Shopping Malls: The Right Destination for Retail Outlets


By

Lalitya Vir Srivastava
Coordinator
INC
Meerut
 


A decade before, malls were considered as the shopping place for the upper middle and higher income group customers that to in metros cities only. The customers in small cities, for any kind of shopping, did not have many alternatives. To purchase, even their daily need items, they had to adopt the traditional shopping styles, going to  many small retailers, looking for their brand, bargaining with retailer where the brand is available and majority of times compromising with quality & product of their own choice because of unavailability problems.

With the up coming concept of organized retailing, now for last few years, the Indian market is witnessing the organized retail giants, capturing the major space even in urban and rural markets. The paradigm shift in the demographic factors, life styles, literacy and better disposable income of the customers , have attracted the major retail players to the urban & rural areas of Indian market. The customers in their local cities have given red carpet welcome to the organized retailing and seem to enjoy their every shopping experience in it.

The growth of retail as the sector is phenomenal, in Indian market, the journey of retail from the super stores to hyper market is acknowledged just in 5 years. Initially, the major factor, come up as a constrained in the growth of organized retailing was the availability of space in market place. The simultaneous growth of the real state addressed the issue of floor space availability for retail out lets. What happened first is difficult envisage but simultaneous growth of retail & real state sectors proved complimentary to each other.

Today the major space, in the malls, is occupied by the big brands of retail chains and spatiality stores of the private brands, ensuring the availability of variety of product to satisfy the customers' needs & requirements. Even for your everyday grocery buying customers prefer the superstores established in malls. The main attractions for all the customer, are competitive pricing and availability of variety as compared to next door retail grocery shop. (by Arun, published on March 23rd, 2008 and is listed in Growth, India, Trends, consumer.)

According to study carried out by Assocham, a whooping Rs. 1,31,804 crore has been invested in organised retailing in last 6 months alone. Some of the other related highlights of that study are:

* Real estate companies like Unitech and DLF draw up plans that cater to growing demand of shopping malls; capex of Rs65,000 planned to be invested in real estate development for retail space in next four to five years; food and grocery is next big retail segment with investment plan of Rs22,100 crore.
* Hyper marts will soon dot the Indian retail space with investment announcements of Rs29,154 crore expected to set them up.
* With big retail malls in the pipeline, real estate development for organized retail sector attracts maximum investment announcements, amounting to Rs65,000 crore.
* Unitech with capex of Rs20,000 crore, DLF with outlay of Rs16,000 crore and 5,000 crore by Parsvnath Developers will strengthen construction of mega retail stores

The reason for so many malls with super stores coming up is simple - huge consumer demand(by Arun, published on March 23rd, 2008 and is listed in Growth, India, Trends, consumer.). As the malls are now being designed & developed, with the concept of making shopping experience of customers convenient, refreshing and memorable,  for that, apart from focusing on multiplex, the floor space, in malls, is allocated to strike the balance among food corners like Mc Donald's, Pizza hut, Domino's etc and other popular brand of super markets. The attempt is to make the mall the most happening place of the town, that turns true as the younger and older generation alike prefers buying stuff from huge malls where they not only get variety, but quality too at moderate prices(by Arun, published on March 23rd, 2008 and is listed in Growth, India, Trends, consumer.).

The effort of real estate and retail companies together, seems to be developing malls as the right destination for retail outlets, fulfilling customer's needs under one roof and making their shopping experience memorable.

Reference:

1. Arun, published on March 23rd, 2008 and is listed in Growth, India, Trends, consumer, http://trak.in/Tags/Business/category/growth/

2. study carried out by Assocham, www.livemint.com
 


Lalitya Vir Srivastava
Coordinator
INC
Meerut
 

Source: E-mail May 26, 2008

          

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