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sector. These malls have given a new dimension to shopping experience. Malls have transformed once compulsive and sober shopping into a family entertainment and as a weekend pastime. With the entire products available under one complex, offering rich and pleasant ambience, stocking and offering cornucopia of products and brands, these malls have already bagged a major chunk of existing retail market share.
The Indian Retail Sector is booming and mall growth is being seen as a clear indicator of the economic prosperity in India. These shopping cum entertainment options are getting bigger and better, sporting multiplexes and food courts to woo shoppers. Dominant retail activity is visible in the top cities but tier II and III cities are also witnessing change. Read about the huge investments in malls and what the future holds for them
Malls are springing up in every city and are fast becoming soughtafter entertainment hotspots, with shopping as the by-product. From a situation where there were no malls about a decade ago, the country will have over 300 malls translating to over 100 million sq.ft. in available mall space by the end of 2007. The Indian Government’s initiatives to aid growth in the retail sector are showing very visible results. Investment in world-class infrastructure is expected to be close to USD 150 bn.
The hitherto restricted retail real estate sector was opened up for Foreign Direct Investment in 2005. As a result, malls of international scale and quality are expected to come up; Mall growth is being seen as a clear indicator of the economic prosperity in India. Significantly, the number of malls in the country has increased at a fast pace. And they are doing brisk business. A trip
to the local mall (there will be one in every locality soon!) will bear this out; From almost no malls existing in the country over a decade ago, there were 96 operational malls in August 2005; Here’s more good news. This phenomenon is not restricted to major cities of the country alone. It has percolated to the “Tier II” and “Tier III’ cities as well. The contribution of Tier II cities in organized retail sales is expected to be about 20 – 25%. Mumbai, Bangalore, Hyderabad, Pune and New Delhi are expected to have nearly 75% of the retail space in the country Niche, speciality malls, discount malls, highway malls are the new trends
Mall Culture In India Its weekend and are you still stuck with the regular question as to what to do on Sunday? May be not, as the Indian populace has finally found the answer to the ever bothering question quite easily. Yes, a visit to a nearby mall is the most probable answer any metropolitan citizen would give. This is because the retail revolution has completely taken the nation by storm. Mushrooming of malls is a clear indication that the wave of consumerism is arriving steady and fast. The Trend! Crowded streets, traffic congestion and mob of people flooding a chic looking building, is a popularly visible scenario every Sunday. This plush building is none other than a mall in Gurgaon, NCR Delhi. This brings to light that people’s perception has completely changed towards shopping. Congenial atmosphere, world class environment, international brands, basic amenities and exotic cuisines, is what the malls aspire to provide under one roof. Nevertheless, people are welcoming this new trend with open arms, unaware of what just might be its consequences. Moreover, sales and bargain deals,
attractive prizes, and schemes are the success formulae, the shopkeepers are trying to cash in, on consumers. This has made malls a mega hit amongst the metro crowd, putting fuel to their ever increasing demand for a better living. This is a result of the expanding Indian market and disposable incomes by the service class. As an Alternative Apart from being the shopper’s paradise, malls are also acting as a good alternative, for the people to escape from the otherwise poor living conditions. This brings the flipside of the mall culture into sight, which enforces that though shopping is the modern mantra, people are looking for something more. Malls act as great refuge from the scorching heat of the sun, in summers, as all the malls are centrally air conditioned for the purpose. Another reason for the malls being so crowded is that quite a number of people roam there aimlessly. Their purpose can be anything from a get together with friends to simply window shopping, from buying popcorns to buying cards. This explains that hot weather, frequent and prolonged electricity and water cuts are some of the strong reasons, why the common man is attracted towards the escalating shrines of consumerism. Shopaholism Shopaholism is the name given to the addiction for shopping, which has joined the list after cigarette and alcohol. A kind of a physiological disorder, it is constantly on the rise. It should be noted that it has made its way not only in the lives of people, but also in the credentials of psychiatrists. According to their unanimous belief, it can lead to serious problems, if not paid attention to. In severe cases, the patient may even avert to shoplifting and stealing, in case the desired product is denied. Moreover, shopping is also being termed as a means of escape mechanism. This implies that the retail therapy gives the shopper a temporary high, corresponding to the feeling that he possesses what he wants. Besides, the therapy seems to work wonders, not only for women but also for men. The metamorphosis the society is witnessing, presents man as the evolving shopping freak, shouldering the women with utmost grace. Hooked on the phenomenon, it gives them the sense of power and control, pampering their mountain high egos. This can even go the extent, where people end up wasting money, for the euphoria shopping provides. Warning! After all said and done, it is finally time for the word of caution. India, the land of spirituality and mysticism, is steadying fast on the road to development, with mall culture just a miniscule aspect of it. As the investors and town planners vie to fit in the huge glass buildings amidst squashed streets, there are a number of problems, the process poses. Ever increasing space crunch, growing traffic,
developing infrastructural pressure, power scarcity, parking blues are some of the troublesome head raising situations, to be fought. In addition to this, the tremendous change these modern marvels have brought into the lives of people is alarming. These commercial havens not only serve as battlegrounds for the international brands but also impel people to wrestle with their own psyche and value system. Being carried away in the voluble stream of consumerism and retail revolution, common man is rendered completely unarmed. He is being prepared to take what can be actually termed as ‘sweet poison’, which in a way is a boost to the Indian economy but on the other hand can steal away the joy and innocence from daily life, if not practiced in limits.
PUNJAB : The Mall Capital of India ! Amol Arora, Director - Emgreen Projects Ltd., takes a close look at the emerging Mall boom in the top cities of Punjab. Email • Print • Download PDF • Add to Google RSS New Delhi, New Delhi, IND, 2006-09-27 12:25:01 (IndiaPRwire.com) Downloads No files attached The people of Punjab have always been an enterprising lot. Capable of much hard work, sweat and toil, it is they who must be given the credit for showing the way to abundance and prosperity with the ‘green’ and ‘white’ revolution. Maybe it’s in their genes; or maybe it’s in the waters of the land’s five rivers; Panj (five) and Ab (water or rivers). The agrarian Punjabis deliver nearly 60% of rice and 40% of wheat consumed by the entire nation. The land’s plentiful harvests have also meant plenty of money in the pocket and there is no doubt that farmers of Punjab are relatively more well off than their counterparts elsewhere in India. With more disposable money to burn, the people of Punjab have been seeking avenues to do so, thereby fuelling the retail boom in the State. With money to splurge, and brands to buy, can the Mall culture be far behind? Over a short span of time, several builders have come up with blue prints and proposals highlighting their upcoming projects and there’s no doubt that these malls would add an unprecedented dimension to the Retail Boom in Punjab.
Let’s have an in-depth analysis of malls which are coming up in the region. In the beginning of 2005, there were just two operational malls with a total area of 2.70 lakh sq.ft. It is now confirmed that this scenario will undergo a sea change with nine new projects slated to come up by the end of 2006 taking the total mall space to 31.80 lakh sq.ft. – that’s a twelve fold increase from the previous year ! It is predicted that some lesser malls would also come up in 2007, as the masses gradually get used to the mall culture. Even though some smart players and analysts are still waiting to gauge the nuances of scrapping the traditional methods of selling and purchasing, the mood remains quite upbeat about the money inflow to the state. About Rs. 600 billion is waiting to be made in the real estate sector in in Punjab over the next 3 years, and more investments are likely to follow soon. As many as 60 more malls are expected to come up in various cities. More than 30 would be operational in the coming two years. The state, which has been consuming more than others, has become a hot destination for those in this industry. Construction activity is in full swing in a number of projects a fact quite visible in most cities. Some of the cities & towns where developments are planned include Ludhiana, Mohali, Jalandhar and Amritsar, Patiala, Hoshiarpur, Khanna, Gurdaspur, Kapurthala, Nawanshahr, Ferozepore, Ropar, Faridkot, Muktsar, Moga, Bathinda, Rajpura, Mansa and Sangrur. Why Punjab ? Studies portray that consumer spending in Punjab is higher than the national average. Projections are equally positive for other cities as well. Punjab has been consuming more than most other states, and is significantly higher than the all-India average in almost every retailing category, says Images-CII study on “Retailing in Punjab: 2010 and Beyond”. These categories include food and beverages, footwear, clothing and communication. As per estimates, the average per person monthly consumption expenditure during 2004-05 in urban Punjab was Rs.1182.90, which is higher than the national average of Rs.1149.52. As per study, unlike other states, the unique feature about Punjab is that it has an equal support from urban as well as rural consumers so far as growth in consumption is concerned. This factor points to a tremendous potential for organised retail, as the location choice would not act as a constraint here. The average monthly consumption expenditure for rural consumers in Punjab is Rs 1,022.05 — only marginally lower in comparison to the state’s urban average, but much higher than the national average of Rs.635.72 per person per month, says the study.
With the highest per capita income in the country, that is nearly threeand-a-half times the all-India average, an excellent infrastructure to promote new industries and support the existing ones, coupled with high percentage of employment, Punjab stands second to none in fast becoming a favoured destination for the retail industry. No wonder, investors are quite keen to tap this huge consumption potential in the state. The mood is thus, extremely upbeat as far as the retail options in Punjab are concerned. Ludhiana Shopping malls have turned out to be the next ‘in-thing’ in Ludhiana and the culture is spreading like the proverbial fire. Ludhiana known for its hosiery and sports goods industries is fast emerging as a favourite destination for shopping plazas and multiplexes as a dozen malls are rapidly up coming at a cost of Rs 600 crores (approx). Ludhiana has become a metropolis. And Retailers and developers, riding on a wave of retail boom in one of world's fastest growing economies, are adding new dimensions to the business to lure more customers. Malls are pouring in Ludhiana one after the other with nearly 15 others are all set to come up on different roads in a span of two to three years. A large number of these are on the Ferozepur Raod and on the GT Road on the Ludhiana Jalandhar Segment. The largest mall in the city will be in the western part of the city- the Ludhiana City Centre of the City’s Improvement Trust and which is coming up on a huge 26 Acre site. This has resulted in a sharp rise in the land prices which now ranges from Rs 5000 to Rs 10,000 per square yard. These Malls are roping in the leading brands in fashion, consumer and lifestyle products. A study has predicted good growth for all upcoming malls in and around Ludhiana with retail spending potential to increase from Rs 3864 crore in 2005 to Rs 5940 crore by the end of 2010. Chandigarh Located at the confluence of three prosperous states of North India, Chandigarh, with a population of 9,00,000 people, boasts of being the first city in the country in terms of human development index with a literacy rate of 82 %. Over the years, this planned city has been luring the best of professionals from all walks of life and from every nook and corner of the country. This has fuelled the rise of property prices in the city. The retail activities have also shown a parallel high rise in the city’s development graph with around 8-10 mall developments are known a few of which are coming up in the famous Sector -17 market. Amritsar The spiritual center of Punjab, Amritsar has attracted a number of developments in and around the city. Tourism, a major contributor to
the city’s economy, is aiding the financial well being of the city’s residents thereby creating opportunities for the influx of brands and malls into the city. However, due to the lack of large areas within the city a few cinemas are being converted into malls and a few are coming up on the outskirts on Batala Raod and the GT road towards Jalandhar. Mohali In the past, the only demand for real estate development came in the form of commercial spaces for banks, technical institutes and local occupiers. The overall scenario is dramatically changing with the mall culture is slowly and steadily sneaking in. With soaring land prices in Chandigarh, Mohali & Panchkula, promoters have taken a fancy for the suburban areas with 2 areas especiall emerging as a hotbed for retail growth The first is Zirakpur which Strategically located on the three busy highways — Chandigarh-Ambala, Kalka-Ambala and Zirakpur-Patiala, Zirakpur has at least seven shopping malls in the pipeline. The start of work on the four-laning of the Chandigarh-Ambala highway and building of thousands of apartments, which would be inhabited in the next couple of years, are the other reasons prompting the builders to come up with the shopping malls. The second area is on the opposite side of town on the Kharar & Landran Roads. Here Atleast 8 proejcts have been announced and it remains to be seen how many actually take shape. Jalandhar Famous for its sporting good industry, Jalandhar is seeing a lot of development activity on the GT Road on the Ludhaina Jalandhar segment with around 4 projects having been announced. In the city, Jalandhar could see two to three malls in the next three years Patiala Famous for its Peg, Parandi & Jutti-the city of maharajas is also gearing up for the retail boom with 4 projects in the pipeline including the conversion of a few cinema halls. Highways Besides leading cities, the highways running through the state are of special interest to investors given the spending power of Punjabis, especially non-resident Indians (NRIs).A number of multiplexes, hotels and shopping mall projects have been approved by the government along highways - particularly the National highway No. 1 (old Grand Trunk Road) between Ambala and Amritsar as well as other highways linking Chandigarh with leading cities. The promoters of these highway shopping malls are eager to cash in on thousands of motorists, who travel on the highway daily. Future Challenges
Thus Punjab is, thus, all set to experience the phenomenon of a major retail boom, representing a grand opportunity to all the retailers at large to exploit its huge consumption potential. However, there does seem to be an oversupply in most cities and the competition will heat up. The challenges for mall owners lie in not just roping the top-brands, but also retaining and sustaining their presence. The success of malls in the long run would depend on number of real customers generated as opposed to mere foot falls created. Apart from strong and reliable infrastructure, a right tenant mix needs to be ensured as also strategies that prove profitable for the tenants. The challenge here lies in attracting the middle-class and rural customer, who will look for better options not just in variety but in pricing as well. They will only succeed if the price factor is taken into consideration of whatever products are being sold, in direct proportion to income level of the masses, in and around the area. The developers that have a vision understand what it takes to setup and manage a mall will survive while those looking for a quick buck will surely bite the dust.
Jones Lang Lasalle Meghraj Identifies "India 50" — the Emerging Cities for Retail Activity Business Wire, June 29, 2007
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World Winning Cities Report Points to Growing Opportunities in Retail and Retailing Formats NEW DELHI & MUMBAI, India -- Highlighting the growth opportunities and the emerging geography of Indian retail and property market activity, Jones Lang LaSalle Meghraj released its World Winning Cities report on Indian Retail. The report entitled "The Geography of Opportunity -- The India 50" is the first report in a series on Indian Retail Futures. It highlights the significant opportunities for both domestic and international retailers and property investors across a broad range of geographies and formats. Most Popular
Today's Best Part-Time Jobs 5 Regular Mistakes In Public Speaking 13 Job Interview Mistakes To Avoid 3 Questions No Job Seeker Ever Wants To Be Asked? 10 Jobs That Pay $30 An Hour "The Geography of Opportunity - The India 50" paper highlights that India's retail sector is evolving at a swift pace, fuelled by a strong economy, favourable demographics, rising wealth levels and rapidly changing lifestyles and consumer aspirations of an ever burgeoning middle class. The real estate sector has responded well to this retail growth. The total retail mall stock has been doubling every year, from a meagre one million square feet in 2002 to a staggering 40 million square feet by end of 2007 and an estimated 60 million square feet by end of 2008. Jones Lang LaSalle Meghraj's research identifies 50 cities across India that are ideally positioned to benefit from the booming retail sector. The report launches a new retail city classification based on socio-economic characteristics, retailer activity and shopping mall development. The research identifies five types of cities (Maturing, Transitional, High Growth, Emerging and Nascent), each of which is at a different stage in its retail market evolution and offers different types of opportunities for retailers and the property sector. Organised retail activity is still overwhelmingly concentrated in Delhi and Mumbai (the Maturing Cities) and considerable opportunities still exist in these two vast and diverse metros. We expect these two metros to contribute 40% of national organised retailing by year 2008. Delhi and Mumbai lead the Indian mall culture with estimated total mall stock of 22 million and 15 million sq ft respectively by 2008-09. Nonetheless, the report concludes that increasing competition in the NCR and Mumbai markets, combined with growing opportunities in India's regional markets, is encouraging both retailers and property developers to move into new and potentially more rewarding markets further afield. Organised retailing in India's other main cities, such as Bangalore, Kolkata, Hyderabad, Pune and Chennai (the Transitional Cities) is growing rapidly however such is the pace of change, that many smaller Tier III cities are now firmly on the radar of the retail sector and mall developers. Vincent Lottefier, CEO, Jones Lang LaSalle Meghraj, says, "India's 50 cities identified in our report clearly offer substantial and compelling opportunities for India's growing retail sector. With a population of over 1 million each, these cities will form the very core of India's emerging retail hierarchy. Interestingly, the top 15 cities (Maturing, Transitional and High growth) from the 50 retail destinations are expected to contribute more than 80% of the total national retail business by 2008. India's retail awakening is characterised by rapidly changing customer behaviour, new market entrants and evolving government policy. It is imperative to comprehend India's enormous cultural and regional diversity to get a realistic perspective on the opportunity at hand."
The report highlights tertiary cities such as Chandigarh, Ludhiana, Jaipur, Lucknow and Kochi (the High Growth Cities) as leading the pack, attracting considerable retailer interest due to high incomes and strong brand awareness. The "next retail destinations" over a three year horizon are
likely to be "Emerging Cities" such as Nagpur, Coimbatore and Thiruvananthapuram, where IT/ITES companies are expanding their workforces, which in turn is stimulating retailing activity. The more pioneering retailers and mall developers are now seeking to benefit from first mover advantage and are moving into "Nascent Cities" such as Aurangabad and Rajkot, which are likely to provide good long term opportunities. "Emerging City Winners" is Phase IV of Jones Lang LaSalle Meghraj's World Winning Cities research. It brings to the fore cities that are already buzzing with retail activity and those which are catching up rapidly to be the next retail hot spots. Many of these Indian rising urban stars offer significant retail opportunities and have not traditionally been on the radar screen on the property sector. About Jones Lang LaSalle Meghraj Jones Lang LaSalle Meghraj is the Indian operations of Jones Lang LaSalle's Asia Pacific business, which established over 45 years ago and currently has 60 offices across 13 countries. Globally, Jones Lang LaSalle Inc. (NYSE: JLL), the only real estate money management and services firm named to FORTUNE magazine's "100 Best Companies to Work For" and Forbes magazine's "400 Best Big Companies," has approximately 160 offices worldwide and operates in more than 450 cities in over 50 countries. With 2006 revenue of over USD2 billion, the company provides comprehensive integrated real estate and investment management expertise on a local, regional and global level to owner, occupier and investor clients. Jones Lang LaSalle is an industry leader in property and corporate facility management services, with a portfolio of over 1 billion square feet worldwide. In 2006, the firm completed Capital Market sales and acquisitions, debt financing, and equity placements on assets and portfolios valued at USD 70.9 billion. LaSalle Investment Management, the company's investment management business, is one of the world's largest and most diverse real estate money management firms, with approximately USD44.3 billion of assets under management.
Malls: New temples of modern India The malls are the temples of modern India. And going by reports, would soon be everywhere. Centrepieces of a consumer culture, malls are a great place to take sociological notes on consumer behaviour.. CJ: Prashant Mukherjee , 4 Mar 2008 Views:1260 Comments:0 SOME MONTHS ago, while driving down the Delhi-Gurgaon highway, we got stuck in a traffic jam that seemed to last forever. The cause of the jam: Three Godzilla-like buildings. Car after car headed into them, offloading their excited cargo of passengers for a day of shopping, movies, food and entertainment. It seemed like the human tide would never stop. That was my first sight of Gurgaon’s new magnets: The malls. The malls are the temples of modern India. And going by reports, would soon be everywhere - these centrepieces of the consumer culture. One of my friends in the car was a commercial photographer who loves malls. He visits them regularly, especially when working on an advertising campaign. “It is the single best place to get in touch with contemporary middle-class culture,” he says. “To get a sense of teenage trends, how people behave or just what’s on consumers’ minds.” Now, here I am, sitting in a gigantic mall, the photographer’s words ringing in my ears. America is the mother country that gave birth to malls from
where they spread to Europe, Dubai, Singapore, Shanghai, and now, India.
I have to admit I am a bit terrified of malls now although as a kid I used to have a lot of predilection towards them. Indeed, malls were one of the attractions of holidays abroad. I could spend all day in a happy state following the cultural echo of buy, buy and buy. It was like being drugged. Now, I have outgrown that. I find malls too large. They make me feel giddy and berserk, like being swallowed up whole by Moby Dick the whale. Nevertheless, a mall is a great place to take sociological notes on how consumers behave. So, let’s get a pineapple juice and a barbequed chicken roll and watch people interact with things. In my hand is a book titled ‘Call Of
The Mall’, which serendipitously popped out at me in the bookstore. It is written by retail anthropologist Paco Underhill who has run hundreds of research assignments in malls across the
world. He studies the science of shopping and by studying the mall and what
goes on there, he says we can learn a lot about ourselves and the state of the nation. I will try to drive through the gateway of malls and describe whatever I had seen. Hundreds of people are roaming the fluorescent-lit corridors, all drawn together in a communion of consumption. Most are women, the primary actors in the world of mall shopping. In fact, the entire mall seems to be designed specially for women, with the biggest single retail category being that of women’s apparel. Retail psychology has developed into a fine art here, with one single focus - once you have a customer, don’t let her go. Find ways to make her spend more. Take for instance, the women’s shoe section, which now has cosmetic counters inside it. The reason: In the four minutes it takes the salesman to get the woman’s shoes, you can sell her some cosmetics. Researchers have found that women will buy cosmetics everywhere. Show a woman a mirror, and you can sell her a lipstick. The happiest people in the mall, though, seem to be teenage girls, although not so much for shopping reasons. For them it’s a first taste of freedom, a safe place to hang out, away from the tyranny of parental controls, a place to dress up and be seen and to perhaps, have their first dates. And men? Alas, men seem largely misplaced in the mall. They always feel incongruous. Most have come in the company of women or children. I would love to call them as ‘wallet keepers’ whose primary job is ‘waiting’. You can find them perched on the edges of tables, leaning against the wall, bored out of their minds as their women hop from counter to counter and in and out of changing rooms. They are pathetically grateful for a bench or chair. Men shop very differently from women. They are more focused. For instance, when a man wants trousers, he finds a pair in his size, goes straight to the cashier without browsing through the rest of the merchandise or trying anything on. Much the same way he’d buy a case of beer. Women, on the other hand, can spend hours browsing. One can see the real charm of shopping on their face – with the men being dragged, or bound to be get dragged. In any case, they had very little options. Whenever their partner’s stops somewhere to buy pretty swanky stuffs they try to become furtive or excuse themselves for a visit to the washroom. This has become one of the most poignant issues in all of ‘malldom’. “The matter of what to do with the men while shopping takes place. I feel sure that some enterprising mall management firm is going to develop a concept in which men might pay a little extra but find room to sleep, watch TV, read, even work on computer terminals while their wives shop.”
The growth of malls largely came about as a result of America’s flight to suburbia. Over time, malls expanded their air-conditioned bosom to become more than mere shopping centres. They now provide a setting for community life. A place for the middle-class to convene, much like a village square in olden days. Art classes, fund-raisers, drama clubs all now happen at the mall. Other Articles by Prashant Mukherjee
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more >> Dozens of elderly cardiac patients come here for an early morning walk, safe from the cold. The mall is also, one of the last places left where you can still find the family on display — where you can still see parents, kids, and grandparents, interact with each other. The bottom line, of course, is to get people to spend more. The more time you can get people to spend in a mall, the more they are likely to buy things. Nothing in a mall is as simple as it seems. It’s easy to lose your rationality and buy things you didn’t even want. I notice three shopping bags by my side that I have no rational memory of buying. I must get out of here to a place where I can breathe again. Like a park maybe, with no cashier in sight.
Retail and real estate compliment each other. The current growth trends in Indian retail market present large prospects in the retail real estate segment. Indian retail enjoys the status of representing one of the 10 largest retail markets in the world. If the progress forecasted for retail sector in India keeps moving like this, then, by the end of 2008, a supply of 66 million sq ft. of new retail space will be developed in the eight largest Indian cities. Outlined Below Is The Future Scenario Of Retail Sector In India:
Developers are primarily focusing on the metros like Delhi and Mumbai for the supply of retail space as these cities enjoy advantages because of their sheer size and population. They have emerged as the most lucrative consumer markets in Asia. Close by heels are the cities such as Bangalore, Hyderabad, Chennai, Pune, where the per capita income is increasing due to high proliferation of IT companies. Big Realty players Unitech, Omaxe, Suncity Projects among others are planning to come up with big retail projects in tier-II cities like Ludhiana, Jaipur, Chandigarh, and Amritsar. What is attracting these majors to foray into these cities is their increasing customer base. Around 100 shopping malls are already operating here, generating 20 million sq ft of retail space. 60 more malls are likely to spring by the end of next fiscal year. Chief hosting spots to see the major retail development are NCR, Mumbai, Bangalore, Kolkata, Hyderabad, and Chennai. However, the mall culture is likely to hit 60 more cities. With Delhi Development Authority releasing real estate space in peripheral retail areas, mall development has got a strong boost. According to the real estate trends report compiled by Merril Lynch, number of malls in Delhi, Mumbai, Hyderabad, and Pune may touch 250 by 2010 against the present 40. Growth of real estate in Delhi mainly owes to huge outlay in IT/ITes, and BPO centers, thereby attracting investments in the segment.
‘Mall Management’ to take up as the Next Trend in Indian Retail
Mall management is likely to be the next hottest trend in the Indian retail market. There is planning for the development of 300 more malls. With such a strong move waiting for its turn, builders will have to learn things to ensure their success. There are around 100 exclusive shopping malls in India and 300 are scheduled to come up in the next levels of constructions. Data showcased by the study of Jones Lang LaSalle Meghraj says that more than 90% are still not at par with the international standards. Mall Management will take care of the issues like positioning, tenant mix, infrastructure facilities, the kind of environment required, and finance management which is the most crucial part of all. Mall management will also be highly helpful for builders and retailers. Unlike earlier, property developers and retailers have come up on the same platform which is better known as progressive partnership. Therefore, success of both retailers and mall operators are dependent on each other’s efforts to render effective services to customers. Of the total mall space likely to be developed in India over the next two years, the share of the Capital City has been estimated to be 22 million sq ft. Following in footsteps will be Mumbai and Bangalore. The market size of Indian retail sector is believed to be USD 320 billion in 2006 and the value is expected to grow 30% to 35% by 2010. Considering the growth of organized retail and increasing transparency in the sector, only professional malls will be able to survive among such a fie
The Perception of Customers and Retailers Towards Malls in Jalandhar- A Supply Chain Perspective
Dr Gursharan Singh Kainth is Hon Director GAD Institute of Development Studies, 14-Preet Avenue, Majitha Road, PO Naushera, Amritsar-143 008 Mr. Divakar Joshi is Lecturer in Management, St Soldier Management and Technical Institute, Jalandhar-144 001 Inflation and price rise have long been the causes of worry among the Indian consumers. Various states and national Government seems to have gone in deep slumber about this burning issue. In such a scenario, the very thought of setting up retail chain could help control prices comes like a cool breeze in sweltering summer. Presently, there are 200 retail stores in the country with
promoters and organizers who are optimistic and positive that the retail sales depot may help in containing the soaring prices. Retail sector of Indian economy is undergoing a paradigm shift. This sector has grown substantially and rapidly during the past few years and liberalized policies indicate its even faster growth. India, known as Nation of Shopkeepers, has the highest shop density in the world- one retail outlet for around 90 persons. Retail industry, which is US$300 billion in 2006, is likely to reach 427 billion US dollars by 2010 and to 637 billion US dollars by 2015. Merely 3 per cent of retail in India is organized. Visible retail revolution is on and within a short span of two years; retailing has exploded on the Indian firmament as a humungous business opportunity. Increased urbanization and growth of small towns throughout the country coupled with increased income level, diversified food habits, growth of working women outside home, willingness and capacity to pay for better quality and need for convenience drive demand for processed, ready to cook or ready to eat, convenience foods, packaged and, preferably branded. The rapid expansion of super markets in India started from mega cities of Bangalore, Chennai and Hyderabad, the southern part of the country. Nevertheless, in recent years, new retail stores/supermarkets are being opened at a frenetic pace in different small cities and towns throughout the country. The country is quickly readying to face profound changes in the retail landscape. It is only the beginning and the best is yet to come. The special characteristics of retail business and the emergence of major retailers in the market have led to specific forms of channel services. Prior to consumption, the retail product has to be both available and accessible. This requires a supply chain distributor system, that is, the channel used to bring items to the place of sale, or the means by which a retail supplier gains access to the potential buyers of the product. More recently the efficiencies of supply chain management have made major differences to the effectiveness of retailers and their overall profitability. With the ever growing size and dispersal of retail operations, controlling merchandise as part of store operations has been of paramount importance. This goes beyond an administration system, modern supply chain management can achieve competitive advantage through shorter times for restoring, reduced inventory size and costs, improved management information and greater overall controls. Supply chain management requires a holistic view of such activities and an innovative approach to the organization in order to meet customer needs with the greatest efficiency. The present research work is an attempt to examine in depth the customers and retailers satisfaction towards malls of Jalandhar in Punjab. II: RETAILS FORMATS: CONTEMPORARY SCENARIO Retailing is the final gate in the distribution process from manufacturer to consumer. Retailer as an intermediary collects and assortment of goods and services from various sources and offers them to the customers. Retailing occupies a pre-eminent position in the economies of all modern societies. The Economist Intelligence Unit (EIU) on country estimated that the retail market in India would grow from $394 billion in 2005 to $ 608.9 billion in 2009. In fact the share of organized retail in India which is close to 3 per cent is expected to grow to 10 per cent by 2010. Over 65 per cent of the planned retail investment in the next five years is from Indian corporate. In fact retail
sector in India is expected to grow at a higher rate than GDP driven by changing lifestyles, strong income growth and favorable demographic patterns. According to EIU, India currently has more than five million retail outlets, out of which 96 per cent are smaller than 500sq ft. But this scenario is changing fast. The structure of retailing is changing rapidly with malls becoming increasingly common in large cities with development plans for 150 new shopping malls by 2008. According to the KPMG report the annual growth of departmental stores has been estimated at 24 per cent, which is faster than overall retail, and super markets have taken an increased share of the general food and grocery trade over the last two decades. Specialized retailers are developing rapidly in segments such as consumer durable and white goods, books, music, lifestyle goods, household furnishing, health care and beauty care. Organized retail will require over 220 million sq. ft. space against 40 million square feet of now. One should not be surprised why the retail boom is about to happen in India with about 11 retail shops for every 1,000 persons. India has the highest shop density in the world. That’s one shop for every 20-25 families. American arguably the biggest spender in the world has to do with just 4 shops per 1000 persons. Singapore, the shopper’s paradise has similar density. England (rather, UK), once scathingly referred to as a nation of shopkeepers by Napoleon is only marginally betternearly 5 shops for very 1,000 persons. The high number of shops in India is because most of them are in the unorganized sector, e.g., paan wala, kirana stores, subji wala, fruit wala and so on. No doubt, India has many shops but the small entry of big retail would consolidate the sector into fewer but bigger shops. The only constraint in retailing is change and with the pace of development retailing appears to be accelerating. The traditional forms of independent owned small business and cooperatives have lost significant market share. In developing economics, the retail sector is now characterized by large scale multiple chairs run by powerful and sophisticated organizations like Super Bazars and Kendriya Bhandar in New Delhi, Sarkari Bhandar in Mumbai, Spencer Plaza, and Niligiries etc. The first half of the 20th century saw the arrival and growth of large retail giants. The new group of discounts stores redefined value and varieties with low price and wide inventories. Though the arrival of super markets in India was a bit late but they are fast becoming a rage amongst enthusiasts. In a short span of two years, retailing has exploded on the Indian firmament as a humungous business opportunity. The rapid expansion of super markets in India started from mega cities of Bangalore, Chennai and Hyderabad, the southern part of the county. Nevertheless, in recent years, new retail stores/supermarkets are being opened at a frenetic pace in different small cities and towns throughout the country. The major players in the Indian Retail Sector are Pantaloon Retail (India), Shopper’s Stop, Lifestyle, Reliance Retail, Aditya Birla Retail, Bharti Retail, RPG Group, Tata’s Trent, Vishal Mart, Discount chain Subhiksha, Ebony Retail. Many mores are also eyeing at retail operations business by establishing retail chain across India with massive investments in the year to come. Currently, heated debate is on whether or not; Foreign Direct Investment (FDI) in retailing is desirable. FDI is not allowed in retailing. It is permissible in a single brand and in franchising and commission agent services. Foreign Investment Promotion Board
(FIPB) on a case by case basis approves the FDI proposal in the wholesale trade services. The government allows foreign investment in retail segments where small domestic players do not operate. FDI in retail is set to get a leg up and govenment has marketed out sports goods, electronic and building equipment as some of the sectors that may be opened up with a 51 per cent cap on FDI. The government is likely to allow FDI at both the front and back ends. The government is also considering permit multi-brand retail in such areas. However, the question, whether the government allow FDI in these segments through the automatic route or through the FIPB is yet to be decided. FDI in retailing will expedite the process of development of modern format India, bring in technical know-how, reduce inefficiency in the supply chain, increase productivity, help achieve international quality standards and improve the quality of employment and services offered to the consumers. Many reputed foreign retailers with deep pockets and deeper market knowledge are waiting in the wings to enter the country. Restriction on FDI may constrain the growth of organized retailing. Restriction of FDI in food retailing is due to the apprehension that entry of multinationals will displace millions of workers in the unorganized retailing, which needs thorough examination. Mall Management has emerged as the single most differentiating factor in today’s scenario. The need of malls to differentiate themselves is a sure way of emerging as a winner. Right from the tenant mix, ensuring of creation of right ambience, cleanliness that creates customer satisfaction, managing various income stream for developer, the role of mallmanagement is complex and dynamic. Shopping malls around the country have been experiencing difficulty in recent years. People are spending less time in malls due to changing preferences and new shopping alternatives. Some of the weaknesses of the malls are market opportunities for downtowns and community business districts. Consumers are finding it more difficult to shop at the regional shopping mall, instead, shoppers want to run out at lunch or make a quick shop on their way from work. Convenience was the most important reason why they choose to shop at a certain store. Consumers are growing interested in new, more convenient and less time-consuming ways of shopping. Home shopping and electronic shopping address the time constraint problem facing the consumers. Safety has become a concern to shoppers and owners. With the advent of information and communication technology (ICTs), the Indian consumer is now more aware of what the market place, both national and international, has to offer. India has steadily transitioned from a state managed economy to a market economy. Economic growth and liberalization have increased the amount of disposable income. The growth of the urban middle class, which demands value for money, has led to lot of changes on the retail front. The past few years have also seen a large increase in the number of youth to earn early. Roughly, there has been 20 per cent increase in the number of people between 15 to 19years age group who started earning, largely due to the expansion in opportunities for the urban youth in the business process outsourcing industry and the software sector. The expenditure of Indian households on health services, education, domestic appliances and food has undergone a substantial change. The share of food in the total private consumption expenditure has fallen
from 51.3 per cent in 1993 -94 to 41 per cent in 2005-06. The Increase in the number of working women, especially in urban India, has fuelled the growth of retail format like supermarkets, convenience shops and products like ready to eat meals. While the spending power has increased, the demand is now for quality merchandise and a certain level of service. Increase in disposable income, changes in consumption pattern, coupled with knowledge of market has enabled the retail market in India to expand to both vertically and horizontally. Dependency ratio a proportion of non-working population, is set to decline in the coming few years, and about 60 million people will be joining the ranks of the “the consuming age class” of 15-64. To help the retail sector, there is also the ascent of urbanization (from 27.8 in 1998 to 31.8 in 2008). Furthermore; companies continue to invest more in direct mail, like catalogs, which also siphon off business from traditional malls. According to Stan Eichelbaum of Marketing Development Inc. in Cincinnati, some of the mall’s vulnerabilities are also the strengths of downtowns. According to Eichelbaum, malls are aesthetically boring, do not offer street front exposure, are limited in terms of events they can host, do not offer parking that is convenient to the shopkeepers destination and have retail –mix problems due to the rise of category killers. Downtowns have a distinct advantage in each of these areas. Eichelbaum recommends that downtowns take advantage of their competitive strength in these areas by providing specialty retail, parking, safety, cleanliness, Street level activity, management, marketing and a blend of worker and residential population. Majority of upcoming mall developments remain fragmented and sub-optimally planned. Many developers also encountered financial problems due to carrying too much debt. As these centers aged, many lenders turned down their requests for financing mall refurbishment, leaving the mall in an even more vulnerable position. In near future there is likelihood of a shakeout within shopping mall business. Emergence of few large, dominant and relatively more professionally managed national/regional and a host of specialty/ niche local players likely. With globalization of the real estate sector, shopping malls of International scale and quality would soon emerge. At present the general practice with all the mall developers is that they have a service division within their group which manages their entire properties residential, commercial or retail. Each mall has a mall manager with a team of assistants handling different aspects of the job. Big Developers like DLF and MGF are bringing up 40 to 50 malls across the country. At same time, it is expected that professional integrated mall-management companies will be hired by the developers to manage many of their properties. As an indicator of the performance of professional mall management, the footfalls and revenue in professionally managed mall in South Africa is at least 12 per cent greater than that in owned managed malls. RESEARCH METHODOLOGY Jalandhar, known for its sports goods and hand tools business world wide and hub of Non-residential Indians (NRI’s) is fast emerging place for rich and prosperous persons due to their high education level and commitment they show in whatever they do to earn their livelihood. This Doaba Region of Punjab State has witnessed manifold development in every stream: Medical, Educational Institutions, Sports goods, Hotels or Hand tools Industries etc. There are many
places for people to shop and relax during whole day such as Rainak Bazaar, Sheikha Bazaar, Model Town Market, Attari Bazaar etc. All these are traditional markets and have remained part and parcel of every Jalandhari. Recently, many Malls are coming up in and around Jalandhar like, Ansal Plaza, Sarab multiplex, Star city, D.L.F group, Centrum Jyoti Mall, Monopolies of M.B.D. group, Axis, Manbro, Sports King, The Top Store and Amikiz etc. But there are mainly two malls, namely, Vishal Mart and V Mart which can be called as complete malls or which fulfills the criteria for shopping malls. Surveys are best suited for Descriptive Research. Surveys are undertaken to learn about people’s knowledge, beliefs, preferences, satisfaction and so on. The locale of the present study was The Malls in Jalandhar region of Punjab. Jalandhar region was selected because many Malls have come up in and around Jalandhar. The sampling method used is non-probability convenience sampling. A sample of 200 customers’ and 50 retailers was selected through convenience random sampling. A separate structured questionnaire was used for collecting the data from the consumers as well as the retailers. The questionnaire was based on Likert scale which was pre tested. The data has been analyzed using simple statistical techniques such as tabulation, weighted mean scores, frequency distribution and percentage
III: RSEARCH FINDINGS AND DISCUSSION The most important thing is to forecast where customers are moving and to be in front of it. Gone are the days when enterprise believed strongly rather wrongly that if they manufacture a product, customer would time up automatically for it. This view worked well in past, but today customer satisfaction is viewed as an integral part of total quality. Consumer behaviour refers to “the behaviour that consumer display in searching for purchasing, using, evaluating and disposing of products and services that satisfy their needs” and the study of consumer behaviour is the study of how individuals make decisions to spend available resources. The challenge to the market is to determine the relative influence of the various factors and to adopt and apply skillfully so called information to a proper marketing mix. CONSUMERS’PERCEPTIONS: Little more than one half of (52.5 per cent) respondent-consumers visited Malls/Stores once a month, 28 per cent twice a month and 12.5 per cent visited the Mall/Store thrice a month. Only 7 per cent visited more often. Newspapers (37.5 per cent) were the major source of information about Shopping at Mall/Store. 32 per cent of consumers came to know about Malls/Store through Television. Remaining 22 per cent consumers rely mainly on their friends and relatives. Consumers Bazaar was the favourite place for the shopping with 43 per cent consumers. 21.5 per cent favored Multiplex/malls, 12.5 per cent consumers’ preferred wholesale market. 18 per cent consumers were in favour of shopping complex/center, 5 per cent consumer were inclined towards local market. One fourth of consumers purchase clothes at Malls, and Men’s wear each, 19 per cent grocery items. 15 per cent consumers were in favour of buying Ladies wears, 5 per cent favour of Kids Wear & Toy, 16
per cent consumers were in favour of buying daily use items and only 2.5 per cent consumers purchased cosmetics. Nearly one-third consumers on an average spent Rs. 5,000 to Rs. 10,000 on shopping at Malls; 22.5per cent consumers spent less than Rs. 5,000; 21per cent consumers spent between Rs. 20,000 to Rs. 30,000; 16 per cent consumers spent between Rs. 10,000 to Rs. 20,000; 5.5 per cent consumers spend on an average between Rs. 30,000 to Rs. 50,000 and merely 3per cent consumers spent Rs. 50,000 & above. Furthermore 55 per cent consumers were satisfied with the prices of products & services at the malls. 29 percent consumers were not satisfied with the prices at the malls. 16per cent consumers were not able to express themselves about the product and prices at the shopping malls. 93per cent consumers agreed that professional Mall Management & Wide range of cheaper products have persuaded them to spend more time and money at Mall. 82.5per cent consumers were aware about the promotional schemes and offers organized at the malls. 17.5per cent consumers were not aware about the promotional scheme and offers organized at the malls. 68per cent consumers agree that lucky draw schemes and promotional offers or discounts make them to visit mall frequently. 25% consumers did not agree that the lucky draw schemes & Promotional offers or discounts make them to visit mall frequently. On the other hand, 7per cent consumers remained silent. 31.5per cent consumers were inclined towards Professional Services as far as Shopping experience is concerned compared to traditional shopping. 28per cent consumers were in favour of full value to money. 16per cent consumers were in favour of Excellent Ambience. 8per cent preferred fixed prices. 6per cent were giving weightage to Proper display of products. 5.5per cent consumers were in favour of International brands. 3per cent consumers preferred more fun & excitement and 2per cent gave weightage to less hassle.62.5per cent consumers were highly satisfied with the quality of products they purchased at Mall/Stores. 29 per cent consumers were satisfied with the quality of the products they purchased at Malls. 8.5per cent consumers were partially satisfied with the quality of products, which they had purchased at the Malls/Store. FACTOR RATING Consumers were asked to assign rating to importance of different factors they consider while taking the purchase decision at various malls. Factors considered are like quality, wide range of products, fixed prices, International Brands, Discount, Packaging, and Advertisement, Proper display of products, Ambience & value for money. Likert Scale was used to assign different weights which are 5 for the most important, 4 for important, 3 for neither important nor unimportant, 2 for unimportant and 1 for most unimportant. Weighted average score was computed. Discount with 31.2 as weighted average score (WAS) is a most important factor according to perception of consumers. 78 rated discount as most important and 12 rated the discount as important. 10 were indifferent. International brands is another important factor with WAS of 30.86. 68 respondents rate it as the most important factor in purchase, 27 respondents say that it is important. 5 respondents say that it is neither important nor unimportant. The Value of money is the third important factor with WAS of25.86.66 rated value for money as most important, and 24 rated the value for money as important. 10 were indifferent towards value for money while shopping at malls. Quality with 29
as WAS is the fourth important factor.55respondent feel that quality is very important factor. 30 respondents feel that the quality is an important factor. 10 respondents are indifferent to it. 5 respondents consider it unimportant. Next in importance is Proper display of products with 27.06 as WAS. Majority of the respondents, that is, 55, consider proper display of products as most important, 22 respondents were indifferent and 20 respondents had considered it important. 10 respondents revealed it as unimportant. Apparently, consumers are rapidly accepting the modern form of shopping with unique advantages of good atmosphere, wide range of products, multi-sections of products and professional management. Increased consumer’s purchasing power demands more personal attention and professional services while shopping at the malls. Consumers are expecting more of International Brands at competitive prices. Globalize and westerner foreign goods are becoming part and parcel of every Indian consumer. The owners of the malls have understood that the tastes and preferences of the consumers have been changing day by day, requiring prompt service and replacing the old stock of goods with new one to face today’s cut throat competition. But the consumers were not satisfied with parking facilities provided at the malls as they have to park their vehicles on the road and too at their own risk. It may lead to incidences of mishappening like theft and damage to their valuables that were lying in their vehicles. Consumers were also not happy with the luggage and personal property being taken off at the main entrance of the mall. The mall owners have to look for a remedy to avoid any inconvenience while shopping at the mall. Quality was the main concern as today’s consumer is very well aware about the different quality products and wants full value for his money at any cost. Consumers feel that prices charged at Mall/Stores are very high as compared to traditional means of shopping. Newspapers and television was the only source of information about the Malls. Majority of consumers prefer to do more shopping at Bazaar and Local Market only. Shopping complex or Malls/Multiplexes are newly emerging places for shopping for young or middle age persons. Men’s wear and clothes are the main items of shopping at mall. Consumers were highly satisfied with quality of products, which they have purchased at Malls/Store. Consumers preferred professional mall management and wide range of cheaper products which persuaded them to spend more time and money at Malls/Store. They were aware about the promotional schemes and offers organized at the Malls which make them to visit the Mall/Store frequently. This was supplemented by professional services and full value of money they got at Mall/Stores. Monthly and annual sales turnover at Malls are quite encouraging and satisfactory. With the emergence of more malls cum shopping complexes, the Mall owners are coming up with more innovative and modern promotional ideas such as discounts, free gifts, better quality and debit/credit cards facilities etc. Mall owners, however, were not satisfied with the low margin as well as untimely replacement of damaged goods by the company; apart from mishandling of goods by the customers was a matter of great concern. RETAILER PERCEPTIONS: Retailer is one who sells to consumer a wide variety of goods which are assembled at the premises as per needs of final users. The survey of retailers is done with the help of structured questionnaire and in-depth
interviews. One half of the respondent retailers had kept all the product range like grocery items & clothes, electronic items, cosmetics, daily use items etc. Furthermore, 30per cent retailers kept only Grocery items and Clothes and 20per cent kept electronic items, cosmetics and daily use items. 50per cent retailers have their average monthly sales turnover between Rs. 10 to Rs. 25, lakh. 30percent retailers have average monthly sales turnover above Rs.25laks. Onetenth of retailers have average monthly sales turnover between less than Rs. 5 to Rs. 10lakh. Furthermore, one half of retailers revealed that 150 and above customers visit their Malls/Store daily. Other40 per cent retailers were visited by 100 to 150 customers. Rests of retailers revealed that merely 50 to 100 visit their Store/mall daily. Garments with 40per cent share are clearly most visited section at Mall/Store. Daily use items with 30per cent share come second. Grocery, beauty product and imported goods with 10per cent each share are the rest of sections which are visited by the customers at Malls/Stores. 60per cent of consumers had excellent perception towards the international brands at Malls/Store. 30per cent consumer considered International Brand as very good, 10per cent perceived International Brands as good only. 40per cent of customers who visited Malls/Store belongs to upper middle class. 30per cent each was from Elite class & Middle class who had visited their Mall and Store. 80per cent retailers are using promotional methods for promoting their products. Retailers gave highest ranking to Newspapers Advertisement (42 ranks) as most preferred sales advertising done by mall. Bill Boards comes next with 37 points, followed by posters with 28 points and TV Commercial with 14 points. Stands as preferred point of Sale advertising mean got fifth ranking with 23 points. Cash Discount with 43 points is the most effective incentive scheme for sale promotion; Free Gifts with 32 points is ranked Second and replacement guarantee as third with 28 points. Discount coupon with 22 points and lucky draw with 20 point was conceived by retailers as the fourth and fifth preferred incentive scheme for sale promotion. Customer preferred quality with 42 points and ranked first amongst various important attribute they consider while shopping at Mall/Store. The other in sequence are discount/offers with 33 points, Price range with 29 points , Wide range of products with 18 points as 4th rank and lastly all the attribute collectively with 12 points ranked fifth. Apparently, retailers prefer keeping wide range of product, mainly Grocery, Clothes, Electronic Items, Cosmetics and Daily use items. Average Monthly Sales Turnover is above Rs. 25 lakh. More than 150 customers visit their store daily. Garments and Daily use products are most visited sections. International brands are the most preferred item. Upper middle and lower middle class is mostly visited at the malls. The quality is the most preferred attribute of customer while shopping at mall. Modern Professional advertisements both the print and electronic are the popular methods for promoting their products. Replacement guarantee, cash discount and free gift are most effective incentive schemes which they are using for attracting the customers to their mall. RECOMMENDATIONS In the light of above discussion, following recommendations are made separately for the companies as well as for the retailers. Companies should keep the prices reasonable and competitive so that low level income groups can also become a regular customer of malls.
Companies should adopt market penetration policy to capture the market. The pricing objectives of the company should be retaining back customers and capturing more share of market. In these days business can only survive if companies share good share in market and if they keep their customers satisfied. Advertising is assuming much importance now. Companies should maximize their advertisement especially in interiors of cities and main G.T. Road, like Bill Boards, Posters etc, and T.V. as an Advertisement media is also very effective and companies should focus their attention on it. Companies can achieve success with active sales promotion and awareness amongst the local residents of city. The sales people of the companies should regularly visit their respective retailers of Malls/Stores in order to get their feedback and Market Information. Companies should give adequate advertising support to the retailers. Company should provide them special cabinets, stands, hoardings, glow boards and banners etc. of different companies brand for advertisement purpose. The promotion campaign should be intensified round the year, particularly during festival seasons. These are boom periods for Mall owners hence companies should offer a variety of promotion schemes like price offer, free gifts, quantity discount to Fetch maximum sales. In today’s Market share, logistics efficiency is a key factor for success. So companies should try to make its distribution very effective and improve its reach by increasing the number of Malls and opening more malls surrounding the cities, so that more and more small towns can be covered. Most of retailers at Malls complain of low profit margins. The companies should increase the retailer’s margin. Companies should offer good incentive schemes to Mall owners to motivate them. Policies regarding replacement of expired stock should be modified and should be made more liberal and flexible. On the other hands, Retailers should provide adequate feedback to the companies. They should provide adequate and reliable information about his Malls structure. This helps the companies in formulating appropriate marketing strategies according to the Market conditions. Retailers should provide excellent professional management at their mall by recruiting qualified staff. Retailers should suggest and recommend the product brands to the customer by in Mall and out mall man campaigning. Mall owners should store adequate quality product in their mall in order to attract more and more new customers. Mall owners should use modern methods of promoting the products and services in their Malls/Stores. Though every effort was made to elicit authenticity in every sense, yet there can be uncomfortable factors which may have their influences on the final outcome. The survey is conducted in Jalandhar district of Punjab. It may not be true representation of entire national market. Few respondents who are not familiar may give a neutral or unfavorable response to some of the questions. Some variables might have omitted in the study. There may be some biases in the information provided by mall owners. Limited rather no access to secondary data pertaining to shopping mall management and its performance was another problem in finding a correct market response. POLICY IMPLICATIONS In today’s fast emerging concept of professionalized mall management with best and innovative products under one roof at competitive prices, the consumers are rapidly and more consistently accepting the modern
form of shopping. Increase in consumer’s purchasing power has led to expecting more personal attention and care at the malls and inclined more towards malls due to availability of more international brands at competitive prices coupled with prompt as well as replacing the old stock with new one more regularly. Customer’s tastes and preferences have changed with westernization and globalization. The monthly and annual sales turnover figures were quite satisfactory and encouraging as customers are ready to spend more than usual due to availability of different product and services at one place. Quality was the foremost thing that customers want at competitive prices. There were also some bottlenecks like customers were not satisfied with the parking facilities at malls, as they have to park their vehicles in open on roads. Mall owners were not satisfied with profit margin and non-replacement of damages of goods by concerned companies. The customers have also shown their resentment towards their luggage and personal property being taken off at the main entrance of the mall. The company should keep the prices of goods at malls reasonable and competitive, so that low level income groups can also become a regular customer of malls. Advertising is assuming much importance now; companies should maximize their advertising especially in interiors of cities through billboards, posters, newspapers ads and television ads etc. The retailer should provide adequate feed back to the companies. Retailer should store adequate quality products in their malls. With a large number of malls in the pipeline one of the critical factor that will give an edge to one retail center over the others is the way it is managed. Competent mall managers are in short supply and the situation will remain the same for next 2-3 years. Some of the B-Schools are launching specialized courses on retail management including mall management. Over the next few years, professional mall management service will establish its significance in the industry. The country requires higher attention to be given to developing more number of persons with the right skills and knowledge, who can be employed in this function. Corporate know that the Indian agriculture sector is a potential goldmine that has not been tapped till now and farmers have a lot of reasons to be happy with the corporate entry into agriculture scenario. Rural economy of India will be substantially improved through innovative agriculture and linking them to retail boom in agricultural sector. India is endowed with several advantages for ushering in retail boom in agriculture since it has second largest arable land in the world; diverse agro climatic conditions across the country, round the year sun shine potential to cultivate vast range of agricultural products through vast pool of crops. Currently Indian agriculture is only quantity oriented rather than quality oriented. Markets also do not procure the product by giving price based on quality parameters of the produce. But the retail boom necessitates placement of products with value in terms of its nutritive and neutracutical value, taste, tempting to buy appearance, attractive colours etc. When multinationals or big business houses enter the retail trade the chain of intermediaries between the producers and the consumers are minimized and there will be scope for higher share of profit reaching the farmers who toils in the farm. Hence the farmers stand to gain much due to retail boom by way of enhanced price for their produce and assured market. BIBLIOGRAPHY ?
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Kini has been an attorney support and research Type in a word or phrase to search for more articles: specialist in California state and federal law for 20...more The Perception of Customers and Retailers Towards Malls in Jalandhar- A Supply Chain Perspective by DR GURSHARAN SINGH KAINTH Article Posted: 01/24/2008 Article Views: 1610 Articles Written: 16 - MORE ARTICLES FROM THIS AUTHOR Word Count: 6381 Article Votes: 22 Marketing, No. 33 ,1969, ? Prof Anu Singh Lather, Tripat Kaur, “It’s all at the Mall – Exploring present shopping experiences”, Indian Journal of Marketing, August 2006, ? Piere Beaudoin, Mary Annmore, and Ronald E. Goldsmith, “Young Fashion Leaders, and followers’ attitude toward American and Imp”, Journal of Product and Brand Management, 1998 ? Rao, K.V., Research Methodology in Commerce & Management Sterling Publishers Pvt. Ltd., New Delhi, 1993 ? Susan .M. Keaveney, “ Conceptualization and Operationalization of retail store image: A case study of Rival Middle – level theories”, Journal of the academy of marketing science , Vol. 20, 1992. ? Thompson K.E. “Retail store image-a mean end approach”, Journal of Marketing Practice, Vol. 4, 1998. ? V. V Gopal, “Professionalism in Retail Management”. The ICFAI Journal of Service Marketing,2005 MAGZINES ? B&E, “It’s Bharti Wal-Mart Ltd.” Business & Economy, Dec 2006. ? r. M. Anbalagan , V. Selvam & V. Gunasekaran, “ Retail Consumer Market in India – The next Big Leap,” The Economic Challenger, Issue 33, Oct-Dec 2006 ? Mahesh Nayak & Pallavi Srivastava, “Currrent Wal-mart: Made in India” Business
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