P. 1
Shopping Malls Harkirat

Shopping Malls Harkirat

|Views: 145|Likes:
Published by Gurdevinder Romana

More info:

Published by: Gurdevinder Romana on Aug 08, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOCX, PDF, TXT or read online from Scribd
See more
See less

09/19/2012

pdf

text

original

SUMMER TRAINING REPORT

A STUDY ON EFFECT OF SHOPPING MALLS ON CONSUMER BEHAVIOUR WITH RESPECT TO MBD NEOPOLIS

In partial fulfilment of the requirements for the award of the Degree of

MASTERS OF BUSINESS ADMINISTRATION (Retail Management) (2010-2012)

Submitted by: HARKIRAT SINGH Roll No. :13014

UNIVERSITY INSTITUTE OF APPLIED MANAGEMENT SCIENCES

PANJAB UNIVERSITY , CHANDIGARH.
1

ACKNOWLEDGEMENT

I would like to thank Mr. Nayak, Human Resource Head, MBD NEOPOLIS without whom this internship would have not been possible. I am grateful to him for taking time off his busy schedule to guide and support me throughout my training period. His thoughtful insight will always cherish in my memory.

I am also grateful to MBD NEOPOLIS for giving opportunity to work with them and help me make the best out of internship. I sincerely appreciate the support and co-operation of the employees and staff that I experienced for two months internship.

I thank my internship co-ordinate Mr. Amandeep Singh Marwaha for having given me opportunity to put into practice the, theoretical Knowledge that I imparted from the program

2

3

TABLE OF CONTENT
S.NO. CONTENT PAGE NO.

1.

EXECUTIVE SUMMARY

5

2.

COMPANY PROFILE

7

3.

MALL REVIEW

11

4.

DEPARTMENTS

14

5.

RETAIL INDUSTRY

26

6.

SHOPPING MALLS Advantage Disadvantage TYPES Objective

30 31 32 43

7.

8.

Analysis

46

9.

Conclusions

55

10.

ANNEXURE 1: QUESTIONNAIRE REFRENCES

56

11.

58

4

EXECUTIVE SUMMARY

Mall management has been identified as critical factor for the success of malls and the retail industry across the world. The mall culture offers everything under the one roof, even in Tier II and Tier III towns are powering the retail revolution. µComfort¶, µstyle¶, µconvenience¶ and µcool¶ are only some of the words used by the shoppers introduced to the mall culture.

Malls focuses on providing a good shopping experience to the customers to earn the patronage of the customer. Thus for the mall developers and for mall management team the convenience of the customer becomes the major touch point and hence has to be managed excellently to create an everlasting impression on the minds of the customer.

The following report covers the various aspect of the mall like mall operations, standard operating procedure, catchments area and positioning of mall and also covers the report of back office and topic which I chose for my internship report i.e. ³Customer Relationship Management´. It also provides a SWOT analysis of MBD Neopolis and the key finding of the report.

5

6 .

targeting every learner. right from self owned paper manufacturing unit to editing.south Africa. corporate. Besides. mall development and management and elearning. Recently MBD has opened its first international branch in UK under the name of Oxbridge Pvt. The MBD Group under futuristic vision of Mr. real estate.MBD already have more than 8000 titles currently under the MBD brand and are increasing every day.K Malhotra. It is the only publishing house in India with complete background and forward integration. the first knowledge portal in country. offset printing.Russia. designing. catering to students. all subject s. parents. A.UK. all educational boards in India and in most of the major languages spoken world wide.COMPANY PROFILE The MBD Group is India¶s largest publishing house with more than four decades of experience. binding and reaching readers through its own distribution network with more than 32 offices all across India. gulf countries.hospitality.The Radisson MBD hotel is 7 . The emphasis is creating an e learning platform. the latest feather in cap is e learning venture of MBD group Alchemie. Some of the major clients are in USA.mexico. institutions and government. MBD also publishes and export books to Europe and south East Asian countries. Ltd.Canada. a network of around 1000 distributors and group which publishes books for all classes. has diversified into various industries including paper manufacturing . The group has successfully established itself and into hospitality industry through its maiden venture The RADISSON MBD Hotel Noida. teachers. typesetting. all languages. Nepal and Bangladesh amongst others. Chairman and managing director. MBD Group has nearly three thousands employees. This path breaking venture is targeted towards masses and will take learning methodology in India by storm. authors.spain.

Noida has quietly but distinctly defined itself as a trendsetter. typically over 20000 sq feet. premium retail and entertainment. Gigabite . The Radisson MBD hotel. are being developed using brand name ³MBD NEOPOLIS´. Jalandhar and Ludhiana amongst others. Designed to be cultural icon where one can interact with one¶s own environment to leave an everlasting impression of oneself behind. The MBD group has also ventured in to premium and luxury mixed used developments primarily The premium used development. In its four years of existence. a group company of Carlson hotels worldwide. under construction at Jalandhar and Ludhiana. 8 . Where one can savour the 5-star hotel global cuisine complimented by a well stocked bar at the hugely penetrative price. Whether it is new age or age old interpretation of cuisines as it is award winning restaurant ³Made in India´(The Indian restaurant).re defining the very concept of food court. as we know of today.fully owned and managed by MBD group and is first five star hotel in Noida. Hyderabad. which are the richest cities in India. The group is also establishing its own Food court brand under the name of ³Gigabite´.´RED´(The oriental restaurant) or S-18(The 24 hour brasserie)or setting new standards in designer chocolates and cakes at its pastry shop ³The chocolate box´or its 24 hr spa and fitness club´Espace´. Mumbai.For this Radisson hotels and resorts. Bangalore. encompassing 5-star.hotel. Fashion and style play a large role in overall hotel¶s public platform. Currently the group has two projects under the MBD Neopolis brand-where the experience never ends.The Radisson MBD hotels creates beautiful synergy of fashion through its distinctive and distinguished events and has been a recipient of the ³Best Franchise of the year Award´ and a lot of recognition on the novel food and beverage concepts developed by the MBD group. Chennai.envisaged as a double height space. Gigabite is mapped in all the major cities of India including Delhi.

Louis vuitton. The next category of mixed use development of the group.MBD Zephyr with its best panel of consultants including The WATGS. KIMAYA.entailing three sublime universes: Luxury hotel . luxury and surprise. an indulgently luxurious. PROVOGUE.fendi and many more. Ludhiana and Jalandhar. retail or entertainment and the best design. Bangalore has similar plans in Mumbai. NIKE.luxury retail and luxury entertainment in white feild.ferreganno and many more. The group is already is recognised as professional and trend setting company in India.hemes. Hyderabad and Goa. Delhi.dunhill.Bangalore. the style district and that appeals to enlighten. Chennai. elite. µMade to pamper¶lounge.best brand mix be it hospitality. ³THE MBD ZEPHER´showcases lifestyle. The first category in this category is aimed at reducing luxury at Bangalore. As part of its ongoing efforts to have 13 more properties in the country. Ludhiana. is targeted at delivering luxury in every sense of the word. The hotel would also house NUOVO.jimmy choo. own and managed by the MBD group and also brags of the best retail and entertainment mix in the city including brands such as PVR.For MBD Zephyr . TOMMY HILFIGER and many more.famous for designing some of the best hotels of the world.Created by international designers here the best labels and their patrons will find a heaven of sartorial extravagences. 9 .NUOVO will be hot spot for the affluent elite of north wanting to savour luxury retail including brands such as canali.Christian dior. Radisson Hotels announced a tie-up with the MBD Group which is opening a five-star hotel in Noida.Gucci. sinfully sophisticated world with a private.van cleef arpel. The group with its current portfolio to hospitality and mixed use development projects in Noida.The MBD Neopolis houses the Radisson hotel MBD.channel.the silicon capital of india.luxury retail target brands include saks. FAME.

Radisson Hotels is a brand run by US-based Carlson Hospitality Group which is also running other brands in the country including Regent International. "Management consultancy services along with licence for the brand name will be offered by Radisson. a leading publishing house making a headway in hotel industry. Apart from this new property. "The MBD Group will be investing around Rs 100 crore in the new property which will be in Noida. He said the new hotel will be known as 'Radisson MBD Hotel' and will have 120 rooms. Country Inns and Suites. 10 .While the MAD group. will be investing in and operating the hotel. Radisson Hotels will provide licence for brand name and management consultancy services. The group is further planning to bid for other ITDC properties." he said. MBD director Sonica Malhotra said. the MBD group has also recently bagged an ITDC hotel in Kolkata. Carlson Group is also planning to expand its existing network of Regent and Country Inns brands in the country in cities like Mumbai and Delhi.

MALL REVIEW TOTAL STORES OPERATIONAL STORES 61 42 DIFFERENT KIND OF STORES ANCHOR STORES VANILLA STORES 04 57 FLOOR DIVISION OF MALL LOWER BASEMENT UPPER BASEMENT LOWER GROUND GROUND FIRST FLOOR SECOND FLOOR THIRD FLOOR 11 .

multicuisine only starters 60 covers Beverages Veg. snacks.30-3.5 type rooms 13 02.AREA SPECIFICATION Total retail area Lifestyle Hypercity Cinemas Gigabite Mall build up Staircase Entry/Exit Radisson Room Total floors Hotels connecting stairs No. mithai.03.30) 60 covers-international cuisine not full meal but snacks.30).m) 40 covers.10.300 sq fts 64000sq fts 68000sq fts 40000sq fts 30000sq fts 3.05 03 th 5 floor 7th floor 5th floor 8th floor 04 GF 04 LB 05(1500 KV-Sudhir gensets) 05(400 ton-york) 800 lines-Alcatel Lucent Airtel 02(60 KVA) 02(20KVA) 01(20 KVA-Sukam) 06(2 for ± temperature &4 for +temperature) 22-continental 06-Kone 08-Kone 05 250 covers(12.5 lakh sq fts 06 04 83. south Indian and Chinese(11a.pastries 12 Bar Gigabite Express Bakery items Retail . cake .(7.30-11. of restaurants Restaurant and bar Health club and spa Pool Night club Transformer Stabilizers DG sets Chiller plants Telephone exchange Internet lease line UPS of Mall UPS for Gigabite Inverter for Mall Inverter for Gigabite Refrigerators Elevators Escalators Tanks Restaurant Buffet ADD 3.m-11p.

mall executives need to check whether the lights are working properly or not. Proper security checks should be conducted for concerned area. Information desk should not be vacant. (Washing of floors) should start at 7. 8.00am & should be checked regularly by the housekeeping staffs. 14. Standard time for opening the mall is 10 am for the guest. 4. 11. 18. The music should start as soon as the operation of the mall starts by 10 am 6. 13. 16. The closing time of the mall is 11pm along with the retail stores. 7.STANDARD OPERATING PROCEDURE (SOP) at MBD NEOPOLIS 1. 12. A snag list should be prepared every day which marks the loopholes of the retail area including fixtures and fittings. Similarly snag list for washrooms should be prepared before 10am which should be checked after every hour to avoid inconvenience for guest. 5. 13 . The mall executives should inform the retailers about the upcoming events in the mall area. 9. Lights should be switched on by 6 pm. The mall executives who look after the DMO (Daily Mall Operations) should reach the retail area at 9am and check whether the operations has started as per the schedule or not. It¶s the duty of the help desk to issue specific Job Cards for complains registered. Problems related to tenants should be checked & resolved on daily basis 10. 2. The executives should ensure that the computers should be shut down when not in use. The lights should be switched off as soon as the mall is closed down. so that customer query should be handled properly. A copy of snag list & DMO should be submitted to the concern department. 17. 3. The cleaning of retail area (mall) like for e.g. Should ensure whether the escalators are working properly or not. 15. Any major repairs and cleaning that cannot be done during mall operations should be done after the mall is closed.

DEPARTMENTS HOUSEKEEPING MARKETING HUMAN RESOURCES MALL OPERATIONS TEAM SECURITY ENGINEERING FINANCE PARKING 14 .

Coordinating with marketing for Events and promotions To ensure availability of a dedicated staff at information desk at all times to help and guide the customer. Cam Electricity Bill Recovery Distribution Of bills Common Area To be clean and Neat Good relation With retailers Details First Week of every month Last week of every month To get it done with the help of Housekeeping Maintaining good relation. sharing their concern and solving the same on priority.MALL OPERATIONS AREAS Mall Management Rent. Marketing Activity Customer information desk Help Desk To help retailers & ensure there feed backs and complaints are taken care properly. 15 .

building / mechanical / electrical works. landscaping. pest control and any other contract deemed necessary for the management of the properties y Track and monitor performance of each of the vendors and ensure enforcement of service level agreements as per the contract y y y Drive value adding and cost saving initiatives Monitor market trends and provide inputs for MIS Study emerging developments in the business environment and their impact on his work area Customer Perspective y y Establish.KEY RESPONSIBILITIES Mall Manager:- Financial Perspective y Coordinate the contracting process for contracts like security. execute and monitor service level contracts with the customers Institutionalize a continuous feedback mechanism with the customers and customize operations and maintenance services accordingly y Identify changing needs of the customer and highlight the same to the senior management to evolve innovative solutions for the same 16 .

Pest Control &Landscape Maintenance Services Systems for Security and safety / fire prevention & protection services Fire drills / evacuation drills Building Safety audit Other areas Events and promotions Revenue generation through marketing and publicity Identify suitable vendors for providing various services and coordinate their evaluation and involvement . Internal Processes Perspective y y y y y y y y y y y Ensure smooth functioning of day-to-day activities as per defined processes for mall Monitoring of Operation and Maintenance of All Utilities / Infrastructure Building Maintenance Management of House Keeping. y y Participates in the recruitment. and prior notification by Mail. Weekly Meetings. y y & sharing customer experiences.y Provide feedback to project design. training and development of staff members Direct day to day interaction with the respective department heads for smooth functioning. suggestions & complaints on a daily basis Consistently motivation of the staff to perform & give best results by regular formal & casual 17 . planning and control and management on practical issues relating facilities management arising out of their respective areas of work y Provide inputs to commercial and marketing on customer information and expectation handling.

Mall Executive:y Enhance the value of the property by providing a pleasant and friendly environment for customers and tenants in the mall. y y Contribute team on checking standard of permanent shops. y Regular update to all concerned about Guest Comments. y y Manages tenant relations by inspecting and observing daily operation of all tenant . home office and tenants. temporary shops& events Manages all facts of the daily operations. Generates revenues through temporary leasing efforts and sponsorship in cooperation with corporate staff. Researches local tenants and negotiates/recommends y Thorough understanding of Information flow from all departments with immediate coordination of the same. y Develops relationships and serves as liaison to civic representatives. y Direct contact for any requirement from the retailers related to Maintenance & HK job 18 . y Supervises staff to ensure that property operations are carried efficiently and effectively y Participates in the development of business plans and directs special projects to enhance tenant sales productivity and center profitability. marketing through effective planning and utilization of resources to maximize net operating income and tenant satisfaction. Suggestions & Complaints with immediate solution and necessary amendments required to make the process user. business partners. y Open to customer feedback comments / Feedback/ Suggestions with a proper record of the same & rectification as per the feedback instantaneously.friendly.meetings in house & out of the house.

Challenges Customer Satisfaction Sensitive cases like eve teasing . fire. false alarm. theft. Emergency evacuations Smooth operations of parking on Weekends Avoid customer group clashes and fights Efforts Fire fitting drill is conducted Proper man power planning on week days & Weekends Training the staff on regular basis Conducting Mock drill on emergency for better control 19 .SECURITY AREAS All entry Exit Parking Atrium Fire Exits CCTV monitoring to have better control.

HOUSE EE 20 .

y y y y Maintenance & upkeep of Public Areas Assures that facility is tidy and sanitary and has all the supplies needed to run smoothly. and checking regular availability & supply of equipment & chemical stock. equipment.KEY RESPONSIBILITIES Housekeeping Executive:y To ensure agreed standards of cleanliness and hygiene are maintained in all public areas in accordance with correct procedures and administrations. procure materials. Proper coordination with other departments. y To ensure that all equipment furniture and furnishing are maintained. Staff training. prepare budgets. checked and kept in good working order with in order y Responsible for proper setup. Responsibilities include Employees establish and maintain production schedules. y y y y Deep and high level cleaning of assigned areas. 21 . and supplies. and staff scheduling. inter-department communications. Work for high degree of cleanliness in all areas of the mall. Ensure mall and park area should be pest free. and confer and resolve problems with facilities sections and vendors.

Nursery establishment /management. Daily reports concerning to horticulture. Maintaining existing greenery /plantation of Mall /Park. Planning and controlling of park. Planning of new plantation for dead greens 22 . Insect /pest card and disease management. Plant propagation.Horticulturist:y y y y y y y y y y Maintenance and development of horticulture work at various locations of MBD Manpower management. Time management for horticulture material like manure /fertilizer etc.

E EE 23 .

MARKET 24 .

HUMAN RESOURCES 25 .

organised retail accounts for a very small portion of the Indian retail market compared to other developing nations reflecting huge potential for growth. favourable demographics and spending patterns India has witnessed an unprecedented consumption boom. Inspite of the recent growth. JC Penny. major global retail chains like Wal-Mart. At present Organised Retail in India is at a blossoming stage but its growth is a scorching pace. While the total Indian retail sector has grown in line with private consumption. Growth in organised retail is driving demand for retail malls in the country. etc are eyeing the country. As a results of improvement in income dynamics. organised retail has grown at substantially higher rates. The key drivers are: y y Consumer or Demand-Side drivers Retailers or supply side drivers. Seeing the potential. Key players A summary of key players in the organised retail segment in India is as follows:  PANTALOON RETAIL(INDIA) LIMITED  SHOPPER¶S STOP LIMITED  RPG ENTERPRISE  LANDMARK GROUP  MADURA GARMENTS  GLOUBUS 26 .RETAIL INDUSTRY The Indian retail industry has a size of $300 billion. The Government is also promoting the sector and considering allowing FDI in the sector.

the issuance of credit cards has provided greater flexibility to spend. y Infrastructure improvements and increased availability of retail space: Availability of retail space has historically been a growth constraint for organised retail. The recent increase organised in retail such as mall development has led to increased supply of quality retail space.Demand Drivers Key factors that are driving growth of organized retailing in India are as follows: y Rising Urbanization: India has a huge and rising urban population. y Growing number of employed and educated women population: Growing number of employed women population has resulted in increased double income households leading to greater disposable income and increased demand for items like women and children apparel. y Higher disposable incomes: Population growth combined with a growing middle class with increasing disposable incomes is likely to give a boost to the retail industry. 27 . which is the target segment for organised retailing. coupled with increased willingness of banks to lend. y Brand profusion: The urban population is becoming brand-conscious thereby driving demand for organised retail. Further. y Media proliferation and rising awareness level: Access to information and global trends has increased consumerism and spending patterns. key segment driving retail activity in India. y Easy availability of credit: Availability of credit is easier with interest rates coming down over the years.

This indicates a significant potential for growth in organized retailing in the coming years. Bangalore and Hyderabad will have a 74% share. approximately 75 mn sq ft of mall space would be available in India. Lucknow.According to a study done by HSBC. A study done by Knight Frank India indicates that by 2007. Chennai. in the short. Indore. India is likely to have over 220 shopping malls by 2007. with malls also coming up in non-metro cities and larger towns across the country. The balance 26% will be made up by cities like Kolkata. under construction across India. 1 The shopping mall phenomenon. Ahmadabad. Nagpur.4 mn. Ludhiana & Chandigarh. Pune. Within this.to medium term which is expected to take organized retail to 8%-10% of total retail sales by FY10. Outlook The experience of other developing economies suggests that the transformation of retail from an unorganized sector to an organized sector can be rapid. the boom in organized retail sector is already having an impact on mall construction with a combined space of 26. is not likely to be restricted only to metros. 55% and 17% respectively. Mumbai. 28 . Raipur. Malaysia and China having penetration levels of 75%. as against less than 30 fully operational malls in 2003. however. The org anized retail penetration in India at less than 3% is very low even as compared to developing countries like Taiwan. Market estimates indicate annual growth in the region of 25%-30% p. 2Growth in organised retail will continue driving demand for retail malls in the country and investment option will further increase as the Government will finally open up international investment in the retail sector during 2009-13 period. NCR.a.

According to Technopak Forecast as posted on the Indian retail forum 2008 for the year 2014 y Size of modern retail in terms of direct investment should be greater than US 30 billion (2009-13) y Revenue would be US$ 100+ billion y Share of total retail will be 16% y Space occupied will be 500 million sq ft y Direct employment will be 2 millions y Annual rate of growth : 35% 29 .

In this age of mass production and mass consumption. Then the trend followed in the other metros over the world. People simply go about roaming through the shopping mall in order to peep through the window of the shop and often ending up buying something they like. Originally the first of the shopping malls was opened in Paris. Advantages of shopping malls: y y y y Increase in the growth of the organized retail sector Monumental increment in economic growth Employment generation by the organized retail sector Good competition means better products & services 30 . The concept of departmental stores came up in the 19th century with the Industrial Revolution. and there was a spree of shopping malls coming up at various places. According to historical evidences shopping malls came into existence in the middle ages. Shopping malls are an emerging trend in the global arena. and especially so in India. which are considered family hangout zones. multiplexes. and car parks attract more and more crowds to shopping malls. The concept of shopping was altered completely with the emergence of these shopping malls. and so this format of shopping has become so popular all over the world. Consumers wanted a better shopping experience and this demand gave rise to the emergence of shopping malls in India. The consumers desire a combination of comfort and suitability which the shopping malls cater to. the concepts of shopping malls is most modern method of attracting consumers. though it was not called so. The inclusion of amenities like restaurants.it has become Synonymous with splurging time and money.Shopping malls The latest trend in the corporate universe is of the emergence of the shopping malls. Shopping was no longer limited to a mere buying activity . The first thing that comes in our mind about the shopping malls is that it is a big enclosed building housing a variety of shops or products.

The facility was comprised of 28 stores. Washington. This shopping mall boasted two rows of stores on each side of an open-air section where shoppers could walk. The first enclosed shopping mall was Southdale Centre in Edina. Minnesota which opened its doors in 1956.Disadvantages of shopping malls: People began moving to the suburbs during the 20th century. peve consumers in areas outside of the cities. and also the demographic patterns favor the emergence of shopping malls. The Market Square was located in the expensive Lake Forest suburb and is thought to be one of the first planned shopping centres in the U. apartments.S. Brief history In the United States. changing attitudes. a shopping mall called The Market Square opened for business in Chicago. The trends to follow in the future: y The shopping malls favor a growth in the Indian organized retail sector by 10% within 2011 y There would be different living formats of shopping malls depending on the region. In 1950. By 1916. y Shopping malls were built to set the companies with superior resources would muscle out the ones inferior to them. 31 . IL. the Northgate Shopping Centre was built in Seattle. and offices. y Monopolization of the organized retail sector In India. the emergence of shopping malls has mostly altered the lifestyle of the consumers. Two department stores anchored each end of the shopping centre. With the growth in income.

such as San Francisco. fashion oriented centres between 80. shopping centres featuring name brand retailers selling their products at discounted prices. but appear here because the centre may have.000 and 250. displays because of their classic-mall type appearance even though they are without a classic-mall anchor store. Outlet Centres 32 . you will find only regional centres. ft. lifestyle centres increasingly have a cinema as a major tenant.000 sq. Fashion/Specialty Centres Characterized as higher end. Relatively few community centres were chosen. are often built in an open-air format Types of Shopping Malls In general.000 sq. Lifestyle Centres A new designation that has a loose definition. Usually two types of anchors. the new designation. it's a centre that does not have an anchor tenant in the classic sense (that is. Finally. at one time.000 and 350. Generally. been considered a regional centre. most modern-day developers built enclosed shopping malls in order to create a climate-controlled shopping environment. and Fashion/specialty centres on this Web site. Today. Community Centres Characterized as having between 100. However. such as a discount department store or large specialty/discount apparel store. because of their particular attractiveness or size. a department store). Outlet malls. Others have just a small collection of exclusive shops. Only a few theme/festival centres were listed in heavily urbanized areas. ft. superregional centres.Up until the mid 1990s. lifestyle centre. developers are returning to the creation of open-air shopping malls.

or fashion apparel store.000 sq. discount department store. ft. ft.000 sq. junior department store.000 sq. Superregional Centres Characterized as having over 800. Usually two or more anchors. such as a conventional department store. Theme/Festival Centres Characterized as tourist-oriented. or fashion apparel store. junior department store. Components of shopping mall Food court A shopping mall food court consists of food vendors offering a selection of food. ft. mass merchant. food is ordered at one of the vendors and then consumed at a seating area. mass merchant.000 and 800. retail and service centres between 80.000 and 250.Characterized as manufacturers' outlet centres with a surface area between 50. ft. which is normally a plaza surrounded by the counters of the multiple food vendors. At a typical food court.000 sq. Regional Centres Characterized as having between 400. Usually three or more anchors.000 and 400. such as a conventional department store. 33 .

also have to be protected by preventing the emergence of local monopolies/monopolies. cosmetics. The GREAT Indian Consumer A change from pyramid to sparkling diamond India¶s ascendance as an economic power to reckon with. generally in the front area of the store. furniture. this market has always been a tricky proposition to understand. and additionally select other lines of products such as paint. Discount department stores commonly have central customer checkout areas. hardware. especially farmers.Department stores A department store is a retail establishment which specializes in selling a wide range of products without a single predominant merchandise line. It has to be ensured that competition is not stifled and potentially monopolistic practices in credit. Department stores are usually part of a retail chain of many stores situated around a country or several countries. Department stores usually sell products including apparel. and sporting goods. jewellry. It¶s of the small producers. toiletries. regions. photographic equipment. Moreover. religions. 34 . undue pressure on urban infrastructure and the environment arising out of the proliferation of large format retailers has to be prevented. toys. Certain department stores are further classified as discount department stores. economic and social status. input and output markets are not encouraged by the entry of large corporate retailers. An intriguing element of this mystery is India¶s consumer market. has forced the world to unravel the mystery called INDIA. electronics. appliances. characterized by diverse languages.

a middles-class at the centre and a huge economically disadvantaged class at the bottom. a huge middle class at the centre and a small economically disadvantaged class at the lower end. 35 . India¶s consumer market till now was broadly defined as a pyramid. A recent study by the McKinsey Global Institute (MGI) suggests that if India continues to grow at the current pace.Now. Global corporations view India as one of the key markets from where future growth will emerge. This pyramid structure of the Indian market is slowly collapsing and being replaced by a diamond ± a relatively large affluent class at the top. up from 12th now. The diamond represents increasing volume and value across all classes of Indian consumer market. average household incomes will triple over the next two decades and it will become the world¶s 5th-largest consumer economy by 2025. it has also become a market impossible to dismiss. as the market undergoes a paradigm shift due to India¶s rapid economic growth and favorable demographics. a very small affluent class with an appetite for luxury and high-end goods and services at the top. The growth in India¶s consumer market will be primarily driven by a favorable population composition and rising disposable incomes.

A big bang.What Has Changed Two major changes have taken place though it is tough to pick them in the right sequence of cause and effect. the rush of real estate investors in to develop shopping centres has poured more money into retail infrastructure in the last 6-8 years than ever before. the mass reach of brands multiplied manifold. the consumer market has evolved at a steady pace since 1980¶s. y Second. in the actively consuming population whose reverberations and aftershocks will continue for years. It is now infinitely more ³cool´ to be earning and spending money than it was 25 years ago. The choice generation is coming of age and the shopping centre boom allows companies to launch new chains that offer consumers more choice and create more A. developments building rapidly in a feedback loom. watches or even career The big change is that the generation has entered the work force in the past few years has grown up with choice. that had made more choice than its predecessors whether of soft drinks.possibly similar to the baby boomers of America. A ³choice generation´ was born.has just happened in the work force. First. And now that it is earnin g on its own. The confluence of these two factors is creating a tipping point of sorts at breakthrough velocity. this choice generation is exercising its discretion to spend even more. With the advent of color television.grade real estate demand 36 . and can¶t get enough of it. and then cable and satellite channels.

while the proportion of dependent population is increasing. economically empowe population not only translates into increasing consumer red demand but also into a more value-conscious demand. India along with a few other countries is an exception to this. growth and drives personal consumption and a lower age dependency ratio places less strain on public finances. As these countries have an aging population.Pro-growth demographi The wi espread adoption of i proved medi al care and birth control since the 1970s has reduced birth rates and increased the proportion of citi ens living past their retirement age in most countries. In India. 37 . the proportion of citi ens of working age is forecast to fall slowly and the overall labor force will continue o grow. A young. 54% of Indians are under 25 years of age A rising productive population fuels . India has a t young population. they are beginning to face an acute shortage of working age population.

forecasts that the number of consumers driving growth will grow from 60 million households in 2007 to 146 million households in 2012. These shopping outlets all consumers to explore their choices and touch and feel products in the comfort of a glitzy and energetic environment. the Indian consumer¶s appetite for value and brand dominated goods and services is increasing. Increasing urbanization. quality and convenience and eager to explore the organized retail market. to assume that the Indian consumer will become an exact replica of his global counter part is the biggest fallacy companies can make. The Indian consumer market is thus on a cusp of metamorphosis. the youthful exuberance of the population and its increasing integration with globalized lifestyle and consumption patterns will drive growth in the Indian consumer market. Decoding the empowered Indian consumer The Indian consumer market is drawing global attention not just because of its promise of sheer volumes but also because of the tectonic shift happening in the nature of demand. among the lower economic strata are some of the factors reshaping the Indian consumer market. pro-growth demographics will expand consumer market in India. ready to place his money on brand. However. especially. The National Council of Applied Economic Research (NCAER).Thus. Organized retail constitutes a small percentage of the Indian retail market but promises consumers better quality and better shelf-life for products due to their excellent storage facilities and anti-tampering checks. 38 . The upbeat mood of the economy. increasing incomes and rising aspiration for a better life. While. An important factor attracting consumers towards formal retailing mechanisms such as hypermarkets and departmental stores is the shopping experience. the cultural and regional framework characterizing him is intact. something a kirana or mom and pop stores have never been able to offer. The result of this flux is a new Indian consumer who is more discerning than ever.

They just don't want availability of products. services and ambience. Possibly the most challenging concept in marketing is to deal with the understanding of consumer behavior. the income induced class movement happening across the rural and urban regions is forcing companies to re-look at their customer segmentation and product positioning. Cons umer companies are thus reali ing that the Indian consumer market is a tough nut to crack but the one they can¶t do without. The attitude of Indian consumer has undergone major transformations over the last few years. The Indian consumer today wants to lead a life full of luxury and comfort.In fact. Instead. They don't mind spending that extra buck. they want better experience. E olution of ³Retail Mall in India Rural Weekly markets Village fairs Traditional iranas om and Pop Hy e /S e marke s e artme ts stores S opping malls 39 .

40 .

In fact. or ³entrailing´. Many retailers are responding to the threat of Internet-based shopping by leveraging the µbrick-and-mortar¶ advantages that virtual retailers cannot match such as higher levels of service. Especially when it proposes an essentially finer monetary and behavioral value scheme to its clientele.Advent of the ³Mall´ Concept A new idea whose time has come when arrives. and other stakeholders have no option but to acknowledge and transform accordingly. now it is footfalls (number of visitors to malls). just operating in a conventional manner by enticing the customers with broad assortments. From eyeballs to footfalls . low pricing and extended work hours. from rock-climbing walls in shoe stores. in this evolving retail landscape the hedonic experiences that a customer can now obtain are virtually endless. If it was eyeballs (number of visits to websites) during the dotcom boom of 2000. it gradually takes over the old way. and an entertaining and fun retail environment. cannot be bunged by anyone.the human psyche has taken a complete downward journey in the last few years. to µsingles nights¶ in grocery stores. highly trained staff. The current mall mania that has gripped a shopping-frenzy nation can only be compared to the dotcom madness. Modern retailing is one such inevitable reality which has started taking a spin in the traditional retail scenario and is soon liable to capture the retail sector and further enhance its compass. is not enough to count on success. But. rather than trying to rob the customers of a superior way of life by promulgating fallacy and protecting vested interests. to off-road test tracks in Land Rover dealerships. The entertainment aspect of retailing. All elements in the delivery chain better accept it and prepare. 41 . is increasingly being recognized as a key competitive tool.

I have tried to analyze and investigate some of the motivational reasons people go for shopping by conducting a small research. In any event. These 20-27 year olds constitute a bridge between adolescents and adults when buying behaviour is in transition.e. all such decisions are taken by them. thereby providing guidance for store designs and marketing communication strategies. by working part time of full time. y y About 54% of India¶s population is below 25-27 years of age. from a computer to a car. A significant number of these older generation Y consumers are earning. whether parents or younger siblings. it is interesting that mall related studies have explored adult consumers and teenagers while ignoring the group that lies in between. i. they all consult them before taking any decision. Thus they represent a significant opportunity for retailers today. These days. from home furnishings to apparels. It would help retailers to examine current and potential patrons. This research tries to investigate the relationship between the older Generation Y consumers and the motivational factors for visiting malls. 42 . the older segment of generation Y. i.e.Consumers¶ buying behaviour in malls As a part of my project. These are the decision makers of a family.

43 . y Effect of Shopping Malls on small retailers.Objectives The purpose of doing the project is to find out: y The evolution and future prospects of shopping malls. y Effect of these shopping malls on the buying habits of consumers.

Ludhiana City Highlights Fast Track growth spurred by Industries Dynamic multinational and corporate presence.Introduction This project basically deals with the emerging mall concept across India in general. Sizeable numbers with ample disposable incomes. fashion conscious. Transitions in consumer behaviour and buying patterns. reports etc. Diverse. Increase in government spending in infrastructure. journals. 44 y y y y y y y y y y y y y . Supports an internationally connected garment industry. Young. trendy. which was mainly derived by visiting a number of malls and high streets in Ludhiana and reading material including research papers. Industry base for the largest apparel park in Asia. what led to the changes in consumer preferences towards them. growth of the Indian consumer market. upwardly mobile. Increase in population over the years. malls particularly. With the help of this project I want to throw light upon the entire modern retail scenario. Growing NRI resettlement and plough back. and Ludhiana in particular. what factors help in making a mall successful and their future growth trajectory. Currently on the threshold of retail revolution. Among the fastest growing cities of India. cosmopolitan canvas. It is purely based on my observation and understanding. how much the malls have been successful in delivering what they have promised.

Research Methodology Analysis of primary data was made which was collected while interacting with the targeted samples to find out the purpose of visiting malls. Research Design The study is observational and descriptive in nature. Secondary data. 45 . Questionnaire was used to collect primary data about mall visitors. Questionnaire was administered to about 50 visitors of different malls in Ludhiana . what do they buy in malls and with whom they prefer to go shopping etc.research papers. magazines and publications available about retailing were thoroughly studied. journals. Sampling Design and Sources Sampling units included visitors of malls who were residents of Ludhiana. how often the visited malls.

On an average a super market stocks up to 5000 SKU's against a few hundred stocked with an average unorganized retailer. so they have stabilized in terms of footfalls & merchandise mix and thus have a higher customer loyalty base. It is technology that will help the Organized retailers to score over the unorganized retailers. Since the stand-alone outlets were established long time back. the conversion ratio has been very low in the retail outlets in a mall as compared to the standalone counter parts. On the other hand. Successful organized retailers today work closely with their vendors to predict consumer demand. a high street store of retail chain has an average conversion of about 50-60%. Example: Wal-Mart pioneered the concept of building competitive advantage through distribution & information systems in the retailing industry. y Customer Loyalty: Retail chains are yet to settle down with the proper merchandise mix for the mall outlets. As a result. Opportunity: y The Indian middle class is already 30 Crore & is projected to grow to over 60 Crore by 2010 making India one of the largest consumer markets of the 46 . reduce inventory holding and ultimately save cost. Weakness: y Less Conversion level : Despite high footfalls. shorten lead times. in contrast the retail majors are experiencing a ROI of 8-10%.SWOT Analysis of retail (shopping malls) A SWOT analysis of the Indian organized retail industry is presented below: Strength: Retailing is a ³technology-intensive" industry. a stand-alone store has a ROI (return on investment) of 25-30%. They introduced two innovative logistics techniques: y y Cross-docking EDI (electronic data interchange). It is seen that actual conversions of footfall into sales for a mall outlet is approximately 20-25%.

a.000 Crore by 2010. and reach INR 1. 85% of which has so far been concentrated in the metros is beginning to percolate down to these smaller cities and towns. It is estimated to grow at the rate of 25-30% p. India will have over 55 Crore people under the age of 20 . The contribution of these tier-II cities to total organized retailing sales is expected to grow to 20-25%. The 'retail boom'.world. high degree of flexibility in merchandise. display. The y Godrej group has launched the concept of 'agro-stores' named "Adhaar" which offers agricultural products such as fertilizers & animal feed along with the required knowledge for effective use of the same to the farmers. y Shopping Culture: Shopping culture has not developed in India as yet. y Rural Retailing: India's huge rural population has caught the eye of the retailers looking for new areas of growth." Hariyali Bazar" is started by DCM Sriram group which provides farm related inputs & services. The IMAGES-KSA projections indicate that by 2015. Threats: y If the unorganized retailers are put together. While the metros have already been exploited. prices and turnover. Even now malls are just a place to hang around with family and friends and largely confined to window shopping 47 .reflecting the enormous opportunities possible in the kids and teens retailing segment. Pepsi on the other hand is experimenting with the farmers of Punjab for growing the right quality of tomato for its tomato purees & pastes. y Percolating down: In India it has been found out that the top 6 cities contribute for 66% of total organized retailing. they are parallel to a large supermarket with no or little overheads. the focus has now been shifted towards the tier-II cities. y Organized retail is only 3% of the total retailing market in India. ITC launched India's first rural mall "Chaupal Saga" offering a diverse range of products from FMCG to electronic goods to automobiles .attempting to provide farmers a one-stop destination for all their needs.00.

SURVEY OF SHOPPING HABITS OF CUSTOMERS VISITING MBD NEOPOLIS I like visiting mall with: 28% 38% Family Friends 3% Family Friends 31% 48 ¢ ¡   l ne .

Shopping for me is Excitement 17 £ 28 49 ¥ £ £ Strongly agree £ 0 10 ¤ 45 gree Undecided Disagree Strongly disagree .

Shopping for me is Interesting 10% 7% 35% 3% Strongly agree Agree Undecided Disagree Strongly disagree 45% 50 .

Customer is tempted to buy a product if sale is on 17% Strongly agree 10% 45% 7% 21% 51 ¦ gree Undecided Disagree Strongly disagree .

Customer is eager to buy a product if it is similar to an on-going fashion trend 3% 16% 36% Strongly agree Agree Undecided Disagree 19% Strongly disagree 26% 52 .

Customer is aware of the condition of small retailers due to shopping malls 10% 7% 28% 10% Agree U d ecided isagree gly disagree 45% 53 ¨§ Str ¨§ Str gly agree ©  .

Customers prefer shopping malls for their regular shopping rather than other local markets 14 27 Disagree Strongly i sagree 28 21 54         10  Strongly agree Agree n e ci e  .

Better environment and improved customer service. shop owners and farmers are facing acute financial problem as their business transactions are reducing sharply. Various options to the customer for choosing brand and variety. 3. Considering mash rooming of shopping mall. Scope of employment at local area for various segment. 55 . small towns and a large section of middle class .CONCLUSION After looking at the above data we have come to a conclusion that presently there is a trend of considerable increase of shopping malls in all the metro cities. Competitive price with seasonal discount various gift scheme. To encounter the situation it is required to impose rule or preferably ban by the concerned authority to restrain sales of some particular items (fruit. On one hand where the shopping malls are slowly capturing the market due their superior power and size for which they are able to attract more and more customers towards them. Items from food to clothing. grocery to Electronics are available under one roof. and the profit margin is slopping towards the shopping mall. Ample scope of promoting sales and enhance brand image. many of them who were dependent on the small shop for their living are facing the heat. 5. Availability of parking space for their car 7. Loosing employment by the employee of small shop owners. vegetables and some other glossary product) from shopping mall. This will give the small shop owner and the farmers some protection against the giant shopping malls. upper middle class people are coming for shopping because of the following reasons: 1. small business man. 2. especially the farmers and the small shop owners of groceries and other house hold goods are affected as considerable number of customers are shopping these items from shopping malls instead of normal market. Customers convenience for shopping. on the other hand due to growing trend of shopping mall . 4. 6. so that they can get back to their normal state.

ANNEXURE 1: QUESTIONNAIRE BASIC INFORMATION Name Age Gender Profession Hometown Income Email id - I like visiting mall with: Family Friend Alone Family and friends 56 .

2.DEGREES OF SATISFACTION 1. Neutral 4. Strongly disagree YOUR OPINI0N Shopping for me excitement Shopping for me is interesting I am tempted to buy a product if a sale is going on I am eager to buy a product if it is similar to an ongoing fashion trend I am aware of the condition of the small retailers due to these Shopping malls? I prefer shopping malls for my regular shopping rather than other local markets 1. 57 . Strongly agree 2. Disagree 5. 4. 5. Agree 3. 3.

thetimes-tribune.slideshare.economictimes.com MBD Neopolis 58 .indiatimes.indiatimes.indianmba.com www.com www.References y y y y y y www.com www.com www.

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->