Professional Documents
Culture Documents
University of Mumbai
Class: MMS
Semester: III
Studying at:
Declaration:
Date:
Student
Signature of
(Bhavik Boricha)
Certificate:
__________________
_____________________
Signature of Director
of Project
(Dr. Vijay Wagh)
ordinator
___________________
Signature
Co-
(Rahul Tuli)
Acknowledgements:
I would also like to thank our director Dr. Vijay Wagh without
whose immense support the project would have been not
completed.
Executive Summary:
Biren Somaiya, 38, senior advisor, JP Morgan Chase, regularly
hops into High Street Phoenix in Mumbais Lower Parel from his
nearby home at King's Circle to pick up "goodies". Somaiya never
has enough time but he can't give up on his mall sojourns.
Mallika Basu Garg, 32, senior HR manager with Avon, doesn't
have any malls near her Karol Bagh home in Delhi. So, she visits
Ansal Plaza and malls in NOIDA for buying higher-end apparel and
gadgets.
Kaushik Samanta, 34, head of environment, health and safety
with Biocon, visits Bangalore's Forum Mall every weekend to have
dinner either at the food court, "The Transit", or at the fine dining
joint Sahib Singh Sultan.
Raj Juneja, 38, a Gurgaon-based businessman, can be found at
any of his three favorite multiplex theatres based in malls on
Sundays catching the 3 p.m. show. He is always accompanied by
his wife and two daughters.
TABLE OF CONTENTS:
Sr. No
1
Topic
INTRODUCTION
Problem Statement
Hypothesis
Sampling Design
Research Design
Page
No.
10
14
23
25
THE EVALUATION
27
Demographics
27
Questions
35
RECOMMENDATIONS
52
LIMITATIONS
54
CONCLUSION
55
SAMPLE QUESTIONNAIRE
56
REFERENCES
59
Introduction:
Originally the first of the shopping malls was opened in Paris. Then the trend
followed in the other metros over the world, and there was a spree of
shopping malls coming up at various places. In this age of mass production
and mass consumption, the concept of shopping malls is most modern
method of attracting consumers. The concept of shopping was altered
completely with the emergence of these shopping malls.
In the current market scenario, both consumers and retailers have limited
choice in terms of mall shopping experience. As organised retail grows, we
expect the market to be more competitive by providing more choices to
consumers and retailers. At this point, developers will have to work harder to
create a differentiation for their product. We believe consumers and retailers
will be attracted to malls that are professionally managed, making effective
mall management a critical factor behind the success of a mall.
Shopping malls are an emerging trend in the global arena. The first thing
that comes in their mind about the shopping malls is that it is a big enclosed
building housing a variety of shops or products. According to historical
evidences shopping malls came into existence in the middle ages, though it
was not called so. The concept of departmental stores came up in the 19th
century with the Industrial Revolution.
Consumers wanted a better shopping experience and this demand gave rise
to the emergence of shopping malls in India. Originally the first of the
shopping malls was opened in Paris. Then the trend followed in the other
metros over the world, and there was a spree of shopping malls coming up
at various places. In this age of mass production and mass consumption, the
concept of shopping malls is most modern method of attracting consumers.
The concept of shopping was altered completely with the emergence of these
shopping malls. Shopping was no longer limited to a mere buying activity - it
has become synonymous with splurging time and money. People simply go
about roaming through the shopping mall in order to peep through the
window of the shop and often ending up buying something they like. The
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The Indian retail industry is the fifth largest in the world. Comprising of
organized and unorganized sectors, India retail industry is one of the fastest
growing industries in India, especially over the last few years. Though
initially, the retail industry in India was mostly unorganized, however with
the change of tastes and preferences of the consumers, the industry is
getting more popular these days and getting organized as well. With growing
market demand, the industry is expected to grow at a pace of 25-30%
annually. The India retail industry is expected to grow from ` 35,000 crore in
2004-05 to ` 109,000 crore by the year 2012.
In the Indian retailing industry, food is the most dominating sector and is
growing at a rate of 9% annually. The branded food industry is trying to
enter the India retail industry and convert Indian consumers to branded
food. Since at present 60% of the Indian grocery basket consists of nonbranded items.
It is expected that by 2016 modern retail industry in India will be worth US$
175- 200 billion. India retail industry is one of the fastest growing industries
with revenue expected in 2007 to amount US$ 320 billion and is increasing
at a rate of 5% yearly. A further increase of 7-8% is expected in the industry
of retail in India by growth in consumerism in urban areas, rising incomes,
and a steep rise in rural consumption. It has further been predicted that the
retailing industry in India will amount to US$ 21.5 billion by 2010 from the
current size of US$ 7.5 billion.
According to the 8th Annual Global Retail Development Index (GRDI) of AT
Kearney, India retail industry is the most promising emerging market for
investment. In 2007, the retail trade in India had a share of 8-10% in the
GDP (Gross Domestic Product) of the country. In 2009, it rose to 12%. It is
also expected to reach 22% by 2010.
According to a report by Northbride Capita, the India retail industry is
expected to grow to US$ 700 billion by 2012. By the same time, the
organized sector will be 20% of the total market share. It can be mentioned
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here that, the share of organized sector in 2007 was 7.5% of the total retail
market.
The reason why shopping malls are so popular lies in their international
appeal. It seems to be a thing of history when shopping malls had their
presence only in places like Singapore and Dubai. In fact, now they are
everywhere around us. If we dive back in time to the early Nineties, Ansal
Plaza appeared to be the only popular shopping mall of the region but
presently there are more than two dozens of well-established malls in the
region and another 140-odd new shopping arcades are set to dot the city
landscape in days to come.
People find these malls to be the best place to shop or hang out in summer
heat as they offer free entry to a completely air conditioned complex with
good music playing all around and loads of window shopping opportunity
which is appreciated by one and all. Not to forget the numerous food joints
that serve different cuisines meant to magnetize the taste buds of all the
foodies.
Though malls are equally popular among all ages, the true lovers of
multiplexes are the youngsters for whom malls are the `ultimate place to
be`. These malls serve their various purposes like shopping, watching
movies, dating or just to hang out though they really dont need a purpose
for being there. Malls are the coolest and safest place to go bunking, says
Raghav, a college student while the other boys and girls belonging to the
same age group have no different opinions. These malls have also come up
with different ways to cater to their target visitors like some of them have
discos where the Gen-X get a chance to chill-out during nights. Mohit says,
Opening of discos has added a new adventure and fun to my life. I can now
go and party in the night too.
These malls have changed the trends to an extent that the glam their that
could be seen only on the silver screen has now come to their cities and we
can actually see it in their neighborhood. Almost all the malls present in the
region can match any high-quality mall in any part of the world.
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Problem Statement:
Although being in one of the most promising areas, Infiniti mall was facing
the problem of low QFF (Quality Foot Falls), ie, people who are really the
target audience or the ones who can afford to buy stuff from Infiniti mall.
Hence we can state that the problem statement for this project is:
Increasing the quality foot falls at Infiniti malls without hindering
the quality and image that Infiniti malls have among the higher ends
of the society
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Hypothesis:
Null hypothesis (H0): People visiting Infiniti Malls are satisfied with the
level of services that they are offered there
Alternate hypothesis (H1): People visiting Infiniti Malls are not satisfied
with the level of services that they are offered there
Null Hypothesis (H0): People are willing to visit Infiniti Malls with the
current offers they are providing
Alternate Hypothesis (H1): Services need to be changed to retain the
current consumers as well as pull the new ones at Infiniti Malls
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Sampling Design:
Based on the information provided by the mall authority, there was a rough
idea about the number of people who visit Infiniti Mall as well as other malls
involved in the design. The sample size was determined to be 3% of the
total footfalls in the malls (the footfalls include quality as well as normal
footfalls which may and may not add value to the mall, quality footfall
making around 20% of the total footfalls, majorly in the weekends)
Research Design:
The major objective of the project was to increase the satisfaction level of
Infiniti Malls with respect to other malls in the vicinity. The data that which
was required to find out whether people are really satisfied with the services
provided by the mall was to be collected by the form of interviewing people
using a specially designed questionnaire that would enable us to know
whether people who have visited the mall are happy or not. In the next part
we will come across the secondary and primary data which will give us a
better understanding of the mall industry not only with respect to the malls
selected, but also the complete overview of the mall scenario and deep
research into the mall industry with the selected malls competing for the
footfalls in their malls.
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destination. Straddling over an area of 40,000 sq ft, it will have nine floors
and two levels of basement parking," said Pradeep Hirani, chairman of the
Hirani Group. "This vertical high street will also have recreational lounges to
offer a memorable shopping experience to customers," he added.
Apart from fashion house Kimaya, the shopping tower will display collections
of almost a dozen international luxury brands like Maxmara and fashion
designers like Melinda Looi and Pam Mehta. "Everything will be available
under one roof. There will be a range of couture, accessories and lifestyle
products designed by Italian and French style gurus among other
international designers," Hirani said.
Depending on the response of customers, the company plans to come up
with two or three similar high-end shopping destinations in other metros as
well.
Major Malls in Mumbai:
Phoenix Mall, Lower Parel:
High Street Phoenix, (HSP) the first consumption centre developed in India,
covers 3.3 million square feet of space and houses over 500 brands , variety
of F&B, entertainment, commercial and residential complexes. Pioneered by
The Phoenix Mills Co.Ltd. and led by young Managing Director, Atul Ruia and
his team of professionals. At HSP, each zone has been specifically designed
and been put together in keeping with international experience and an
answer to emerging urban agglomerations typically defined as 'mixed used
developments.
R-City Mall, Ghatkopar:
The newest and most diverse shopping destination in Mumbai, this 12 lakh
square feet mammoth shopping centre is one-of-its-kind with a multi-level
retail galleria that balances a steady mix of the finest local brands and topnotch international brands. The sprawling multilevel parking, five-level
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Reliance Retail as its anchor tenant three-and-a-half years ago, and that
should have helped it attract other tenants. Yet, within months of its official
opening, the footfalls had started falling and the decline in customer traffic
had begun. After almost three years of its tenancy, Reliance Retail
abandoned its space, which accelerated the malls demise. What went wrong
with Star City? The malls developers were unavailable for comment, but
Reliance Retail officials say that there were many inherent problems. One of
the biggest issues was that the mall was not and is still not actively
managed. After building Star City, the developers sold off shop spaces to
individual investors. Many of these investors were not interested in
improving the mall; they were only looking to rent out the spaces they had
bought. There was no mall management company or in-house operations
team that would get the tenant mix right and improve the overall well-being
of the mall. That was why it was just a disparate collection of shops with no
specific zones for entertainment, food, apparel, or electronics. It also lacked
a theater which may have been able to pull people in to see movies and then
stay and shop. Even though Reliance Retail was the anchor tenant, shoppers
had no reason to stay in the mall once they had finished with that store.
The Star City Mall is not an exception in Indias booming mall landscape.
Analysts at Crisil, Third Eyesight, Jones Lang LaSalle (JLL) India, and Ernst &
Young say 80 percent of Indias 255 malls are failing, and half of them are in
dire straits. Look at Mumbai, Delhi or any other big city and you will find
plenty of malls which are half empty. In Mumbai alone, the list is long the
Centre One Mall in Vashi, is 30 percent vacant, the Kohinoor Mall in Kurla is
70 percent vacant, and the Dreams Mall in Bhandup is 75 percent vacant
to name only the more prominent examples. This is not to say that the mall
culture itself is failing there are many successful malls in Delhi, Mumbai
and the other metro areas. But the issue is that the greater majority of the
malls built are either pulling in indifferent business or worse, just fading
away to oblivion. In some cases, malls are desperately turning empty shop
spaces into banquet halls in order to survive. The issue, says Devangshu
Dutta, CEO of Third Eyesight, a retail consultancy, is that few malls in India
are real malls that are planned and executed in the manner a mall should
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be. Unless the builders view retail as a long term business, the quality of
malls will not improve. Only 5 to 6 percent of the malls in India are real
malls, says Dutta. The rest, he says, will either disappear or turn into
mixed-use properties with offices to support their survival. Kabir Lumba,
managing director of Lifestyle India, which is the anchor tenant in many of
the successful malls around the country, agrees with Dutta. Lumba says
many malls neglected even basic research and common sense steps that
would drive customer traffic and as a result, they are now in trouble. In
some cases, the mall owners have realized the problem and they have
brought in expert help professional mall managers and mall management
companies to revive the malls.
But not all malls can be rescued. While some can be turned around by
changing some elements of layouts, or the tenant mix, or the business
model, others cannot be fixed without drastic surgery. In at least one case in
Pune, a mall has been shut down for drastic interior and exterior
renovations. In another case in Bangalore, the access road to the
underground parking is so badly designed, says one analyst, that customers
are simply not coming in. This is despite the fact that the mall has a good
tenant mix and other customer- grabbing attractions. So far, reports suggest
that about $4.2 billion has been sunk into building 255-odd malls, of which
about 65 percent are in Delhi/NCR and Mumbai. Over the next two years,
another 242 malls will open up, entailing massive investments for these
projects. These malls will add 96 million sq. ft of retail space to the already
existing 72 million sq. ft. And unless they get their act together and avoid
the mistakes made by many of the earlier mall developers, they will only end
up sinking enormous amounts of money into unproductive endeavors, which
is why it is so important to realize what is going wrong with the vast
majority of Indian malls. Further, its paramount to have the know-how, in
order to be able to open and operate a successful mall.
How It All Started:The mall story and the basic mistakes started in
India in 1999, when Delhis 200,000-sq. ft Ansal Plaza and Mumbais
150,000-sq. ft Crossroads Mall opened to shoppers. Both attracted
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enormous footfalls in the initial days. But within months, the basic problem
with both the malls had become apparent. Crossroads Mall had a great
location it was at Tardeo in south Mumbai. It was built by the Piramals
and the anchor tenant was their own departmental store, Pyramid. The
novelty factor of being the first shopping mall in Mumbai also made it an
instant hit. But, according to Sushil Dungarwal who bears the title of Chief
Mall Mechanic in the Mumbai-based mall management firm, Beyond Square
Feet Crossroads was badly designed and not particularly retailfriendly. It
also had a parking problem which become apparent once crowds began
flocking to the mall, he adds. The Piramals did not want to talk about
Crossroads when they were contacted. A former tenant says there were
other problems as well. For one, because the Piramals were focused solely
on Pyramid, they did not pay much attention to the other shops and tenants
of the mall. Pyramid was situated right at the front of the mall, and the
design of the mall made the tenants and shops further back fairly
unnoticeable. As a result, people often came in, shopped at Pyramid, and
walked out without really exploring the rest of the mall. And this hindered
tenant morale. This, in turn, led to a sharp rise in tenant turnover that was
perplexing to customers; the problem was that even when customers
ventured into the mall, they faced uncertainty as to whether the shop they
went into once would still be there the next time they came around. As the
mall learned, confusing customers comes at a price: a loss of customer
loyalty. As more malls started cropping up in other parts of Mumbai,
shoppers slowly started drifting away to competitors. In 2004, a betterdesigned mall by the Ruias called High Street Phoenix opened its doors at
Lower Parel and in 2006, the Rahejas opened Inorbit at Malad. It was then
that Crossroads had to close its doors. Recently, it reopened after the Biyanis
took over, renamed it, and completely revamped it (well come to this rescue
story later). Meanwhile, the old Crossroads, now the Ansal Plaza, also made
many of the same mistakes. One was its architecture. It had twin semi
circular buildings, and the only way a shopper could move from one to the
other was to either exit the original building on the ground floor, or locate a
walkway on the second floor which connected the two buildings. Not a very
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convenient design, to say the least. To be fair, say analysts today, Ansal was
not to be blamed for the design problem. It was building its mall based on
the design suggestion of the Delhi Development Authority (DDA), and that
was somewhat hampering. Again, when it was the only mall in town, its
developers didnt have to worry about a lack of shoppers. The novelty alone
pulled in enough crowds. But as newer malls opened especially within a
short driving distance of Ansal Plaza the crowds began to thin. However,
though Ansal Plaza today is a pale shadow of its original glory, it still has
some advantages that keep it afloat. It has Shoppers Stop (Indias leading
department store chain) and McDonalds as its anchor tenants, along with a
massive music store. Being close to two large womens colleges has made it
a popular hangout for college students. Also, it has developed a party zone
for children, which is apparently quite a trendy spot for holding birthday
parties. According to one source, the Shoppers Stop outlet in Ansal Plaza
alone does business worth approximately $8.5 million a year. But still, much
of its past visitors have chosen to take their business to the malls in nearby
Saket the Select City Walk and the DLF Place, which are better designed,
better thought out, and have an overall better tenant mix. Many of the first
generation malls built by developers had massive problems, say analysts,
mall management companies, and even big tenants. The problem was that
once builders and developers saw people thronging the first few malls,
everyone suddenly wanted to build malls. Many of these people did not have
the faintest idea about how to build and run a proper mall many of them
saw it as just putting together a big enough air conditioned building, and
then slicing it into shops and selling them off.
The thinking back then was that we have built a mall and people will come
and shop here, says Pankaj Renjhen, managing director of retail practice at
property consultancy JLL. Lumba of Lifestyle says that one of the builders of
an early mall insisted on dictating terms to Lifestyle simply because he
thought that the retailer would do anything to have a presence in his mall.
We did not close the deal because the design was bad and the property
has faded today because better malls have come up, says Lumba. Some
builders confused malls with shopping centers. Others converted commercial
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projects into malls, simply because they wanted to keep up with the Ansals
and the Rahejas. Of course, they did so without thinking about the long
term future of these malls. Many of the first generation malls were simply
shopping complexes without proper designs, parking lots, entertainment
zones or proper mall management, says Shashikala Venkatraman,
managing director of Sq.Ft Consulting, a mall development and retail
advisory company. Also, the early mall developers did not think of
competition or catchment areas while slapping together the buildings. As a
result, there are plenty of malls in poor locations, or with bad entry and exit
roads. And there are also stretches particularly in Gurgaon where there
are so many malls next to each other that there arent enough customers for
them all. This is why, while one mall in the lot succeeds, all the others are
just trying to stay afloat. The problem is, 170 malls of the total 255 in
existence today are in Mumbai and Delhi. This has led to enormous
competition.
But perhaps the biggest sin was that too many mall builders thought small.
They built malls that would look like pygmies when the mega malls opened
up in their vicinity. To elaborate, Noidas Sab Mall, Spice Mall, Centrestage
Mall, and Pacific Mall in Ghaziabad were all big malls when they opened. But
the next generation of malls the Ambience Mall of Gurgaon, the Great
India Place in Noida or the Shipra Mall at Indirapuram in Ghaziabad, for
example dwarfed these early malls. Ten years ago, the average size of a
mall was 250,000 sq. ft. Now it is 1 million sq. ft. Bangalores Mantri Square
Mall, which is 1.2 million sq. ft, was one such example that took business
away from many smaller malls such as the 400,000 sq. ft Gopalan Mall and
the 250,000 sq. ft Eva Mall. The customers of the latter malls left because
Mantri Square Mall offered them more and better choices, alongside better
parking. Overall, this mall had a pure play retail strategy and it worked.
Similarly in Chennais popular 800,000 sq. ft mall, Express Avenue, took
away all business from City Centre Mall, a mere 500,000 sq. ft mall, because
of its size, number of brands, and quality of service. In Mumbai, on the other
hand, the average mall size doubled from 200,000 sq. ft in the early 2000s
to 400,000 sq. ft. To further explain the variances in the sizes of Indias early
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malls, Huma Mall, in Kanjurmarg, is 120,000 sq. ft, and Kohinoor City Mall,
in Kurla, is 250,000 sq. ft. Then there are the larger malls: Malads Infinity 2
(800,000 sq. ft) and Inorbit (400,000 sq. ft). Although these first generation
malls still get enough customers, they have also been replaced as Indias
favorite shopping destinations by the bigger malls that sprung up later. The
issue is simply the overall shopping experience and variety of options being
promised. The smaller malls fall behind in the number of retailers, anchor
tenants or size of food courts they can offer the average shopper. Take, for
example, Centrestage Mall in Noida. It offers Westside as the big department
store.
Bang opposite is the Great India Place Mall, which offers Lifestyle,
Pantaloons, Shoppers Stop, Marks & Spencers, and Globus (all hugely
popular apparel chains). Take any category and Great India Place offers
many more options than Centrestage simply because of the different scales
in which the two malls were built. Apart from scale, the other big problem
was the business model adopted by the early developers. In most cases, the
strata selling concept was the favorite of developers, says Sq.Fts
Venkatraman in Mumbai. Strata selling involves the selling of individual
shops and spaces in the mall to different investors, who then can choose to
either set up a shop there or rent it out to other tenants. The great
attraction of this method for most mall builders was that it allowed them to
recover their investment quickly and go on to build another mall with the
money. The problem with this method was that it meant that there was often
no cohesion or theme in the shops standing next to each other. So a luxury
brand would stand next to a mass market brand which is a no-no, say
mall management experts. Similarly, there was little incentive in running a
mall properly, keeping the facilities clean and maintaining them, or in
weeding out bad tenants while attracting good ones. With multiple owners,
there was no central agency to coordinate the running of the mall or think up
new attractions to pull in new customers.
The Citi Mall in Lokhandwala in Mumbai is a classic example of the pitfalls of
strata selling. It has so many owners that even fixing the mall and reviving it
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has become an impossible task because none of the investors can agree on
what should be done, says Shubhranshu Pani, managing director (retail
services) at JLL India. Single management is very critical while planning a
mall. This allows the builder to manage things on his or her own without
conflict of interest, points out Venkatraman. Even where the mall developer
did not sell off slices of the mall, the biggest mistake was often chasing the
highest rents and not thinking too hard about the shopping experience being
offered per se. DLF is candid about the fact that it has made mistakes. Our
earlier business model was to give space to retailers on a first-comefirstserved basis and also to give preference to those willing to give higher
rentals. This obviously did not work, says Pushpa Bector, senior vicepresident and mall head at DLF Promenade. Since then, DLF has invested
significant time in thinking of how to better position malls, creating the right
tenant mix, and various other issues. We have realized that mall
management is a long-term business, says Bector. It was in 2008-09, after
the financial shock that rocked the sector that many developers began
adopting the revenue-share model with their tenants. This gave an incentive
to the developers and mall managers to have a long term perspective and to
do everything they could to help their tenants prosper.
The new malls being built are much better thought out than many of the
older malls, say analysts. This in turn increases their chances of success. It
is relatively easy toavoid mistakes if you have already learnt from the
disasters of earlier malls. Take for example, Kishore Bhatija, CEO of Inorbit
Mall, who got into the business in 2004. Bhatija was careful to study the
mistakes of others while planning his own mall and he made a proper survey
of the catchment and design parameters that make or break a mall. As a
result, his 550,000 sq. ft mall is one of the more successful examples in
Mumbai. It has the right scale and it has five anchor tenants Shoppers
Stop, Lifestyle, Spencers, Fame, and Time Zone. We looked at all aspects
design, lighting, parking and retail mix. We did a check for the size of
individual stores. Too big would have been difficult to manage. Too small
would not have offered enough variety, says Bhatija. He spent a lot of time
thinking about which brands would add value to his mall. And he constantly
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monitors their sales and performance replacing the weaker brands with
stronger ones. Bhatija swears by what he calls easy circulation. According
to him, the good circulation design allows shoppers to move around easily
and freely. Bad circulation makes them lose interest quickly. He also has
started the rather novel initiative mall walk which entails throwing
open the mall at 6 a.m. and attracting people to do their morning walk
within the mall itself. This allows visitors to see and check out the brands
without crowds and pressure, he says. While building a new mall and making
sure it is properly positioned and gets the design, tenant mix, and
management right is the way forward, the moot question is: what does one
do with the older generation of malls that have made quite a few mistakes?
There are some problems that cannot be solved, say analysts. For example,
scale cannot be changed even if the tenant mix can be fixed. Similarly, bad
design can be rectified only to an extent. If it is merely a matter of breaking
down a few walls to create a better circulation or layout inside the mall, its
no big deal, but if the basic architecture or the parking lot is flawed, its
nearly impossible to sort out. Still, there are plenty of older malls that can
be improved and revived. Kishore Biyani, for example, reportedly paid $66
million to take over Crossroads from the Piramals. He renamed it Sobo
Central and spent a lot of money on improvements another $19 million,
according to sources to completely change the internal layout. The
external structure or shell remained the same but everything was changed
inside to offer easier access and an overall better shopping experience to
visitors. He also brought in good restaurants and fast-food outlets to get the
right mix of food and shopping into the mall. Today, Sobo Central is a mall
that is doing quite well. There are other malls, too, which mall management
consultants are trying to revive. In Mumbai, for example, JLL is trying to
revive Citi Mall. DLF has succeeded in turning around many of its own malls
which werent doing too well in the past. The big factor was of course
shifting to the revenue-share model which Arindam Kumar, vice-president
(mall management) of DLF, says, makes us work harder. He admits
candidly that DLF Place in Delhi was greatly struggling due to poor tenant
mix, improper zoning and lack of an actual theme. But they turned around
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the property by zoning the 500,000 sq. ft mall. Zoning essentially meant
creating specific areas a kids area, a family area, and a ground floor
focused on youth and apparel retailers. They also got serious about food
from creating food courts for people in a hurry to specialty restaurants for
people who wanted to spend more time enjoying their lunch or dinner.
Having at least one high-end anchor on each floor and an electronics area
were other key aspects in improving the malls draw. One mall management
expert says that small things work in planning layout. For instance, having
electronic shops next to shops selling womens apparels is a great idea
because it allows bored husbands to not only kill time but browse for their
gadgets, while their wives are trying on clothes in nearby shops. But despite
best efforts, there are plenty of old malls that have been badly designed and
are destined to join the junkyard of failed malls. One only needs to walk past
malls turning themselves into business centers and banquet halls to realize
which ones have succumbed to Indias cutthroat shopping center industry.
7 deadly sins that malls make that kill a mall:
Anchor tenant: This cardinal sin has undone many malls. Another
mistake is having the wrong anchor tenant with a reputation for bad
customer service, which is enough to drive customers away.
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WEAKNESS
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OPPORTUNITIES
THREATS
THE EVALUATION:
Page | 26
Demographics:
People interviewed were basically divided into groups for better
understanding of what age group reflects what when they visit a mall.
The age groups were divided into: less than 16; 17-29; 30+
The pie below shows the percentage-wise bifurcation of the total number of
people interviewed.
Infiniti Malad
13%
21%
Infiniti Andheri
>16
17-29
30+
66%
12%
54%
25%
17-29
30+
61%
Phenoix
34%
>16
14%
R City
>16
17-29
21%
30+
>16
29%
17-29
30+
50%
Page | 27
Oberoi
16%
22%
>16
17-29
30+
62%
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Gender:
When it comes to malls, both the genders have something or the other
which they can spend on.
Keeping this factor in mind the sample has been equally divided having male
and female population almost at par. The below pie diagram explains it in a
better manner:
Infiniti Malad
Infiniti Andheri
Male
51%
49%
Female
Male
52%
Pheonix
48%
R City
Male
50%
50%
Female
Female
Male
46%
54%
Female
Page | 29
Oberoi
Male
47%
Female
53%
Marital Status:
Marital status defines what all expectations are on their minds with respect
to entertainment, play areas, food court and other areas in the mall. The
marital statuses of people interviewed are displayed in the form of a pie
diagram:
Infiniti Malad
29%
71%
Infiniti Andheri
Married
23%
Single
Married
Single
77%
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Pheonix
R City
Married
57%
43%
31%
Single
Married
Single
69%
Oberoi
28%
Married
Single
72%
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Degree of Education:
Degree of education or how much the interviewee is educated is also an
important factor as it displays a certain level of thinking or psychology which
can turn the buying decisions in a mall.
Off the people interviewed at Infiniti mall, this is the educational level of the
sample chosen:
Infiniti Malad
Infiniti Andheri
High School
12% 5% 27%
56%
Graduation
Masters
PhD
High School
2%
13%
54%
31%
Graduation
Masters
PhD
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Pheonix
R City
High School
18%4% 27%
Graduation
Masters
PhD
51%
High School
13% 20%
67%
Graduation
Masters
PhD
Oberoi
High School
18% 1% 26%
55%
Graduation
Masters
PhD
Migration level:
Migration level of people staying in that particular vicinity also plays a vital
role while analyzing competition for a particular mall as people who have
migrated are used to go to the malls and shopping centers in the area that
they have came from rather than looking out for new experiences in the
malls nearby. The migration level of the people visiting Infiniti malls have
been shown below with the help of a pie diagram:
Page | 33
Infiniti Malad
Permanent
Residents
24%
48%
16%
12%
Residing since
2 years
Residing since
5 years
Infiniti Andheri
Permanent
Residents
22%
13%
12%
R City
Residing since
2 years
7%
62%
Residing since
5 years
Residing since
7 years
Residing since
5 years
Residing since
7 years
Permanent
Residents
12%
53%
Residing since
7 years
Pheonix
19%
Residing since
2 years
Residing since
2 years
17%
4%
8%
Permanent
Residents
71%
Residing since
5 years
Residing since
7 years
Page | 34
Oberoi
Permanent
Residents
Residing since 2
years
13%
13%
74%
Residing since 5
years
Residing since 7
years
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Question 1: The factors which influence the most for a consumer while
going for shopping a mall:
From the chosen samples that were interviewed to fill up the questionnaire,
we concluded that the following importance was given to each factors that
were mentioned in the first question:
Infiniti Malad
Parking space
Discounts (offers)
Price
Variety (Brands)
Service
Shopping Environment
Entertainment
Movies
Cleanliness
Safety
0 1 2 3 4 5 6 7 8 9 10
Pheonix
Parking space
Discounts (offers)
Price
Variety (Brands)
Service
Shopping Environment
Entertainment
Movies
Cleanliness
Safety
0 1 2 3 4 5 6 7 8 9 10
Infiniti Andheri
Parking space
Discounts (offers)
Price
Variety (Brands)
Service
Shopping Environment
Entertainment
Movies
Cleanliness
Safety
1
0
3
2
5
4
7
6
9
8 10
R City
Parking space
Discounts (offers)
Price
Variety (Brands)
Service
Shopping Environment
Entertainment
Movies
Cleanliness
Safety
0 1 2 3 4 5 6 7 8 910
Page | 36
Oberoi
Parking space
Discounts (offers)
Price
Variety (Brands)
Service
Shopping Environment
Entertainment
Movies
Cleanliness
Safety
0 1 2 3 4 5 6 7 8 9 10
Page | 37
Question 2: Factors that makes the customer visit the mall again:
When it comes to competition between the malls, bringing the customer
again to the same mall becomes quite challenging for any one of them.
Listed below are the factors that make a customer visit the mall again:
Infiniti Malad
Infiniti Andheri
Distance
Distance
Entertainment
Entertainment
Advertising
Advertising
Ambience
Ambience
R City
an En
d te
Pr rt
om ai
n
ot m
io en
n
t
Ev
en
ts
Ev
en
ts
an En
d te
Pr rt
om ai
n
ot m
io en
n
t
Pheonix
Page | 38
Oberoi
Distance
Brands at the Mall
Entertainment
Advertising
Ambience
Events and Promotion
0
Page | 39
Infiniti Malad
13%
Inifiniti Andheri
Yes
Yes
22%
No
87%
No
78%
Page | 40
Pheonix
R City
Yes
11%
Yes
16%
No
No
84%
89%
From the above diagram, we can understand that children do actually play a
very vital role when it comes to bringing their parents or guardians to the
shopping malls. The main reasons that have been given by the interviewed
people are as follows:
Oberoi
Yes
21%
No
79%
Page | 42
Infiniti Malad
Infiniti Andheri
First Visit
Once a Week
18% 2%
37%
Once a Month
43%
First Visit
16% 3%
39%
Once a Week
42%
R City
Pheonix
First Visit
First Visit
Once a Week
13%4%
27%
Once a Month
More that that
56%
Once a Month
23% 2% 31%
44%
Once a Week
Once a Month
More that that
Oberoi
First Visit
38%
1%
32%
29%
Once a Week
Once a Month
More that that
discounts that would lure the prospective buyers to come more than once a
month and spend more than what their plan was in the mall.
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Infiniti Malad
6%
Infiniti Andheri
Yes
11%
Yes
No
89%
94%
Pheonix
10%
No
R City
Yes
6%
No
90%
Yes
No
94%
Oberoi
2%
Yes
No
98%
Question 6: Competition faced by the local retailers and the corner Kirana
shops by the malls:
People coming at the shopping malls have a particular mindset that how
much ever discounts the malls may give, they cannot compete with the local
kirana stores just across the streets as they have been buying goods from
the same store for a very long period and also have a great bargain over
different products along with the convenience of free home delivery which
they provide. But that fact they neglect is the malpractices that the local
stores does while giving them goods. When people buy from a shopping
mall, they are assured with quality along with great discounts and offers.
Yet, organized retail accounts for only 14% of the total retailing industry in
India which competes with the huge unorganized markets. In the below
diagram, it is displayed how often people coming to the malls for shopping
malls for buying goods also purchase from the local and unorganized
retailers across the streets:
Page | 46
Infiniti Malad
Infiniti Andheri
Very Often
(once every
15 days)
21%
50%
29%
Sometimes
(Once a
month)
Once in a blue
moon (once in
3 months)
Very Often
(once every
15 days)
31%
48%
21%
Sometimes
(Once a
month)
Once in a
blue moon
(once in 3
months)
Page | 47
Oberoi
21%
Very Often
(once every
15 days)
Sometimes
(Once a
month)
19%
60%
Once in a blue
moon (once in
3 months)
Pheonix
Very Often
(once every
15 days)
27%
14%
59%
Sometimes
(Once a
month)
Once in a blue
moon (once in
3 months)
Page | 48
R City
22%
23%
55%
Very Often
(once every 15
days)
Sometimes
(Once a
month)
Once in a blue
moon (once in
3 months)
From the above information we can understand that although people might
be visiting and revisiting shopping malls for infinite reasons but when it
comes to buying goods from a local kirana store, they are not hesitant about
it. Infact, 50% of the total sample size talks about buying goods from the
local kirana stores once every month which decreases quality footfalls in the
shopping malls. For a better working and increasing the number of buyers,
malls much try and shorten the gap between the share which the organized
and the unorganized retailing in India by opening more and more number of
shopping malls and department stores which leads to better revenues for the
malls.
gives better results to the mall management. Below bar diagrams gives a
better idea so as to how much the people spend from the interviewed
sample:
Infiniti Andheri
Infiniti Malad
100%
100%
80%
80%
60%
60%
40%
40%
20%
20%
0%
0%
Pheonix
R City
100%
100%
80%
80%
60%
60%
40%
40%
20%
20%
0%
0%
Page | 50
Oberoi
100%
80%
60%
40%
20%
0%
Page | 51
Infiniti Malad
Infiniti Andheri
Yes
35%
65%
No
68%
Pheonix
No
77%
No
R City
Yes
23%
Yes
32%
41%
Yes
59%
No
Page | 52
Oberoi
Yes
30%
No
70%
Page | 53
60%
Twos
50%
Threes
Fours
40%
Fives
30%
20%
10%
0%
Infiniti Malad Infiniti Andheri
Pheonix
R City
Oberoi
From the above data we can see that people find Infiniti Malads experience
to be the best among all the malls that were taken into account for this
project. People gave excellent comments when it came to describe the mall
experience verbally and are looking forward to have the same experience in
the future as well.
Page | 54
Limitations:
As the research was conducted across 5 different malls across Mumbai, there
were certain limitations that were faced while conducting the research:
Page | 56
Page | 57
Conclusion:
After looking at the above data we have come to a conclusion that presently
there is a trend of considerable increase of shopping malls in all the metro
cities , small towns and a large section of middle class , upper middle class
people are coming for shopping because of the following reasons:
Name:
_____________________________________________________________
Email:
_____________________________________________________________
Age: _________________________
Gender:
Yes
Degree of Education:
Single
F
Married
No
High School
Graduation
Masters
PhD
Since: _________________
________________________________________________________
4. How often do you visit this mall?
5. Will you still visit this mall again in the off-discount season as
well?
Page | 60
8. Do you tend to spend more than what you had planned for
during your visits to a mall and why?
________________________________________________________
9. Rate this mall on a scale of 1 to 5 with one being the highest:
1
10.
Recommendations, if any:
________________________________________________________
Page | 61
References/Bibliography:
Projects:
Websites:
http://changeobserver.designobserver.com/feature/dawn-of-the-dead-mall/11747/
http://www.indiaretailing.com/
http://www.deadmalls.com/
http://in.rediff.com/money/2006/sep/05mall.htm
http://www.123oye.com/job-articles/business-corporates/malling-culture.htm
http://www.scribd.com/doc/28833667/Project-on-Shopping-Malls
http://www.chillibreeze.com/articles_various/Malls-in-India.asp
Page | 62