Mostly once the stores are leased out, the developers are not worried about the promotion any more. Though a few malls organize some in-house promotional activities but that alone doesn’t guarantee a good footfall.
Majority of the developers don’t pay attention about the branding, marketing, promotions, budgeting, financing as part of running a mall. This affects the overall footfalls in the mall, and thus the business of the retailers.
The retailers are given a lot of importance to sign in the mall but later on not considered as an integral part of mall.
With over 100 malls operating in India and more than 300 being developed, the opportunities offered in the retail landscape are immense. Mall space is expected to touch 60 million square feet by end-2010. With such a huge supply of space, mall owners and developers in India need to focus on vision, scalability and processes and create a distinct proposition for themselves in the market. The emergence of specialty malls is a step in this direction.
Retailers today face many challenges, including increasing competitive pressures, thin margins, high occupancy costs and unpredictable supply base that come in the way of their attaining operational efficiency and profitability. In the mall they not only deal with additional super area loading but also the additional CAM expenses.
As organized retail grows, the market will only become more competitive and developers will have to work hard to differentiate. Faulty mall management along with inappropriate tenant mix would lead to poor mall traffic and closure of individual stores in malls. Professional third party mall management service providers are hence likely to come to the fore. They not only understand these business challenges, but also have the ability to help retailers effectively deal with them.
Generally there are two types of consumers who visit malls – focused buyers and impulse buyers. The time spent by focused buyers inside the mall is relatively lower as compared with impulse buyers who spend a lot of time window shopping. Malls which have entertainment zones and/ or promotional activities have larger foot falls and more percentage of impulse buyers. Mall management becomes critical to attract impulse buyers. For example, Ansal Plaza in Delhi has ensured its success through good promotional events and mall management practices since its inception in 1999. Its amphitheater which is dedicated to promotional activities has ensured footfalls despite newer malls coming up in the NCR region.
Contrary to popular misconception that mall management is synonymous with facility management, mall management actually takes care of the issues like:
- positioning
- zoning (tenant mix and placement within mall)
- promotions and marketing
- facility management (infrastructure, footfalls, ambiance)
- finance management
Various business models are adopted by retailers/ developers while utilizing the services of a
There are very few mall management companies in India at present. Large real estate developers and retail chains either have their own mall management divisions or have contracts with international consultants. In developed markets mall management is an established independent service line. Till recently contract model was the norm in India. But the revenue sharing model is increasingly becoming popular with retailers in India due to the present economic situation.
India is yet to embrace the concept of third party mall management in retailing. Some of the issues could be:
- Planning the mall around anchor tenants
- Lack of market research by developers
- Tendency to lease out on a FCFS basis
- Perceive outsourcing as additional cost
- Lack of accountability for in-house promotional activities
- Improper planning for space (lack of parking space, single entry/ exit points)
With the slowdown of the realty sector, developers might give the mall management practice a thought in order to ensure that the slowdown does not affect its footfalls. Mall market in India has become extremely competitive especially due to the sudden boom in the real estate sector. Malls have come up in the Tier II cities and rural areas as well albeit in a smaller and different format. With increasing competition from high street retailers, developers are finding it difficult to achieve 100% occupancy rates.
A specialist’s retail property management skills enable property owners to receive the benefit of master planning and development expertise which is critical to ensure that malls are strategically positioned for long-term growth and success.
How a retail shopping mall can be transformed into a brand? So that people recognize it with its name, and same is repeated later in other cities at other locations. But for that principle A to Z is being retailer friendly.
Wednesday, November 11, 2009
Friday, November 6, 2009
Shopping Centers: Challenges For A Growing Trend
Development of organized retailing in India, in the form of shopping malls is one of the main reasons for the growth of shopping malls in India. With the changing shopping needs and aspirations, consumers are finding it easier to shop at malls where a wide choice of merchandise is available under one roof. Here we shall look into the challenges faced by shopping malls in India, today.
Shopping malls have mushroomed all over the major metros of India, spreading its tentacles far and wide. Gurgaon, Noida, and a few other satellite townships in the NCR (national capital region) of India’s capital city Delhi, have been standing witnesses and silent partners to this mall mania. Called as the ‘Shopping-mall capital of India’, Gurgaon has been a focal point of the this rising tide, with monolithic glass structures, colossal trade towers and a lot of glitzy skyscrapers manning the entire length and breadth of this erstwhile urban village. Many others have followed suit, as they jump into this bandwagon of a modern India, cashing in on the rising spending potential of the ‘great Indian middle class’.
But, beneath the swanky and ritzy surface, away from all the hype, the underbelly of this modern mega polis tells a totally different story. Not everything is bright and sunny as it seems. Recent studies have shown that many retail players have jumped into the fray and joined the rat race without much ado, completely overriding and overlooking the necessary checks and balances, before they get into a business venture.
Retail companies in India have missed the woods for the trees, as the trend in the market shows that there has been a complete mismatch of consumers and brands. It’s true that the foot-falls in most of the major malls have been great and phenomenal, matching those in any developed retail markets; but, not all footfalls generate business. Other than the few multiplexes and the fast food chains, most of the retail endeavors have run into big troubles. Not everyone who enters the mall is a prospective consumer, as majority of them come just to hang out, and indulge in window shopping in an air-conditioned environment for free. With high real estate cost, many of these retailers have failed to break even, and business has been abysmally low, even non-existent at times.
It is high time for companies involved in retail in India organized to seriously think over the location, demography, culture and taste of the target consumers, before they join the free-for-all brigade. ‘Mall Culture’ is in, but with the fierce competition in the market, not many will make it without proper planning and strategy.
Other Challenges
The challenges which many malls are facing today is to keep up with the competition and to attract retailers of a higher quality,
A host of additional challenges may exist for developers and their business and retail tenants in malls; these include:
• No-Change Areas: Tenants should identify those areas outside of the premises that are critical to their use (such as elevators, lobby areas, and access-ways between the loading dock, freight elevator and the premises), and make certain that those areas cannot be changed without the tenant’s approval. From the developer’s perspective, careful attention should be given to the tenant’s proposed no change area in order to make certain that the requested area is not too large so as to restrict the developer’s need for flexibility to accommodate demands by future tenants, market changes and laws.
• Loading/ Unloading: In malls, the loading/unloading dock is often shared by the building occupants. Ideally, the building will have a dock master who will coordinate the use of this dock, the cost of which will be included in building services or common area maintenance charges. If there is no dock master, then the developer and tenant need to address this issue in their lease negotiation because the tenant will want to make certain that its trucks can unload merchandise in a timely and efficient manner and the developer will want to avoid delivery trucks blocking roads and access to the building. Often an anchor tenant will negotiate to obtain priority rights to the loading dock during certain hours and an alternate means of loading/unloading if the main loading dock is unavailable.
• Parking: The parking areas are either operated by the developer or by a parking operator on a pay-for-use basis. As part of lease negotiations, the tenant should insist that its customers be able to park for free for a certain period of time, or, if not free, then at a reduced rate for the first hour or two. From the developer’s perspective, the developer must make certain that there is enough parking available for the entire project, and that available parking is not unduly limited by granting exclusive rights to parking spaces. In some projects, the developer can utilize some of the retail parking to accommodate overflow parking from the residential uses in the evening time after the stores are closed. This can be an additional source of income.
• Certificate of Occupancy: If the tenant is performing work in the premises prior to occupancy, then the lease will often obligate the tenant to obtain the certificate of occupancy upon completion of such work. However, some jurisdictions will use this request as leverage to compel the building owner to cure any building violations, even if unrelated to the subject premises. Tenants should therefore insist that their lease obligates their landlords to be responsible for curing any building violations that would prevent the tenant from receiving a certificate of occupancy following completion of their work.
• Satellite Dishes: If a tenant needs a satellite dish to communicate with a home office or other stores, the landlord will need to grant easements in the lease in order to permit the tenant to use building chases and the rooftop for the satellite dish. The developer must make certain that any work done on the roof be performed with roofing contractors approved by the developer and in a manner that does not void the roof warranty. In addition, the developer should insist that the tenant be responsible for any damage to the roof or building as a result of such installation.
• Scaffolding: Careful negotiation between developers and tenants should take place if scaffolding might be erected on the building at a future point in time (perhaps for renovation purposes, or to hold billboard/advertising materials — provided, of course, all scaffolding complies with legal and regulatory constraints). Though the developer usually retains the absolute right to erect scaffolding, the tenant should ensure its lease mandates scaffolding will not block access to its store or its signage.
Poor Mall Traffic
Although shopping malls started making their presence felt, consumers still go to the traditional stand-alone stores, when they are purchasing specialized products like electronics, home needs, and jewelry. What are the ways in which shopping malls in India can attract more number of customers?
Poor mall management and poor tenant mix have resulted in poor mall traffic and low conversion rate. This has led to the closure of individual shops, at several malls. What can the mall management do, to attract serious buyers? What are the secrets of successful shopping malls and how to apply them to your centre? How to develop/ redevelop and operate shopping centre efficiently? What are the innovative ways to increase center’s sales and profits? What are the latest techniques for maintenance and security tactics? These are all the challenges faced by a shopping mall in India, today points to ponder, and solutions to be FOUND……………….
Shopping malls have mushroomed all over the major metros of India, spreading its tentacles far and wide. Gurgaon, Noida, and a few other satellite townships in the NCR (national capital region) of India’s capital city Delhi, have been standing witnesses and silent partners to this mall mania. Called as the ‘Shopping-mall capital of India’, Gurgaon has been a focal point of the this rising tide, with monolithic glass structures, colossal trade towers and a lot of glitzy skyscrapers manning the entire length and breadth of this erstwhile urban village. Many others have followed suit, as they jump into this bandwagon of a modern India, cashing in on the rising spending potential of the ‘great Indian middle class’.
But, beneath the swanky and ritzy surface, away from all the hype, the underbelly of this modern mega polis tells a totally different story. Not everything is bright and sunny as it seems. Recent studies have shown that many retail players have jumped into the fray and joined the rat race without much ado, completely overriding and overlooking the necessary checks and balances, before they get into a business venture.
Retail companies in India have missed the woods for the trees, as the trend in the market shows that there has been a complete mismatch of consumers and brands. It’s true that the foot-falls in most of the major malls have been great and phenomenal, matching those in any developed retail markets; but, not all footfalls generate business. Other than the few multiplexes and the fast food chains, most of the retail endeavors have run into big troubles. Not everyone who enters the mall is a prospective consumer, as majority of them come just to hang out, and indulge in window shopping in an air-conditioned environment for free. With high real estate cost, many of these retailers have failed to break even, and business has been abysmally low, even non-existent at times.
It is high time for companies involved in retail in India organized to seriously think over the location, demography, culture and taste of the target consumers, before they join the free-for-all brigade. ‘Mall Culture’ is in, but with the fierce competition in the market, not many will make it without proper planning and strategy.
Other Challenges
The challenges which many malls are facing today is to keep up with the competition and to attract retailers of a higher quality,
A host of additional challenges may exist for developers and their business and retail tenants in malls; these include:
• No-Change Areas: Tenants should identify those areas outside of the premises that are critical to their use (such as elevators, lobby areas, and access-ways between the loading dock, freight elevator and the premises), and make certain that those areas cannot be changed without the tenant’s approval. From the developer’s perspective, careful attention should be given to the tenant’s proposed no change area in order to make certain that the requested area is not too large so as to restrict the developer’s need for flexibility to accommodate demands by future tenants, market changes and laws.
• Loading/ Unloading: In malls, the loading/unloading dock is often shared by the building occupants. Ideally, the building will have a dock master who will coordinate the use of this dock, the cost of which will be included in building services or common area maintenance charges. If there is no dock master, then the developer and tenant need to address this issue in their lease negotiation because the tenant will want to make certain that its trucks can unload merchandise in a timely and efficient manner and the developer will want to avoid delivery trucks blocking roads and access to the building. Often an anchor tenant will negotiate to obtain priority rights to the loading dock during certain hours and an alternate means of loading/unloading if the main loading dock is unavailable.
• Parking: The parking areas are either operated by the developer or by a parking operator on a pay-for-use basis. As part of lease negotiations, the tenant should insist that its customers be able to park for free for a certain period of time, or, if not free, then at a reduced rate for the first hour or two. From the developer’s perspective, the developer must make certain that there is enough parking available for the entire project, and that available parking is not unduly limited by granting exclusive rights to parking spaces. In some projects, the developer can utilize some of the retail parking to accommodate overflow parking from the residential uses in the evening time after the stores are closed. This can be an additional source of income.
• Certificate of Occupancy: If the tenant is performing work in the premises prior to occupancy, then the lease will often obligate the tenant to obtain the certificate of occupancy upon completion of such work. However, some jurisdictions will use this request as leverage to compel the building owner to cure any building violations, even if unrelated to the subject premises. Tenants should therefore insist that their lease obligates their landlords to be responsible for curing any building violations that would prevent the tenant from receiving a certificate of occupancy following completion of their work.
• Satellite Dishes: If a tenant needs a satellite dish to communicate with a home office or other stores, the landlord will need to grant easements in the lease in order to permit the tenant to use building chases and the rooftop for the satellite dish. The developer must make certain that any work done on the roof be performed with roofing contractors approved by the developer and in a manner that does not void the roof warranty. In addition, the developer should insist that the tenant be responsible for any damage to the roof or building as a result of such installation.
• Scaffolding: Careful negotiation between developers and tenants should take place if scaffolding might be erected on the building at a future point in time (perhaps for renovation purposes, or to hold billboard/advertising materials — provided, of course, all scaffolding complies with legal and regulatory constraints). Though the developer usually retains the absolute right to erect scaffolding, the tenant should ensure its lease mandates scaffolding will not block access to its store or its signage.
Poor Mall Traffic
Although shopping malls started making their presence felt, consumers still go to the traditional stand-alone stores, when they are purchasing specialized products like electronics, home needs, and jewelry. What are the ways in which shopping malls in India can attract more number of customers?
Poor mall management and poor tenant mix have resulted in poor mall traffic and low conversion rate. This has led to the closure of individual shops, at several malls. What can the mall management do, to attract serious buyers? What are the secrets of successful shopping malls and how to apply them to your centre? How to develop/ redevelop and operate shopping centre efficiently? What are the innovative ways to increase center’s sales and profits? What are the latest techniques for maintenance and security tactics? These are all the challenges faced by a shopping mall in India, today points to ponder, and solutions to be FOUND……………….
Wednesday, November 4, 2009
A Mine of Business Opportunities
Shopping centers are taking India by storm. The popularity of lifestyle centers is driving growth and innovation that is in turn creating new opportunities and challenges in the way that leases are negotiated and structured, both for developers and tenants.
When lifestyle centers first emerged few years ago, their locations and upscale ambiance targeted mainly high-end, urban shoppers. But now, their exploding popularity is driving more to be built in suburban locations where real estate is at a cheaper price. Further, in order to accommodate the push for “smart growth,” different uses are being incorporated into these developments, such as office and hospitality, to offer people the opportunity to meet, mingle, shop, work, play and live in the same area.
Lifestyle centers are here to stay. With thoughtful planning at the initial stages of development and careful attention to lease negotiation, these centers will continue to thrive and provide people with a fun place to shop, work, play and also make a home if they so choose.
A mall not only offers a great shopping experience but is also a mine of business opportunities, .......Why??
It starts right from the point you enter the premises of a mall – bright, colorful outdoor hoardings, and then attendants assisting with parking of vehicles. At the entry points, guards frisk visitors for security assurance, also installed are CCTVs and surveillance cameras for ensuring a threat-free environment. Then there are kiosks here and there displaying and promoting the latest products. Escalators and lifts for comfort and convenience, with the housekeeping team making sure that the ambiance is simply perfect. Of course, there are those with the walkie-talkies who are always around to help out visitors and deal with their grievances.
Ever wondered who is running these shows, behind the scene? More importantly, how big is this business?
Is there an opportunity window?
Right from the day a mall is constructed, it becomes a mine of opportunities for a lot of businesses. Besides the shops, restaurants, and entertainment hubs, there are hundreds of opportunities in every mall. These are mall management, facility management, creative firms, and design houses specializing in mall interiors, promotional events, kiosks, and hoardings to advertise products or services, to name a few opportunities. Considering the ever-growing retail sector and the growing prominence of malls in this sector, let us take a quick look at how big a business can some of these services be.
Mall Management
A mall management company takes care of the entire operations of a mall, which includes procurement of various equipment and maintenance. This means, broadly all the FMB operations (Facilities Maintenance Operations) such as, leasing out shops and advertising space to interested parties, procuring all necessary equipment, to maintaining the mall. To get all of this done, a mall management company usually outsources many of these functions to facility management companies that deal in specific services.
Mall management encompasses operations, facilities management, security, accounts, common area maintenance, marketing, leasing and all the other functions even remotely related to a mall.
Revenue Generators
Since a mall management company gets involved right from the inception of a mall, it should be involved in the pre-launch, launch and post-launch promotion of the mall. And together with proper mall promotion, good revenue can be generated through kiosks, hoardings, events and other promos.
So if we take this revenue model into account, then the income from mall management could range anywhere between Rs 5 crore and Rs 50 crore annually, and that is from just one mall! The biggest advantage in this opportunity is the fact that there is no single mall management company that is into catering to malls other than their own (all the malls have their in-house mall management).
Challenges
The biggest challenge in this industry is finding the right kind of tenants. While leasing out space to tenants, it is important to keep in mind the image that you want to create in the customer’s mind. The right kind of tenant mix ensures the right footfall for the mall, and sustainability of the mall.
Facility Management
A company providing specialized services to malls is known as a facility management company. Mall management companies outsource usually many operations to these companies like parking, security, housekeeping, and cash management.
Vipul Facility Management, Knight Frank and JLLM etc.. currently provides services and manages malls across India. What do they do? They handle electro mechanical services like fire detection and suppression, power management, access control, water management plumbing, etc. Besides this they also handle business services like guest relations, help desk management, etc. Also provide soft services like cleaning and pest control, physical and security surveillance, concierge services, and administration services.
There are a few other functions that facility management companies are also taking up. These include conducting research for malls to find out their requirements before actually starting to service them. Going one step further, facility management companies are also indulging in providing human resources for each of the services.
Advertising opportunities
As the number of malls in the country is growing at a rapid pace and with it the number of people visiting these malls burgeoning, advertising and promotional activities in malls have become a hot opportunity.
The BTL (below the line) advertising activities have grabbed a 30% share in the overall advertising market from what used to be a space dominated 100% by ATL (above the line) advertising. With companies realizing the importance of promoting their products in a way in which people can actually touch the product and get a feel of it, more and more companies are opting for putting up kiosks and promoting their products, in addition to going for outdoor advertising and promotion.
A creative agency takes care of all the aspects of advertising, starting from conceptualizing the advertisement to leasing out the space on behalf of their clients, to putting up hoardings or setting up kiosks or conducting events.
Specialty Leasing
Just starting your business?
Specialty Leasing is a great opportunity for a new entrepreneur. In a mall you can be offered Retail Merchandising Units, Floating Retail/Kiosks, and Temporary In-Line Stores. This gives a great opportunity for test marketing your product and if some changes and improvements need to be done.
It’s a great way to keep current update on the latest industry trends.
Have a product and want to sell retail?
Finding product distribution in today’s crowded marketplace is difficult. With Specialty Leasing, it is an efficient way for you to get your product out there and grow your profitability. It increases your sales by giving your product exposure to millions of visitors that shop in shopping malls.
Want to expand your existing retail business?
If you are already operating your own retail showroom in other high street or local market locations, then you can take your business to the next level with the right combination of local and national support, which you get in a shopping centre.
Shopping Malls are Gold mines, only thing is its right product positioning.
When lifestyle centers first emerged few years ago, their locations and upscale ambiance targeted mainly high-end, urban shoppers. But now, their exploding popularity is driving more to be built in suburban locations where real estate is at a cheaper price. Further, in order to accommodate the push for “smart growth,” different uses are being incorporated into these developments, such as office and hospitality, to offer people the opportunity to meet, mingle, shop, work, play and live in the same area.
Lifestyle centers are here to stay. With thoughtful planning at the initial stages of development and careful attention to lease negotiation, these centers will continue to thrive and provide people with a fun place to shop, work, play and also make a home if they so choose.
A mall not only offers a great shopping experience but is also a mine of business opportunities, .......Why??
It starts right from the point you enter the premises of a mall – bright, colorful outdoor hoardings, and then attendants assisting with parking of vehicles. At the entry points, guards frisk visitors for security assurance, also installed are CCTVs and surveillance cameras for ensuring a threat-free environment. Then there are kiosks here and there displaying and promoting the latest products. Escalators and lifts for comfort and convenience, with the housekeeping team making sure that the ambiance is simply perfect. Of course, there are those with the walkie-talkies who are always around to help out visitors and deal with their grievances.
Ever wondered who is running these shows, behind the scene? More importantly, how big is this business?
Is there an opportunity window?
Right from the day a mall is constructed, it becomes a mine of opportunities for a lot of businesses. Besides the shops, restaurants, and entertainment hubs, there are hundreds of opportunities in every mall. These are mall management, facility management, creative firms, and design houses specializing in mall interiors, promotional events, kiosks, and hoardings to advertise products or services, to name a few opportunities. Considering the ever-growing retail sector and the growing prominence of malls in this sector, let us take a quick look at how big a business can some of these services be.
Mall Management
A mall management company takes care of the entire operations of a mall, which includes procurement of various equipment and maintenance. This means, broadly all the FMB operations (Facilities Maintenance Operations) such as, leasing out shops and advertising space to interested parties, procuring all necessary equipment, to maintaining the mall. To get all of this done, a mall management company usually outsources many of these functions to facility management companies that deal in specific services.
Mall management encompasses operations, facilities management, security, accounts, common area maintenance, marketing, leasing and all the other functions even remotely related to a mall.
Revenue Generators
Since a mall management company gets involved right from the inception of a mall, it should be involved in the pre-launch, launch and post-launch promotion of the mall. And together with proper mall promotion, good revenue can be generated through kiosks, hoardings, events and other promos.
So if we take this revenue model into account, then the income from mall management could range anywhere between Rs 5 crore and Rs 50 crore annually, and that is from just one mall! The biggest advantage in this opportunity is the fact that there is no single mall management company that is into catering to malls other than their own (all the malls have their in-house mall management).
Challenges
The biggest challenge in this industry is finding the right kind of tenants. While leasing out space to tenants, it is important to keep in mind the image that you want to create in the customer’s mind. The right kind of tenant mix ensures the right footfall for the mall, and sustainability of the mall.
Facility Management
A company providing specialized services to malls is known as a facility management company. Mall management companies outsource usually many operations to these companies like parking, security, housekeeping, and cash management.
Vipul Facility Management, Knight Frank and JLLM etc.. currently provides services and manages malls across India. What do they do? They handle electro mechanical services like fire detection and suppression, power management, access control, water management plumbing, etc. Besides this they also handle business services like guest relations, help desk management, etc. Also provide soft services like cleaning and pest control, physical and security surveillance, concierge services, and administration services.
There are a few other functions that facility management companies are also taking up. These include conducting research for malls to find out their requirements before actually starting to service them. Going one step further, facility management companies are also indulging in providing human resources for each of the services.
Advertising opportunities
As the number of malls in the country is growing at a rapid pace and with it the number of people visiting these malls burgeoning, advertising and promotional activities in malls have become a hot opportunity.
The BTL (below the line) advertising activities have grabbed a 30% share in the overall advertising market from what used to be a space dominated 100% by ATL (above the line) advertising. With companies realizing the importance of promoting their products in a way in which people can actually touch the product and get a feel of it, more and more companies are opting for putting up kiosks and promoting their products, in addition to going for outdoor advertising and promotion.
A creative agency takes care of all the aspects of advertising, starting from conceptualizing the advertisement to leasing out the space on behalf of their clients, to putting up hoardings or setting up kiosks or conducting events.
Specialty Leasing
Just starting your business?
Specialty Leasing is a great opportunity for a new entrepreneur. In a mall you can be offered Retail Merchandising Units, Floating Retail/Kiosks, and Temporary In-Line Stores. This gives a great opportunity for test marketing your product and if some changes and improvements need to be done.
It’s a great way to keep current update on the latest industry trends.
Have a product and want to sell retail?
Finding product distribution in today’s crowded marketplace is difficult. With Specialty Leasing, it is an efficient way for you to get your product out there and grow your profitability. It increases your sales by giving your product exposure to millions of visitors that shop in shopping malls.
Want to expand your existing retail business?
If you are already operating your own retail showroom in other high street or local market locations, then you can take your business to the next level with the right combination of local and national support, which you get in a shopping centre.
Shopping Malls are Gold mines, only thing is its right product positioning.
Tuesday, November 3, 2009
India: A new frontier for Shopping Malls
The emergence of a mall culture and development of malls should come across as a positive development .With all the major retailers planning to double the number of stores and the retail space that they will need in the next three years, availability of real estate space will be a key enabler for growth.
Many of the Indian cities are choking under rapid urbanization. And Central Business Districts (CBDs) in many cities today are not capable of supporting the massive growth plans of retailers. High cost of retail space is certainly a cause for concern. Real estate laws in India are archaic in nature and impede the retailing development.
India is one of the happening countries for retail growth and development due to its rapidly expanding economy. A lot of the demand for increased retail goods and services is due to a booming middle class that no longer lives in traditional extended households because there is an increase in work relocation and job opportunities particularly in the service and high tech industries.
WE all know that, just ten years ago, shopping centers did not even exist in India. and today there is more than 60 million square feet of retail in various stages of completion throughout the country and many predict that within two to four years there will be as many as 300 shopping centers in India.
One of the exciting things about our culture is the people’s amazing capability to
take the best of other cultures and blend with their own to create something new and dynamic such as the “Bollywood” film industry. WE pick up and learn very fast from others, whether its their technology advances or their mistakes.
The Indian retailers and developers really do not want foreigners to come in and develop their industry for them. They want to learn from them so that they themselves can develop their business on their own terms and best suited to our unique needs. So you shall see a lot of local vernacular touch in all our endeavors, whether it is Mc Donalds- aloo tickii burger or our traditional local artisans in the mall, but you can see the personal modification to what ever we learn from the west.
Some of the challenges we face today include lack of available land, poor infrastructure, protecting existing Indian owned retail chains from foreign competition, changes to the existing social and cultural structure due to increasing wealth of the Indian middle class and the desire to add jobs and improve the standard of living for a relatively youthful population.
The Indian retail and real estate industry is today moving at a rapid pace without regard to the importance of using market research adequately, which will become a challenge when this industry matures. Although developers and retailers do get the intensive research done but eventually give importance to feedback from local people.
Many of the Indian cities are choking under rapid urbanization. And Central Business Districts (CBDs) in many cities today are not capable of supporting the massive growth plans of retailers. High cost of retail space is certainly a cause for concern. Real estate laws in India are archaic in nature and impede the retailing development.
India is one of the happening countries for retail growth and development due to its rapidly expanding economy. A lot of the demand for increased retail goods and services is due to a booming middle class that no longer lives in traditional extended households because there is an increase in work relocation and job opportunities particularly in the service and high tech industries.
WE all know that, just ten years ago, shopping centers did not even exist in India. and today there is more than 60 million square feet of retail in various stages of completion throughout the country and many predict that within two to four years there will be as many as 300 shopping centers in India.
One of the exciting things about our culture is the people’s amazing capability to
take the best of other cultures and blend with their own to create something new and dynamic such as the “Bollywood” film industry. WE pick up and learn very fast from others, whether its their technology advances or their mistakes.
The Indian retailers and developers really do not want foreigners to come in and develop their industry for them. They want to learn from them so that they themselves can develop their business on their own terms and best suited to our unique needs. So you shall see a lot of local vernacular touch in all our endeavors, whether it is Mc Donalds- aloo tickii burger or our traditional local artisans in the mall, but you can see the personal modification to what ever we learn from the west.
Some of the challenges we face today include lack of available land, poor infrastructure, protecting existing Indian owned retail chains from foreign competition, changes to the existing social and cultural structure due to increasing wealth of the Indian middle class and the desire to add jobs and improve the standard of living for a relatively youthful population.
The Indian retail and real estate industry is today moving at a rapid pace without regard to the importance of using market research adequately, which will become a challenge when this industry matures. Although developers and retailers do get the intensive research done but eventually give importance to feedback from local people.
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