Way back in 2003, when I got into real estate, after spending years of my life in architecture, little did I know, what I was getting into. Real estate at that time was more like a property shop, disorganized, with hardly any processes or systems in place; it was not an industry at all. But I sincerely love my decision of stepping in here; it transformed my life forever. After spending eleven years here, I can definitely call this an industry, and I can say that I truly love real estate. This industry is full of innovative thinkers, socially responsible developers, and mostly ambitious individuals. The real estate game is indeed played by the people, and it’s the people that make it great. With that in mind I encourage each and every one in this profession to become a student of the game and gain more knowledge every day to bring about positive change. As this industry is changing very fast, so we need to be updated and kept abreast with latest trends and information. In this indust
http://realestategp.blogspot.com/2014/02/real-estate-dreams-of-today-n-vision.html
Saturday, February 1, 2014
Real Estate- Dreams of Today n Vision for Tomorrow
Way back in 2003, when I got into real estate, after spending years of my life in architecture, little did I know, what I was getting into. Real estate at that time was more like a property shop, disorganized, with hardly any processes or systems in place; it was not an industry at all. But I sincerely love my decision of stepping in here; it transformed my life forever. After spending eleven years here, I can definitely call this an industry, and I can say that I truly love real estate. This industry is full of innovative thinkers, socially responsible developers, and mostly ambitious individuals. The real estate game is indeed played by the people, and it’s the people that make it great. With that in mind I encourage each and every one in this profession to become a student of the game and gain more knowledge every day to bring about positive change. As this industry is changing very fast, so we need to be updated and kept abreast with latest trends and information. In this indust
http://realestategp.blogspot.com/2014/01/real-estate-dreams-of-today-n-vision.html
http://realestategp.blogspot.com/2014/01/real-estate-dreams-of-today-n-vision.html
Wednesday, December 8, 2010
The Celebration Mall- Amritsar
Opened on 17th Dec’ 2009, it enjoys a prime city centre location at Gagan Chowk. One can expect a bustling atmosphere inside. The name of the mall was coined to signify celebration in everyone’s life, vivaciousness, bustling energy and a modern lifestyle. This is exactly what the mall provides today to all its visitors.
All the mall’s seven floors are filled to the core with shops, events, fun, entertainment and excitement around every corner.
But just about eighteen months ago, it was an all empty vertical concrete, haunted structure, which seemed impossible to be leased ever!!!
There were few important decisions in time which saved the life of this mall and made it today a landmark in Amritsar. The lessons learnt are amazing. First four anchors were signed and positioned rightly-- Cinnepolis, the world’s sixth largest multiplex operator, Mc Donalds, Pind Balluchi and SRS Value Bazaar.
Second floor was dedicated to local retail and named as Raunaqaa Punjab Diyan. Food court on third floor- Melting Pot was designed and operated by developer himself. Then gradually many mini anchors were signed from M & S to Reliance Footprints. From Woodland to Crazy Cars & Funzone.
 |
| Food Court- Melting Pot |
Formally the project was launched with great pomp and show on 17th Dec' 09.The whole mall was decorated like a bride. And there after there has been no looking back for the project.
During the times of recession and when other developers complained of less footfall, TCM was over crowded and full with difficult to control crowd.There has been a total mall promotion calendar in place with all kind of events taking place like: -
- Winter Carnival,
- Mr. Miss Amritsar,
- Mom & Me,
- Drawing Competition,
- Baisakhi Night,
- Summer Surprise and much more.....
Today it is leased to all top national and international retailers. Pictures shall speak more than words.
Friday, March 26, 2010
DLF – Promenade Mall
Located in the heart of South Delhi, it offers an elegant and magnificent shopping experience, as it houses some of the well known international brands, truly a shopping paradise for brand name lovers. In the main atrium is the attraction of Cinnabon, the American chain of coffee shop, best treat, a special and perfect way to enjoy coffee or tea with friends here.
Cosmetics & beauty care at the main entrance, then two arms going side ways having a mix of apparel and footwear, brands like- Meen Bazaar, CK, Kalpana, FCUK,Color Plus, Aldo, M & B, and Woodland. In the main spine we see apparels and sports wear- Mango, Promod, DKNY, Aftershock, Reebok and Adidas. In the rear corridoor we have some more apparels- Mothercare, Alcott, Surreal, Esprit, W, Giovani, Satya Paul and Biba. Not to miss on Ground Floor is Swarovski,Orra, Monpri and Ethos. Dyal Opticals and Sunglass hut. Da Milano, DKNY and Guess accessories. Zara the international departmental store shall be the latest addition.
Placement and positioning of entire trade mix has been very thoughtfully done. The strategically positioned Le Marche, supermarket next to home furnishing stores- Rosebys, Sia Homes, Three sixty degress on the first floor, ensures footfall to this corner of the mall. More of apparels- Cantabil, Chemistry, Lerros, Jasmine, Jashn, Tommy Hilfiger, UCB, VAn Heusen, Ritu Kumar, Numero Uno, Louis Phillipe etc. Kids Wear, Lingerie, Electronics on First Floor. DT Cinemas is an ultimate theatre experience; it takes the multiplex viewing to the next level.
On 17th Feb’ 2005 the formal launch of the project was done, along with bhoomi pujan on site. By that time almost 70% project was leased. But that did not ensure the success of the project. As just after the construction had begun the project went into an environmental concern by local residents and was delayed by more than two years. By that time the recession had hit and the retailers were in their own tunes of recession. To make this project a success, up and running the way we see it today, was definitely not an easy task for DLF, they had to enter in many different rental arrangements with tenants and make the mall operational somehow. Great Achievement. A nice lesson which other developers should learn, if you don’t bend you break. You have to adapt and adjust for your own survival.
Sunday, February 7, 2010
Paras Downtown Square - Zirakpur
So we had to sell to the retailers not only, No. 1 the Location – (there were other developers in the main city Chandigarh, including DLF, TDI and others), No. 2 mall concept, but also No. 3 the developer, since Paras was unheard as a developer in 2005, they were known for Dairy products, but not real estate.
To make this big task into smaller segments, we started from the Big boxes in place first rather than going and pitching to smaller vanilla stores.
The mall positioning and its selling pitch was done as: right combination of retail mix meeting a vast array of the needs and wants of consumers in the trade area from grocery shopping to apparel shopping, known brands in Fashion, Lifestyle, F&B and Entertainment to be housed together at one place. Built in an epicurean style, this mall will provide a world-class platform to all the retailers. The location was pitched as The strategic location at Zirakpur on the Y Fork of Delhi-Chandigarh-Shimla highway, the highway from Delhi that trifurcates to Chandigarh, Shimla in Himachal and Patiala in Punjab, it shall target a base of clients from Delhi, Himachal Pradesh, Haryana, Punjab and especially in the tricity area of Chandigarh, Mohali and Panchkula, as well as from other nearby towns. Conceived as a world-class shopping mall Paras Downtown Square shall have a majestic atrium with translucent ceiling, which will be the center point for shoppers giving a true international feel.
With this pitch in hand we got Future Group agreed to do Big Bazaar- Hyper market and Pantaloons- Departmental store. Almost a lac sq.ft together, Simultaneously the Multiplex was closed with Adlabs- now Big cinema- 35000 sq.ft of area and then the Food Court & Children’s entertainment center, spread over an area of more than 23,000 Sq. Ft . The major vanilla brands that signed with us include Reebok, Cafe Coffee Day, Liberty, Reid & Taylor, Nike, Woodland, Provogue, CTC, Meena Bazaar, Villa Appearances and many more.
The project won the Best Commercial Property Award at the Indian Property Awards 2007 in November 2007.
Finally Mall opened on January 21’ 2009 with the opening of the hyper market, Big Bazaar. Spread over 60,000 sq.ft, the Big Bazaar opened to the beat of Punjabi dhol and colourful images of Punjabi families on its signage, as people flocked in to have the first hand experience of buying to their hearts fill at the most-talked about value chain.
And today with proper retail mix, and anchors in place the mall is doing well. Mall leasing is just one aspect for the success of a mall but running a mall efficiently with all tenants doing good sales, getting regular foot fall, mall maintenance and its management, events and promotions in the mall, all this together confirms the success of the mall.
Tuesday, December 15, 2009
Retail Store in a Mall: Make a Difference
"You never get a second chance to make a first impression" is an old saying, but very true in retail industry.
There are many factors that contribute to the shopping experience in a mall but the look of a retail outlet is one of the most important reasons for getting attracted towards a store, in enticing us to enter through the doors. The initial in-store encounter in terms of visual impact can be described as: a store is exciting, clean or well-organized or, whether it is boring, messy, or overwhelming.
It is just not enough for a store to look good from a merchandising or display viewpoint. Today, a store not only must perform by exciting and encouraging the customer to buy, but from the retailer's point of view, it must overall perform profitably.
Visual merchandising is comprised of six components: image, layout, presentation, signboard, display and events. But the most important component that lays the groundwork for all the other components is -- image. Everything you do within the store -- how you develop your layout, your presentation, your signboard, your displays and your events -- must fit into the image you choose to create.
Store Image:
Image can be described as the overall look and feel of a store and the series of mental pictures, emotions and feelings it evokes within the beholder. For the retailer, developing a powerful image provides the opportunity to embody a single message, stand out from rest of the competition and be remembered and recognized.
As a rule, image is the foundation of all retailing efforts. While store layout, presentation, signing, displays and events can all change to reflect newness and excitement from week to week, season to season, they must always remain true to the underlying store image.
Studies indicate that a retailer has roughly seven seconds to capture the attention of a passing customer. The following elements combine to form a distinctive image that not only reaches out and grabs the customer's attention, but makes a positive impression within those precious few seconds.
The Image-makers:
1. Identifiable Store Name
2. Powerful Visual Trademark
3. Remarkable Storefront
4. Inviting Store Entrance
5. By Store Look or Hook getting the customer in
1. Identifiable Store Name:
An effective store name sets the tone and provides a store's identification by conjuring up an image in the customer's mind, which invokes interest and can be enchanted by him even later.
A store name should be easy to say and remember, indicative of the images and feelings you want the customer to retain.
2. Powerful Visual Trademarks:
An identifiable trademark adds a visual image to the memory recall of a store name, by combining words and pictures, colour, shape, typeface, texture and/or style to make it stand out. Identifiable even in the absence of the store name, a successful trademark should be unique to your store, indicative of your products and services, consistent with the overall impression you want to leave customers with. And last but not the least it has to be professional and well-designed.
3. Unmistakable Storefronts Traffic-Stoppers
No one reads the entire book first, its initially the title of the" book" then the cover of the "book” Similarly the customers, simply don't have the time to "read" into the entire store, so the store name and trademark are first seen, ----- they must provide instant recognition and recall, your exterior storefront –like the cover of the book -- must project a welcoming, clear and concise image of what' s in-store.
Traffic-stopping storefronts use a thoughtful combination of exterior architecture, signboard and window displays to ensure a powerful first impression.
Exterior Architecture
Retail store's exterior look is often referred to as the exterior architecture, and comprises aspects such as building materials, architectural style, detail, colours and textures.
The Store Signboard:
The store sign is a vital element of the storefront, identifying your store and beckoning the customer to take notice and stop. In realizing the value of a strong storefront sign, many retailers are employing new design techniques which include projecting or cantilevering the store sign beyond the lease line, adding motion, or using three-dimensional lettering and unique lighting applications to add depth to the sign.
To stand out in the Mall, your storefront sign should have visual dominance among neighbouring stores.
Store Windows:
A store's exterior windows or glass storefront provides an additional opportunity to reach out and grab the passing customer. Windows are integral in creating a positive impression since they offer an opportunity to begin telling your store's unique merchandise story immediately.
Many retailers underestimate the powerful pull of an effective window, treating the area more as additional stock space than the true image-maker and the magnet it can be. This prime real estate should be approached as a showcase for the newest seasonal merchandise dramatized with props and themes in keeping with your store image.
Consider adding motion to your window with animated displays, turntables, fans, video screens or motorized pulleys.
The Customer's Vantage Point:
While planning your storefront, utmost consideration must be given to the customer's vantage point. Place yourself in the customer's shoes in considering their vision -- the speed at which they are traveling, their preoccupation-levels and the chances of getting them to stop. The more hurried and distracted a customer is, the less chance there is of getting their attention.
Often, plans that look good on paper fail miserably because they are developed from the retailer's view point, not the customer's. Many retailers plan their storefronts based on a "head-on" perspective, which entails a direct 90 degree-angle approach. But is that the customer's view? Not typically. Usually, the direction of customer traffic flow is influenced "by the length of the corridor, layout of the atrium, or some other physical feature...displays canted or slanted to that dominant direction of traffic will get more serious attention."
To increase the chances of customers noticing your store, consider the following: What direction and angle is the customer coming from? Is your exterior sign visible and legible from a distance? Are your store windows easy to read from the distance the customer will first notice them?
One brilliant retailer made sure that walkers didn't pass by his store -- he placed the human scale statue of a durbaan (security guard) all dressed up in Punjabi outfit right beside his entrance! Or any such thing which is very eye catcher, show stopper kind of stuff, would ensure at least people would stop by to look inside. Some out of the box thinking is required here.
4. The Store Entrance:
The entrance to the store is the division between the outside and inside environments. Mall retailers have an easier chance of luring customers into the store with a wide, open entrance, creating a seamless entry from the mall to the store. Retailers who depend largely on impulse traffic should try to create an open storefront, either by removing storefront barriers completely or by creating an unobstructed view into the store with a glass frontage. We have followed the open store concept in The Celebration Mall, Amritsar.
Give customers a tantalizing taste of the interior, from outside, encouraging them to walk inside through the door. An unobstructed and welcoming doorway combined with a great window display can provide the lure.
In all types of store entrances, customer's need to get the impression that they (and their children) are being welcomed and shall be comfortable inside the store. Obstacle courses, visual clutter and "Do Not" signs on the doors are negative turn-offs that often result in a negative first impression and a lost customer.
Multiplying Positive Impressions:
Creating a consistent positive impression is important -- particularly so if you have more than one store. Customers should be able to recognize and identify with your store, whether it is in Greater Kailash or South Ex. of New Delhi. Even if your multiple locations differ in size, shape, design and even merchandise mix, you can create continuity of image by having common elements throughout the chain. Consider applying the same store trademark to all of your marketing, storefront and in-store applications, extending some common exterior elements to all of your stores and/or using similar props, treatments and themes in your store windows.
5. By Look or by Hook Getting the Customer In:
Within the first few seconds of catching their interest, the customer's focus moves beyond the store's exterior for a visual scan of the interior while they mull over whether to enter or not. Getting a customer through the door is indeed a victory.
In most instances, customers are either on a mission to make a planned purchase (the Seekers), or are shopping for amusement, entertainment or ideas (the Browsers).
Seekers may plan a trip to your store to make a premeditated purchase or may decide to enter because they are comparison shopping for something specific. For the seeker, a deeper look into the store must reinforce their confidence that the store will have what they are seeking and that they can get in and out easily and quickly.
Browsers are more inclined to enter a store impulsively, drawn by the overall impression that a store has something they should check out. For the browser, a further look into the store must plant a seed of interest and hook them in.
For both seekers and browsers, the deeper glance into the store and the resulting decision -- to enter, or not -- is often attributed to the overall store look and a compelling hook.
A Visual Look:
An inviting entrance is crucial in stopping the customer and establishing a positive first impression, but if the inside store messages create feelings of inconsistency or confusion, all is lost. For example, a clear and well-articulated store entrance that is followed up with a barrage of inconsistent aisle patterns, sloppy merchandising and confusing signs signals to the customer that the exterior image will not be fulfilled on the inside. Truly impressive stores are consistent in all efforts from the storefront right through to the stockroom.
A Visual Hook:
A visual hook is a call to action that diverts a customer's attention to your store with a "Stop! There's something here for you!" Powerful visual hooks are created by marrying other visual merchandising components for a more memorable first impression. An exciting entrance presentation, an effectively signed promotional offering, a powerful interior display, in-store animation or events all serve as magnets to draw the customer in. Successful hooks ensure that the impressions they project are consistent with the store's overall image.
Well-executed hooks hold tremendous appeal for the customer, particularly the browser. A fashion retailer, for example, recently created a compelling hook for one promotion using the sights, sounds and smells of the Orient. Sales associates posted at the entrance offered fortune cookies containing discount coupons to customers. Large colourful posters, banners and Oriental art and props throughout the store windows and interior carried the theme further. Even the air was filled with the subtle sounds of Oriental stringed instruments and lightest whiff of incense.
Just like the above example, many of today's retailers are extending their store hooks into the realm of sensory appeal for a total image package. But to ensure the result is appropriate, you need to understand the psychological effect of sight, sound and smell on the consumers.
There are many factors that contribute to the shopping experience in a mall but the look of a retail outlet is one of the most important reasons for getting attracted towards a store, in enticing us to enter through the doors. The initial in-store encounter in terms of visual impact can be described as: a store is exciting, clean or well-organized or, whether it is boring, messy, or overwhelming.
It is just not enough for a store to look good from a merchandising or display viewpoint. Today, a store not only must perform by exciting and encouraging the customer to buy, but from the retailer's point of view, it must overall perform profitably.
Visual merchandising is comprised of six components: image, layout, presentation, signboard, display and events. But the most important component that lays the groundwork for all the other components is -- image. Everything you do within the store -- how you develop your layout, your presentation, your signboard, your displays and your events -- must fit into the image you choose to create.
Store Image:
Image can be described as the overall look and feel of a store and the series of mental pictures, emotions and feelings it evokes within the beholder. For the retailer, developing a powerful image provides the opportunity to embody a single message, stand out from rest of the competition and be remembered and recognized.
As a rule, image is the foundation of all retailing efforts. While store layout, presentation, signing, displays and events can all change to reflect newness and excitement from week to week, season to season, they must always remain true to the underlying store image.
Studies indicate that a retailer has roughly seven seconds to capture the attention of a passing customer. The following elements combine to form a distinctive image that not only reaches out and grabs the customer's attention, but makes a positive impression within those precious few seconds.
The Image-makers:
1. Identifiable Store Name
2. Powerful Visual Trademark
3. Remarkable Storefront
4. Inviting Store Entrance
5. By Store Look or Hook getting the customer in
1. Identifiable Store Name:
An effective store name sets the tone and provides a store's identification by conjuring up an image in the customer's mind, which invokes interest and can be enchanted by him even later.
A store name should be easy to say and remember, indicative of the images and feelings you want the customer to retain.
2. Powerful Visual Trademarks:
An identifiable trademark adds a visual image to the memory recall of a store name, by combining words and pictures, colour, shape, typeface, texture and/or style to make it stand out. Identifiable even in the absence of the store name, a successful trademark should be unique to your store, indicative of your products and services, consistent with the overall impression you want to leave customers with. And last but not the least it has to be professional and well-designed.
3. Unmistakable Storefronts Traffic-Stoppers
No one reads the entire book first, its initially the title of the" book" then the cover of the "book” Similarly the customers, simply don't have the time to "read" into the entire store, so the store name and trademark are first seen, ----- they must provide instant recognition and recall, your exterior storefront –like the cover of the book -- must project a welcoming, clear and concise image of what' s in-store.
Traffic-stopping storefronts use a thoughtful combination of exterior architecture, signboard and window displays to ensure a powerful first impression.
Exterior Architecture
Retail store's exterior look is often referred to as the exterior architecture, and comprises aspects such as building materials, architectural style, detail, colours and textures.
The Store Signboard:
The store sign is a vital element of the storefront, identifying your store and beckoning the customer to take notice and stop. In realizing the value of a strong storefront sign, many retailers are employing new design techniques which include projecting or cantilevering the store sign beyond the lease line, adding motion, or using three-dimensional lettering and unique lighting applications to add depth to the sign.
To stand out in the Mall, your storefront sign should have visual dominance among neighbouring stores.
Store Windows:
A store's exterior windows or glass storefront provides an additional opportunity to reach out and grab the passing customer. Windows are integral in creating a positive impression since they offer an opportunity to begin telling your store's unique merchandise story immediately.
Many retailers underestimate the powerful pull of an effective window, treating the area more as additional stock space than the true image-maker and the magnet it can be. This prime real estate should be approached as a showcase for the newest seasonal merchandise dramatized with props and themes in keeping with your store image.
Consider adding motion to your window with animated displays, turntables, fans, video screens or motorized pulleys.
The Customer's Vantage Point:
While planning your storefront, utmost consideration must be given to the customer's vantage point. Place yourself in the customer's shoes in considering their vision -- the speed at which they are traveling, their preoccupation-levels and the chances of getting them to stop. The more hurried and distracted a customer is, the less chance there is of getting their attention.
Often, plans that look good on paper fail miserably because they are developed from the retailer's view point, not the customer's. Many retailers plan their storefronts based on a "head-on" perspective, which entails a direct 90 degree-angle approach. But is that the customer's view? Not typically. Usually, the direction of customer traffic flow is influenced "by the length of the corridor, layout of the atrium, or some other physical feature...displays canted or slanted to that dominant direction of traffic will get more serious attention."
To increase the chances of customers noticing your store, consider the following: What direction and angle is the customer coming from? Is your exterior sign visible and legible from a distance? Are your store windows easy to read from the distance the customer will first notice them?
One brilliant retailer made sure that walkers didn't pass by his store -- he placed the human scale statue of a durbaan (security guard) all dressed up in Punjabi outfit right beside his entrance! Or any such thing which is very eye catcher, show stopper kind of stuff, would ensure at least people would stop by to look inside. Some out of the box thinking is required here.
4. The Store Entrance:
The entrance to the store is the division between the outside and inside environments. Mall retailers have an easier chance of luring customers into the store with a wide, open entrance, creating a seamless entry from the mall to the store. Retailers who depend largely on impulse traffic should try to create an open storefront, either by removing storefront barriers completely or by creating an unobstructed view into the store with a glass frontage. We have followed the open store concept in The Celebration Mall, Amritsar.
Give customers a tantalizing taste of the interior, from outside, encouraging them to walk inside through the door. An unobstructed and welcoming doorway combined with a great window display can provide the lure.
In all types of store entrances, customer's need to get the impression that they (and their children) are being welcomed and shall be comfortable inside the store. Obstacle courses, visual clutter and "Do Not" signs on the doors are negative turn-offs that often result in a negative first impression and a lost customer.
Multiplying Positive Impressions:
Creating a consistent positive impression is important -- particularly so if you have more than one store. Customers should be able to recognize and identify with your store, whether it is in Greater Kailash or South Ex. of New Delhi. Even if your multiple locations differ in size, shape, design and even merchandise mix, you can create continuity of image by having common elements throughout the chain. Consider applying the same store trademark to all of your marketing, storefront and in-store applications, extending some common exterior elements to all of your stores and/or using similar props, treatments and themes in your store windows.
5. By Look or by Hook Getting the Customer In:
Within the first few seconds of catching their interest, the customer's focus moves beyond the store's exterior for a visual scan of the interior while they mull over whether to enter or not. Getting a customer through the door is indeed a victory.
In most instances, customers are either on a mission to make a planned purchase (the Seekers), or are shopping for amusement, entertainment or ideas (the Browsers).
Seekers may plan a trip to your store to make a premeditated purchase or may decide to enter because they are comparison shopping for something specific. For the seeker, a deeper look into the store must reinforce their confidence that the store will have what they are seeking and that they can get in and out easily and quickly.
Browsers are more inclined to enter a store impulsively, drawn by the overall impression that a store has something they should check out. For the browser, a further look into the store must plant a seed of interest and hook them in.
For both seekers and browsers, the deeper glance into the store and the resulting decision -- to enter, or not -- is often attributed to the overall store look and a compelling hook.
A Visual Look:
An inviting entrance is crucial in stopping the customer and establishing a positive first impression, but if the inside store messages create feelings of inconsistency or confusion, all is lost. For example, a clear and well-articulated store entrance that is followed up with a barrage of inconsistent aisle patterns, sloppy merchandising and confusing signs signals to the customer that the exterior image will not be fulfilled on the inside. Truly impressive stores are consistent in all efforts from the storefront right through to the stockroom.
A Visual Hook:
A visual hook is a call to action that diverts a customer's attention to your store with a "Stop! There's something here for you!" Powerful visual hooks are created by marrying other visual merchandising components for a more memorable first impression. An exciting entrance presentation, an effectively signed promotional offering, a powerful interior display, in-store animation or events all serve as magnets to draw the customer in. Successful hooks ensure that the impressions they project are consistent with the store's overall image.
Well-executed hooks hold tremendous appeal for the customer, particularly the browser. A fashion retailer, for example, recently created a compelling hook for one promotion using the sights, sounds and smells of the Orient. Sales associates posted at the entrance offered fortune cookies containing discount coupons to customers. Large colourful posters, banners and Oriental art and props throughout the store windows and interior carried the theme further. Even the air was filled with the subtle sounds of Oriental stringed instruments and lightest whiff of incense.
Just like the above example, many of today's retailers are extending their store hooks into the realm of sensory appeal for a total image package. But to ensure the result is appropriate, you need to understand the psychological effect of sight, sound and smell on the consumers.
Wednesday, November 11, 2009
Challenges faced by Retail Brands at Indian Malls
Mostly once the stores are leased out, the developers are not worried about the promotion any more. Though a few malls organize some in-house promotional activities but that alone 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.
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.
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