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Shopping Malls - India

Wednesday, December 8, 2010

The Celebration Mall- Amritsar

Visiting Amritsar? Then be prepared for a shopping spree like no other you have ever been on. The shopping streets of Amritsar- Hall Bazaar and Katra Jaimal singh, are lined with traditional ethnic wear, with all kind of varieties. But if you are someone who wants everything under one roof, and that also in the comfort of air conditioning, dust proof, noise proof environment then head straight towards, The Celebration Mall. Opened on 17th Dec 2009, it enjoys a prime city centre location at Gagan Chowk. One can expect a bustling atmosphere inside. The name of the mall was coined to signify celebration in everyones life, vivaciousness, bustling energy and a modern lifestyle. This is exactly what the mall provides today to all its visitors.

All the malls seven floors are filled to the core with shops, events, fun, entertainment and excitement around every corner.

But just about eighteen months ago, it was an all empty vertical concrete, haunted structure, which seemed impossible to be leased ever!!!

There were few important decisions in time which saved the life of this mall and made it today a landmark in Amritsar. The lessons learnt are amazing. First four anchors were signed and positioned rightly-- Cinnepolis, the worlds sixth largest multiplex operator, Mc Donalds, Pind Balluchi and SRS Value Bazaar.

Second floor was dedicated to local retail and named as Raunaqaa Punjab Diyan. Food court on third floor- Melting Pot was designed and operated by developer himself. Then gradually many mini anchors were signed from M & S to Reliance Footprints. From Woodland to Crazy Cars & Funzone.

Food Court- Melting Pot

For the launch of mall, as a prelaunch event on 19th Nov 09, we had a local retailers meet in one of the halls of Cinnepolis. This created a great hype and buzz in the town for the project. More than 500 people turned for this event. Here the formal launch date was announced as 17th Dec 09 for the project and promise kept later.

Formally the project was launched with great pomp and show on 17th Dec' 09.The whole mall was decorated like a bride. And there after there has been no looking back for the project.

During the times of recession and when other developers complained of less footfall, TCM was over crowded and full with difficult to control crowd.There has been a total mall promotion calendar in place with all kind of events taking place like: Winter Carnival, Mr. Miss Amritsar, Mom & Me, Drawing Competition, Baisakhi Night, Summer Surprise and much more.....

Today it is leased to all top national and international retailers. Pictures shall speak more than words.

Posted by Sonia at 3:48 AM 0 comments Labels: retailers, shopping mall

Friday, March 26, 2010

DLF Promenade Mall

Recently visited DLF Promenade Mall and was overwhelmed to see the beautiful flourishing property, with best of the retail mix. Visiting Promenade is to enter a world apart. A unique commingling of eastern and western sensibilities inspires the rare and wonderful design by Architect Mohit Gujral. The design of the entire mall is both commercially and culturally focused. Located in the heart of South Delhi, it offers an elegant and magnificent shopping experience, as it houses some of the well known international brands, truly a shopping paradise for brand name lovers. In the main atrium is the attraction of Cinnabon, the American chain of coffee shop, best treat, a special and perfect way to enjoy coffee or tea with friends here.

Cosmetics & beauty care at the main entrance, then two arms going side ways having a mix of apparel and footwear, brands like- Meen Bazaar, CK, Kalpana, FCUK,Color Plus, Aldo, M & B, and Woodland. In the main spine we see apparels and sports wear- Mango, Promod, DKNY, Aftershock, Reebok and Adidas. In the rear corridoor we have some more apparels- Mothercare, Alcott, Surreal, Esprit, W, Giovani, Satya Paul and Biba. Not to miss on Ground Floor is Swarovski,Orra, Monpri and Ethos. Dyal Opticals and Sunglass hut. Da Milano, DKNY and Guess accessories. Zara the international departmental store shall be the latest addition.

Placement and positioning of entire trade mix has been very thoughtfully done. The strategically positioned Le Marche, supermarket next to home furnishing stores- Rosebys, Sia Homes, Three sixty degress on the first floor, ensures footfall to this corner of the mall. More of apparels- Cantabil, Chemistry, Lerros, Jasmine, Jashn, Tommy Hilfiger, UCB, VAn Heusen, Ritu Kumar, Numero Uno, Louis Phillipe etc. Kids Wear, Lingerie, Electronics on First Floor. DT Cinemas is an ultimate theatre experience; it takes the multiplex viewing to the next level.

Food court is a gastronomic delight, with the wonderful blend of finest cuisines, specially the layout, all counters facing the seating in-between. From food court itself the entry to DT Cinemas is another wonderful way of connecting Multiplex and food court. All well known F & B, brands under one roof such as Haldiram, Mc Donalds, Arabian Nites, Bakers Street, Cafe Brown Sugar, Ooh la la, Tikka Town, Dominos Pizza, Subway etc. The variety of food is not only available in the Food Court but otherwise as well, India's best rated Super Specialty Restaurants such as Veda, Taman Gang, T.G.I. FRIDAYS, Pizza Marzona, Italia, Tasty Tangles etc. amongst others.

Seeing all this running and operational mall reminds me of good olden days way back in April 2004, when the entire project was on paper, and launched to retailers. Got quite a positive response from all national and international brands. Despite the rentals being enormously higher as compared to other competitors of that time. On 17th Feb 2005 the formal launch of the project was done, along with bhoomi pujan on site. By that time almost 70% project was leased. But that did not ensure the success of the project. As just after the construction had begun the project went into an environmental concern by local residents and was delayed by more than two years. By that time the recession had hit and the retailers were in their own tunes of recession. To make this project a success, up and running the way we see it today, was definitely not an easy task for DLF, they had to enter in many different rental arrangements with tenants and make the mall operational somehow. Great Achievement. A nice lesson which other developers should learn, if you dont bend you break. You have to adapt and adjust for your own survival.
Posted by Sonia at 3:45 AM 6 comments Labels: Indian Mall, Promenade

Sunday, February 7, 2010

Paras Downtown Square - Zirakpur

A little more than four years back, Dec 05, when I left DLF and joined Paras Buildtech, responsible for leasing their upcoming shopping mall Paras Downtown Square, I was given a 4.5 lac sq.ft of mall, all floor plates of almost 65000 sq.ft size completely empty, no brands signed. A major challenging task was lying in front of me, and I was totally clueless from where to start? In a city like Zirakpur, which was totally unheard amongst retailers at that point of time. So we had to sell to the retailers not only, No. 1 the Location (there were other developers in the main city Chandigarh, including DLF, TDI and others), No. 2 mall concept, but also No. 3 the developer, since Paras was unheard as a developer in 2005, they were known for Dairy products, but not real estate. To make this big task into smaller segments, we started from the Big boxes in place first rather than going and pitching to smaller vanilla stores. The mall positioning and its selling pitch was done as: right combination of retail mix meeting a vast array of the needs and wants of consumers in the trade area from grocery shopping to apparel shopping, known brands in Fashion, Lifestyle, F&B and Entertainment to be housed together at one place. Built in an epicurean style, this mall will provide a world-class platform to all the retailers. The location was pitched as The strategic location at Zirakpur on the Y Fork of Delhi-Chandigarh-Shimla highway, the highway from Delhi that trifurcates to Chandigarh, Shimla in Himachal and Patiala in Punjab, it shall target a base of clients from Delhi, Himachal Pradesh, Haryana, Punjab and especially in the tricity area of Chandigarh, Mohali and Panchkula, as well as from other nearby towns. Conceived as a world-class shopping mall Paras Downtown Square shall have a majestic atrium with translucent ceiling, which will be the center point for shoppers giving a true international feel. With this pitch in hand we got Future Group agreed to do Big Bazaar- Hyper market and Pantaloons- Departmental store. Almost a lac sq.ft together, Simultaneously the Multiplex was closed with Adlabs- now Big cinema- 35000 sq.ft of area and then the

Food Court & Childrens entertainment center, spread over an area of more than 23,000 Sq. Ft . The major vanilla brands that signed with us include Reebok, Cafe Coffee Day, Liberty, Reid & Taylor, Nike, Woodland, Provogue, CTC, Meena Bazaar, Villa Appearances and many more.

The project won the Best Commercial Property Award at the Indian Property Awards 2007 in November 2007. Finally Mall opened on January 21 2009 with the opening of the hyper market, Big Bazaar. Spread over 60,000 sq.ft, the Big Bazaar opened to the beat of Punjabi dhol and colourful images of Punjabi families on its signage, as people flocked in to have the first hand experience of buying to their hearts fill at the most-talked about value chain. And today with proper retail mix, and anchors in place the mall is doing well. Mall leasing is just one aspect for the success of a mall but running a mall efficiently with all tenants doing good sales, getting regular foot fall, mall maintenance and its management, events and promotions in the mall, all this together confirms the success of the mall.
Posted by Sonia at 11:29 PM 2 comments

Tuesday, December 15, 2009

Retail Store in a Mall: Make a Difference

"You never get a second chance to make a first impression" is an old saying, but very true in retail industry. There are many factors that contribute to the shopping experience in a mall but the look of a retail outlet is one of the most important reasons for getting attracted towards a store, in enticing us to enter through the doors. The initial in-store encounter in terms of visual impact can be described as: a store is exciting, clean or well-organized or,

whether it is boring, messy, or overwhelming. It is just not enough for a store to look good from a merchandising or display viewpoint. Today, a store not only must perform by exciting and encouraging the customer to buy, but from the retailer's point of view, it must overall perform profitably. Visual merchandising is comprised of six components: image, layout, presentation, signboard, display and events. But the most important component that lays the groundwork for all the other components is -- image. Everything you do within the store -- how you develop your layout, your presentation, your signboard, your displays and your events -- must fit into the image you choose to create. Store Image: Image can be described as the overall look and feel of a store and the series of mental pictures, emotions and feelings it evokes within the beholder. For the retailer, developing a powerful image provides the opportunity to embody a single message, stand out from rest of the competition and be remembered and recognized. As a rule, image is the foundation of all retailing efforts. While store layout, presentation, signing, displays and events can all change to reflect newness and excitement from week to week, season to season, they must always remain true to the underlying store image. Studies indicate that a retailer has roughly seven seconds to capture the attention of a passing customer. The following elements combine to form a distinctive image that not only reaches out and grabs the customer's attention, but makes a positive impression within those precious few seconds. The Image-makers: 1. Identifiable Store Name 2. Powerful Visual Trademark 3. Remarkable Storefront 4. Inviting Store Entrance 5. By Store Look or Hook getting the customer in 1. Identifiable Store Name: An effective store name sets the tone and provides a store's identification by conjuring up an image in the customer's mind, which invokes interest and can be enchanted by him even later. A store name should be easy to say and remember, indicative of the images and feelings you want the customer to retain.

2. Powerful Visual Trademarks: An identifiable trademark adds a visual image to the memory recall of a store name, by combining words and pictures, colour, shape, typeface, texture and/or style to make it stand out. Identifiable even in the absence of the store name, a successful trademark should be unique to your store, indicative of your products and services, consistent with the overall impression you want to leave customers with. And last but not the least it has to be professional and well-designed. 3. Unmistakable Storefronts Traffic-Stoppers No one reads the entire book first, its initially the title of the" book" then the cover of the "book Similarly the customers, simply don't have the time to "read" into the entire store, so the store name and trademark are first seen, ----- they must provide instant recognition and recall, your exterior storefront like the cover of the book -- must project a welcoming, clear and concise image of what' s in-store. Traffic-stopping storefronts use a thoughtful combination of exterior architecture, signboard and window displays to ensure a powerful first impression. Exterior Architecture Retail store's exterior look is often referred to as the exterior architecture, and comprises aspects such as building materials, architectural style, detail, colours and textures. The Store Signboard: The store sign is a vital element of the storefront, identifying your store and beckoning the customer to take notice and stop. In realizing the value of a strong storefront sign, many retailers are employing new design techniques which include projecting or cantilevering the store sign beyond the lease line, adding motion, or using threedimensional lettering and unique lighting applications to add depth to the sign. To stand out in the Mall, your storefront sign should have visual dominance among neighbouring stores. Store Windows: A store's exterior windows or glass storefront provides an additional opportunity to reach out and grab the passing customer. Windows are integral in creating a positive impression since they offer an opportunity to begin telling your store's unique merchandise story immediately. Many retailers underestimate the powerful pull of an effective window, treating the area more as additional stock space than the true image-maker and the magnet it can be. This prime real estate should be approached as a showcase for the newest seasonal

merchandise dramatized with props and themes in keeping with your store image. Consider adding motion to your window with animated displays, turntables, fans, video screens or motorized pulleys. The Customer's Vantage Point: While planning your storefront, utmost consideration must be given to the customer's vantage point. Place yourself in the customer's shoes in considering their vision -- the speed at which they are traveling, their preoccupation-levels and the chances of getting them to stop. The more hurried and distracted a customer is, the less chance there is of getting their attention. Often, plans that look good on paper fail miserably because they are developed from the retailer's view point, not the customer's. Many retailers plan their storefronts based on a "head-on" perspective, which entails a direct 90 degree-angle approach. But is that the customer's view? Not typically. Usually, the direction of customer traffic flow is influenced "by the length of the corridor, layout of the atrium, or some other physical feature...displays canted or slanted to that dominant direction of traffic will get more serious attention." To increase the chances of customers noticing your store, consider the following: What direction and angle is the customer coming from? Is your exterior sign visible and legible from a distance? Are your store windows easy to read from the distance the customer will first notice them? One brilliant retailer made sure that walkers didn't pass by his store -- he placed the human scale statue of a durbaan (security guard) all dressed up in Punjabi outfit right beside his entrance! Or any such thing which is very eye catcher, show stopper kind of stuff, would ensure at least people would stop by to look inside. Some out of the box thinking is required here. 4. The Store Entrance: The entrance to the store is the division between the outside and inside environments. Mall retailers have an easier chance of luring customers into the store with a wide, open entrance, creating a seamless entry from the mall to the store. Retailers who depend largely on impulse traffic should try to create an open storefront, either by removing storefront barriers completely or by creating an unobstructed view into the store with a glass frontage. We have followed the open store concept in The Celebration Mall, Amritsar. Give customers a tantalizing taste of the interior, from outside, encouraging them to walk inside through the door. An unobstructed and welcoming doorway combined with a

great window display can provide the lure. In all types of store entrances, customer's need to get the impression that they (and their children) are being welcomed and shall be comfortable inside the store. Obstacle courses, visual clutter and "Do Not" signs on the doors are negative turn-offs that often result in a negative first impression and a lost customer. Multiplying Positive Impressions: Creating a consistent positive impression is important -- particularly so if you have more than one store. Customers should be able to recognize and identify with your store, whether it is in Greater Kailash or South Ex. of New Delhi. Even if your multiple locations differ in size, shape, design and even merchandise mix, you can create continuity of image by having common elements throughout the chain. Consider applying the same store trademark to all of your marketing, storefront and in-store applications, extending some common exterior elements to all of your stores and/or using similar props, treatments and themes in your store windows.

5. By Look or by Hook Getting the Customer In: Within the first few seconds of catching their interest, the customer's focus moves beyond the store's exterior for a visual scan of the interior while they mull over whether to enter or not. Getting a customer through the door is indeed a victory. In most instances, customers are either on a mission to make a planned purchase (the Seekers), or are shopping for amusement, entertainment or ideas (the Browsers). Seekers may plan a trip to your store to make a premeditated purchase or may decide to enter because they are comparison shopping for something specific. For the seeker, a deeper look into the store must reinforce their confidence that the store will have what they are seeking and that they can get in and out easily and quickly. Browsers are more inclined to enter a store impulsively, drawn by the overall impression that a store has something they should check out. For the browser, a further look into the store must plant a seed of interest and hook them in. For both seekers and browsers, the deeper glance into the store and the resulting decision -- to enter, or not -- is often attributed to the overall store look and a compelling hook. A Visual Look: An inviting entrance is crucial in stopping the customer and establishing a positive first impression, but if the inside store messages create feelings of inconsistency or confusion, all is lost. For example, a clear and well-articulated store entrance that is followed up with a barrage of inconsistent aisle patterns, sloppy merchandising and confusing signs signals to the customer that the exterior image will not be fulfilled on the

inside. Truly impressive stores are consistent in all efforts from the storefront right through to the stockroom. A Visual Hook: A visual hook is a call to action that diverts a customer's attention to your store with a "Stop! There's something here for you!" Powerful visual hooks are created by marrying other visual merchandising components for a more memorable first impression. An exciting entrance presentation, an effectively signed promotional offering, a powerful interior display, in-store animation or events all serve as magnets to draw the customer in. Successful hooks ensure that the impressions they project are consistent with the store's overall image. Well-executed hooks hold tremendous appeal for the customer, particularly the browser. A fashion retailer, for example, recently created a compelling hook for one promotion using the sights, sounds and smells of the Orient. Sales associates posted at the entrance offered fortune cookies containing discount coupons to customers. Large colourful posters, banners and Oriental art and props throughout the store windows and interior carried the theme further. Even the air was filled with the subtle sounds of Oriental stringed instruments and lightest whiff of incense. Just like the above example, many of today's retailers are extending their store hooks into the realm of sensory appeal for a total image package. But to ensure the result is appropriate, you need to understand the psychological effect of sight, sound and smell on the consumers.

Posted by Sonia at 8:21 PM 4 comments

Wednesday, November 11, 2009

Challenges faced by Retail Brands at Indian Malls

Mostly once the stores are leased out, the developers are not worried about the promotion any more. Though a few malls organize some in-house promotional activities but that alone doesnt guarantee a good footfall. Majority of the developers dont pay attention about the branding, marketing, promotions, budgeting, financing as part of running a mall. This affects the overall footfalls in the mall, and thus the business of the retailers. The retailers are given a lot of importance to sign in the mall but later on not considered as an integral part of mall.

With over 100 malls operating in India and more than 300 being developed, the opportunities offered in the retail landscape are immense. Mall space is expected to touch 60 million square feet by end-2010. With such a huge supply of space, mall owners and developers in India need to focus on vision, scalability and processes and create a distinct proposition for themselves in the market. The emergence of specialty malls is a step in this direction. Retailers today face many challenges, including increasing competitive pressures, thin margins, high occupancy costs and unpredictable supply base that come in the way of their attaining operational efficiency and profitability. In the mall they not only deal with additional super area loading but also the additional CAM expenses. As organized retail grows, the market will only become more competitive and developers will have to work hard to differentiate. Faulty mall management along with inappropriate tenant mix would lead to poor mall traffic and closure of individual stores in malls. Professional third party mall management service providers are hence likely to come to the fore. They not only understand these business challenges, but also have the ability to help retailers effectively deal with them. Generally there are two types of consumers who visit malls focused buyers and impulse buyers. The time spent by focused buyers inside the mall is relatively lower as compared with impulse buyers who spend a lot of time window shopping. Malls which have entertainment zones and/ or promotional activities have larger foot falls and more percentage of impulse buyers. Mall management becomes critical to attract impulse buyers. For example, Ansal Plaza in Delhi has ensured its success through good promotional events and mall management practices since its inception in 1999. Its amphitheater which is dedicated to promotional activities has ensured footfalls despite newer malls coming up in the NCR region. Contrary to popular misconception that mall management is synonymous with facility management, mall management actually takes care of the issues like: - positioning - zoning (tenant mix and placement within mall) - promotions and marketing - facility management (infrastructure, footfalls, ambiance) - finance management Various business models are adopted by retailers/ developers while utilizing the services of a There are very few mall management companies in India at present. Large real estate developers and retail chains either have their own mall management divisions or have contracts with international consultants. In developed markets mall management is an established independent service line. Till recently contract model was the norm in India.

But the revenue sharing model is increasingly becoming popular with retailers in India due to the present economic situation. India is yet to embrace the concept of third party mall management in retailing. Some of the issues could be: - Planning the mall around anchor tenants - Lack of market research by developers - Tendency to lease out on a FCFS basis - Perceive outsourcing as additional cost - Lack of accountability for in-house promotional activities - Improper planning for space (lack of parking space, single entry/ exit points) With the slowdown of the realty sector, developers might give the mall management practice a thought in order to ensure that the slowdown does not affect its footfalls. Mall market in India has become extremely competitive especially due to the sudden boom in the real estate sector. Malls have come up in the Tier II cities and rural areas as well albeit in a smaller and different format. With increasing competition from high street retailers, developers are finding it difficult to achieve 100% occupancy rates. A specialists retail property management skills enable property owners to receive the benefit of master planning and development expertise which is critical to ensure that malls are strategically positioned for long-term growth and success. How a retail shopping mall can be transformed into a brand? So that people recognize it with its name, and same is repeated later in other cities at other locations. But for that principle A to Z is being retailer friendly.
Posted by Sonia at 11:13 PM 0 comments Labels: retailers, shopping mall

Friday, November 6, 2009

Shopping Centers: Challenges For A Growing Trend

Development of organized retailing in India, in the form of shopping malls is one of the main reasons for the growth of shopping malls in India. With the changing shopping needs and aspirations, consumers are finding it easier to shop at malls where a wide choice of merchandise is available under one roof. Here we shall look into the challenges faced by shopping malls in India, today. Shopping malls have mushroomed all over the major metros of India, spreading its tentacles far and wide. Gurgaon, Noida, and a few other satellite townships in the NCR (national capital region) of Indias capital city Delhi, have been standing witnesses and

silent partners to this mall mania. Called as the Shopping-mall capital of India, Gurgaon has been a focal point of the this rising tide, with monolithic glass structures, colossal trade towers and a lot of glitzy skyscrapers manning the entire length and breadth of this erstwhile urban village. Many others have followed suit, as they jump into this bandwagon of a modern India, cashing in on the rising spending potential of the great Indian middle class. But, beneath the swanky and ritzy surface, away from all the hype, the underbelly of this modern mega polis tells a totally different story. Not everything is bright and sunny as it seems. Recent studies have shown that many retail players have jumped into the fray and joined the rat race without much ado, completely overriding and overlooking the necessary checks and balances, before they get into a business venture. Retail companies in India have missed the woods for the trees, as the trend in the market shows that there has been a complete mismatch of consumers and brands. Its true that the foot-falls in most of the major malls have been great and phenomenal, matching those in any developed retail markets; but, not all footfalls generate business. Other than the few multiplexes and the fast food chains, most of the retail endeavors have run into big troubles. Not everyone who enters the mall is a prospective consumer, as majority of them come just to hang out, and indulge in window shopping in an airconditioned environment for free. With high real estate cost, many of these retailers have failed to break even, and business has been abysmally low, even non-existent at times. It is high time for companies involved in retail in India organized to seriously think over the location, demography, culture and taste of the target consumers, before they join the free-for-all brigade. Mall Culture is in, but with the fierce competition in the market, not many will make it without proper planning and strategy. Other Challenges The challenges which many malls are facing today is to keep up with the competition and to attract retailers of a higher quality, A host of additional challenges may exist for developers and their business and retail tenants in malls; these include: No-Change Areas: Tenants should identify those areas outside of the premises that are critical to their use (such as elevators, lobby areas, and access-ways between the loading dock, freight elevator and the premises), and make certain that those areas cannot be changed without the tenants approval. From the developers perspective, careful attention should be given to the tenants proposed no change area in order to make certain that the requested area is not too large so as to restrict the developers need for flexibility to accommodate demands by future tenants, market changes and laws.

Loading/ Unloading: In malls, the loading/unloading dock is often shared by the building occupants. Ideally, the building will have a dock master who will coordinate the use of this dock, the cost of which will be included in building services or common area maintenance charges. If there is no dock master, then the developer and tenant need to address this issue in their lease negotiation because the tenant will want to make certain that its trucks can unload merchandise in a timely and efficient manner and the developer will want to avoid delivery trucks blocking roads and access to the building. Often an anchor tenant will negotiate to obtain priority rights to the loading dock during certain hours and an alternate means of loading/unloading if the main loading dock is unavailable. Parking: The parking areas are either operated by the developer or by a parking operator on a pay-for-use basis. As part of lease negotiations, the tenant should insist that its customers be able to park for free for a certain period of time, or, if not free, then at a reduced rate for the first hour or two. From the developers perspective, the developer must make certain that there is enough parking available for the entire project, and that available parking is not unduly limited by granting exclusive rights to parking spaces. In some projects, the developer can utilize some of the retail parking to accommodate overflow parking from the residential uses in the evening time after the stores are closed. This can be an additional source of income. Certificate of Occupancy: If the tenant is performing work in the premises prior to occupancy, then the lease will often obligate the tenant to obtain the certificate of occupancy upon completion of such work. However, some jurisdictions will use this request as leverage to compel the building owner to cure any building violations, even if unrelated to the subject premises. Tenants should therefore insist that their lease obligates their landlords to be responsible for curing any building violations that would prevent the tenant from receiving a certificate of occupancy following completion of their work. Satellite Dishes: If a tenant needs a satellite dish to communicate with a home office or other stores, the landlord will need to grant easements in the lease in order to permit the tenant to use building chases and the rooftop for the satellite dish. The developer must make certain that any work done on the roof be performed with roofing contractors approved by the developer and in a manner that does not void the roof warranty. In addition, the developer should insist that the tenant be responsible for any damage to the roof or building as a result of such installation. Scaffolding: Careful negotiation between developers and tenants should take place if scaffolding might be erected on the building at a future point in time (perhaps for renovation purposes, or to hold billboard/advertising materials provided, of course, all scaffolding complies with legal and regulatory constraints). Though the developer usually

retains the absolute right to erect scaffolding, the tenant should ensure its lease mandates scaffolding will not block access to its store or its signage. Poor Mall Traffic Although shopping malls started making their presence felt, consumers still go to the traditional stand-alone stores, when they are purchasing specialized products like electronics, home needs, and jewelry. What are the ways in which shopping malls in India can attract more number of customers? Poor mall management and poor tenant mix have resulted in poor mall traffic and low conversion rate. This has led to the closure of individual shops, at several malls. What can the mall management do, to attract serious buyers? What are the secrets of successful shopping malls and how to apply them to your centre? How to develop/ redevelop and operate shopping centre efficiently? What are the innovative ways to increase centers sales and profits? What are the latest techniques for maintenance and security tactics? These are all the challenges faced by a shopping mall in India, today points to ponder, and solutions to be FOUND.
Posted by Sonia at 2:07 AM 0 comments Labels: indian shopping malls, retailers

Wednesday, November 4, 2009

A Mine of Business Opportunities

Shopping centers are taking India by storm. The popularity of lifestyle centers is driving growth and innovation that is in turn creating new opportunities and challenges in the way that leases are negotiated and structured, both for developers and tenants. When lifestyle centers first emerged few years ago, their locations and upscale ambiance targeted mainly high-end, urban shoppers. But now, their exploding popularity is driving more to be built in suburban locations where real estate is at a cheaper price. Further, in order to accommodate the push for smart growth, different uses are being incorporated into these developments, such as office and hospitality, to offer people the opportunity to meet, mingle, shop, work, play and live in the same area. Lifestyle centers are here to stay. With thoughtful planning at the initial stages of development and careful attention to lease negotiation, these centers will continue to thrive and provide people with a fun place to shop, work, play and also make a home if they so choose. A mall not only offers a great shopping experience but is also a mine of business opportunities, .......Why??

It starts right from the point you enter the premises of a mall bright, colorful outdoor hoardings, and then attendants assisting with parking of vehicles. At the entry points, guards frisk visitors for security assurance, also installed are CCTVs and surveillance cameras for ensuring a threat-free environment. Then there are kiosks here and there displaying and promoting the latest products. Escalators and lifts for comfort and convenience, with the housekeeping team making sure that the ambiance is simply perfect. Of course, there are those with the walkie-talkies who are always around to help out visitors and deal with their grievances. Ever wondered who is running these shows, behind the scene? More importantly, how big is this business? Is there an opportunity window? Right from the day a mall is constructed, it becomes a mine of opportunities for a lot of businesses. Besides the shops, restaurants, and entertainment hubs, there are hundreds of opportunities in every mall. These are mall management, facility management, creative firms, and design houses specializing in mall interiors, promotional events, kiosks, and hoardings to advertise products or services, to name a few opportunities. Considering the ever-growing retail sector and the growing prominence of malls in this sector, let us take a quick look at how big a business can some of these services be. Mall Management A mall management company takes care of the entire operations of a mall, which includes procurement of various equipment and maintenance. This means, broadly all the FMB operations (Facilities Maintenance Operations) such as, leasing out shops and advertising space to interested parties, procuring all necessary equipment, to maintaining the mall. To get all of this done, a mall management company usually outsources many of these functions to facility management companies that deal in specific services. Mall management encompasses operations, facilities management, security, accounts, common area maintenance, marketing, leasing and all the other functions even remotely related to a mall. Revenue Generators Since a mall management company gets involved right from the inception of a mall, it should be involved in the pre-launch, launch and post-launch promotion of the mall. And together with proper mall promotion, good revenue can be generated through kiosks, hoardings, events and other promos. So if we take this revenue model into account, then the income from mall management could range anywhere between Rs 5 crore and Rs 50 crore annually, and that is from just one mall! The biggest advantage in this opportunity is the fact that there is no single mall management company that is into catering to malls other than their own (all the

malls have their in-house mall management). Challenges The biggest challenge in this industry is finding the right kind of tenants. While leasing out space to tenants, it is important to keep in mind the image that you want to create in the customers mind. The right kind of tenant mix ensures the right footfall for the mall, and sustainability of the mall. Facility Management A company providing specialized services to malls is known as a facility management company. Mall management companies outsource usually many operations to these companies like parking, security, housekeeping, and cash management. Vipul Facility Management, Knight Frank and JLLM etc.. currently provides services and manages malls across India. What do they do? They handle electro mechanical services like fire detection and suppression, power management, access control, water management plumbing, etc. Besides this they also handle business services like guest relations, help desk management, etc. Also provide soft services like cleaning and pest control, physical and security surveillance, concierge services, and administration services. There are a few other functions that facility management companies are also taking up. These include conducting research for malls to find out their requirements before actually starting to service them. Going one step further, facility management companies are also indulging in providing human resources for each of the services. Advertising opportunities As the number of malls in the country is growing at a rapid pace and with it the number of people visiting these malls burgeoning, advertising and promotional activities in malls have become a hot opportunity. The BTL (below the line) advertising activities have grabbed a 30% share in the overall advertising market from what used to be a space dominated 100% by ATL (above the line) advertising. With companies realizing the importance of promoting their products in a way in which people can actually touch the product and get a feel of it, more and more companies are opting for putting up kiosks and promoting their products, in addition to going for outdoor advertising and promotion. A creative agency takes care of all the aspects of advertising, starting from conceptualizing the advertisement to leasing out the space on behalf of their clients, to putting up hoardings or setting up kiosks or conducting events. Specialty Leasing Just starting your business? Specialty Leasing is a great opportunity for a new entrepreneur. In a mall you can be

offered Retail Merchandising Units, Floating Retail/Kiosks, and Temporary In-Line Stores. This gives a great opportunity for test marketing your product and if some changes and improvements need to be done. Its a great way to keep current update on the latest industry trends. Have a product and want to sell retail? Finding product distribution in todays crowded marketplace is difficult. With Specialty Leasing, it is an efficient way for you to get your product out there and grow your profitability. It increases your sales by giving your product exposure to millions of visitors that shop in shopping malls. Want to expand your existing retail business? If you are already operating your own retail showroom in other high street or local market locations, then you can take your business to the next level with the right combination of local and national support, which you get in a shopping centre. Shopping Malls are Gold mines, only thing is its right product positioning.
Posted by Sonia at 9:44 PM 0 comments Labels: mall promotion, retailers, revenue

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About the Workshop

Indian Shopping centers have developed their own individuality. The shopping center markets and consumer behavior vary from city to city in India. However, best practices and general principles on how to develop and operate shopping centres successfully can be applied across the entire country. The focus of the workshop is to bring forth international experiences and success of innovation in planning, design, leasing and management, asset enhancement, mall upgrading and customer services. Insights into consumer trends and their influence on shopping center design and management will also be taken into consideration as our Lead Speaker shares his mature experience of retail infrastructure in Singapore and how the market has evolved to be a Global Shoppers Paradise. The workshop will provide the attendees with a crystal-clear picture of a shopping centre, right from its planning phase to its inception and to its successful operation. The workshop will have the brain storming session with the Lead Speaker who will encourage the attendees to speak out the challenges they are facing, to review the present scenario, thereby eliciting appropriate solutions for the same. It will be the ideal platform for an elaborate session on land acquiring principles, evaluations of various methods of pricing strategies. The workshop will also prescribe how to create perfect shopping experience where shoppers will have the convenience of shopping with the pleasure to indulge in, address the problems of tenants, thereby ensuring optimal sales of the retailers and define the qualities that an adept shopping centre professional should possess. The workshop will take a critical look at life cycle of a shopping centre and ways to reposition it for the sake of increased sustainability. This will lead to the topic of how to enhance assets of a shopping centre, and lastly, the crisis management for the safety and security of a shopping centre.

What else mall management

requires other than managingWhat else mall management requires other than managing facilities and utilities? facilities and utilities?