The thousands of the malls opened in Mainland China in the last few decades have already started to bear a new generation of consumers. Races for brands are red hot. The emergence/resurgence of heritage regeneration, the “non-standard boutique mall” (a buzz phrase in Mainland China lately with “Fei-biao” projects), and all sorts of shopping streets and destinations are heavily discussed in recent years.

Developers and operators have been trying to differentiate their malls, integrating zoos (from piglet farms and reptile dens to a horse-riding school), sports facilities such as indoor surfing schools (after the previously popular skiing schools), as well as different thematic designs and all sort of strange architecture.

Other malls in Greater China and Japan have successfully transformed malls into third spaces with popular activities for younger people. Think of COSMO in Chengdu who have cultivated the emergence of Mainland China’s home-grown trendy brands with a DJ party atrium, converted from a dated department store. Or Beijing’s The BOX and COSMO with a basketball court and skatepark as well as space for homegrown brand outlets. Or Tokyo’s Shibuya Miyashita Park with a skatepark and sports facilities above a new generation of sport and lifestyle flagship stores.

Most of these attempts are a genuine response to consumers’ needs and have achieved a certain level of success, at least in their “honeymoon” early years. However, their longer-term sustainability lies in their continuous investment, commitment to change, and timely response to new trends. One function integral to the success of these new malls is their positioning as third spaces—this is now the core story sold to retailers and brands when choosing their space. Developers are focusing their efforts in creating more public and neutral spaces that keep customers coming back, even at the expense of less space for rental.

But what do consumers actually want?

When we are talking about ‘next generation retail’, much is written about how the upbringing, mindset, and preferences of Gen Z are different from Millennials. Given they have been brought up in the Information Age, they tend to look for deeper meaning than Millennials. They are more health conscious, socially aware of fairness and sustainability, and look for more than enjoyment and hedonism.

Gen Z will define the future of consumption, and it looks like it will be defined by the pursuit of meaningful experiences.

One example found across the world, in both western and Asian markets, such as Hong Kong and Singapore, is the emergence of “naked shopping”. Younger consumers seek more sustainable packaging and organic produce, and some are willing to pay more for this. Yet, generations in Mainland China are still lagging behind.

Another observation is the pursuit of individuality. The age of mass following of identical stories of Instagram creators and KOLs might be over, as a new generation of consumers are smart enough not to be “fooled twice”. They fact check information and ask themselves: “what do I really want?”—from food outlets to brands, sports to entertainment. Suppliers need to tailor their offering to meet such individual expectations.

Developers must ask themselves: Are we ready to build platforms that can meet their wants and wishes? To build spaces where their voices are heard and echoed? A nice retail space needs to be a third space where the new generation of consumers feel ownership and a sense of belonging, not just superficial and fleeting satisfaction. They will ask for meaning, value, and social wellbeing.

One trend that is already popular in the west and has gained much momentum in Hong Kong and first-tier Chinese cities is the replacement of conventional chain-run gyms with two new types of gym: boutique gyms run by personal trainers and 24/7 gyms in residential areas. Boutique gyms offer personalized services and one-on-one training, while the medium-sized 24/7 gyms offer young people a place to socialize after work. Taking Hong Kong as an example, the busiest business time are from 9pm till 2am. With less opportunity for interaction in the workplace, young people find socializing at gyms easier than meeting at bars! This represents a very different way to make new friends (or to meet someone special!) Hence, when designing a space, flexibility may not just be found in the location, but also in the timing—depending on the “mood” of the day.

The importance of culture and art will surely continue. Much has been talked about art and culture in the creation of successful third spaces. It is not a matter of why, but how. The identification of the target audience and accurate positioning is always key. Tokyo’s Mori Building Group opened its latest Azabudai Hills complex last year, and while it might be the least convenient shopping space in their portfolio, as it is clustered within a high-end residential district, ticketing is still strong after its first year. To transform it into a destination that attracts more than just local residents, they invited the ‘starchitects’, such as Heatherwick Studio, and made the complex the permanent address of the teamLab Borderless showcase, grandly titling it the “Mori Building Digital Art Museum”.

Another interesting trend in Hong Kong is the relocation and remodeling of three international art auction houses in the last few years. Phillips moved to West Kowloon Art District last year, not just to be neighbors with the world-renowned M+, but also to create huge exhibition and event spaces to interact with and cultivate new buyers. Sotheby’s and Christie’s both recently opened exhibition and gallery spaces in Central, a prime retail address. Sotheby’s opened at The Landmark, while Christie’s opened their gallery at the podium floors of the much anticipated ‘The Henderson’, designed by Zaha Hadid. Art and culture are getting closer and closer to the masses. In the same vein, more performance venues are created within malls now. These don’t just give the mall an arty veneer. More importantly, they send a message to the public: “We curate art and culture tastefully, we are interesting, we are deep.”

The world’s climate is getting hotter and hotter—all major cities in the northern hemisphere reported record high temperatures last summer. Third spaces with climate control and covered outdoor areas have the opportunity to attract visitors who seek protection from the heat.

If over the last twenty years, sustainability has become more than an academic discussion, it would seem in the coming decade it will be an imminent demand. If the more sophisticated new generation of consumers see this as a core value and thus reflect that in their consumption habits, the market will respond to such demand. EVs are already changing commuting habits—carparks in new malls in China are now filled with charging lots. It is a must-have already. In terms of architecture and the design of spaces, sustainability might simply be a buzzword if it only attracts visitors once, like grand Instagrammable spaces. You only visit a new space once if it is just for your “da-ka” (the practice of uploading a photo or video of a popular location to social media). You will return to a space again and again, bringing your friends with you, if you love the space.

Japan and South East Asia, especially Thailand, are very much ahead in responding. Take Bangkok, for example. From theCOMMONS, a successful neighborhood shopping venue with an emphasis on community, to the iconic and touristy IconSiam and latest Emporium branded EmSphere, these destinations are not just successful as tourist spots, they also showcase the continuous creativity and aesthetics of their very Thai vision.

All the above points towards a challenge: a paradigm shift is looming due to the new generation of consumers. It is about time developers think about how to recreate their spaces to be both sustainable and attractive to this new generation. One thing they must keep in mind is to always start from the user’s point of view. Food for thought.