Inside Asian Gaming

Cover Story T o borrow a line from an old joke about a farmer giving directions to a lost motorist, David Sylvester probably wouldn’t have started from here. Mr Sylvester,Vice President Retail Asia for Las Vegas Sands Corp., is a straight-talking Australian with no desire to gloss over the challenges faced by Macau’s new, high end retail sector, one of the foundations of the integrated resort business model imported from Las Vegas. LVS’s The Shoppes at The Four Seasons, on Cotai, launched only days before the world plunged into an economic crisis so profound that it could well have a knock on effect even for the cash-rich Chinese economy and the savings-rich Chinese consumer. Mr Sylvester has over 22 years of experience in development and managing of shopping centres in Asia Pacific. Over the course of his career, he has been involved in more than 40 major retail developments. “The Four Seasons mall has only been open a month or so. I know some people have been critical of it but give us a break,” says an upbeat Mr Sylvester. Mixed reception The criticism of this deluxe addition to Macau’s retail market—DFS Galleria Macao at The Shoppes at Four Seasons—to give its full title, has been mainly levelled at the relative scarcity of shoppers. Not only may this be premature, it may also be missing the point, says Mr Sylvester. The Four Seasons’ shopping zone is supposed to be everything Handbagged Could recession stall Macau’s retail revolution before it really begins? that the mass market Grand Canal Shoppes over the road at The Venetian Macao is not, namely exclusive and intimate, though not necessarilylow-key.Headlinefeaturesinclude Asia’s first Moët et Chandon Champagne bar and a corporate entertainment area with a gold chandelier from which the aforementioned sparkling wine flows. This is all in a setting with boutiques by the likes of Dior, Fendi and Gucci. It doesn’t get much more conspicuously consumptive than that. The DFS Galleria even has a special entrance for VIP use only. The focus at The Four Seasons is on low volume and high margin business, serving rich customers in a relaxed setting, goods that are genuine. Goods in the The Venetian’s retail area are no less genuine, but served in a more bustling setting. Guangdong—no rust belt The negative influence that long-term recession can have on all sectors of the retail industry is nonetheless obvious and particularly well documented in more mature markets such as LVS’s home base in the United States. Illinois, the home turf of the US Democratic President-elect Barack Obama, is a good example. Illinois was once the home to many smokestack factories. De-industrialisation began there in the 1970s and started to drain the prosperity from suburban communities. As a result Illinois now has the dubious distinction of The Four Seasons November 2008 | INSIDE ASIAN GAMING 23