a majority of the respondents to the current survey said that the reason why they preferred Kanyon was due to its more âpleasantâ environment.
In addition to the areas investigated, there is need to undertake a further study involving the residential areas surrounding the area and the districts where each shopper comes from. With this information a better understanding of the socio-economic groups that visit the malls could be gained. Also, the results of the present study do not take into consideration the portion of the visitors of both malls that work in the office towers.
It would have been useful to consider the office workers as most of them takes lunch at the restaurants located in their complex people who work in office towers would have different salaries and as such, it cannot be said that only people from certain socio-economic background visit a mall, because the workers, wealthy or not, will most likely eat in the same mall as their office is located. Some new questions for future research that have emerged from the current study would include for example how much do the people from the offices affect the data collected, would the number of workers affect the thesis?
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