Malcolm Gladwell, SM Supermalls,Taylor Swift & the digital youth
What is the future of traditional “brick and mortar” shopping malls and retail shops in this digital age of online shopping? What are the changing consumer trends of the post-millennial “digital natives” who make up Gen Z, as well as the succeeding Gen Alpha?
These were some of the thought-provoking questions addressed by bestselling author of The Tipping Point and Outliers, Canadian journalist and podcaster Malcolm Gladwell, and Wunderman Thompson Intelligence global director Emma Chiu as guest speakers at the Sept. 4 afternoon SM Supermalls’ Tenant-Partners Summit at SMX Convention Center.
Led by SM Investments vice chairperson and BDO Unibank, Inc. chairman Teresita “Tessie” Sy-Coson, SM Prime Holdings, Inc. (SMPHI) chairman and China Bank chairman Hans Sy, SM Supermalls president Steven Tan and SMPHI president Jeffrey Lim, this summit was attended by top entrepreneur retail tenants and other partners of SM Supermalls as the kick-off event for SM’s 65th anniversary celebration this year.
SM Supermalls president Steven T. Tan delivered an upbeat welcome speech about how malls are transforming “into vibrant centers of community” and thanked tenant partners for contributing to this success.
Tan spoke about the bullish future of SM Group founded by the late immigrant “rags-to-riches” business genius Henry Sy, Sr., now run by his children and grandchildren. Noting that SM will operate a total of 100 malls by 2026, he said the future of malling now ranges from “experience-driven enhancements in digital technology to sustainable initiatives that will elevate SM Supermalls to new heights.”
With SM City San Pedro and SM City Santo Tomas to open by end of 2023; new SM mall projects underway in Laoag City in Ilocos Norte province and La Union province; as well as in Santo Rosa Nuvali, Laguna and the transformation of old Harrison Plaza in Manila in the pipeline, Tan pointed to “high-profile expansions in SM Mall of Asia, SM City Cebu, SM Aura Premier and SM Megamall,” including redevelopment that will add 20,000 square meters of new leasable space there in 2024.
In Cebu, he added, SM City Cebu and SM Seaside City are expanding malls and multi-use complexes, with a new SM National University campus to rise, and a second SM Arena for Cebu.
Malcolm gladwell on the state of things
What were some of culture guru Gladwell’s predictions?
He foresees that traditional businesses like brick and mortar shopping malls and retail shops “can never be replaced.” He cited a store selling running shoes that he frequents, which has become a social place for members of his running club to meet regularly. (Emma Chiu added that SM’s Mall of Asia is not just a place for selling things, but offers a dynamic experience, a venue for learning, and a place that brings people together. She also discussed macro-trends like the “Joyconomy” and “Creative Catalysts.”)
Gladwell praised the positive tenor of our national anthem: “I love your national anthem. It sounds very upbeat, (like) the country is fun to live in.” Surprisingly, he described the US national anthem as “depressing.”
He also observed the differences between generations that grew up without social media and our digital youth today, such as the recent melee in Union Square Park, New York City in which Twitch and YouTube influencer Kai Cenat triggered chaos by promising to give out free PlayStation game consoles. Thousands of youths gathered and threw bottles and debris at police, while others stomped and danced on cars.
Gladwell noted that past generations had “the general default of hierarchies,” in which events for celebrity icons like, say, Michael Jordan or Lebron James would be more exclusive and organized, through entrance tickets or lotteries.
Today’s youth are more spontaneous, relying on social media networks to flock to decentralized events. Influencer Kai Cenat is no major celebrity, yet Gladwell noted he was able to attract “the biggest event in downtown New York in the past year.”
Gladwell believes today’s youth have shifted from valuing exclusivity to inclusivity: “I think retail will succeed if people can build this (sense of) inclusivity.” He cited pop phenomenon Taylor Swift: “There’s no other entertainer in the West whose fan base matches the demographics of his or her country.” He added: “What they’re looking for is authenticity and relatability. Taylor Swift is relatable.” According to Gladwell, today’s youth “don’t want to look up to somebody, they want to look at.”
Telling your story is key, he said. For example, he mentioned a recent visit to the impressive Berggruen Museum of modern art classics in Berlin, Germany, where Gladwell learned the art collection was a “gesture of reconciliation” from former German Jewish refugee Heinz Bergruen who escaped the Nazis but, 60 years later, returned to give this valuable art collection of Picassos, Klees, Matisses, etc. to the city of his birth. The author said this story would have greater impact if it were highlighted by the art museum.
Gladwell is also worried by the advanced age of US political leaders, many of whom are now over 75, and described them as “trapped in the middle part of the last century.” He worries about the energy level of elder leaders.
When event host David Celdran quipped, “Taylor Swift for president!” Gladwell replied: “She’d win.”
The author’s insights offer valuable lessons not only to the innovative entrepreneurial leaders of SM, but to all businesses and people in general. He said: “My generation’s default was the hierarchy, the new generation’s default is the network. I don’t think a hierarchy or a network is better or worse. What we need is to understand.”
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