Nightclub groups look to Asia

It says big brands in the UK and US are hoping to crack emerging countries—but whether they will have the local know-how to succeed remains to be seen. It points to the example of the Ignite Group, parent of the uber-trendy Boujis club among other brands, which is opening a Hong Kong venue in September after the success of a pop-up site in 2010. An American chain, Marquee, has meanwhile opened in Sydney, while fellow US brands Pangaea and Avalon have launched in Singapore. Pangaea says it is already taking around $160,000 a night.

Pangaea’s owner Michael Ault tells the Economist that the key to success in Asia is to have “the most expensive of everything”. But he adds that promotion is key. “First you go for the A crowd. You spend all your money on DJs and celebrities to build the brand. Then the A crowd moves on. So you go from the A crowd to the B crowd. Then you have to ask yourself: do you want the C crowd?”

One way in to Asia might be in partnership with hotel chains—a strategy followed by luxury hotel group Morgans, which has bought the Light Group of nightclubs. Other tools for expansion could include technology like SceneTap, an interesting US start-up that allows customers to see which of various bars and clubs are busy at any given time, and look at the demographics of those in the venue.

For the full story, see Nightclubs: Getting down globally.