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S C

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Issue-04 l Vol-02 l May 2011

Shopper Talk

The Mall Next Door : When Dheera


Nambiar moved from Dubai to small-town
India she dreaded...
Read More

Industry Talk

Johathan Yach, Head of Mall


Management, Mantri Developers :
Most well managed malls have a CSI
programme...
Read More

Event Talk

India Shopping Centre Forum, 2011 :


It saw a huge turnout with more than
300 people visiting... Read More

Trade Talk

Subodh Kant Sahay Assures Support :


Shopping Centres, Community Sahay urged the retail sector to
capitalise on the... Read More
Centres
COOs Desk
What do shopping centres mean to the community? The
well-managed ones, experts say, are hubs for community One of the key ingredients in running a
activities in the crowded urban sprawl of India. successful shopping centre is its social
responsibility...
Read More
In the crowded urban centres of India, shopping centres are often the chosen
venues for community activities. In the vastly peopled urban sprawl they are
Membership Info & Benefits
havens of controlled community spaces.
To make the most of SCAIs
They are definitely fulfilling this role, says Jonathan Yach, Head of Mall membership benefits and info
Management at Mantri Developers. Yach explains that internationally, a community log on to: www.scai.in/Content/
mall is a small mall (around 1,00,000 2,50,000 sq.ft.) that offers retail services Benefitstomembers.aspx
and merchandise to a localised catchment, usually...
Contact:
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SCAI, 112, Free Press House, 215, Free Press
Journal Marg, Nariman Point, Mum - 400 021
T: +91-22-2202 5902/05/06
As the purse empties, the heart is filled.
shop-o-tonic - Victor Hugo
F: +91-22-6632 1384
E: membership@scai.in or
More chandresh@scai.in

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Issue-04 l Vol-02 l May 2011

Shopping Centres, Community Centres


What do shopping centres mean to the community? The well-managed ones, experts
say, are hubs for community activities in the crowded urban sprawl of India.

In the crowded urban centres of India, shopping centres are often the chosen venues for community activities. In the
vastly peopled urban sprawl they are havens of controlled community spaces.

They are definitely fulfilling this role, says Jonathan Yach, Head of Mall Management at Mantri Developers. Yach
explains that internationally, a community mall is a small mall (around 1,00,000 2,50,000 sq.ft.) that offers retail
services and merchandise to a localised catchment, usually within 10 minutes of driving distance of the mall.

Here in India, we talk of the 'Community/CSI' issues that can be included in the mall this refers to the services and
initiatives that a mall can represent to a community. Most well managed malls have a CSI programme embedded
within its marketing and outreach programme, he says.

Many of India's most successful shopping centres are also community hubs. In Delhi's Saket, Select Citywalk's flea
market has become popular and talked about, as have their music programmes that draw a varied audience. Similarly
Kalyan's Metro Junction is known to have functions for the community for they even invited
the parents of one of the army-men who died in Kargil, who lived in the suburb, to do the flag
hoisting on one of the Republic Day celebrations.

At Inorbit Malad and Vashi, a monthly community programme called 'Aikya' involving 90
housing societies in each catchment area has been conducted. One session was about training
office bearers of these societies in rainwater harvesting.
Another initiative, 'LIVE At Inorbit', is where upcoming
bands connect with the youth in an unplugged
environment within the mall, without any fees. At
Mantri Square, Yach says, there is a high demand of activities by the community
and initiatives include the Rotary Blood Bank and Environment Day events.

Rituraj Verma, National Director, Retail Agency, Knight Frank (India) says that
any community activity needs to be viable. It depends largely upon the returns
that they are able to get. Any community activity is periodic, highly seasonal,
low cost, high involvement activity. The analysis is, whether it is able to add value for its investor by becoming a
community centre, he says.

Verma cites many examples of community activity internationally. If you go to Bangkok, a large area has been taken
up for the national library, and the state pays a rental to the mall developer. A large area is taken for a television
show and since the channel is state-owned the state pays the developer. Those deals work, but it is almost like a
different initiative, which the mall developer is not keen on currently.

Similar models are at work in India at various shopping centres. The Inorbit shopping mall in Mumbai, for instance,
opens at 5.30 am for its mall walkers who are allowed to use the deserted aisles
and the empty car park outside.

Every morning, groups of walkers, including many senior citizens, use the 364,000
sq. ft. shopping centre in the northern suburb of Malad to exercise.

An organisation for protection of public spaces, CitiSpace says that there are just
940 acres of parks, recreation grounds and gardens for an official population of
about 14 million.

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In comparison, London, with nearly eight million people, has more than 10,000 acres of publicly-accessible open
space while New York City has some 29,000 acres for about the same number of residents.

In India, these initiatives are mostly developer-dependent. And experts urge a careful study of the bottom-line.

One needs to keep in mind the horizon for the returns the library in Bangkok works really well, it brings a certain
intellectual kind of customer who is willing to spend hours in the mall. The same is not true for the children's
playground. The government does not have the space, so it uses tax payers' money to pay the rent and create a
playground for children.

What needs to happen is a lot of collaboration with municipal bodies and cultural bodies in the area. There are funds
available but not too much. If you are able to find those funds and channel them to the shopping centre, that is
great, says Verma.

Most enlightened developers work on a long-term vision. For instance, Jayant Sohonie of West Pioneer, the company
behind Metro Junction in Kalyan, told Mall Talk in an earlier interview, Ours was the first mall in the area. So we knew
people would come there. But that was not enough. Our market research found the needs of our target group. So,
despite the fact that we had the first mover advantage, we did not want to be all commercial. We wanted people to
enjoy themselves and shop. Now it is so much a part of the culture there that entire families meet up at the mall
every evening before heading home.

Sohonie says that the benefits of being a part of the community are immense. Once you are part of the community
the conversion [between footfall and wallet share] is phenomenal.

Yach says that malls need to serve multiple needs to be able to clinch the
success formula. Malls serve a retail, entertainment, comfort and community
objective. In cities, where well managed and comfortable public space is in
short supply, malls offer community organisations and initiatives an easier way
for them to express their views and to educate the public, he says.

But even so, Verma says that community activities are beneficial is some cases
more than others. Tier II cities; for instance, are more likely to respond to such
initiatives because of the process of upgrading of lifestyle that is currently
unfolding.

Balasubramaniam of Mangal Tirth Estates, the pioneer of shopping malls in India, which has co-developed the
4,50,000 sq.ft. Brookefields Plaza mall in Coimbatore, says: Coimbatore has a population of 30 lakh people. Since
this is the first mall, the surrounding 150 km of area is also our catchment. Thus, it has to be a community centre. In
larger places there are several options in terms of infrastructure but in smaller places there is a need for a community
centre which brings together food and entertainment into one place.

Most of the developers, successful in involving the local community, believe that the success of these programmes is
tied to the needs of the community. The community signals us with the changes there and we accept these, Yach
says, when asked about planning programmes.

Verma says, You could open a banquet hall but if you don't get sufficient bookings you won't make money. You can
have a children's playground, it may increase footfall but will it increase revenue? You can have a library, but until it
comes from a government agency you will lose money. Does the community want to support that kind of investment?
The local body represents the interests of the community.
- By Shalini Seth
If you don't get what you want, it's a sign either that you did not
seriously want it, or that you tried to bargain over the price.

- Rudyard Kipling

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Issue-03 l Vol-02 l May
Issue-04 April 2011
2011

SHOPPER TALK

The Mall Next Door


When Dheera Nambiar moved from Dubai to small-town India she
dreaded having to give up creature comforts. I was used to doing
everything at the mall. Some of my local friends even met there for
breakfast first thing in the morning. And sometimes the whole day would
pass before we would stop mall hopping, she says.

In India, she thought that things would be very different. She had resigned
herself to bazaars and small Udipi restaurants. But I was in for a pleasant
surprise. Even in our small town, there were two or three major shopping centres. Some of the biggest retailers were there.
And additionally, there seemed to be a lot of community interaction there. For example, just recently we had a craft bazaar
at the mall, which showcased work from local tribal community. Being able to shop for these and interact with them was
great, says Nambiar.

For many Indians, in small and big towns as well as in metros, shopping centres are fast becoming centres for interaction.

I find this a great way for introducing new topics to my children. Most shopping centres celebrate festivals and do
interactive programmes. And children think that malls are fun so learning is easier, says Shamindra Yadav, a father of
two.

The best thing about many shopping centres is the localised nature of the offerings. In Bhopal, getting their famous
chikki in a shopping centre was a highlight. In Kerala, it has been the local savoury shops that make my day when I
go out. In Mumbai, it is the joy of sampling food that was available in some corners of the city, which makes me visit
shopping centres, says a frequent domestic traveller, Sharmistha Roy.

Nambiar says that there is much in the mall space that is needed, community-wise, but there is as much that is
already there. I think we use shopping centres a little less because the weather here is not as harsh as in many
countries. But, I think that many mothers think that it is safe to send their children to the shopping centre, than have
them hang out on street corners like they did earlier, she says.

For the older generation too, the safety of the shopping centre is better compared to the crowds outdoors. I think our
lives are confined to the house, our car and then a shopping centre or another closed area. But given the state of
security in India, I am glad that there are shopping centres coming up in all hubs. At the end of the day, we have a
pollution-free day in relative safety, Yadav says.

Clearly, Indian malls are fast on the way to becoming centres of their communities.
- By Shalini Seth

Anyone who believes the competitive spirit in America is dead has never
been in a supermarket when the cashier opens another checkout line.

- Ann Landers

INDUSTRY TALK

Johathan Yach, Head of Mall Management, Mantri Developers

Most well managed malls have a CSI programme embedded within its marketing and outreach programme. It is

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2011

the norm for successful shopping centres in RSA, definitely; in India, especially.

Surprisingly (it's) not difficult or onerous on mall management at all; especially for us at Mantri Square. In fact, it is
an obligation and a pleasure. We believe that 'real estate is and should be, in the service of the community!' We make
it happen; the organisation and the customer appreciate this.

We are generally inundated with requests, sift through the options and then decide on what is best for the mall. Mall
management decides on what is needed and appropriate.

We engage with all our tenants as often as possible. We have a Retailer Training School in the mall
called The Edge, where we encourage retailer staff to upgrade their staff's selling skills.

Many retailers have not understood how intensely competitive a well-managed mall can be and are
slowly learning to engage with mall management to enhance their sales and marketing activities.

Johathan Yach, Conversion depends on the retailer and its service and its merchandise.
Head of Mall
Management, Footfall at Mantri Square is around 1.4million monthly and retailers are encouraged to take


Mantri Developers
maximum advantage of this as an opportunity.

Rituraj Verma, National Director, Retail Agency, Knight Frank (I) Pvt.
Ltd.

The analysis has to be whether it is able to add value for its investor by becoming a
community centre. You could open a banquet hall but if you don't get sufficient bookings you
won't make money. You can have a children's playground, it may increase footfalls, but will it
increase revenue?

You can have a library, but until it comes from a government agency you will lose money. The
structure of the deal and return from the community will depend on the catchment.
Rituraj Verma, National
In other countries they work as community centres because the government funds some of Director, Retail Agency,
Knight Frank (I) Pvt. Ltd.
these centres.

You can have a swimming pool. But will they promote it? Depending on the commercials and location, it may not be
viable. In Tier II there is definitely upgrade happening in lifestyle. There is going to be community support for these
initiatives. The local body represents the interests of the community.

You may have to wait for four years. Critical mass is achieved after some time. It takes two business cycles for any
kind of community activity to start showing some positive effect. If they can wait that long it is worthwhile.

One needs to keep in mind the horizon for the returns. Let's take the example of a library. The highest lending takes
place during a vacation only twice a year. The first year will go in creating awareness. Only in the third year you will
start getting returns.

Until that time who will bear the cost? You cannot put it in the common area costs. You have to get some revenue.
You have to talk to the municipal bodies.

It's a fine balance. If you have not oversized the mall, chances are you don't need to do this. If you have oversized in
the beginning you will need to find ways to get the customers.

- As told to Shalini Seth

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Issue-03 l Vol-02 l May
Issue-04 April 2011
2011

EVENT TALK

India Shopping Center Forum, May 13-14, 2011


India Shopping Centre Forum 2011, was held in Mumbai at the Renaissance Hotel on May 13-14, 2011. The event saw
a huge turnout with more than 300 people visiting the venue. This year's theme was 'Shopping Centres: The Need
to Cover More Ground.'

On the second day of the ISCF event a SCAI Conclave, themed 'Time for Action', was held. The Conclave covered
ground for the future of retail in India, which entails developing more and better Shopping Centres. Important issues
that were discussed was that these places should not be seen as traffic nightmares, energy guzzlers or, worst of all,
money machines. But instead, places that are seen as a core need for
consumption to propel India's economic growth. And for this to happen
Shopping Centres have to figure in the Government's 'Infrastructure
Development' priorities. The impact of FDI on retail and the role the
government can play to develop this industry, as well as grant it an industry
status, were also discussed during the SCAI Conclave.

S Raghunandhan, Chairman, SCAI & CEO Retail, Prestige Group and Anuj
Puri, Chairman & Country Head, JLL (India) were the anchors for the SCAI
Conclave. The panellists included Jonathan Yach, CEO, Propcare Mall Management, Kishore Bhatija, MD, Inorbit
Malls (India) Pvt. Ltd, Rama Bijapurkar, Strategic Marketing Consulting and Sunil Biyani, Director, Future Group.

TRADE TALK

Subodh Kant Sahay Assures Support To Retail Sector


Subodh Kant Sahay, India's Minister of Tourism assured complete government support to the retail sector in
establishing India as a major shopping destination. In a message to the retailer and shopping
centre developer community at the India Shopping Centre Forum (ISCF) 2011, Sahay urged the
retail sector to capitalise on the rich Indian culture and handicrafts to drive in more tourists into
the country.

Debating on ways to make Incredible India a world destination for shopping; the panellists, at a
session on the subject, unanimously agreed upon the need to organise an Indian Shopping
Festival to position India as a hot spot for shopping. The session was anchored by Dharmesh Jain, Chairman and
Managing Director, Nirmal Group and was attended by Shishir Shrivastava, CEO & Executive Director, The Phoenix
Mills, Arif Sheikh, Executive Director, EWDPL and others.

Nokia Maps Malls


Handset maker Nokia plans to introduce a new feature on its mobile phones -- 'Search' -- which will enable users to
identify a particular locality at the click of a button. The new feature helps customers to identify a place or a shopping
mall or a food joint from their mobile phones.

The new feature aims to leverage the success of Nokia's 'Ovi Store' for mobile phone
applications. India is unique in the usage of internet on mobile phones, with a majority
of users interested in games, entertainment and sports, compared to the US and
Europe where people use the internet only to access their mails.

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Future Group Working On New Mall Model


Future Group has said it is working on a new model for shopping malls in the country, to help cope with growing land
and material prices. Sunil Biyani, one of the group's directors told reporters on the side-lines of an event that the
group is working on a model that is economically viable and at the same time is retailer friendly.

Some concrete developments on this may be seen in the next three to four
months. Biyani said that the group is in talks with two to three developers
for malls in three to four cities. Biyani said some of the new features would
be the use of natural and green building materials, energy efficiency and a
100 per cent lease model.

Separately, the group's retail arm Pantaloon Retail reported that net profit for its fiscal third quarter grew by 42.9 per
cent to Rs. 201 million. Sales for the three months ending 31 March were up 10.3 per cent to Rs. 10.3 billion.

Prestige To Set Up More 'Forum' Malls


The retail infrastructure arm of Prestige Group has said that it is eyeing expansion of its mid to upper-mid market
shopping centre concept 'Forum', by setting up Forum malls in Hyderabad, Mangalore, Mysore and Kochi.

It is also constructing another Forum mall in Bangalore and one in Chennai, which will come up in early 2012. The
Prestige Group CEO (Retail) S Raghunandhan told newspersons that the Forum concept is at the core of Prestige
Retail's business and the company is constantly aiming at expansions and improvements. Raghunandhan also
explained about the unique value proposition that Prestige has conceptualised by establishing shopping centres
positioned as Value Malls in a bid to provide greater value-for-money
shopping to consumers.

The company has a single Forum Value Mall at Whitefield in the city, set up
in 2009, under a joint venture between Prestige Group and Singapore-
based CapitaLand Retail Limited.

The value concept offers premium outlet shopping, with more emphasis on
greater value for money. Like any other conventional mall, it offers big
brands, food courts and a multiplex, but all these offer products and
services at a more moderate rate to consumers.

Terming it as a community shopping experience, Raghunandhan said that Whitefield was chosen for the mall
considering its proximity to the IT hub, prevalence of exclusive gated communities and a sizeable expat community
residing there, along with favourable cost of real estate. He added that the mall has more than 100 brand outlets,
with a large number of them being factory outlets too. According to him, though the mall concept in India is at a
nascent stage, organised retailing will eventually grow.

Metro Cash & Carry's Mumbai Debut


Metro Cash & Carry, the self-service whole-seller, has expanded its presence in
India with its first store in Mumbai. Located at Neptune's Magnet Mall in Bhandup,
the new outlet Metro Cash & Carry's fourth in India caters to hotels,
restaurants and kirana stores.

The Metro Cash & Carry centre in Mumbai has a selling space of 70,000 sq.ft. Most
of the work to build this outlet was carried out by local contractors, mainly using
local material. Due to scarce availability of appropriate real estate, this is the first

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time Metro Cash & Carry India has built a multi-level wholesale centre.

The product range in the Mumbai centre comprises more than 18,000 articles; 8,000 food and 10,000 non-food
products. The focus on local suppliers, which is typical for Metro Cash & Carry's business model, is also pursued in
India. Around 95 per cent of the goods on display in Mumbai originate from local producers and distributors.

Metro Cash & Carry entered the Indian market in 2003. Besides the new outlet in Mumbai, the company operates two
wholesale centres in Bangalore and one in Hyderabad.

Too many people spend money they haven't earned, to buy things
they don't want, to impress people they don't like.
- Will Smith

DESIGN & CONTENT TEAM


Shalini Seth, Vandana M Dewan, Carlton Pinto, Veena M, Prerna S, Murugan S l Everything Goes! Communications l www.everythinggoes.in

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