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Retailers catch shoppers in Pokémon Go craze

By Tan Chee Yuen

/ JLL |

July 27, 2016 3:22 PM SGT

The runaway success of the augmented reality game, Pokémon Go, is not just proving to be a winning concept for Nintendo. It is also giving brick-and-mortar retail businesses as well as food outlets new opportunities to connect with consumers and compete in the online space, according to JLL.

In Australia, big retail brand such as Woolworths, KFC and others have targeted advertising towards the new mobile craze. For example, Woolworths department store has posted tips on how gamers can catch Pokémon in its stores. It is not the only one, restaurant owners and retailers have also requested for Pokéstops and gyms to be set up near their premises to attract nearby players and increase footprint.

PokéStops are locations where you can collect items while gyms are places where you can battle the Pokémon of rival teams, or train your Pokémon by battling those assigned there by other members of your team.

Pokémon Go is not just proving to be a winning concept for Nintendo.

Source: Shutterstock, JLL

“It has provided bricks-and-mortar retailers and food outlets an innovative way to attract customers and fend-off competitors,” says Cameron Taudevin, Associate Director for Retail JLL in Australia.

Virtual reality (VR) and augmented reality (AR) are rapidly gaining force in the retail segment. VR and AR are estimated to be an US$80 billion industry by 2025, part of which will be in a retail context.

Meanwhile, the hotel sector is also taking advantage of Pokémon Go’s popularity. For instance, Mantra Group has launched the world’s first Pokemon Go-friendly hotels in Sydney and Melbourne that encourage fans to stop by Pokéstop at the bars with free Pokémon Go Lures to increase their chances of catching one of the virtual monsters.

On July 22, Pokémon Go was launched in Japan, the game’s birthplace. “It could spark some additional footprint for the retail sector, but is unlikely to bring any value to a property sale, even as real estate listings using Pokémon Go as ‘bait’ have been popping up in the US,” notes Kenji Yoskikawa, Head of Retail Leasing in Japan.

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