A Comparative Study of Shopping Mall

8/10/2019 A Comparative Study of Shopping Mall

1/97

Comparative Study on Shopping Malls

A

DISSERTATION REPORTON

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE

AWARD OF THE DEGREE OFMASTERS DEGREE IN BUSINESS ADMINISTRATION

(2008-2010)

UNDER GUIDANCE OF: SUBMITTED TO:MR.VIKAS GAIROLA MS. ANURADHA DOGRHA

SUBMITTED BY:CHANDAN KUMAR

Roll No. 083605000 0

DOON BUSINESS SCHOOL! DEHRADUN "U.K.#

0


2/97


TABLE OF CONTENTS

TOPICS

IntroductionExecutive SummaryIndustry OverviewLiterature Review

Retailing in India Global Formats

Key Facts About Retail Sector in India Foreign Investment in Indias Retail Sector Rationale o t!e Study S!o""ing #alls Scenario in $%R

Ob&ectives o t!e Researc! Study'y"ot!esis o t!e Study%om"arative Study o Five #allsResearc! #et!odology

(ata Analysis )re"arationSurvey (iscussion%onclusionRecommendations*ibliogra"!y

Annexure+uestionnaire

1


3/97


ACKNO$LEDGEMENT

)er ect is a amous saying and w!en a "erson gets "ractical ex"erience

under t!e guidance o ex"erts o t!e res"ective ield, t!e -nowledge gained

is "riceless.

/it! a sense o great "leasure and satis action, I "resent t!is "ro&ect re"ort

entitled A Co%&'(')*+, S)- / O S1o&&*2 M'll com"leting a tas-

success ully is never a one0man e ort. Similarly com"letion o t!is re"ort is a

result o invaluable su""ort and contribution o number o "eo"le in direct

and indirect manner.

In t!e lig!t o t!e oregoing, irst o all my !eart elt grate ulness and t!an-s

goes to #r. 1IKAS GAIROLA wit!out !is indis"ensable coo"eration t!e

"ro&ect wont !ave been com"leted wit!in t!e sti"ulated time rame.

Finally, I would li-e to t!an- all t!e "eo"le, wit!out w!ose insig!ts and

o"inions, t!is "ro&ect would !ave been im"ossible.

CHANDAN KUMAR

MBA 4 TH SEM

ROLL NO. 08360500020

2


4/97


E4ECUTIVE SUMMARY

2ill t!e early nineties, t!e organi3ed retail industry !ad not evolved. 2!ere

was no consumer culture, t!ere were limited brands and "eo"le boug!t w!at

was available. 2!ere were no s!o""ing areas. 2!e retail industry lac-ed

trained man"ower. It was di icult to com"ete wit! t!e unorgani3ed sector

because t!ey o"erated wit! minimal labor costs and over!eads. 2ax laws

and government restrictions added t!e "roblem. Liberali3ation !as c!anged

all t!is. 2oday customer is wit! more s"ending "ower, is better educated,

and more im"ortantly, ex"osed to brands and "roducts t!roug! television

and oreign tri"s. 2!e Indian consumer now !as t!e desire to ac4uire.

)ersonal consum"tion is on t!e rise. %ustomer segments, already diverse,

!ave been sub0divided wit! &oint amilies giving way to nuclear amilies, and

t!e increasing number o wor-ing cou"les. 2!ese c!anges along wit!

increased availability o retail s"ace and 4uali ied man"ower !ave !ad a

"ositive im"act. $ew "layers are now entering t!e mar-et. Instead o retail

evolution, t!ere is a retail revolution in India.

2!e emerging "urc!asing "ower o t!e urban educated middle class and t!e

growing wor- culture o t!e wor-ing women !as c!anged t!e buying !abits

o amilies, w!o are ex"eriencing a growt! in income and deart! o time.

Rising incomes !ave led to increasing convenience and service.

%onsumers !ave started caring about w!ere t!ey would li-e to s!o", be it

multi brand outlet, exclusive stores or malls wit! develo"ment around t!em

1


5/97


but are also more demanding. 2!ey want su"erior 4uality at an a ordable

"rice and t!ey want it instantly.

2!us, we see t!at t!ere is a strong trend in avor o one0sto" s!o"s li-e

malls and su"ermar-ets. A #all5su"ermar-et a""eals because o its "leasant

surroundings, better "roduct dis"lay and t!e availability o a wide variety o

brands. 2!e store !as accurate measure controls and allows economies o

scale. A s!o""er also !as t!e o"tion o s!o""ing or all !ouse!old

necessities under one roo . In t!e uture, wit! more dual income amilies, t!e

consumer ability to s"end will increase, but at t!e same time, it is "redicted

t!at t!e time available or s!o""ing will go down. In suc! a scenario, t!e

retailers will !ave to increasingly develo" s!o""ing as an ex"erience and at

t!e same time, t!e more success ul ones will be t!ose t!at "rovide aster

service. #alls, in "articular, are contributing !ugely to t!e develo"ment o

organi3ed retail.. #alls are coming u" bot! wit!in cities and at t!e outs-irts

vowing to create destinations t!at will attract t!ousands o customers every

day.

India is ex"eriencing a 6mall boom7. S!o""ing malls are set to one o t!e

most visible aces o t!e Indian retail scene in t!e next ew years. Accordingto estimates a"art rom t!e metro"olitan and larger cities, as many as 89

new malls will be coming u" by :998 in t!e smaller cities as well.

In India S!o""ing #alls industry is u"coming industry in India. 2oday in India

S!o""ing #all industry is wort! ; Road is t!e "lace or all amous s!o""ing malls in

2


6/97


Gurgaon. On #.G. Road Gurgaon #GF Grou" !as two s!o""ing malls in

o"eration #GF #etro"olitan #all, #GF )la3a, Sa!ara Grou" !as its Sa!ara

#all and (LF Grou" !as its %ity %entre.

2!is "ro&ect involves around t!e study o 2'E %onsumer *e!avior and

Ex"erience about S!o""ing #alls@ A %om"arative Study. 2!e met!odology

ado"ted to study t!e "ro&ect is t!roug! survey in Sa!ara, Ansal )la3a,

%enter stage #all, S!i"ra #all and #etro"olitan s!o""ing malls on #.G.

Road, ;99 consumers were surveyed. 2!e survey is done t!roug! t!e

"ersonal interviews by "utting a set o structured 4uestionnaire to t!e visitors

o S!o""ing #all.

%onsumer "urc!asing "ower is t!e main actor, w!ic! determines t!eir

buying be!avior and brand o s!o""ing malls. S!o""ing #alls are t!e "laces

or t!e un entertainment, amily outing, s!o""ing and eatings. In

s!o""ing #alls age actor is also one o t!e dominant actors in daily oot all.

/!at I studied t!at in di erent s!o""ing malls di erent age grou"

consumers come and t!ey im"act on t!e buying be!avior.

/it! new s!o""ing0malls !aving become o"erational in many cities across

India, it is interesting to observe !ow t!e s!o""ing0be!aviour o consumers

in t!e vicinity o t!ese malls !as c!anged and t!ereby draw some lessons

t!at could be o some use to t!e develo"ers o !undreds o new malls t!at

are currently under "lanning or construction across India.

It is still not too long ago t!at t!e o"erators o a "articular new s!o""ing0mall

at #umbai !ad to contem"late restricting entries o visitors by im"osing

3


7/97


8/97


9/97


- Stable Government wit! : nd stage re orms in "lace

- Growing %or"orate Et!ics =Labour laws, %!ild Labour regulations,

environmental "rotection lobby, intellectual and "ro"erty rig!ts, social

res"onsibility>.

- #a&or tax re orms including im"lementation o 1A2.

- S ;H9 billion investment "lans in in rastructure in next 8 years

- : nd Second most attractive develo"ing mar-et, a!ead o %!ina

- 8t! among t!e H9 emerging mar-ets or new retailers to enter

/it! over 99 million e ective consumers by :9;9 India to emerge as one o

t!e largest consumer mar-ets o t!e world by :9;9.

F*+, R,'9o29 ;1/ I2 *'2 O( '2*


10/97


ra"idly t!an t!e initial years o starting u" #ost !ave regained 5 im"roved

"ro itability a ter going t!roug! t!eir res"ective learning curves.

#alls in India

A decade ago ? not a single mall

A year ago ? less t!an !al a do3en

2oday ? 9 malls

: years rom now ? H99 malls

7


11/97


LITERATURE REVIE$

Retailing consists o t!e sale o goods5merc!andise or "ersonal or

!ouse!old consum"tion eit!er rom a ixed location suc! as a de"artment

store or -ios-, or away rom a ixed location and related subordinated

services. In commerce, a retailer buys goods or "roducts in large 4uantities

rom manu acturers or im"orters, eit!er directly or t!roug! a w!olesaler, and

t!en sells individual items or small 4uantities to t!e general "ublic or end

user customers, usually in a s!o", also called store. Retailers are at t!e end

o t!e su""ly c!ain. #ar-eters see retailing as "art o t!eir overall

distribution strategy.

S!o"s may be on residential streets, or in s!o""ing streets wit! little or no

!ouses, or in a s!o""ing center. S!o""ing streets may or may not be or

"edestrians only. Sometimes a s!o""ing street !as a "artial or ull roo to

"rotect customers rom "reci"itation.

S!o""ing is buying t!ings, sometimes as a recreational activity. %!ea"

versions o t!e latter are window s!o""ing =&ust loo-ing, not buying> and

browsing.

K*2 9 o R,)'*l,(9

2!ere are t!ree ma&or ty"es o retailing. 2!e irst is counter service, now rare

exce"t or selected items. 2!e second, and more widely used met!od o

retail, is sel 0service. +uic-ly increasing in im"ortance are online s!o"s, t!e

t!ird ty"e, w!ere "roducts and services can be ordered or "!ysical delivery,

downloading or virtual delivery.

8


12/97


Even t!oug! most retailing is done t!roug! sel 0service, many s!o"s o er

counter service items, e.g. controlled items li-e medicine and li4uor, and

small ex"ensive items.

A large s!o" is called a su"erstore. A s!o" wit! many di erent -inds o

articles is called a de"artment store. Local s!o"s can be -nown as bric- and

mortar stores in t!e nited States.

#any s!o"s are "art o a c!ainM a number o similar s!o"s wit! t!e same

name selling t!e same "roducts in di erent locations. 2!e s!o"s may be

owned by one com"any, or t!ere may be a ranc!ising com"any t!at !as

ranc!ising agreements wit! t!e s!o" owners =see also restaurant c!ain>.

Some s!o"s sell second0!and goods. O ten t!e "ublic can also sell goods to

suc! s!o"s. In ot!er cases, es"ecially in t!e case o a non"ro it s!o", t!e

"ublic donates goods to t!e s!o" to be sold =see also t!ri t store>. In give0

away s!o"s goods can be ta-en or ree.

2!e term retailer is also a""lied w!ere a service "rovider services t!e needs

o a large number o individuals, suc! as wit! tele"!one or electric "ower.

R,)'*l P(*7*2

2!e "ricing tec!ni4ue used by most retailers is cost0"lus "ricing. 2!is

involves adding a mar-u" amount =or "ercentage> to t!e retailers cost.

Anot!er common tec!ni4ue is suggested retail "ricing. 2!is sim"ly involves

c!arging t!e amount suggested by t!e manu acturer and usually "rinted on

t!e "roduct by t!e manu acturer.

9


13/97


14/97


2!ese c!aracteristics also a""ly to c!ain restaurants and some service0

oriented c!ain businesses. Some argue t!at t!e standardi3ed "roducts

w!ic! result rom suc! centrali3ation are culturally detrimental@ or exam"le,

c!ain music stores are rowned u"on by some or stoc-ing wor-s o more

"o"ular music i t!ey exclude less well -nown, usually inde"endent artists.

%ritics o c!ains allege t!at t!ey are economically damaging to communities

because t!ey extract ca"ital t!at ot!erwise would recirculate in t!e local

economy wit! inde"endently owned businesses.

2!e dis"lacement o inde"endent businesses by c!ains !as generated

controversy in many nations and !as s"ar-ed increased collaboration

among inde"endent businesses and communities to "revent c!ain

"roli eration. Suc! e orts occur wit!in national trade grou"s suc! as t!e

American *oo-sellers Association and %ouncil o Inde"endent Restaurants

o America as well as community0based coalitions suc! as Inde"endent

*usiness Alliances. $ational entities li-e t!e American Inde"endent

*usiness Alliance and 2!e $ew Rules )ro&ect "romote t!ese e orts in t!e

.S. In *ritain, t!e $ew Economics Foundation "romotes community0based

economics and inde"endent owners!i".

*y :99 , t!e worldBs largest retail c!ain, /al0#art, was t!e worldBs largest

cor"oration in terms o gross sales.

11


15/97


16/97


RETAILING IN INDIA

(es"ite being one o t!e largest em"loying industries in India and

contributing a signi icant "ortion to G(), it still lac-s a clear "olicy w!ic!

would allow Indian retail "layers to irmly establis! t!emselves and enable

t!em to ace com"etition on an e4ual ooting.

Indian retailing industry !as made !uge strides over t!e last ;9 years. 2!e

retail trade in India is ex"anding by :: "er cent "er annum wit! addition o

:8 million middle class customers. (es"ite t!e recent boom in t!e retail

sector in India, organi3ed retail orms only around H "er cent o t!e entire

industry.

(es"ite being one o t!e largest em"loying industries in India and

contributing a signi icant "ortion to G(), it still lac-s a clear "olicy w!ic!

would allow Indian retail "layers to irmly establis! t!emselves and enable

t!em to ace com"etition on an e4ual ooting.

Large0 ormat retailing in India !as added ra33mata33 to t!e urban s!o""ing

ex"erience. 2!e interesting "art, !owever, is !ow retailers are using modern

management to turn "ro itable.

For a w!ile, t!ere was disa""ointment. /!at !ad "romised to be an

engaging BStore /arsB saga !ad ended u" as &ust anot!er beauty contest. A

ew glamorous mega0stores !ere and t!ere, wit! "eo"le "ausing to loo-

t!em u" and down, be ore getting bac- to t!eir old s!o""ing routines at t!e

round0t!e0corner -irana stores.

13


17/97


ears and years into liberali3ation, it seemed as i big0 ormat retailing would

never come to India. /ell, guess w!at 0 t!ings !ave started c!anging.

Retailing, investors !ave reali3ed, can be good business "ro"osition, i

in used wit! cutting0edge management "rocesses and strategies.

Globally, retailing is big business, wort! a staggering . trillion, according

to a recent re"ort "ublis!ed by #cKinsey %o. in "artners!i" wit! t!e

%on ederation o Indian Industry =%II>.

In India, t!e sector is t!e second0largest em"loyer a ter agriculture, and is

t!e worldBs most ragmented too. 2!ere are some ;: million retail outlets in

India =com"ared to N98,999 in t!e S>, !al o w!ic! are low 0cost -ios-s

and "us!carts. In act, i t!ere is any sector t!at s!ows !ow star-ly India

di ers rom t!e /est, it is t!e way Indians s!o". 2!e organised sector

accounts or &ust : "er cent =and modern stores &ust 9.8 "er cent> o t!e

estimated ;J90billion wort! o goods t!at are retailed in India every year.

2!at total igure is t!e e4uivalent o t!e turnover o one single S0based

c!ainM /al0#art.

*ut it wonBt be t!at way or long. 2!e growt! o !ig!0income, time0starved

nuclear amilies is "rodding c!ange. #ore t!an a t!ird o IndiaBs "o"ulation is

in t!e :90 age0grou", says rvi )iramal, vice c!air"erson, )iramal

Enter"rises Ltd, w!o runs %rossroads, a swan-y mall in #umbai t!at !as

become an island o glamour in a sea o greying concrete. DAttitudes are

c!angingD, s!e says, Dand "eo"le are more ex"osed to t!e world

environment, w!ere t!ey see so many brands and so many di erent

li estyles. 2!ey try to emulate t!at. Also, im"ort restrictions will soon be li ted,

14


18/97


19/97


$HERE IT STANDS

R,)'*l 9'l,9 *2 =>>8 "*2 ? *ll*o2#

3 5

365 33@ 3 5=80

0

500

=000

=500

000

500

USA F('27, UK C1*2' I2 *'

S*


20/97


21/97


medicine "rescri"tion "ic-0u">. 2!ese are designed or BstreamlinedB

s!o""ing.

S"ecialistsM 2!ese li-e 2oys BRB s, are seen as Bcategory -illersB. Li-e

bouti4ues and !ig!0end restaurants, t!ese o ten !ave s-ills t!at canBt be

du"licated and are closely related to t!e "roduct. 2!ese are moving

towards Bconsultative s!o""ingB, w!ere salesmen are trained well enoug!

to o er s"eciali3ed advice to customers.

#om0and0"o"sM 2raditional ormat. 2!ese are small =under ;999 s4. t>

amily0owned corner s!o"s.

18


22/97


KEY FACTS ABOUT RETAIL SECTOR IN INDIA

Even t!oug! India !as well over 8 million retail outlets o all si3es and

styles =or non0styles>, t!e country sorely lac-s anyt!ing t!at can

resemble a retailing industry in t!e modern sense o t!e term. 2!is

"resents international retailing s"ecialists wit! a great o""ortunity.

It was only in t!e year :999 t!at t!e global management consultancy A2

Kearney "ut a igure to itM Rs. 99,999 crore =; crore P ;9 million> w!ic!

will increase to Rs. J99,999 crore by t!e year :998 ? an annual increase

o :9 "er cent.

Retailing in India is t!oroug!ly unorganised. 2!ere is no su""ly c!ain

management "ers"ective. According to a survey b y A2 Kearney, an

overw!elming "ro"ortion o t!e Rs. 99,999 crore retail mar-et is

$ORGA$ISE(. In act, only a Rs. :9,999 crore segment o t!e mar-et

is organised.

As muc! as N "er cent o t!e 8 million0"lus outlets are smaller t!an 899

s4uare eet in area. 2!is means t!at India "er ca"ita retailing s"ace is

about : s4uare eet =com"ared to ; s4uare eet in t!e nited States>.IndiaBs "er ca"ita retailing s"ace is t!us t!e lowest in t!e world =SourceM

KSA 2ec!no"a- =I> )vt Ltd, t!e India o"eration o t!e S0based Kurt

Salmon Associates>.

ust over J "er cent o IndiaBs "o"ulation is engaged in retailing

=com"ared to :9 "er cent in t!e nited States>. 2!ere is no data on t!is

sectorBs contribution to t!e G().

19


23/97


From a si3e o only Rs.:9, 999 crore, t!e organised retail industry will

grow to Rs. ; 9,999 crore by :998. 2!e total retail mar-et, !owever, as

indicated above will grow :9 "er cent annually rom Rs. 99,999 crore in

:999 to Rs. J99,999 crore by :998 =SourceM survey by A2 Kearney>

Given t!e si3e, and t!e geogra"!ical, cultural and socio0economic

diversity o India, t!ere is no role model or Indian su""liers and retailers

to ada"t or ex"and in t!e Indian context.

2!e irst c!allenge acing t!e organised retail industry in India isM

com"etition rom t!e unorganised sector. 2raditional retailing !as

establis!ed in India or some centuries. It is a low cost structure, mostly

owner0o"erated, !as negligible real estate and labour costs and little or

no taxes to "ay. %onsumer amiliarity t!at runs rom generation to

generation is one big advantage or t!e traditional retailing sector.

In contrast, "layers in t!e organised sector !ave big ex"enses to meet,

and yet !ave to -ee" "rices low enoug! to be able to com"ete wit! t!e

traditional sector. 'ig! costs or t!e organised sector arises romM !ig!er

labour costs, social security to em"loyees, !ig! 4uality real estate, muc!

bigger "remises, com ort acilities suc! as air0conditioning, bac-0u"

"ower su""ly, taxes etc. Organised retailing also !as to co"e wit! t!e

middle class "syc!ology t!at t!e bigger and brig!ter a sales outlet is, t!e

more ex"ensive it will be.

2!e above s!ould not be seen as a gloomy oreboding rom global retail

o"erators. International retail ma&ors suc! as *enetton, (airy Farm and

20


24/97


25/97


FOREIGN INVESTMENT IN INDIA S RETAIL SECTOR

A ter muc! deliberation and vacillation, on anuary ;J, :99 , India o"ened

its retail sector ? alt!oug! only a small crac-0 to oreign investment, by

amending its F(I regulations to allow single brand retail stores to be set u"

in India, wit! not more t!an 8;Q oreign s!are!olding.

2!is means t!at single "roduct brands li-e Rolex, Louis 1uitton, 1ersace,

and multi"le "roduct umbrella brands li-e Samsung, Sony and 'itac!i,

would be able to invest in ca"tive retail stores in India, t!roug! structures

!aving NQ or more o t!e s!are!olding being !eld by Indian "artners 5

s!are!olders.

2!is decision comes a ter strong internal o""osition rom wit!in t!e coalition

government, es"ecially rom t!e %ommunist )arty o India =#arxist> w!ic!

saw t!e entry o large "layers as a t!reat to t!e small unorgani3ed retailers

t!at "resently account or more t!an N8Q o retail sales in India. 2!e

government was able to "revail u"on its coalition members by &usti ying t!e

move as "art o Indias mar-et access commitments to t!e /2O and also

submitting t!at "remium, single brand outlets do not com"ete wit! t!e small

retailers.

'owever, oreign brands are not exactly waiting to cras! in. Our reasonsM

#any "remium brands, as a "olicy, do not ollow a ca"tive retail

model in international mar-ets, and wor- wit! ranc!ised outlets.

2!ere ore, retail investments are not made by t!e brands t!emselves.

22


26/97


India already allows ranc!ising and aut!ori3ed retail outlets on a t!ird

"arty basis, or nearly all -inds o "roducts, and most internationally

-nown brands are already "resent in India t!roug! t!is route.

Owners!i" o retail o"erations will only increase statutory costs or

oreign brands, in orm o em"loyment regulations, social security

="rovident und> registrations, and com"licated closure, relocation and

exit "rocedures =closure and relocation o retail units is more common

t!an industrial manu acturing establis!ments>. 2!e aut!ori3ed dealers

route does not im"ose any suc! re4uirements on t!e oreign brand.

)revious ex"erience suggests t!at "remium brands derive t!eir

as"iration value rom t!eir exclusivity and inaccessibility. As a result, t!ey

tend to lose t!eir ranc!ise among t!eir !ig!est ec!elon consumers,

w!en t!ey become easily accessible in local mar-ets.

2!ere is a "roli eration o grey mar-et and "arallel im"orts in many

luxury goods, w!ic! com"etes ormidably against o icial retail outlets.

O ten, suc! com"etition is not discouraged by t!e global !ead4uarters,

on grounds t!at Indian im"ort tari s are t!e very reason or t!e grey

mar-et in t!e irst instance. Aut!ori3ed service centres are obliged to

!andle "roducts boug!t on t!e grey mar-et or rom "arallel im"ort

c!annels, as long as t!ey are not counter eit.

A 8;Q0 NQ does not give t!e oreign "artners su icient management

control over Indian o"erations, as an Indian "artner wit! more t!an :8Q

s!are!olding !as veto "owers on several im"ortant sub&ects, under t!e

23


27/97


%om"anies Act ;N8 .

nder t!e "resent conditions, t!e &usti ication or owned retail outlets can

only come rom ot!er considerations, suc! asM

A com"elling need to combat s"urious and counter eit "roducts,

Owners!i" bene its o retail real estate =!ig! a""reciation>,

An ex"ectation t!at eventually, investment regulations would be

relaxed to allow ;99Q oreign owners!i", or

#ainstreaming o indirectly0 unded ranc!ise outlets, in w!ic!

currently t!e brand reimburses all costs o exclusive retail outlets t!roug!

a management or administrative margin over and above t!e normal sales

commissions =t!is is "racticed by at least one leading consumer

electronics com"any>

Re"ositioning brands t!roug! a retail strategy o exclusive store

ormats.

T' l,: I2 *' 9 R,)'*l S,7)o( R,+,2-,9! B/ P(o -7) C'), o(/! R9 B*ll*o2

:99H092otal Organised

retailS!are

Food Grocery ;89 :N 9.8Q%lot!ing, 2extiles Fas!ion J99 ;9N ; Qewellery H8 N :Q%atering Services =F *> H89 :9 QFurniture Furnis!ings HH9 ::


28/97


'ealt! *eauty care Services :8 ;.8 QEntertainment :8 HQ2otal NH99 :J9 HQ

SourceM Statistical Outline o India and several "rimary surveys A ter leading t!e it bandwagon, India is "oised to grow as a retail !ub. it is

im"erative to sustain t!e moderni3ation o t!e retail sector and cater to t!e

growing taste o t!e Indian consumer and dis"el t!e myt! t!at t!e game is

big vs. small or traditional vs. modern or organized vs. unorganized or local

vs. foreign . /!at is needed is to "romote consum"tion ? w!ic! will ultimately

lead to economic growt! o t!e country. For t!e Indian consumer, t!e gradual

and ste"0wise entry o oreign com"anies in retail involves t!ree "ivotal

c!anges ? modern technology, better transparency in dealings and sharing

best practices.

Key initiatives t!at t!e government and t!e industry need to ta-e toget!er

Ensure t!at t!e o"ening o t!is sector to oreign "layers is a win0win

or all

2o ensure t!at Indian retail dynamics are very di erent rom ot!er

countries. !ence to ensure t!at t!oug! we learn rom global

ex"eriences, we do not go all out to 6co"y global models7

D, *2*2 )1, ;'/ o(;'(

F(I would serve t!e "ur"ose o muc! needed ca"ital and bring a boom in

t!e retail sector. As, some o t!e global retailers are already coming in

t!roug! ot!er c!annels t!ere is no &usti ication to -ee" di in retail on !old.

'owever, t!e industry also eels t!at ca"ital ormation is needed and t!is will

ta-e at least : to H years time. 'ence, retailers, or ca"ital ormation, need

25


29/97


t!is lead0time, reiterating t!e act t!at di s!ould be allowed gradually. *ut

t!is s!ould not constrain t!e growt! o t!e retail sector. Since ob&ective o di

is to increase investment, t!ere is also a need to ex"lore alternative unding

routes, in addition to F(I. For exam"le, i a ca"ital turnover ratio o ;M8 is

assumed, t!en it re4uires at least Rs. :9,999 crores o investment. !ence

oreign institutional investors =FIIs> and venture ca"ital =vc> irms s!ould be

legali3ed and encouraged or investment in t!e "rimary mar-et.

FIIs and 1% irms are currently allowed to "artici"ate in t!e growt! o t!e

listed retail com"anies "resent in t!e secondary mar-et@ t!ey !ave t!e

necessary inancial muscle and are increasingly on t!e loo-out to invest in

India. Retail is a suns!ine sector wit! tremendous growt! "otential ?

allowing t!em to invest in retail com"anies in t!e "rimary mar-et will enable

many o t!ese emerging com"anies to increase o"erations, im"rove

in rastructure, set u" t!e latest systems, ac!ieve critical mass and en!ance

em"loyment o""ortunities.

Anot!er ob&ective o F(I is to en!ance in rastructure. /!ile t!ere is no

deart! o "otential investors in metro cities, t!e tier0: and lesser cities are

getting sidelined. F(I s!ould be initially allowed in tier?: and lower cities toacilitate in rastructure building. 2!e more suc! investment, t!e more

incentives to o"erate in metro cities. #odels similar to airline o"erators and

telecom o"erators need to be ex"lored. /it! t!is t!e ocus would be on

incremental business and create a level "laying ield or all and not on

cutt!roat com"etition. 2!e government is already considering a !ost o

conditions or bringing in F(I. One o t!em is to im"ose a minimum limit o

26


30/97


;9,999 s4 t on t!e loor s"ace o oreign retail c!ains and limit t!e number o

stores to one "er million once F(I in retail is allowed. t!is also serves to

create level "laying ields or all "layers. also, inclusion o a clause or

reserving at least 8990 99 s4 t =out o ;9,999 s4 t> o retail s"ace or oods

"rocessed oods alone will urt!er !el" to "rotect t!e interests o certain

sectors li-e agriculture and integrate t!em wit! t!e organi3ed retail su""ly

c!ain. 2!ese measures are to be a""licable or a s!ort w!ile only, as t!e

de"artment o industrial "olicy and "romotion =di""> is considering easing

some o t!ese restrictions wit! time. 'ence, wit! an ob&ective o en!ancing

Indian economy by increasing consum"tion, a recommended %II "olicy or

introducing F(I in retail is as ollowsM

F(I s!ould be gradually allowed irst in relatively less sensitive

sectors ? garments, li estyle "roducts, !ouse ware, entertainment etc.

Alternative unding mec!anisms and investment o""ortunities s!ould

be considered li-e FII and venture ca"ital in t!e "rimary mar-et, in

addition to F(I.

At least :0H years lead0time s!ould be given to t!e Indian retail

industry or muc! needed ca"ital ormation by Indian retailers and to

"romote a level "laying ield or all.

)romote F(I in tier ?: and less develo"ed cities to ocus on t!e t!rust

or in rastructure growt!.

27


31/97


RATIONALE OF THE STUDY

S!o""ing #all industry is an u"coming industry in India, as S!o""ing #alls

are c!anging t!e way middle0class Indians s!o". /it! ully air ?conditioned

stores, escalators and 4uality service resembling any international #all.

2oday a customer "ays greater attention to "roduct availability, dis"lay, in0

store service and o course, t!e ease o s!o""ing. Indian amilies are also

loo-ing at entertainment as a esca"e. Entertainment is e4uated wit!

s!o""ing, ood and o"tions li-e cinemas and bowling alleys.

2!e decade old economic re orms !ave engendered a new, s!o" till you

dro" breed o middle class Indians w!o a ter ex"eriencing t!e s!o""ing in

big cities overseas, !ave ueled t!e demand or t!e rise o S!o""ing #alls.

2!ere are number o amilies w!o are starved o attractive entertainment

o"tions and wit! rising dis"osable income, w!o want to s"end a greater

"ro"ortion o t!eir ex"enditure on s!o""ing in world class ambience w!ere

convenience is combined wit! entertainment. From boring o! no routine to a

un illed yes outing or t!e entire amily, s!o""ing or t!e ty"ical !ouse!old

!as come a long way indeed. #ulti0Storyed malls !ave most de initely made

an im"act o ering s!o""ing, entertainment and ood all under one

com ortable roo .

Giant malls are coming t!ic- and ast in Gurgaon to com"letely trans orm t!e

:99 billion Indian retail sector. #ore t!an :99 malls are in "lanning and

construction stage across t!e country and to in0cas! t!e sudden resurgence

o interest in s!o""ing India, big cor"orate suc! as t!e 2A2AS, )IRA#ALS,

28


32/97


RA'E AS, SA'ARA , (LF A$( R)G E$2ER)RISES are racing to

revolutioni3e t!e Indian retail industry and uel a construction boom.

India is becoming t!e !ub o S!o""ing #alls. In Gurgaon "articularly lots o

s!o""ing malls are o"ening u". In October :99 Indias irst #all exclusively

dedicated to ewelry =Gold Sou-> was o"ened in Gurgaon, on t!e outs-irts

o t!e ca"ital. 2!e Gold sou-Bs retail s"ace !as been leased out or sold wit!

about


33/97


SHOPPING MALLS SCENARIO IN NCR

S!o""ing #alls across t!e world contribute in a ma&or way to s!o""ing

re4uirements o domestic and oreign tourists. O late t!e conce"t o

S!o""ing #all !as become "o"ular wit! Indians too. *ut no real S!o""ing

#alls !ave come u" in anyw!ere in t!e country. /!at we do !ave are really

!y"er mar-ets, !uge s!o""ing com"lexes etc.

A s!o""ing mall =or sim"ly mall>, s!o""ing center, or s!o""ing arcade is a

building or set o buildings t!at contain stores and !ave interconnecting

wal-ways t!at ma-e it easy or "eo"le to wal- rom store to store. 2!e

wal-ways mig!t be enclosed. In t!e nited Kingdom and Australia t!ese are

also called s!o""ing centres, s!o""ing arcades as well as s!o""ing malls.

In $ort! America t!e term DmallD is "re erred.

Stri" malls are a recent develo"ment, corres"onding to t!e rise o suburban

living a ter /orld /ar II in t!e nited States. As suc!, t!e stri" mall

develo"ment !as been t!e sub&ect o t!e same criticisms leveled against

suburbani3ation and suburban s"rawl in general. In t!e nited Kingdom

t!ese are called retail "ar-s or out0o 0town s!o""ing centres.

M'll9 *2 NCR

)aci ic #all, Kaus!ambi ='aving H0( movie t!eater also>

Ansal )la3a, Sout! $%R

Ansal )la3a =Factory Outlet #all>, 1ais!ali

%entrestage mall, $OI(A

30


34/97


SA* #all, $OI(A

S!i"ra #all, $OI(A5G!a3iabad

)aci ic #all, $OI(A5Kaus!ambi

S!o""rix #all, $OI(A

S"ice /orld #all, $OI(A

Senior #all, $OI(A

#GF #etro"olitan #all, Gurgaon

Sa!ara #all, Gurgaon

(LF %ity %entre, Gurgaon

SRS )la3a, Faridabad

East End #all, G!a3iabad

2!e India #all, $ew Friends %olony

2(I #all, Ra&ori Garden

%ity S4are,Ra&ouri Garden

2!e retail business in India is set or a !eady growt! in t!e coming years

wit! t!e number o s!o""ing malls in AsiaBs t!ird largest economy rising to a

staggering H8J by t!e end o :99


35/97


*ut t!e retail sector is ex"ected to see over H million s4 t o s!o""ing

centre s"ace by t!e yearend, said t!e re"ort on s!o""ing centre

develo"ment in India.

D)er ormance beyond ex"ectation is all t!e more signi icant in t!e bac-dro"

o adverse re"orts and "redictions on t!is sector,D said Amitab! 2ane&a,

director =India> o International %ouncil o S!o""ing %enters.

According to Images, t!ere are a total o N o"erational malls in India wit! a

total built0u" area o :;. million s4 t. 2!e number will rise to ;8J malls by

t!e end o t!e current year. (roves o middle0class Indians !ave bro-en o

t!eir love o traditional stand0alone Indian stores t!at !ave no air

conditioning, organised "ar-ing and ot!er "ublic amenities.

Ex"erts say malls t!roug!out t!e country are getting bigger as t!ey are now

being "ositioned as a one0sto"0s!o" or s!o""ing, entertainment, leisure

and eating0out needs rat!er t!an a "lace only or s!o""ing or as!ion

"roducts.

*y :99 and east 3one =;9

"ercent>, says t!e Images study. 2!e study also added t!at a lot more

activity on t!e mall develo"ment ront was ex"ected rom t!e smaller cities in

t!e coming years.

2!e retail industry in India is currently estimated at :98 billion, w!ic! is

li-ely to grow at a rate o ive "ercent "er annum in t!e coming years. It is

32


36/97


"ro&ected to grow at t!e rate o :80H9 "ercent "er annum to touc! J billion

by :998 and : billion by :9;9, said t!e study.

2!e ast growing middleclass "o"ulation, t!e rise in women wor- orce and

consumerism over t!e decade !as been t!e ma&or orces in driving demand

in t!e retail sector.

33


37/97


OB ECTIVES OF THE RESEARCH STUDY

2!e irst ste" in any #ar-eting Researc! calls or t!e researc!er to de ine

t!e "ro&ect sco"e and t!en de ine "roblem care ully and ormulate t!e

researc! Ob&ectives. An old age says, 6A "roblem well de ined is !al

solved.7

;. 2o study t!e reasons be!ind t!e growt! o S!o""ing malls in India

:. 2o study t!e recent trends in S!o""ing malls in India.

H. 2o understand t!e im"lications o o"ening u" o F(I in Retail sector

. 2o understand t!e strengt!s and wea-nesses o s!o""ing malls in India

8. 2o study t!e in!erent bene its o S!o""ing malls to t!e end user.

. 2o study t!e "ro ile o consumers visiting di erent S!o""ing #alls alongwit! t!eir motives.


38/97


HYPOTHESIS OF THE STUDY

Shopping malls in India are poised to change how

retailing is done in India.

35


39/97


COMPARATIVE STUDY OF FIVE MALLS

ANSAL PLA AHUDCO PLACE! KHEL GAON MARG ANDRE$S GAN !NE$ NCR ==0 0 > TEL : " >=# "==# 6 6=305! 6 5553

A "art o ' (%O )lace built on H8 acres o land, Ansal )la3a is a s!o""ing

com"lex situated near Sout! Extension, one o t!e "os! mar-ets o ric!

Sout! $%R. *randed clot!s, trendy &ewellery and ot!er designer items are

some o t!e t!ings t!at you can s!o" or at Ansal )la3a. 2!e )la3a com"lex

com"etes wit! t!e best international s!o""ing com"lexes in t!e world in its

arc!itectural s"lendor, aest!etic details and s!o""ing ex"erience. A "er ect

!angout destination, it is built in a circular as!ion around an am"!it!eater

wit! a center stage. (i erent cultural unctions are organi3ed !ere rom time

to time suc! as as!ion s!ows, live band "er ormances and "er orming arts

to "romote t!e retail area. One can access t!e retail loors o t!e com"lex

t!roug! li ts and escalators.

2!e 80 eet !ig! atrium wit! a Frenc! glass curtain wall t!at ilters out

ultraviolet and ot!er !arm ul radiation is visually a""ealing. 2!e second and

t!ird loors o t!e com"lex !ouse cor"orate o ices and are accessible

t!roug! elevators. 2!e twin0level basement car "ar-ing area can

accommodate


40/97


environment0 riendly design and am"le in ra0structural acilities ma-e Ansal

)la3a, t!e best s!o""ing com"lex in $%R.

37


41/97


42/97


o Rs.;HJ; .8 lac, t!e mall com"rises com"any owned brand outlets and

lags!i" stores "romising com"lete range o "roducts and latest o erings. A

s!o""ing mall t!at !as set new standards in contem"orary design and latest

acilities ma-ing it one o t!e most "re erred s!o""ing 3ones or t!e

consumers, wit! international class retailing environment. From ground loor

to t!e t!ird loor t!ere is an array o international and national brands

including )antaloon, *ig *a3aar, Airtel, L.G., %a $esca e, $a-s!atra,

Arc!ies, )lanet0#, 'allmar-, E inity, 'aldirams, )an&abi 2ad-a, Ros 2!ai,

2angerine, %rave and Odyssey. 2!e grand atrium welcomes t!e customers

and invites t!em to ex"erience a world o class and lavis!ness. #atc!ing t!e

occu"ants it !as been built wit! ull dignity and grace. 2!e renowned irm

%!esterton #eg!ra& !as ta-en t!e res"onsibility o managing t!e mall.

39


43/97


MGF METROPOLITAN MALLM,1('-l* G-( 'o2 Ro' !G-( 'o2 = 00T,l : " >=# "= # 50= 606 0@

%lose to t!e $%R0'aryana border on t!e #e!rauli Gurgaon Road is t!is

mega s!o""ing mall t!at is a "romising leisure and entertainment centre.

2!e avorite eating &oints o c!ildrens and teens li-e #c(onaldBs (ebonairBs

)i33a and 'ot uicy %orner are on t!e ground level w!ile ormal amily

restaurants !ave t!e roo to" 3one reserved or t!e.

2!e acility is ully e4ui""ed wit! central air0conditioning, "ower bac-0u",

am"le "ar-ing, state o t!e art sa ety management systems, modern

telecommunication system, "ro"erty management services and

com"uteri3ed "ar-ing access.

99,999 s4. t ully air conditioned state0o 0t!e0art S!o""ing #all wit! , (e"artmental Store, S!o"s and Food

%ourt. 2!e )ro&ect !as been a landmar- #all develo"ment in Gurgaon and

itBs tenants include S!o""ers Sto", #c(onaldBs, )1R, $i-e, *enetton to

name a ew. 2!e acility is ully e4ui""ed wit! central air0conditioning, "ower

bac-0u", am"le "ar-ing, state o t!e art sa ety management systems,

modern telecommunication system, "ro"erty management services and

com"uteri3ed "ar-ing access. 2!e #etro"olitan #all is truly a S!o""ers

"aradise.

From urnis!ings to cosmetics, &ewellery to designer wear, t!e com"lex

covers varying budgets, tastes, and needs. 2!e #etro"olitan "romises a

40


44/97


veritable east wit! its s"ecialty restaurants o ering %ontinental, %!inese,

#editerranean and Frontier cuisine. In &a33 bar exclusively or musically

inclined, live "er ormance rom talented musicians and grou"s are organi3ed

to attract t!e music lovers to stay t!ere or longer !ours. Also t!eme based

restaurants li-e s"orts ca es a""eal to t!e younger crowd. #etro"olitan to"

loor !ave a multi"lex )1R %inema !all to screening t!e latest bloc-busters

to draw crowds to u""er loor stores, encouraging im"ulse buying.

#etro"olitan also !as a discot!e4ue w!ic! serves as a crowd "uller during

a ter commercial !ours, along wit! serving as a venue or exciting events

and "romotions. It !as a !ost o arcade games, "ool, bowling, cra3y cars

and virtual reality games w!ic! aimed to attract t!e younger crowd .t!e

constantly c!anging signage and cutouts o recent attractions add variety.

Exclusive itness club boasting modern e4ui"ment and acilities are alsoeatured by t!e club along wit! t!e branded "arlors and trial outlets by

leading as!ion names are t!e eatures o #etro"olitan #all.

It also !as an atrium w!ic! is designed as t!e !eart o t!e com"lex w!ic!

serves as t!e converging "oint or t!e low o visitors and as t!e "rimary

node rom w!ic! t!ey can start t!eir &ourney to t!e #all. 2o give ease to t!e

customers once t!ey are inis!ed wit! t!e s!o""ing t!ere are designated

resting areas or t!e visitors

41


45/97


SHIPRA MALLSHIPRA SUN CITY!INDIRAPURAM! GHA IABAD!UTTAR PRADESH "U.P.# 0=0=

S!i"ra Grou" launc!ed its largest mall in $%R ins"ired by classical Roman0

style arc!itecture. Situated at Indira"uram wit! .8 la-! s4. t o total area,

S!i"ra #all commits to o er a uni4ue s!o""ing ex"erience wit! over ;99

national international brands and entertainment. 2!e mall !as been

designed as a one0sto"0destination or entertainment and leisure. Its state0

o 0t!e0art H Screen #ulti"lex, ust About #ovies = A#> !as one o t!e

widest and t!e largest screens in India.

2!e new S!i"ra #all !as ta-en retail to a mega scale. /it! a total area o

,89,999 s4 t com"rising o H, 9,999 s4 t o retail s"ace, 2!ree $ew

Generation o %inemas, ;


46/97


Indira"uram is an u"coming retail !ub a ter Gurgaon and $oida.

*eing a &unction or t!ree cities i.e. G!a3iabad, $oida and $%R,

Indira"uram !as become a destination "oint wit! an easy access.

S!i"ra #all "romises to o er customers a never0ending s!o""ing

ex"erience under one roo as well as convenience o am"le "ar-ing

s"ace.

2!e S!i"ra #all is t!e irst and t!e only International Standard Retail

cum Entertainment #all and t!e launc! "ad o more t!an a do3en

retail and ood brands in t!e city.

O-)l,)9 S)o(,9 T/&, P1o2, Mo *l, D,97(*&)*o2

*ombay Selections 9;:90:N8


47/97


'a-oba /omenswear 9;:90H9:N:N9

as!n Sarees 9;:90H:9J99:, H:9JJ;;

ust About #ovies = A#> #ulti"lex 9;:90:N8< ;9,:N8< :9,:N8< H9

Koutons #enswear 9;:90:N8


48/97


CENTRE STAGE MALLL =! SECTOR =8NOIDA 0=30=TEL : " >=# "= 0# 5= 60! 5= 6 6 6 =305

%entra Stage #all is a !ot entertainment destination or t!ose living in t!e

vicinity w!ile or ot!ers it doubles u" as a great landmar- in $oida. It o ers

include /aves0 a t!ree0screen multi"lex, "os! s!owrooms rom SI,

/estside, Gyans and #eena *a3ar among ot!ers eateries li-e Geo reyBs

#irc!ee3, #c(onaldBs and Ruby 2uesday. Re"resenting global trends in

retail and entertainment, %entrestage #all, a &oint venture o t!e %!ad!a

grou" and t!e S!i"ra grou", located in sector ;J, t!e s!o""ing !ub o

$OI(A, "lans to o er world class s!o""ing ambience wit! cinema

ex"erience.

2!is is t!e beginning. 2!e retailing ma" o India seems to be in or a sea

c!ange. Retailing is emerging in all sorts o "ermutations and combinations.

1arious international role models are t!ere but it remains to be seen !ow

muc! we would be ready to absorb and assimilate.

It is located in t!e commercial !ub o $oida t!at is in sector ;J. It is t!e most

"o"ular s!o""ing mall in $%R. All "o"ular s!owrooms !ave now o"ened in

t!is mall. It also !as a "o"ular %inema 2!eatre called /aves. 2!ere is a

ood court in t!e basement. %entrestage #all also "rovides underground

"ar-ing.

45


49/97


%entrestage mall was a "ro&ect t!at was irst o its -ind ta-en u" by S!i"ra in

$%R t!at today is a landmar- in $oida. S"read in an area o more t!an

H0la-! s4. Ft wit! 8 movie t!eatres, -ids 3one, ood court etc. Owing to

its a""eal and t!e variety it o ers, it acts as a s!eer crowd "uller. 2!e

mall !ad witnessed "!enomenal oot alls o over :8,999 on %!ristmas

last year.

2!e %entrestage #all =%S#> is designed to be more t!an &ust a %ine"lex 5

multi"lex. Its an ex"erience, a li estyle destination, mesmeri3ing amilies

wit! !ours o 4uality time.

2a-ing retail to a mega scale, wit! an area o H, J, 9 s4 t com"rising o

=!38!500 9 ) o (,)'*l 9&'7,! = !000 9 ) o 2* 1) 7l- ! >3!000 9 )

o( &'( *2 *2 l,+,l9 '2 =!0 !360 9 ) o oo ,2),()'*2%,2)

'(,'.

F,')-(,9

In t!e o er are a H seater multi0branded Food %ourt and /A1E S'I)RA,

t!e ;


50/97


covers an area o ; ,899 s4. t. Also, %S# is t!e irst and only International

Standard Retail cum Entertainment #all and t!e launc! "ad o more t!an a

do3en Retail and ood brands in t!e city.

2!e building is eart!4ua-e resistant wit! state0o 0t!e0art tec!nology. It

o"erates on a an integrated 6*uilding #anagement System7 wit! multi"le

levels o Intelligence centrali3ed o"erations o building services. It gives

absolute control over t!e o"eration and monitoring o '1A%, Lig!ting, Fire0

Alarm, )lumbing and (G systems. 2!e building !as a centrally air

conditioned system wit! ioni3ation or regular in low o "ure res! air.

2!e mall !as a state0o 0art arc!itecture. /e can move u" and down by

escalators and elevators.

89Q o t!e BSector ;J %rowdB is ound in t!e %entrestage mall. 2!e demand

o "roducts in t!e mall !as led to t!e im"rovement in business o many

small s!o"s w!ic! did not !ave a good income at ot!er "laces.

2!e ood court "rovides many di erent mout! watering dis!es li-e %!inese

and Indian.

O-)l,)9 S)o(,9 T/&, P1o2, Mo *l,

*arista %a e 9;:90H9N :H

%a e %o ee (ay %a e 9;:90:8N; :, 8; 8N 9H

%!i-an-ari Ladieswear 9;:90:8N;8 N, 8H;::9K

R9. 500 '2' o+,

5KU& )o R9. 00

0K

I2),(&(,)')*o2: 8NQ res"ondents average s"ends were between 8990:899.

H Q res"ondents average s"ends were between :990899. Only 8Q

res"ondent !ad s"ent level above :899.

64


68/97


J-,9)*o2 3: $1') *9 )1, (, -,27/ o /o-( +*9*) )o )1, S1o&&*2 M'll9

D'*l/ O27, *2 '

;,,

T;*7, *2 '

;,,

A2/ o)1,(

J : 9

D'*l/

8

O27, *2 ';,,:66

T;*7, *2 '

;,,:6

A2/ o)1,(

0

Inter"retationM Q res"ondent visited t!e malls once a wee-, w!ile : Q

res"ondents visited t!e malls twice a wee-. J Q res"ondents visited malls

daily.

65


69/97


J-,9)*o2 : Pl,'9, ('), )1, &-(&o9, o /o-( +*9*) )o )1, S1o&&*2

M'll9 "= B,*2 %o9) )1, %o9) *%&o()'2) '2 6 ,*2 l,'9) *%&o()'2)#

P-(&o9, R')*2

Food and *everages ;

#usic and Entertainment

Li e style "roducts

Latest Fas!ion and %lot!ing H

%!oosing gi ts 8

%onsumer (urable :

0

=

3

5

6

R')*2

Foo '2 B,+,(' ,9 M-9*7 '2 E2),()'*2%,2)L* , 9)/l, &(o -7)9 L'),9) F'91*o2 '2 Clo)1*2C1oo9*2 * )9 Co29-%,( D-(' l,

66


70/97


J-,9)*o2 5: Pl,'9, ('), )1, ollo;*2 S1o&&*2 M'll9! ;1*71 /o- &(, ,(

)1, %o9)

M,)(o&ol*)'2M'll

S'1'(' M'll A29'l 9 Pl'


71/97


J-,9)*o2 6: Pl,'9, 9&,7* / )1, (,'9o29 o( )1, &(, ,(,27, o2 )1, 97'l,

o = )o @ "= ,*2 )1, %o9) *%&o()'2) '2 @ ,*2 )1, l,'9) *%&o()'2)#

A29'l 9Pl'


72/97


SURVEY DISCUSSION

FINDINGS IN ANSAL PLA A

Ansal )la3a is "re erred by t!e consumers in t!e age grou" o :80H8 years

and above. %onsumers were !omema-ers, business"ersons and

"ro essionals. 2!ey come to t!e mall or branded items and clot!ingBs items.

2!ey s"end in t!e s!o""ing mall more t!en Rs. :899 and above.

%onsumers in mall were brand oriented and only "urc!ase t!e branded

"roducts.

CONSUMER BUYING BEHAVIOR IN CENTERSTAGE MALL

%onsumers come or t!e "urc!ase t!e branded clot!ing and !ome

urnis!ing items.

%onsumers in t!e mall were t!e only serious buyers and dont come or

t!e entertainment.

%onsumers s"ends t!e money more t!en Rs. :899

CONSUMER S E4PERIENCE IN CENTERSTAGE MALL

2!e S!o""er Sto" brand attracts consumers in t!e mall.

%onsumers were also come due to t!e *randed s!o"s li-e #ar-s

S"encerBs and #usic /orld.

Anot!er Im"ortant eating outlet is t!e Oriental *loom and #ac (onaldBs.

69


73/97


FINDINGS IN METROPOLITAN MALL

%onsumers in mall were mostly in t!e age grou" o :9 ? :8 yrs and :8 0 H8.

2!ey came to t!e mall mainly or t!e entertainment in )1R and s!o""ing in

t!e S!o""ers Sto"s. %onsumers in mall were all age grou" and almost all

were brand oriented regarding t!e "roducts. 2!e average s"ending was in

t!e mall between 899 ? :899 and more t!en Rs.:899. 2!e annual !olds

income o t!e mall between t!e Rs.:0;9 La-!s. %onsumers in s!o""ing mall

acce"ted t!at #etro"olitan #alls t!e best s!o""ing mall on #.G.Road in

Gurgaon

CONSUMER BUYING BEHAVIOR IN METROPOLITAN MALL

%onsumers usually s"end t!eir money on Food, entertainment, A""arels,

and s"orts ootwear.

%onsumers in t!e age grou" o below :9 ? :8 yrs and :8 ? H8 were in

t!e maximum numbers.

%onsumers in #all s"end money between 899 ? :899 and more t!en Rs.

:899.

%onsumers in mall come to t!e mall eit!er once in a wee- or twice in a

wee-.

%onsumers in #all eit!er students or in services or "ro essionals in t!e

maximum numbers.

70


74/97


CONSUMER S E4PERIENCE IN METROPOLITAN MALL

%onsumers in mall mostly -now mall as )1R, S!o""ers Sto" and

#etro"olitan #all.

%onsumers in mall are mostly *rand oriented regarding any t!ing.

%onsumers acce"t t!at t!is mall is t!e best "lace or t!e un

entertainment and good ood &oint.

%onsumers mostly motivates to come to t!e s!o""ing mall by riends

and relatives.

FINDINGS IN SAHARA MALL

%onsumers in Sa!ara mall were mostly in t!e age grou" among :80 H8 and

H8 and above. In consumers t!e numbers o 'omema-ers and Services and

"ro essionals were in t!e maximum numbers. %onsumer visits t!e mall

generally t!e mall once in a wee- and twice in a mont!. %onsumers come to

t!e mall or t!e !ouse!olds s!o""ing, eating and "urc!ase or t!e a""arels.

%onsumers in luence by t!e (iscounting sc!emes, and or t!e

entertainment. 2!e annual !ouse !olds income between : ? ;9 la-!s.

CONSUMER BUYING BEHAVIOR IN SAHARA MALL

%onsumers in mall come or t!e !ouse !olds s!o""ing.

%onsumers come to t!e mall mostly !omema-ers and service class.

According to t!em Sa!ara #all is t!e best or t!e middle class.

71


75/97


CONSUMER S E4PERIENCE IN SAHARA MALL

As a brand t!e Sa!ara #all is amous a mall ore t!e middle class due to

t!e *ig *a3aar.

*ig *a3aar, )antaloon, and 'aldiram is t!e most "o"ular among t!e

consumers

2!e "o"ular brands also t!e 'aldiram and t!e )antaloon.

Sales and discount sc!emes attracts t!em to come to t!e mall.

FINDINGS IN CENTERSTAGE MALL

%enterstage #all is "re erred by t!e consumers in t!e age grou" o :80H8

years and above. %onsumers were !omema-ers, business"ersons and

"ro essionals. 2!ey come to t!e mall or !ome urnis!ing items and

electronics items. 2!ey s"end in t!e s!o""ing mall more t!en Rs. :899 and

above. %onsumers in mall were brand oriented and only "urc!ase t!e

branded "roducts.

CONSUMER BUYING BEHAVIOR IN CENTERSTAGE MALL

%onsumers come or t!e "urc!ase t!e branded electronic items and

!ome urnis!ing items.

%onsumers in t!e mall were t!e only serious buyers and dont come or

t!e entertainment.

%onsumers s"ends t!e money more t!en Rs. :899

72


76/97


CONSUMER S E4PERIENCE IN CENTERSTAGE MALL

2!e /estside brand attracts consumers in t!e mall.

%onsumers were also come due to t!e *randed s!o"s li-e Electrolux,

)!ili"s and LG electronics.

As a brand in s!o""ing malls consumers said t!at )la3a is t!e best or all

necessary !ome items li-e electronics and urniture.

FINDINGS IN SHIPRA MALL

%onsumers in S!i"ra mall were mostly in t!e age grou" among :80 H8 and

H8 and above. In consumers t!e numbers o 'omema-ers and Services and

"ro essionals were in t!e maximum numbers. %onsumer visits t!e mall

generally t!e mall once in a wee- and twice in a mont!. %onsumers come to

t!e mall or t!e !ouse!olds s!o""ing, eating and "urc!ase or t!e a""arels.

%onsumers in luence by t!e (iscounting sc!emes, and or t!e

entertainment. 2!e annual !ouse !olds income between : ? ;9 la-!s.

CONSUMER BUYING BEHAVIOR IN SAHARA MALL

%onsumers in mall come or t!e !ouse !olds s!o""ing.

%onsumers come to t!e mall mostly !omema-ers and service class.

According to t!em S!i"ra #all is t!e best or t!e middle class.

CONSUMER S E4PERIENCE IN SAHARA MALL

As a brand t!e S!i"ra #all is amous *ite Inn 0 2!e Food %ourt 0

2!e Fun )lace or Kids /ave S!i"ra %inemas.

73


77/97


S!o""ers Sto", Globus, Food *a3aar, Fas!ion Station etc are also

"o"ular among t!e consumers

It is -nown as International Standard Retail cum Entertainment #all.

CONCLUSION

2!e organi3ed retail in India is ex"ected to cross I$R ;999 billion mar- by

:9;9 and around I$R :99 billion investments are in t!e "i"eline. 2!e si3e o

t!e organi3ed retailing mar-et stood at Rs. :J9 billion in :99 , t!ereby,

ma-ing u" a mere HQ o t!e total retailing mar-et. #oving orward,

organi3ed retailing is "ro&ected to grow at t!e rate o :8Q0H9Q ".a. and is

estimated to reac! an astounding I$R ;999 billion by :9;9. Furt!er, its

contribution to total retailing sales is li-ely to rise to NQ by t!e end o t!e

decade. %urrently t!e as!ion sector in India commands a lionBs s!are in t!ecountryBs organised retail "ie. 2!is is in line wit! t!e retail evolution in ot!er

"arts o t!e world, w!ere as!ion led t!e retail develo"ment in t!e early

stages o evolution and was ollowed by ot!er categories li-e Food

Grocery, (urables, etc. 2!e last ew years !ave seen ra"id trans ormation in

many areas and setting scalable and "ro itable retail models across

categories. Indian consumers are ra"idly evolving and acce"ting modern

ormats overw!elmingly. Retail S"ace is no more a constraint or growt!.

India is on t!e radar o Global Retailers and su""liers 5 brands world0wide

are willing to "artner wit! retailers !ere. Furt!er, large Indian cor"orate

grou"s li-e 2ata, Reliance, Ra!e&a, I2%, *ombay (yeing, #uruga""a

)iramal Grou"s etc and also oreign investors and "rivate e4uity "layers are

74


78/97


79/97


!as so ar been concentrated in t!e metros is beginning to "ercolate down to

smaller cities and towns. 2!e contribution o t!ese tier0II cities to total

organi3ed retailing sales is ex"ected to grow to :90:8Q.

Favorable demogra"!ic and "syc!ogra"!ic c!anges relating to IndiaBs

consumer class, international ex"osure, availability o increasing 4uality

retail s"ace, wider availability o "roducts and brand communication are

some o t!e actors t!at are driving t!e retail in India. Over t!e last ew

years, many international retailers !ave entered t!e Indian mar-et on t!e

strengt! o rising a luence levels o t!e young Indian "o"ulation along wit!

t!e !eig!tened awareness o global brands and international s!o""ing

ex"eriences and t!e increased availability o retail real estate "ace.

(evelo"ment o India as a sourcing !ub s!all urt!er ma-e India as an

attractive retail o""ortunity or t!e global retailers. Retailers li-e /al0#art,

GA), 2esco, % )enney, ' #, Karstadt0+uelle etc ste""ing u" t!eir

sourcing re4uirements rom India and moving rom t!ird0"arty buying o ices

to establis!ing t!eir own w!olly owned 5 w!olly managed sourcing buying

o ices s!all urt!er ma-e India as an attractive retail o""ortunity or t!e

global "layers. *uying volumes or many o t!ese "layers are already in t!erange o I$R ;90:9 billion "er year, wit! re"orted "lans to ste" u" to I$R

;990;89 billion wit!in t!e next H0 years.

#anu acturers in industries suc! as F#%G, consumer durables, "aints etc

are wa-ing u" to t!e growing clout o t!e retailers as a s!i t in bargaining

"ower rom t!e ormer to t!e latter becomes more discernible. Already, a

number o manu acturers in India, in line wit! trends in develo"ed mar-ets,

76


80/97


!ave set u" dedicated units to service t!e retail c!annel. Also, instead o

viewing retailers wit! sus"icion, or as a necessary evilB as was t!e case

earlier, manu acturers are beginning to ac-nowledge t!em as c!annel

members to be "artnered wit! or "roviding solutions to t!e end0consumer

more e ectively.

INDIA RETAIL BY 006 0@

89 million s4 t o 4uality s"ace under develo"ment

< ma&or cities to account or ; million s4 t develo"ment

H99 malls, s!o""ing centres and multi"lexes under construction

2o o"en H8 !y"ermar-ets, H:8 large de"artment stores, ;899

su"ermar-ets and over ;9,999 new outlets

2o add S ;9 billion o business to organised retail.

2!e ood and "ersonal care retail mar-et in India is currently valued at about

;9 billion S dollars and is ex"ected to grow by 80


81/97


For a long "eriod o time t!e debate !as been w!et!er t!e large retail

"layers would be able to dislodge todays 6#om and )o"7 stores w!ic!

currently service t!e ood and "ersonal care need o Indians.

2!e #om and )o" stores !ave distinct advantages over t!e ot!er "layers in

terms o low over!eads and avoidance o sales tax. 2!e introduction o 1A2

in t!e Indian mar-et would nulli y t!e tax advantage to a certain extent but

t!ere is anot!er innate advantage t!at t!ese stores en&oy. 1arious studies

conducted by institutes suc! as t!e (e"artment o Economics, niversity o

%onnecticut, !ave s!own t!at t!e most im"ortant actor or a retail store is

distance. 2!e 6#om and )o"7 stores being t!e nearest to t!e consumers

!ome !ave t!ere ore remained as t!e irst c!oice or ood and "ersonal care.

%ritics argue t!at wit! t!e emerging socio0economic trends in India suc! as

t!e "!enomenon o increase in women &oining t!e wor- orce, brand

consciousness, aster nucleari3ation o amilies and a ast0"aced li e would

lead to #om and )o" stores being dislodged by bigger stores.

Anot!er actor o im"ortance !ere is tec!nology. %ritics argue t!at t!e bigger

stores would be able to bring in better e iciencies and t!ere ore would be

able to "rovide better variety and lower "rices. 2!e act !owever remainst!at t!e !ig! real estate cost and ot!er existing ine iciencies in t!e Indian

mar-et do not allow or cost e iciencies. Suc! e iciencies can only come i

t!e entire mar-et structure rom t!e su""lier to t!e end consumer becomes

integrated into one. Even i t!e retailers !ave t!e rig!t integrating tec!nology

it mitigates cost ine iciencies only to a certain extent as t!e vendor and

trans"orters still o"erate ine iciently.

78


82/97


83/97


2!is could be true also or ot!er "roducts w!ere "!ysical "resence is not

re4uired and w!ere t!e goods are standardi3ed commodities.

So t!e next time someone tells you t!at !e or s!e is very excited about

/alXmart coming to India, t!in- about t!e race o c!anges.

/it! new s!o""ing0malls !aving become o"erational in many cities across

India, it is interesting to observe !ow t!e s!o""ing0be!aviour o consumers

in t!e vicinity o t!ese malls !as c!anged and t!ereby draw some lessons

t!at could be o some use to t!e develo"ers o !undreds o new malls t!at

are currently under "lanning or construction across India.

It is still not too long ago t!at t!e o"erators o a "articular new s!o""ing0mall

at #umbai !ad to contem"late restricting entries o visitors by im"osing

conditions t!at suc! entry was limited to t!ose !aving mobile "!ones or

credit cards a.-.a., t!e income tax de"artmentBs one in six criterion or iling a

tax return.

$%R and Gurgaon saw some o t!e initial mall develo"ers become "ar-ing

lot o"erators as well by c!arging exorbitant "ar-ing ees rom all visitors.

Rentals, rat!er t!an going down wit! more malls coming u", started moving

u" even as t!e 4uality o services wit!in t!e malls started deteriorating. In

t!is context, t!ere ore, it is somew!at sur"rising t!at 4uestions are already

being as-ed, albeit in w!is"ers, w!et!er s!o""ing0malls can survive and

o"erate "ro itably in India.

#any tenants lament about t!e low "ercentage o conversions rom t!ose

w!o wal- t!roug! t!e "ortals o t!ese malls, and casual observers routinely

80


84/97


ind s!o""ing0bags missing in t!e !ands o t!e su""osed s!o""ers visiting

t!ese malls as an indicator t!at t!e initial eu"!oria about s!o""ing in t!e

malls is already on t!e wane and t!at consumers are reverting to t!eir

traditional s!o""ing0destinations.

2!ere are some myt!s and some realities about t!ese observations. It is,

indeed, true t!at many Indian retailer tenants in t!e s!o""ing0malls !ave

now become amiliar wit! terms suc! as oot alls, conversions, average

transaction value, and re"eat customers.

'owever, it is also true t!at or many o t!ese tenants, it !as been t!eir irst

ex"ansion beyond t!eir traditional !ig! street locations and !ence, t!ey !ave

ex"ectations born more out o !y"e t!an by any real ex"erience.

For instance, I would li-e to s"eculate t!at daily or wee-end oot alls in

traditional s!o""ing !ig! streets o India suc! as Sout! Extension and Karol

*ag! in $%R, Lin-ing Road in #umbai, %ommercial Street or *rigade Road

in *angalore, or or t!at matter, 2 $agar or Anna $agar in %!ennai would

easily exceed t!e more care ully estimated =or measured> oot alls in any o

t!e malls in t!e country.

Similarly, i one were to care ully observe t!e ratio o visitors !aving

Ds!o""ing0bagsD in t!eir !ands in t!ese !ig! streets versus t!ose in t!e new

malls, it is not going to be very di erent. As ar as individual retailersB

"er ormance is concerned, even in t!e traditional mar-ets some establis!ed

retailers do extraordinarily well w!ile many ot!er s!o"s see a c!ange o

Ds!o" boardsD very re4uently.

81


85/97


2!ere is no reason to believe t!at it s!ould be any di erent in a s!o""ing0

mall, w!ic!, in any case, is undamentally no di erent rom a traditional

s!o""ing0!ig! street, exce"t t!at a mall !as a more modern and com"act

structure, in most cases a single roo . Local retailer tenants w!o move into a

new mall or t!e irst time s!ould not ex"ect any customer loyalty being built

u" overnig!t.

For exam"le, in $%RBs case, it is "ossible or a retailer to be very success ul

in Karol *ag! or La&"at $agar s!o""ing0districts but !e would !ave to start

rom scratc! in terms o building u" brand recognition as well as generating

customer conversions in a new location suc! as Gurgaon or $oida. In

contrast, national retailers suc! as S!o""ers Sto", or national exclusive

brand outlets suc! as t!ose o"erated by #adura Garments, Arvind *rands,

Raymond, and Todiac, !ave national brand recognition and !ence t!e

"er ormance o t!eir outlets in s!o""ing0malls is usually com"arable =or

even better> wit! t!eir outlets in traditional s!o""ing0mar-ets.

Secondly, wit! most mall develo"ers !aving blindly o"ted or a 4uestionable

winning ormula o s!o""ing, entertainment =read #ulti"lex> and ood =read

#ac(onaldBs5)i33a 'ut as t!e main draws>, it is no sur"rise to ind manymall visitors !aving no s!o""ing0bags since t!ey !ave been enticed to visit

only or watc!ing a movie and5or !aving a burger or a "i33a or even a cu" o

co ee. 2!e situation "ertaining to s!o""ing, or instance, would be no

di erent in locations suc! as Sa-et or 1asant 1i!ar in $%R, w!ic! are better

-nown or t!eir movie t!eatres and eating o"tions. /!at is t!e lesson or

mall develo"ers and or t!e "ros"ective tenantsW For t!e develo"ers, t!e

82


86/97


critical lesson is to invest some 4uality e ort in understanding t!e s!o""ing0

needs o customers in t!eir targeted Dcatc!mentD areas and t!en build a

care ully "lanned "ort olio o retail o"tions t!at can meet t!e needs o t!ese

targeted customers.

In many instances, customers would only need s!o""ing and eating o"tions

rat!er t!an a multi"lex as well. 2!e develo"ers also !ave to understand t!at

t!eir retailer tenants !ave to earn a "ro it and !ence t!e rentals !ave to be

aligned to w!at t!e retail business can bear =usually 80J "er cent o gross

revenues>. #all develo"ers also !ave to create distinctive identities or t!eir

s"eci ic malls, muc! li-e t!e identities t!at !ave develo"ed over time or

ma&or s!o""ing0!ig! streets in various cities in t!e country.

2!eir wor- is not done &ust w!en t!e mall !as been commissionedC As or t!e

would0be retailer tenants, it is im"ortant to reali3e t!at merely moving into a

mall does not guarantee business or t!em. 2!ey !ave to wor- as !ard to

draw consumers to t!eir own stores once t!e latter !ave entered t!e mall,

and t!en !ave t!e rig!t value "ro"osition or t!em to get converted into

customers, and t!en become re"eat customers.

2!e inal, obvious, conclusion is t!at mall develo"ers !ave to invest in

getting a better understanding about t!e retail business, w!ile retailers !ave

to get a better understanding about t!e dynamics o o"erating at a new

location.

83


87/97


RECOMMENDATIONS

2!oug! lucrative o""ortunities exist across "roduct categories, ood and

grocery, never t!e less, "resents t!e most signi icant "otential in t!e Indian

context, as consumer s"ending is !ig!est on ood.

#ore S!o""ing malls s!ould be o"ened in more and more cities across

India.

2!e next level o o""ortunities in terms "roduct retail ex"ansion lies

in categories suc! as a""arel, &ewellery and accessories, consumer

durables, catering services and !ome im"rovement. 2!ese sectors !ave

already witnessed t!e emergence o organi3ed ormats t!oug! more

"layers are ex"ected to &oin t!e bandwagon.

Some o t!e nic!e categories li-e *oo-s, #usic and Gi ts o er

interesting o""ortunities or t!e retail "layers.

Kids and teensM 2!e I#AGES0KSA "ro&ections indicate t!at by :9;8,

India will !ave over 889 million "eo"le under t!e age o :9 ? re lecting

t!e gargantuan o""ortunities "ossible in t!e * 9 '2 ),,29 retailing

segment.

$1ol,9'l, )(' *2 is anot!er area, w!ic! !as "otential or ra"id growt!.

German giant #etro AG and Sout! A rican S!o"rite 'oldings !ave

already made !eadway in t!is segment by setting u" stores selling

merc!andise on a w!olesale basis in *angalore and #umbai

res"ectively. 2!ese new0 ormat cas!0and0carry stores attract large

84


88/97


volumes rom a si3eable number o retailers w!o do not !ave to maintain

relations!i"s wit! multi"le su""liers or all t!eir needs.

R-('l R,)'*l*2 : O late, IndiaBs largely rural "o"ulation !as also caug!t

t!e eye o retailers loo-ing or new areas o growt!. I2% launc!ed t!e

countryBs irst rural mall C1'-&'l S' '( , o ering a diverse "roduct

range rom F#%G to electronics a""liance to automobiles, attem"ting to

"rovide armers a one0sto" destination or all o t!eir needs. 2!ere !as

been yet anot!er initiative by t!e (%# Sriram Grou" called t!e H'(*/'l*

B' o"erates t!e

ormat, selling a variety o vegetables, ruits and !erbs 0 bot! local and exotic

t!ereby introducing t!e conce"t o B arm0to0"lateB to urbanites. Godre& "lans

85


89/97


to o"en our more $atureBs *as-et stores in #umbai be ore ta-ing t!em

national. Setting u" cost o a store is about I$R 80;9 million and "er stores

sales are ex"ected in t!e range o I$R H90 Rs 89 million a year.

Interestingly, t!e worldBs largest cor"oration, /al0mart, also !ad its roots in

rural America. nli-e many ot!er retailers w!o started rom urban centres

and t!en tric-led down to rural areas, /al0mart !ad started rom rural areas

and t!en came closer to cities over a "eriod o time. #any more suc!

conce"ts are li-ely to be tested in t!e uture as mar-eters and retailers begin

to ac-nowledge t!at t!e rural consumer is more t!an a "oor cousinB o t!e

urban counter"art. 2!e I#AGES KSA Re"ort avers t!at t!ese conce"ts are

li-ely to go a long way in bringing a !uge unta""ed "o"ulation wit!in t!e

"urview o organi3ed retailing, t!ereby, increasing t!e si3e o t!e total

mar-et.

Po),2)*'l o( 'll Fo(%')9 )o T1(*+,:

#ost o t!e global "ower!ouses in t!e retailing sector suc! as /al0#art,

%arre our, and 2esco etc !ave ado"ted multi0 ormat and multi0"roduct

strategies in order to customi3e t!eir "roduct o ering or distinct target

segments. Similar trends are li-ely to be ex!ibited in India as all ormats

"resent "ros"ects or growt!, t!e Re"ort says.

Furt!er, wit! t!e emergence o larger store ormats li-e su"erstores and

!y"ermar-ets in countries li-e K, France, Germany, S"ain since t!e ;NJ9s

and Eastern Euro"e more recently, traditional ood retailers !ave been able

to stoc- more extensive non0 ood ranges. In act, 2esco, KBs leading grocer,

86


90/97


!as become t!e number one a""arel retailer in t!e %3ec! Re"ublic and also

a ma&or "layer in 'ungary a"art rom being one o t!e astest growing

clot!ing retailers in t!e K. 2oget!er wit! its rival, /al0#art0owned AS(A,

2esco is one o t!e ood sectorBs most success ul ex"onents o clot!ing in

Euro"e.

2!ere are wide varieties o roadbloc-s t!at !am"er t!e growt! o ot!erwise

u"beat scenario. A ew o t!em are regulatory barriers, ragmented su""liers,

lac- o s-illed "ersonnel, di erential taxation system, labour legislation and

lac- o industryB status. Recounting some critical success actors in retail t!e

I#AGES0KSA re"ort em"!asises t!at all and any solutions aug!t to be

India0centric even as strategic and o"erational attributes li-e value

"ro"osition, service, ex"erience, e iciency, !ygiene etc. must be

benc!mar-ed wit! global standards. It also avors ado"ting an e ective

"rivate label strategy and t!e necessity to "ass on o"erational gains

ac!ieved to end0consumers in order to o er a su"erior "rice0value e4uation,

t!ereby, com"eting e ectively wit! t!e unorgani3ed segment.

On t!e vexed issue o Foreign (irect Investment =F(I> it notes t!at most

"layers are cautious and !ave "re erred to ado"t a wait0and0watc! attitudeeven as t!e government is ex"ected to announce its stand on F(I in t!e

retail sector soon.

Retailing is well "ast t!e stage o in ancy w!ere only a !and ul o "layers li-e

t!e German retailer $an3 boug!t international ormats to virgin Indian

2erritory, and t!at too, wit! limited scale and o"erations. (uring t!e late

;NN9s, Indian retailers underwent an ex"erimentation "!ase w!en new

87


91/97


ormats =de"artment stores li-e S!o""ersB Sto" )antaloon> and "roduct

categories =li-e consumer durables retailing, music retailing etc> were

introduced. As t!e country marc!ed into t!e new millennium, t!e organi3ed

retailing scenario began to stabili3e, es"ecially over t!e last H 0 years w!en

"layers li-e *ig *a3aar, *arista, )i33a 'ut, and S!o""ers Sto" etc became

success ul in establis!ing a national oot"rint. 2!is was also t!e stage w!en

international retailers li-e #c(onaldBs, Subway etc ado"ted a mix o global

and India0s"eci ic strategies in order to entice t!e local "o"ulation.

India is now ready to lea" rog into t!e next stage o evolution w!ere a large

number o Indian and international retailers would build scalable models wit!

a "an0India a""eal wit! a view to be sustainable in t!e long term. Already,

"layers are becoming "ro itable a ter !aving gone t!roug! t!eir res"ective

learning curves indicating t!e viability o organi3ed retailing across ormats.

O""ortunities are abundant, across ormats and categories, as t!e new

Indian consumer !as clearly demonstrated a readiness or all organi3ed

retailing segments. #oreover, as !as been t!e case in retail mar-ets across

t!e globe, t!e in lux o oreign brands into India s!all trans orm t!e retail

landsca"e as domestic "layers grow bigger and become more innovative int!e ace o en!anced com"etitive "ressures.

All t!is can only s"ell good news or t!e Indian consumers w!o will be

inundated wit! a lurry o state0o 0t!e0art "roducts and services at

reasonable "rices ? a state t!ey !ave long craved or.

88


92/97


93/97


www.sa!araindia.com

www.mg india.com

ANNE4URE

JUESTIONNAIRE FOR CUSTOMERS

(ear Sir5#adam I am conducting a Survey on 6%onsumer *e!avior andEx"erience about S!o""ing #allsM A com"arative study. #ay I !ave ive

minutes o yours to !el" me ill u" t!e +uestionnaireWPl,'9, 9&,7* / /o-( &(o *l,:

N'%,:

P(o ,99*o2:

J-,9)*o2 =: $1') *9 )1, A22-'l 1o-9,1ol *27o%, o /o-( '%*l/

=a> below : la-!s=b> Rs :08 La-!s=c> Rs. 80;9 La-!s=d> Rs. ;9 la-!s and above

J-,9)*o2 : Ho; %-71 /o- 9&,2 o2 ' '+,(' , o2 /o- (, &,( +*9*) )oS1o&&*2 M'll

=a> " to Rs. :99=b> Rs. :990899=c> Rs.8990:899=d> Rs. :899 and above

J-,9)*o2 3: $1') *9 )1, (, -,27/ o /o-( +*9*) )o )1, S1o&&*2 M'll9

=a> (aily=b> Once in a wee-=c> 2wice in a wee-=d> Any ot!er

J-,9)*o2 : Pl,'9, ('), )1, &-(&o9, o /o-( +*9*) )o )1, S1o&&*2M'll9 "= B,*2 %o9) )1, %o9) *%&o()'2) '2 6 ,*2 l,'9) *%&o()'2)#

P-(&o9, = 3 5 6Food and *everages

90


94/97


#usic and EntertainmentLi e style "roductsLatest Fas!ion and%lot!ing%!oosing gi ts%onsumer (urable

J-,9)*o2 5: Pl,'9, ('), )1, ollo;*2 S1o&&*2 M'll9! ;1*71 /o- &(, ,( )1, %o9)

=a> #etro"olitan #all=b> Sa!ara #all=c> #GF )la3a #all

J-,9)*o2 6: Pl,'9, 9&,7* / )1, (,'9o29 o( )1, &(, ,(,27, o2 )1, 97'l,o = )o @ "= ,*2 )1, %o9) *%&o()'2) '2 @ ,*2 )1, l,'9) *%&o()'2)#

F'7)o(9 S'1'(' M'll M,)(o&ol*)'2 M'll MGF Pl'


95/97


JUESTIONNAIRE FOR RETAILERS

T1*9 -,9)*o22'*(, ,'(9 (, ,(,27, )o o-( '7' ,%*7 &-(&o9,9 o2l/ '22o ,, '7 *+,2 *2 )1*9 J-,9)*o22'*(, ;*ll ,+,( , *97lo9, .

$ameM #r. #s. YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY =o"tional>

Retailer $ameM YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY

AddressM YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY

%ityM YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY

)inM YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY

)!oneM =O> YYYYYYYYYYYYYYYYYYYYYYYYYY =m> YYYYYYYYYYYYYYYYYYYYY

J.= Do /o- ' (,, )1') )1,(, *9 )(,2 )o;'( 9 o( '2*9, (,)'*l *2 I2 *'es $o

J. Do /o- )1*2 l'( , o( '2*


96/97


J.5 $1') '77o( *2 )o /o- '(, )1, (,'9o29 o( -/*2 ') )1') &'()*7-l'( 91o&&*2 %'ll "Pl,'9, ('2 )1,% *2 o( ,( o &(, ,(,27, #

$earness to your !ouse5locality

Good range available

Friendly s!o"-ee"er5 good relations

Good ambience

Good bargain

J.6 R'2 "= 6# )1, ollo;*2 '7)o(9! ;1*71 *2 l-,27, )1, 7-9)o%,( &-(71'9, ,7*9*o2 ') ' 91o&&*2 %'ll.

)rice

*rand

Location o #all

Outlet5#all

A""ealing ragrance

Advice rom ac4uaintances

J.@ Do 91o&&*2 %'ll9 1'+, )1, ollo;*2 ' +'2)' ,9 Y,9 No

2ime Factor (iscount sc!emes

Ade4uate "ar-ing s"ace Individual sections o all categories Good s!o""ing ex"erience in better "lace wit! convenienceand variety.

Organi3ed s!o"s wit! international ambience air conditionall0around.

J.8 Do /o- )1*2 I2 *' 1'9 ' &o),2)*'l *2 )1, R,)'*l *2 -9)(/es $o

J.> Do /o- )1*2 )1') o( '2*


97/97

A Comparative Study of Shopping Mall

Documents

Transcript of A Comparative Study of Shopping Mall