Kuala Lumpur - Fidelia Sol was a picture of radiant joy as she practically skipped out of the Salvatore Ferragamo shop with a pair of pink heels and a leather belt, bearing testimony to the perplexing power of luxury retail therapy.
Malaysia is targeting shoppers like Sol, who had spent more than $2 000 (R17 400) in her first hour and was not about to stop, at the Johor Premium Outlet.
Positioned in the southern state of Johor, the 16 000m² Premium Outlet boasts 80 stores, a large food court, cosy cafés, a bank, post office and cash machines.
Malaysia is eager to boost its tourism industry and is trying to draw on the rapid growth of high-end brands in Asia to lure mainly South-East Asian shoppers.
Prime Minister Najib Razak called the project one of Malaysia’s leading tourism projects, adding that the government aimed to establish the country as a “shopping haven of branded goods”.
Tourism is the country’s second-largest industry after manufacturing. In 2010, the government recorded 24.6 million tourists, who spent 56.5 billion ringgit.
The tourism industry had been steadily growing since 2000 with international arrivals up by almost nine percent a year. But the numbers began floundering last year, and the government had to revise its earlier target of 25 million tourists down to 24 million. It is now hoping outlets like this will help reverse the trend.
“I was in Singapore for a holiday and heard about the outlet, so I came all the way here to check out the goods,” said Sol, 48, from the Philippines. “And I am so happy I did,” she said, heading into the Ermenegildo Zegna shop with her group of fervent shopper friends.
The luxury market has been one of the few bright spots in a world economy shaken by the euro zone debt crisis and sluggish recoveries from the recent global recession.
High-end consumers have not been affected by falling incomes and unemployment like other populations, and sales of luxury goods have hit record highs.
The trend has been particularly stark in Asia. As the region leads the boom in demand for luxury goods, Malaysia is hoping that the rebranding of a country largely associated with conservatism and cheaper Chinese-made goods to an upscale luxury shopping haven will turn its tourism tide.
“I am quite impressed with what I see as they have a fairly good variety,” said shopper Paul Black, a shipping merchant from Singapore, which sends Malaysia more than half its foreign tourists.
“I’m sure my girlfriend and I will be coming here more often from now on,” he said.
The outlet offers prices up to 65 percent less than mall prices for past season items.
The outlet is fashioned after similar shopping havens in the US, South Korea and Japan and is a joint venture between Malaysia’s gaming operator and property group Genting, and US-based Simon Property Groups.
The 149 million ringgit outlet houses familiar names such as Burberry, Coach, Ralph Lauren, Canali, Michael Kors and Tumi.
“In my experience of opening premium outlets across the US, I’ve discovered that the excitement of finding great bargains has no boundaries,” said John Klein, president of Simon Property Groups.
An expansion is in the works. A second phase with 60 new shops and a 2 000-room hotel is under way.
“Honestly, I am surprised that there would be such large crowds of designer shoppers here,” said Indonesian Lily Putri, who queued for 30 minutes to get into the Coach outlet.
“But I’m really glad they have caught on to the designer goods shopping bandwagon. Now I don’t need to travel too far to get my shopping fix.” – Sapa-dpa