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The
Indian Retail Industry no longer consists of irregular family run efforts but
has evolved into an Organised Well Managed Business off-late. It is of critical
importance that this beginning should be properly channeled in a coordinated
way, so that it grows. This sector has much potential for growth as only 4% of
India’s Retail Industry consists of the organised sector unlike Malaysia, where
it is 55%, Thailand, where it is 40% and 20% in China. Consumers, however, have
now shown tastes and preferences for an enjoyable shopping experience along
with this growth. Now, there is more than 40 million sq.ft. of retail space
operating over 130 malls in this country. Within the next 3 years, the
development would be more than 100 millions sq.ft. in the fast growing organised
retail and within next 5 years, it may reach an average of 200 million. The
success of the development now depends on the factors of differentiation and
convenience as there is such a large scale of mall supply.
The
condition of development of malls in this day is well summed up in the words of
the famous General George S. Patton-‘If everyone is thinking alike, then
someone isn’t thinking’. Rather than the planning, the speed of construction
and marketing are what are typical of the sudden spate in the growth of malls
of 4,000,000 sq.ft. from those of 150,000 sq.ft. make up this retail space.
There would be a peculiar set of challenges in the operation of each
development incumbent upon size, location, ownership patterns and positioning.
There would be sharp competition among these malls and the ability of a mall to
adjust to the needs of the consumer and provide the needed experience and
merchandise to its customers would decide its survival.
The
management of the business is what decides the success of malls. Just as
Airline Passengers choose which Airline to fly According to the Services
provided, Developing a Mall is also akin to establish a business unit. There
are many aspects to the management of retail space beginning with the planning,
design, infrastructure, trade mix, and tenant mix, operations, planning peak
emergencies and marketing. The success and sustenance of the mall depends on
each of these.
First
of all, the development has to be rightly positioned and it is necessary to
pinpoint the Personality of the Development and specify the Target Audience
with their requirements. Retailers should be given an outstanding shopping
experience. The customers should be given enough reason to make them walk
through the mall and Each Zone in it should be Exciting and Enjoyable for them.
This would keep the cycle of retailer attraction and customer satisfaction
continuing. A mall of an average size would produce Indian Rupee (INR) 6
billion annually and give employment to 800-1000 people. The activity behind the
scenes should be well-planned so that it does not interfere with the experience
of the customer. Chaos can be avoided by planning services and back end
infrastructure in advance. Time spent by the consumer in parking should also be
reduced to the minimum by careful planning on the part of the retailer.
A
mall should be well-planned so that it can take care of the hardware of the
mall development and should carefully choose the trade and tenant mix because
it helps in the day to day aspects of the shopping experience. A very patient
approach is needed while keeping retailers in the mall. The time factor must
always be kept in mind by the Developer and the best retail formats should be
brought in. Economic Activity in the Catchment Area must be foreseen and leases
planned with different Retailers in a way that will be flexible for
repositioning the mall in days to come.
The
whole purpose of the mall operating efficiently is to meet the needs of the Shoppers
and make way for the success of the Retailers who are the Business Partners.
The peak and non-peak business hours or days have to be planned and the malls
need Special Staff for meeting the needs of the Shoppers during peak hours,
sale time and the festive season for convenience. The benefit of the Retailers
lies in the maximum amount of time spent in the mall by the Customer. There
should be an effective plan for any emergencies in this business centre to
ensure the safety of the Customers. There should be regular safety drills and
the mall and Retailers Staffs have to be trained to Assist Shoppers at such
times.
All
mall operations should be efficient, effective and transparent. Provisions for
the Common Area Maintenance (CAM) must be made by the Retailers who run their
shops in different malls or they should pay the service charge as it applies to
them. The CAM charge should not be made different each month and a budget for
the service charge should be made for major repairs well in advance by the Operator
of the mall and a yearly budget should also be prepared for the operations.
This will bring in discipline to the functioning and give improved control.
The
time, when the Shopper decides to enter the shop, and not when he enters, it
will be largely influenced by the Retailer’s Treatment of Space. Factors in a
high street shop such as the signage, neat footpath, parking ease and entrance
into the shop are the initial steps the Customer takes in relation to the Retailer.
While selecting and designing the store, it is necessary to consider these
points. The Retailers must make sure that there is good signage and clear
corridors in the shop what is important is the interaction with the Customer,
the easy possibility of looking through the goods and the appearance, display
and feel of the store. The layout of the store is the first introduction of the
brand to the Customer. The brand’s image can be made or broken through this and
therefore needs to be carefully planned. Buying on impulsive is likely to be
more frequent in a warm and organised atmosphere.
This
kind of organised retail in shopping malls is still a novel idea in India. Few
Professionals are available with experience in the field to manage it. There is
lack of exposure to the finer aspects of retailing and managing retail realty.
It is hard to employ retail Professionals with experience for both Retailers
and Developers. To help us to learn, we need to import the knowledge, processes
and procedures and for a long term solution, invest in training and making
professional courses in order to obtain a suitable pool of talent.
There
are innumerable opportunities for Retailers and Consumers given the size of the
Indian Retail Market and the increased consumption expenditures and retail
sales. The choice of a mall to shop in might become the problematic decision
for the Consumer. As there are raising incomes and induction of Western
lifestyles, quality and experience matter the most. High Quality and Standards
of Services will create a Lasting Impression on the Consumers.
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