Shopping at malls is becoming a popular phenomenon world over. There
is a huge sum invested in such properties beginning from its development to
managing, leasing, marketing and so on. So the big question is - How can mall
developers maximise the returns on their investment? Malls across India have
turned out to be the central institution of modern shopping culture. The
environment is full of choices and lures, which takes the consumers’ soul into
the temptation of buying the world. People of all races, creeds, ages, and
social status flock to shopping centres to participate. The ascendancy of malls
as a significant shopping, social interaction and entertainment destination has
a major impact on retail strategies and the retail landscape in numerous Indian
companies. In India malls are amongst the very few options available where
people can conveniently shop keeping in mind the country’s extreme weather conditions,
lack of utilities such as absence of washrooms and parking spaces on high
streets. Another reason for the growing mall culture in India is that the country
is currently deprived of good entertainment places where people can spend
quality time with their families, and hopping
centre is perhaps one such great entertainment place.
With the increasing number of malls in India, and many more in
the pipeline, mall management has been identified as the key to success of
malls. Therefore, it is critical to have a well thought-out mall management strategy
and the first step to address this urgent need is to understand the factors
that determine mall management. With malls becoming the preferred choice for shopping
these days, it is clear that the retail real estate industry in India has a
promising future with lots of growth opportunities. However, managing a complex
entity such as malls is not easy. Therefore, it has become all the more
imperative for mall managers to take into consideration the needs of all the
stakeholders such as customers, retailers, employees and statutory bodies.
With the mushrooming of malls in India, the competition among
them is becoming intense. As the competition intensifies, the need of the
quality mall management becomes evident. A major challenge for mall developers
these days is attracting and winning over the hearts of increased number of
customers and retailers, although it brings ample opportunity in disguise to serve
the lifestyles of the shoppers through deliberation of mall experience. Since
shoppers today are quite informative and value their time and money, the
priorities on which they evaluate the services of the malls generate a lot of
challenges and opportunities for mall developers and retailers to study
shoppers’ preferences while selecting a shopping destination. Against the
backdrop of shoppers’ choice of the shopping malls, it is necessary to have a
look at the determinants of mall management which shoppers assess before gathering
an enjoyable experience. Mall management implies positioning a mall, attracting
the best tenants, formulating tenant mix policies, promotions and facility
management. The influx of malls in India as cynosure of social activity becomes
instrumental for the retailers to acquire space in shopping centres. Malls’
ambience and facilities become the competitive advantage for retailers as these
attract and induce more foot-fall in the region.
The initial work starts with the location analysis. An important
dimension of mall management is its location as in India nearly majority of the
visitors depends upon public transport facilities. People who frequently visit
the mall are those who stay nearby, so proximity to home or work place is an
essential criterion of any shopping centre. Other factor which comes under
consideration while formulating the strategy is the anchor tenants. Anchors in
the malls are chosen very carefully since they are the footfall generators for
the entire mall. For example, apart from multiple luxury brands available in
the malls, almost all malls do accommodate multiplexes and departmental
stores/super markets – the latter being the footfall generators. The promotions
and the other activities constitute to the differentiating factor of any mall.
Promotions such as monsoon bonanza, winter offer, festival arrivals, etc. are
few which we often come across. Other activities such as contests, celebrities’
appearances, musical events, etc. are few things through which malls try to
allure more footfall. Brand positioning of the mall is also very critical. While
national and international retailers set the brand positioning of a mall, regional
tenants add uniqueness to it, which help them stand out of the crowd. Stressing
that there should be a fine balance of national, international and regional
retailers in any particular mall. Localising the mall in tune with the local
needs and preferences of the catchment thus becomes very important. This becomes
all the more important as today’s consumer owes no loyalty for a shopping
centre unless it meets her high expectations and has something unique to offer.
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