Professional Documents
Culture Documents
A
DISSERTATION REPORT
ON
SUBMITTED TO:
MS. ANURADHA DOGRHA
SUBMITTED BY:
CHANDAN KUMAR
Roll No. 08360500020
TABLE OF CONTENTS
TOPICS
Introduction
Executive Summary
Industry Overview
Literature Review
Retailing in India
Global Formats
Key Facts About Retail Sector in India
Foreign Investment in Indias Retail Sector
Rationale of the Study
Shopping Malls Scenario in NCR
Objectives of the Research Study
Hypothesis of the Study
Comparative Study of Five Malls
Research Methodology
Data Analysis Preparation
Survey Discussion
Conclusion
Recommendations
Bibliography
Annexure
Questionnaire
ACKNOWLEDGEMENT
Perfect is a famous saying and when a person gets practical experience
under the guidance of experts of the respective field, the knowledge gained
is priceless.
With a sense of great pleasure and satisfaction, I present this project report
entitled A Comparative Study Of Shopping Mall completing a task
successfully is never a one-man effort. Similarly completion of this report is a
result of invaluable support and contribution of number of people in direct
and indirect manner.
In the light of the foregoing, first of all my heartfelt gratefulness and thanks
goes to Mr. VIKAS GAIROLA without his indispensable cooperation the
project wont have been completed within the stipulated timeframe.
Finally, I would like to thank all the people, without whose insights and
opinions, this project would have been impossible.
CHANDAN KUMAR
MBA 4TH SEM
ROLL NO. 08360500020
EXECUTIVE SUMMARY
Till the early nineties, the organized retail industry had not evolved. There
was no consumer culture, there were limited brands and people bought what
was available. There were no shopping areas. The retail industry lacked
trained manpower. It was difficult to compete with the unorganized sector
because they operated with minimal labor costs and overheads. Tax laws
and government restrictions added the problem. Liberalization has changed
all this. Today customer is with more spending power, is better educated,
and more importantly, exposed to brands and products through television
and foreign trips. The Indian consumer now has the desire to acquire.
Personal consumption is on the rise. Customer segments, already diverse,
have been sub-divided with joint families giving way to nuclear families, and
the increasing number of working couples. These changes along with
increased availability of retail space and qualified manpower have had a
positive impact. New players are now entering the market. Instead of retail
evolution, there is a retail revolution in India.
The emerging purchasing power of the urban educated middle class and the
growing work culture of the working women has changed the buying habits
of families, who are experiencing a growth in income and dearth of time.
Rising incomes have led to increasing convenience and service.
Consumers have started caring about where they would like to shop, be it
multi brand outlet, exclusive stores or malls with development around them
but are also more demanding. They want superior quality at an affordable
price and they want it instantly.
Thus, we see that there is a strong trend in favor of one-stop shops like
malls and supermarkets. A Mall/supermarket appeals because of its pleasant
surroundings, better product display and the availability of a wide variety of
brands. The store has accurate measure controls and allows economies of
scale. A shopper also has the option of shopping for all household
necessities under one roof. In the future, with more dual income families, the
consumer ability to spend will increase, but at the same time, it is predicted
that the time available for shopping will go down. In such a scenario, the
retailers will have to increasingly develop shopping as an experience and at
the same time, the more successful ones will be those that provide faster
service. Malls, in particular, are contributing hugely to the development of
organized retail.. Malls are coming up both within cities and at the outskirts
vowing to create destinations that will attract thousands of customers every
day.
India is experiencing a mall boom. Shopping malls are set to one of the
most visible faces of the Indian retail scene in the next few years. According
to estimates apart from the metropolitan and larger cities, as many as 50
new malls will be coming up by 2005 in the smaller cities as well.
In India Shopping Malls industry is upcoming industry in India. Today in India
Shopping Mall industry is worth 17000 Cr. Industry. In NCR (National Capital
Region) Gurgaon is the most favorite place for the shopping malls. M.G.
(Meharuli Gurgaon) Road is the place for all famous shopping malls in
2
Gurgaon. On M.G. Road Gurgaon MGF Group has two shopping malls in
operation MGF Metropolitan Mall, MGF Plaza, Sahara Group has its Sahara
Mall and DLF Group has its City Centre.
This project involves around the study of THE Consumer Behavior and
Experience about Shopping Malls; A Comparative Study. The methodology
adopted to study the project is through survey in Sahara, Ansal Plaza,
Center stage Mall, Shipra Mall and Metropolitan shopping malls on M.G.
Road, 100 consumers were surveyed. The survey is done through the
personal interviews by putting a set of structured questionnaire to the visitors
of Shopping Mall.
Consumer purchasing power is the main factor, which determines their
buying behavior and brand of shopping malls. Shopping Malls are the places
for the fun & entertainment, family outing, shopping and eatings. In
shopping Malls age factor is also one of the dominant factors in daily footfall.
What I studied that in different shopping malls different age group
consumers come and they impact on the buying behavior.
With new shopping-malls having become operational in many cities across
India, it is interesting to observe how the shopping-behaviour of consumers
in the vicinity of these malls has changed and thereby draw some lessons
that could be of some use to the developers of hundreds of new malls that
are currently under planning or construction across India.
It is still not too long ago that the operators of a particular new shopping-mall
at Mumbai had to contemplate restricting entries of visitors by imposing
conditions that such entry was limited to those having mobile phones or
credit cards a.k.a., the income tax department's one in six criterion for filing a
tax return.
Mall developers also have to create distinctive identities for their specific
malls, much like the identities that have developed over time for major
shopping-high streets in various cities in the country.
Their work is not done just when the mall has been commissioned! As for the
would-be retailer tenants, it is important to realize that merely moving into a
mall does not guarantee business for them.
They have to work as hard to draw consumers to their own stores once the
latter have entered the mall, and then have the right value proposition for
them to get converted into customers, and then become repeat customers.
The final, obvious, conclusion is that mall developers have to invest in
getting a better understanding about the retail business, while retailers have
to get a better understanding about the dynamics of operating at a new
location.
INTRODUCTION
Malls in India are a relatively new format for retailing. While this format may
have existed in the Western economies for several decades, in India this
phenomenon could be estimated to be only about fifteen odd years old.
One of the earliest large floor-area retailers in India was "Shopper's Stop".
However, the first of the current format of the malls was the Crossroads mall
in Mumbai, which was established by the Piramals in period around 200001. Crossroads then had the highest rent per sq. meter of establishment that
the vendors had to bear. Due to the exorbitant rent, Crossroads initially had
a rough ride. Also, the mall format was new, and was a novelty for most
Indian consumers. This led several visitors to the mall, but never converted
to actual purchases, since most were visiting the place out of curiosity.
However, the situation had changed drastically now. Malls seem to be
springing up across several cities in India. Notable among these is Gurgaon,
a upcoming city near NCR.
INDIA A Vibrant Economy & Resplendent Market
-
4th Largest economy in PPP terms after USA, China & Japan.
The US $ 580 billion economy grew 8.2 percent in the year 03-04
With over 600 million effective consumers by 2010 India to emerge as one of
the largest consumer markets of the world by 2010.
Five Reasons why Indian Organized Retail is at the brink of Revolution:
Scalable and Profitable Retail Models are well established for most of
the categories
Looking Ahead
Many strong regional and national players emerging across formats and
product categories Most of these players are now geared to expand far more
rapidly than the initial years of starting up Most have regained / improved
profitability after going through their respective learning curves.
Malls in India
Today 40 malls
LITERATURE REVIEW
Retailing consists of the sale of goods/merchandise for personal or
household consumption either from a fixed location such as a department
store or kiosk, or away from a fixed location and related subordinated
services. In commerce, a retailer buys goods or products in large quantities
from manufacturers or importers, either directly or through a wholesaler, and
then sells individual items or small quantities to the general public or end
user customers, usually in a shop, also called store. Retailers are at the end
of the supply chain. Marketers see retailing as part of their overall
distribution strategy.
Shops may be on residential streets, or in shopping streets with little or no
houses, or in a shopping center. Shopping streets may or may not be for
pedestrians only. Sometimes a shopping street has a partial or full roof to
protect customers from precipitation.
Shopping is buying things, sometimes as a recreational activity. Cheap
versions of the latter are window shopping (just looking, not buying) and
browsing.
Kinds of Retailers
There are three major types of retailing. The first is counter service, now rare
except for selected items. The second, and more widely used method of
retail, is self-service. Quickly increasing in importance are online shops, the
third type, where products and services can be ordered for physical delivery,
downloading or virtual delivery.
8
Even though most retailing is done through self-service, many shops offer
counter service items, e.g. controlled items like medicine and liquor, and
small expensive items.
A large shop is called a superstore. A shop with many different kinds of
articles is called a department store. Local shops can be known as brick and
mortar stores in the United States.
Many shops are part of a chain: a number of similar shops with the same
name selling the same products in different locations. The shops may be
owned by one company, or there may be a franchising company that has
franchising agreements with the shop owners (see also restaurant chain).
Some shops sell second-hand goods. Often the public can also sell goods to
such shops. In other cases, especially in the case of a nonprofit shop, the
public donates goods to the shop to be sold (see also thrift store). In giveaway shops goods can be taken for free.
The term retailer is also applied where a service provider services the needs
of a large number of individuals, such as with telephone or electric power.
Retail Pricing
The pricing technique used by most retailers is cost-plus pricing. This
involves adding a markup amount (or percentage) to the retailers cost.
Another common technique is suggested retail pricing. This simply involves
charging the amount suggested by the manufacturer and usually printed on
the product by the manufacturer.
10
These characteristics also apply to chain restaurants and some serviceoriented chain businesses. Some argue that the standardized products
which result from such centralization are culturally detrimental; for example,
chain music stores are frowned upon by some for stocking works of more
popular music if they exclude less well known, usually independent artists.
Critics of chains allege that they are economically damaging to communities
because they extract capital that otherwise would recirculate in the local
economy with independently owned businesses.
The displacement of independent businesses by chains has generated
controversy in many nations and has sparked increased collaboration
among independent businesses and communities to prevent chain
proliferation. Such efforts occur within national trade groups such as the
American Booksellers Association and Council of Independent Restaurants
of America as well as community-based coalitions such as Independent
Business Alliances. National entities like the American Independent
Business Alliance and The New Rules Project promote these efforts in the
U.S. In Britain, the New Economics Foundation promotes community-based
economics and independent ownership.
By 2004, the world's largest retail chain, Wal-Mart, was the world's largest
corporation in terms of gross sales.
11
as
paint,
hardware,
toiletries,
cosmetics,
photographic
12
RETAILING IN INDIA
Despite being one of the largest employing industries in India and
contributing a significant portion to GDP, it still lacks a clear policy which
would allow Indian retail players to firmly establish themselves and enable
them to face competition on an equal footing.
Indian retailing industry has made huge strides over the last 10 years. The
retail trade in India is expanding by 22 per cent per annum with addition of
25 million middle class customers. Despite the recent boom in the retail
sector in India, organized retail forms only around 3 per cent of the entire
industry.
Despite being one of the largest employing industries in India and
contributing a significant portion to GDP, it still lacks a clear policy which
would allow Indian retail players to firmly establish themselves and enable
them to face competition on an equal footing.
Large-format retailing in India has added razzmatazz to the urban shopping
experience. The interesting part, however, is how retailers are using modern
management to turn profitable.
For a while, there was disappointment. What had promised to be an
engaging 'Store Wars' saga had ended up as just another beauty contest. A
few glamorous mega-stores here and there, with people pausing to look
them up and down, before getting back to their old shopping routines at the
round-the-corner kirana stores.
13
14
and the whole scene will change. People will want convenience and
service".
Besides, Indian youth desperately need 'hangout' places that satisfy their
notion of a 'cool' ambience.
McKinsey expects the organised sector to be around $ 18 billion (6 per cent
of the retail market) by 2010, which could support at least a couple of $450million-plus chains in grocery retailing and some $250-million-plus chains in
grocery retailing and some $250-million-plus stores in apparel, perhaps even
specialized categories like CDs and books. At the moment, more than half
the retail sales in India are groceries, which meet needs at the base of
'Maslow's hierarchy'.
"The investment wave has begun. Large format supermarkets are coming
up. Among centrally air-conditioned malls, Crossroads is the main test case.
Other than that, there is Chennai's Spencer Plaza and NCR's Ansal Plaza.
All of them seem perpetually crowded. The result: some 50 new malls,
making up around five billion sq. ft of fancy mall space, are currently under
development across the country. More will follow.
In all, around Rs. 3500 crore of investment is being put in. Construction firms
form one set of players. The other are industrial houses such as the RPG
and Piramal groups, which are looking at the retail sector as a high-growth
area that could create huge enterprises over the next decade. Other
industrial houses are getting ready for action too. This is one sector where
local expertise counts for a lot making it easier to compete with global
businesses if and when they are allowed in (foreign investment is not
permitted in retail).
15
WHERE IT STANDS
Retail sales in 1998 (in $ billion)
2500
2325
2000
1500
1000
500
365
337
325
France
UK
China
180
0
USA
India
200000
165000
150000
100000
50000
25505
24500
737
140
China
India
0
USA
France
UK
Source: CII/McKinsey
Small store domination
12000
12000
10000
8000
6000
4000
2000
1179
1071
MEXICO
BRAZIL
905
0
INDIA
16
USA
GLOBAL FORMATS
Hypermarkets: These are huge (over 40000 sq. ft.) out of town stores
with ample parking, aimed at the monthly bulk shopper. They store a
wider variety of products (electronics, clothing and so on, apart from
groceries et al). Europe's leader Carrefour is famous here with its typical
100,000 sq. ft format.
Discounters:
Aimed
at
bargain
buyers,
these
are
bare-frame
supermarkets that offer less choice in each category but deep discounts
(on bulk-sourcing deals). Costs are kept super tight and inventories low.
Germany's Aldi is famous for this format.
Convenience stores: These are small (under 2000 sq.ft) stores located
at such convenient points as petrol stations that keep long hours and
sometimes do odd jobs for time-starved customers (clothes laundry,
17
Specialists: These like Toys 'R' Us, are seen as 'category killers'. Like
boutiques and high-end restaurants, these often have skills that can't be
duplicated and are closely related to the product. These are moving
towards 'consultative shopping', where salesmen are trained well enough
to offer specialized advice to customers.
18
Even though India has well over 5 million retail outlets of all sizes and
styles (or non-styles), the country sorely lacks anything that can
resemble a retailing industry in the modern sense of the term. This
presents international retailing specialists with a great opportunity.
It was only in the year 2000 that the global management consultancy AT
Kearney put a figure to it: Rs. 400,000 crore (1 crore = 10 million) which
will increase to Rs. 800,000 crore by the year 2005 an annual increase
of 20 per cent.
As much as 96 per cent of the 5 million-plus outlets are smaller than 500
square feet in area. This means that India per capita retailing space is
about 2 square feet (compared to 16 square feet in the United States).
India's per capita retailing space is thus the lowest in the world (Source:
KSA Technopak (I) Pvt Ltd, the India operation of the US-based Kurt
Salmon Associates).
From a size of only Rs.20, 000 crore, the organised retail industry will
grow to Rs. 160,000 crore by 2005. The total retail market, however, as
indicated above will grow 20 per cent annually from Rs. 400,000 crore in
2000 to Rs. 800,000 crore by 2005 (Source: survey by AT Kearney)
The first challenge facing the organised retail industry in India is:
competition from the unorganised sector. Traditional retailing has
established in India for some centuries. It is a low cost structure, mostly
owner-operated, has negligible real estate and labour costs and little or
no taxes to pay. Consumer familiarity that runs from generation to
generation is one big advantage for the traditional retailing sector.
The above should not be seen as a gloomy foreboding from global retail
operators. International retail majors such as Benetton, Dairy Farm and
20
Levis have already entered the market. Lifestyles in India are changing
and the concept of "value for money" is picking up.
India's first true shopping mall complete with food courts, recreation
facilities and large car parking space was inaugurated as lately as in
1999 in Mumbai. (This mall is called "Crossroads").
These
drawbacks
present
opportunity
to
international
and/or
The
prospects
are
very
encouraging.
The
first
steps
towards
21
22
23
6150
800
435
350
330
320
300
2003-04
Organised
retail
29
109
9
20
22
25
5.5
130
100
82
28
8
25
8
11
Total
Food & Grocery
Clothing, Textiles & Fashion
Jewellery
Catering Services (F & B)
Furniture & Furnishings
Consumer Durables
Health & Beauty care Products (including
Pharmaceuticals)
Mobile handsets and accessories
Footwear
Books, Music & Gifts
Watches
24
Share
0.5%
14%
2%
6%
7%
8%
2%
6%
25%
10%
40%
1.5
6
280
6%
3%
3%
this lead-time, reiterating the fact that fdi should be allowed gradually. But
this should not constrain the growth of the retail sector. Since objective of fdi
is to increase investment, there is also a need to explore alternative funding
routes, in addition to FDI. For example, if a capital turnover ratio of 1:5 is
assumed, then it requires at least Rs. 20,000 crores of investment. hence
foreign institutional investors (FIIs) and venture capital (vc) firms should be
legalized and encouraged for investment in the primary market.
FIIs and VC firms are currently allowed to participate in the growth of the
listed retail companies present in the secondary market; they have the
necessary financial muscle and are increasingly on the lookout to invest in
India. Retail is a sunshine sector with tremendous growth potential
allowing them to invest in retail companies in the primary market will enable
many of these emerging companies to increase operations, improve
infrastructure, set up the latest systems, achieve critical mass and enhance
employment opportunities.
Another objective of FDI is to enhance infrastructure. While there is no
dearth of potential investors in metro cities, the tier-2 and lesser cities are
getting sidelined. FDI should be initially allowed in tier2 and lower cities to
facilitate infrastructure building. The more such investment, the more
incentives to operate in metro cities. Models similar to airline operators and
telecom operators need to be explored. With this the focus would be on
incremental business and create a level playing field for all and not on
cutthroat competition. The government is already considering a host of
conditions for bringing in FDI. One of them is to impose a minimum limit of
26
10,000 sq ft on the floor space of foreign retail chains and limit the number of
stores to one per million once FDI in retail is allowed. this also serves to
create level playing fields for all players. also, inclusion of a clause for
reserving at least 500-600 sq ft (out of 10,000 sq ft) of retail space for foods
& processed foods alone will further help to protect the interests of certain
sectors like agriculture and integrate them with the organized retail supply
chain. These measures are to be applicable for a short while only, as the
department of industrial policy and promotion (dipp) is considering easing
some of these restrictions with time. Hence, with an objective of enhancing
Indian economy by increasing consumption, a recommended CII policy for
introducing FDI in retail is as follows:
FDI should be gradually allowed first in relatively less sensitive
sectors garments, lifestyle products, house ware, entertainment etc.
Alternative funding mechanisms and investment opportunities should
be considered like FII and venture capital in the primary market, in
addition to FDI.
At least 2-3 years lead-time should be given to the Indian retail
industry for much needed capital formation by Indian retailers and to
promote a level playing field for all.
Promote FDI in tier 2 and less developed cities to focus on the thrust
for infrastructure growth.
27
28
include Hammer Plus, Espirit, Hugo Boss, Citizen, Celeste, Asmi, Sangini
and Nakshtra.
This project helps me in finding out how the Shopping Malls are changing
the Indian retail industry in general and redefining consumers shopping
experience due to increase in their overall exposure to the different varieties
of product under one roof.
29
The retail business in India is set for a heady growth in the coming years
with the number of shopping malls in Asia's third largest economy rising to a
staggering 358 by the end of 2007, according to a study.
The country has some 100 malls now, with the National Capital Region
(NCR) and Mumbai accounting for maximum numbers of the gleaming
shopping centers.
31
32
projected to grow at the rate of 25-30 percent per annum to touch $8 billion
by 2005 and $24 billion by 2010, said the study.
The fast growing middleclass population, the rise in women workforce and
consumerism over the decade has been the major forces in driving demand
in the retail sector.
33
34
35
36
37
SAHARA MALL
MEHRAULI-GURGAON ROAD
GURGAON - 122002
TEL :+( 91)-(124)-5048592, 2387741
This is Indias first Brand Super Mall launched in March 2001 spread over
3.89 acre on the main Mehrauli-Gurgaon road. Created with a project worth
of Rs.13814.5 lac, the mall comprises company owned brand outlets and
flagship stores promising complete range of products and latest offerings. A
shopping mall that has set new standards in contemporary design and latest
facilities making it one of the most preferred shopping zones for the
consumers, with international class retailing environment. It has earthquake
resistant construction, a classy entry, multiple openings and wide corridors
besides two-level parking lots in the basement. It offers an international class
environment global brands and a comprehensive package recreational and
leisure activities.
From ground floor to the third floor there is an array of international and
national brands including Pantaloon, Big Bazaar, Airtel, L.G., Cafe Nescafe,
Nakshatra, Archies, Planet-M, Hallmark, Effinity, Haldirams, Panjabi Tadka,
Ros Thai, Tangerine, Crave and Odyssey. The grand atrium welcomes the
customers and invites them to experience a world of class and lavishness.
Matching the occupants it has been built with full dignity and grace. The
renowned firm Chesterton Meghraj has taken the responsibility of managing
the mall.
This is India's first Brand Super Mall launched in March 2001 spread over
3.89 acre on the main Mehrauli-Gurgaon road. Created with a project worth
38
of Rs.13814.5 lac, the mall comprises company owned brand outlets and
flagship stores promising complete range of products and latest offerings. A
shopping mall that has set new standards in contemporary design and latest
facilities making it one of the most preferred shopping zones for the
consumers, with international class retailing environment. From ground floor
to the third floor there is an array of international and national brands
including Pantaloon, Big Bazaar, Airtel, L.G., Caf Nescafe, Nakshatra,
Archies, Planet-M, Hallmark, Effinity, Haldirams, Panjabi Tadka, Ros Thai,
Tangerine, Crave and Odyssey. The grand atrium welcomes the customers
and invites them to experience a world of class and lavishness. Matching the
occupants it has been built with full dignity and grace. The renowned firm
Chesterton Meghraj has taken the responsibility of managing the mall.
39
system,
property
management
services
and
40
41
SHIPRA MALL
SHIPRA SUN CITY,
INDIRAPURAM, GHAZIABAD,
UTTAR PRADESH (U.P.) 201012
Shipra Group launched its largest mall in NCR inspired by classical Romanstyle architecture. Situated at Indirapuram with 4.5 lakh sq. ft of total area,
Shipra Mall commits to offer a unique shopping experience with over 100
national & international brands and entertainment. The mall has been
designed as a one-stop-destination for entertainment and leisure. Its stateof-the-art 3 Screen Multiplex, Just About Movies (JAM) has one of the
widest and the largest screens in India.
The new Shipra Mall has taken retail to a mega scale. With a total area of
4,50,000 sq ft comprising of 3,60,000 sq ft of retail space, Three New
Generation of Cinemas, 17,000 sq ft of Kids Zone, 15,000 sq ft of Food
Court, Amphi Theatre & parking for 1000 cars. 80 percent of mall space has
already been leased out to retailers like Shoppers Stop, Globus, Food
Bazaar, Fashion Station etc. The mall has been designed with twin atriums
for better space and visibility for the retailers and free flow for shoppers.
42
The Shipra Mall is the first and the only International Standard Retail
cum Entertainment Mall and the launch pad of more than a dozen
retail and food brands in the city.
Outlets / Stores
Type
Phone / Mobile
Bombay Selections
0120-2957788
Cottons by Century
Menswear
0120-2957637, 9213970761
Fashion Station
Apparel,
Accessories &
More
0120-2957652
Food Bazaar
Gangoly Bros.
0120-3028393
Watches
0120-2957581
43
Description
Hakoba
Womenswear
0120-3029290
Jashn
Sarees
0120-3208002, 3208811
Multiplex
01202957610,2957620,2957630
Koutons
Menswear
0120-2957572
Men.xs
Menswear
0120-2957575
Paisleys
Womenswear
0120-2957579
Planet M
Shoppers' Stop
Sona Exclusive
Women
Spaces
Zodiac
Menswear
0120-5517728
44
Centra Stage Mall is a hot entertainment destination for those living in the
vicinity while for others it doubles up as a great landmark in Noida. It offers
include Waves- a three-screen multiplex, posh showrooms from USI,
Westside, Gyans and Meena Bazar among others eateries like Geoffrey's
Mircheez, McDonald's and Ruby Tuesday. Representing global trends in
retail and entertainment, Centrestage Mall, a joint venture of the Chadha
group and the Shipra group, located in sector 18, the shopping hub of
NOIDA, plans to offer world class shopping ambience with cinema
experience.
This is the beginning. The retailing map of India seems to be in for a sea
change. Retailing is emerging in all sorts of permutations and combinations.
Various international role models are there but it remains to be seen how
much we would be ready to absorb and assimilate.
It is located in the commercial hub of Noida that is in sector 18. It is the most
popular shopping mall in NCR. All popular showrooms have now opened in
this mall. It also has a popular Cinema Theatre called Waves. There is a
food court in the basement. Centrestage Mall also provides underground
parking.
45
Centrestage mall was a project that was first of its kind taken up by Shipra in
NCR that today is a landmark in Noida. Spread in an area of more than
3-lakh sq. Ft with 5 movie theatres, kids zone, food court etc. Owing to
its appeal and the variety it offers, it acts as a sheer crowd puller. The
mall had witnessed phenomenal footfalls of over 25,000 on Christmas
last year.
The Centrestage Mall (CSM) is designed to be more than just a Cineplex /
multiplex. Its an experience, a lifestyle destination, mesmerizing families
with hours of quality time.
Taking retail to a mega scale, with an area of 3,48,460 sq ft comprising of
1,38,500 sq ft of retail space, 12,000 sq ft of night club, 93,000 sq ft
for parking in 2 levels and 1,04,360 sq ft of food & entertainment
area.
Features
In the offer are a 63 seater multi-branded Food Court and WAVE SHIPRA,
the 1770 + 34 Platinum Class seater Multiplex (5 theaters) making it as one
of the first in the city. The anchor shop, Tata Westside spread over two floors
46
covers an area of 14,500 sq. ft. Also, CSM is the first and only International
Standard Retail cum Entertainment Mall and the launch pad of more than a
dozen Retail and food brands in the city.
The building is earthquake resistant with state-of-the-art technology. It
operates on a an integrated Building Management System with multiple
levels of Intelligence centralized operations of building services. It gives
absolute control over the operation and monitoring of HVAC, Lighting, FireAlarm, Plumbing and DG systems. The building has a centrally air
conditioned system with ionization for regular inflow of pure fresh air.
The mall has a state-of-art architecture. We can move up and down by
escalators and elevators.
50% of the 'Sector 18 Crowd' is found in the Centrestage mall. The demand
of products in the mall has led to the improvement in business of many
small shops which did not have a good income at other places.
The food court provides many different mouth watering dishes like Chinese
and Indian.
Outlets / Stores
Type
Phone / Mobile
Barista
Cafe
0120-3096236
Cafe
0120-2591462, 51659403
Chikankari
Ladieswear
0120-2591549, 5312207
Cookie Man
Bakery
0120-5312708
Elevate
Club (Weekends)
0120-2513904
FoodPlus
0120-2513445
47
Geoffrey's
British-style pub
0120-2512020
Maamouchee
Food Multi-cuisine
0120-5312241, 2517036-37
McDonald's
Fast Food
0120-2511024, 3090408
Men.xs
Menswear
0120-2513722
Mircheez
Food - Indian
0120-3092726
Orange Caezar
Food Multi-cuisine
0120-3948422, 33
Pizza Corner
0120-51664110, 11
Planet M
0120-2517773
Ruby Tuesday
Food, drinks
0120-5332477, 5313478
Shayan
Home Furnishings
0120-2510408
Shiva Motors
Car
9891755603, 9837500981
Subway
Fast Food
0120-3947679
Beverages
0120-3944729
Walk in M&B
Footwear
Wave
Multiplex
011-51832222
Westside
0120-2517761
48
RESEARCH METHODOLOGY
Research Plan: Research Plan is no specific for all types of research; it is
decided depending upon the nature of the problem. It can be Exploratory,
Descriptive or Causal.
To study the Consumer Behavior and experience about Shopping Malls is a
descriptive research.
Designing a research plan calls for decisions on
1. Data sources
2. Research Instruments
3. Sampling plan
4. Contact methods.
Data Sources: The research involves gathering Secondary as well as
Primary data.
Primary data: A survey was conducted to gather primary data from the
market here the main emphasis will be given on the consumers to gather
information as consumers are the ones who decide the brand of any
shopping mall and they are different from each other on various aspects. It
will help us to know their purchasing behavior in different shopping malls.
They are the one who constitute the market and the target of the business.
In Shopping Malls Industry until and unless we have the knowledge of
consumer buying behavior and where they spend the most and what they
think about the mall cannot increase the footfall and conversion ratio.
49
50
51
YES
NO
50
50
40
30
20
10
0
0
YES
NO
52
How do you perceive the development of Shopping malls in NCR and NCR
Region?
45
40
35
30
25
20
15
10
5
0
45
5
Healthy Trend
Unhealthy Trend
What according to you is the purpose of the customers visit to the Shopping
Malls?
45
50
50
45
38
40
42
40
30
20
10
12
10
0
Yes
No
53
What according to you are the reasons for buying at that particular shopping
mall (Please rank them in order of preference?)
5
5
4
3
4
3
2
1
0
2
1
Nearness to house/locality
Friendly shopkeeper/ good relations
Good bargain
Rank (1-6) the following factors, which influence the customer purchase
decision at a shopping mall.
6
5
4
3
2
0
Price
Brand
Location of Mall
Parking At Outlet/Mall
Appealing Ambience
3-D Column 6
54
48
50
45
39
40
35
50
32
32
30
25
18
20
18
15
11
10
2
0
Yes
No
Tim e Factor
Discount schem es
Adequate parking space
Individual sections for all categories
Good shopping experience in better place w ith convenience and variety.
Organized shops w ith international am bience &air condition all-around.
YES
NO
55
Do you think that organized retail will provide many opportunities both to
existing players as well as new entrants?
50
50
40
30
20
10
0
0
YES
NO
50
50
40
30
20
10
0
0
YES
NO
56
A good anchor: for the generation of initial foot falls, the anchor store
comes in handy. Sahara mall for example, the biggest crowd puller
there being the big bazaar. The anchor store also communicates the
positioning of the mall.
Food courts: people are spending more chucks of time in the malls.
So they are likely to get hungry as well. Families who come for a real
shopping
experience
necessarily
look
for
wholesome
eating
57
welcome if some one could park the car and they are ready to pay for
it.
1.
2.
3.
Baby carts
4.
5.
Sticky tools: these are the facilities which encourage the customers to
sit and while away time inside the mall and lead to greater
conversions of footfalls into sales. The mall should provide for free
sitting area so that each time the visitor is tired after shopping they
dont necessary spend money to sit inside a foot parlor and take rest.
Signages: This would guide the customers towards the store as they
would not face any difficulties in locating the shop.
Lift & Escalators: Lift & Escalators are integral for the convenience of
the customers.
58
Time Factor: As consumers get one stop shopping for their entire
daily needs; it cuts down on their time, money and energy. One stop
shopping is very convenient for them especially when they have less
time to spend on shopping.
Kids section: customers can make their babies sit there while they are
shopping; this is more convenient for the working mothers who are
tired after their long working hours.
The shops are scattered all over the place in the normal market which
lead the customer to do a lot of running around, which saps the
energy while in shopping malls one can shop in an international
ambience with air condition all-around.
59
The malls are being built to take advantage of a real estate boom and
not necessarily a shopping boom. Gurgaon is the mall capital of India,
almost 82% of the revenues in the malls are generated from movies
and food than any other thing but this phenomenon is rapidly
changing and now customers do go to Malls for purchasing goods.
High rentals: The malls are being sold and as a result speculators
enter the market and charge high rentals.
India is a check out nation: we check out pieces and then checkout of
the store. Rarely will we make purchases without checking the
competitive scene.
61
ANALYSIS CUSTOMERS
CONSUMER BUYING BEHAVIOUR IN MALLS
1.
Age group
The visitors of Shopping Malls in NCR and NCR are almost of all age group,
the maximum no. of visitors is in the age group of 20-25 and 25-35, followed
by below 20 yrs and 35 yrs and above.
Below 20
7%
35 - Above
15%
20-25
35%
25-35
43%
2.
Occupation
Home Maker
15%
Student
18%
Business
14%
Service
26%
Professional
27%
62
Rs. 10 lakhs
and above
6%
Below 2 lakhs
46%
Rs 2-5 Lakhs
36%
63
Rs. 200-500
Rs.500-2500
36
59
Up to Rs. 200
0%
Rs. 200-500
36%
Rs.500-2500
59%
64
Once in a
Twice in a
week
week
66
Twice in a
week
26%
26
Any other
Once in a
week
66%
65
Rating
Choosing gifts
Consumer Durable
6
5
4
3
2
1
0
Rating
Food and Beverages
Life style products
Choosing gifts
66
Question 5: Please rate the following Shopping Malls, which you prefer
the most?
Metropolitan
Mall
Sahara Mall
Ansal's Plaza
Centre Stage
Shipra Mall
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Metropolitan
Mall
Sahara Mall
Ansal's Plaza
67
Centre Stage
Shipra Mall
Question 6: Please specify the reasons for the preference on the scale
of 1 to 7 (1 being the most important and 7 being the least important)
Ansal's
Plaza
5
Centrestage
6
5
Sahara
Mall
3
Metropolitan
Mall
1
Shipra
Mall
5
2
3
6
4
7
3
6
7
2
4
4
2
5
6
7
3
6
7
2
4
2
3
6
4
7
2
1
3
2
2
1
0
Ansal's Plaza Centrestage
Sahara Mall
Metropolitan
Mall
Shipra Mall
Branded Shops
Advertisements
68
SURVEY DISCUSSION
FINDINGS IN ANSAL PLAZA
Ansal Plaza is preferred by the consumers in the age group of 25-35 years
and
above.
Consumers
were
homemakers,
businesspersons
and
professionals. They come to the mall for branded items and clothing's items.
They spend in the shopping mall more then Rs. 2500 and above.
Consumers in mall were brand oriented and only purchase the branded
products.
CONSUMER BUYING BEHAVIOR IN CENTERSTAGE MALL
Consumers come for the purchase the branded clothing and home
furnishing items.
Consumers in the mall were the only serious buyers and dont come for
the entertainment.
Consumers were also come due to the Branded shops like Marks &
Spencer's and Music World.
Another Important eating outlet is the Oriental Bloom and Mac Donald's.
69
Consumers in Mall spend money between 500 2500 and more then Rs.
2500.
70
Consumers accept that this mall is the best place for the fun &
entertainment and good food joint.
influence
by
the
Discounting
schemes,
and
for
According to them Sahara Mall is the best for the middle class.
71
the
As a brand the Sahara Mall is famous a mall fore the middle class due to
the Big Bazaar.
Big Bazaar, Pantaloon, and Haldiram is the most popular among the
consumers
Consumers come for the purchase the branded electronic items and
home furnishing items.
Consumers in the mall were the only serious buyers and dont come for
the entertainment.
72
Consumers were also come due to the Branded shops like Electrolux,
Philips and LG electronics.
As a brand in shopping malls consumers said that Plaza is the best for all
necessary home items like electronics and furniture.
influence
by
the
Discounting
schemes,
and
for
the
According to them Shipra Mall is the best for the middle class.
As a brand the Shipra Mall is famous Bite Inn - The Food Court & U The Fun Place for Kids & Wave Shipra Cinemas.
73
Shoppers Stop, Globus, Food Bazaar, Fashion Station etc are also
popular among the consumers
CONCLUSION
The organized retail in India is expected to cross INR 1000 billion mark by
2010 and around INR 200 billion investments are in the pipeline. The size of
the organized retailing market stood at Rs. 280 billion in 2004, thereby,
making up a mere 3% of the total retailing market. Moving forward,
organized retailing is projected to grow at the rate of 25%-30% p.a. and is
estimated to reach an astounding INR 1000 billion by 2010. Further, its
contribution to total retailing sales is likely to rise to 9% by the end of the
decade. Currently the fashion sector in India commands a lion's share in the
country's organised retail pie. This is in line with the retail evolution in other
parts of the world, where fashion led the retail development in the early
stages of evolution and was followed by other categories like Food &
Grocery, Durables, etc. The last few years have seen rapid transformation in
many areas and setting scalable and profitable retail models across
categories. Indian consumers are rapidly evolving and accepting modern
formats overwhelmingly. Retail Space is no more a constraint for growth.
India is on the radar of Global Retailers and suppliers / brands world-wide
are willing to partner with retailers here. Further, large Indian corporate
groups like Tata, Reliance, Raheja, ITC, Bombay Dyeing, Murugappa &
Piramal Groups etc and also foreign investors and private equity players are
74
by
introducing
contemporary
retail
formats
such
as
up their
sourcing requirements from India and moving from third-party buying offices
to establishing their own wholly owned / wholly managed sourcing & buying
offices shall further make India as an attractive retail opportunity for the
global players. Buying volumes for many of these players are already in the
range of INR 10-20 billion per year, with reported plans to step up to INR
100-150 billion within the next 3-4 years.
Manufacturers in industries such as FMCG, consumer durables, paints etc
are waking up to the growing clout of the retailers as a shift in bargaining
power from the former to the latter becomes more discernible. Already, a
number of manufacturers in India, in line with trends in developed markets,
76
have set up dedicated units to service the retail channel. Also, instead of
viewing retailers with suspicion, or as a necessary evil' as was the case
earlier, manufacturers are beginning to acknowledge them as channel
members to be partnered with for providing solutions to the end-consumer
more effectively.
INDIA RETAIL BY 2006-07
The food and personal care retail market in India is currently valued at about
10 billion US dollars and is expected to grow by 5-7% year on year
according to reports by A.T.Kearney. The average Indian family spends
about 31% of its income on food and this is expected to grow to about 36%
in the near future. This scenario obviously has led a number of players to
think about opening up retail chains that cater to food and personal care.
Even Walmart and other global players are thinking of making a foray into
the Indian market.
77
For a long period of time the debate has been whether the large retail
players would be able to dislodge todays Mom and Pop stores which
currently service the food and personal care need of Indians.
The Mom and Pop stores have distinct advantages over the other players in
terms of low overheads and avoidance of sales tax. The introduction of VAT
in the Indian market would nullify the tax advantage to a certain extent but
there is another innate advantage that these stores enjoy. Various studies
conducted by institutes such as the Department of Economics, University of
Connecticut, have shown that the most important factor for a retail store is
distance. The Mom and Pop stores being the nearest to the consumers
home have therefore remained as the first choice for food and personal care.
Critics argue that with the emerging socio-economic trends in India such as
the phenomenon of increase in women joining the work force, brand
consciousness, faster nuclearization of families and a fast-paced life would
lead to Mom and Pop stores being dislodged by bigger stores.
Another factor of importance here is technology. Critics argue that the bigger
stores would be able to bring in better efficiencies and therefore would be
able to provide better variety and lower prices. The fact however remains
that the high real estate cost and other existing inefficiencies in the Indian
market do not allow for cost efficiencies. Such efficiencies can only come if
the entire market structure from the supplier to the end consumer becomes
integrated into one. Even if the retailers have the right integrating technology
it mitigates cost inefficiencies only to a certain extent as the vendor and
transporters still operate inefficiently.
78
79
This could be true also for other products where physical presence is not
required and where the goods are standardized commodities.
So the next time someone tells you that he or she is very excited about
Wal*mart coming to India, think about the race of changes.
With new shopping-malls having become operational in many cities across
India, it is interesting to observe how the shopping-behaviour of consumers
in the vicinity of these malls has changed and thereby draw some lessons
that could be of some use to the developers of hundreds of new malls that
are currently under planning or construction across India.
It is still not too long ago that the operators of a particular new shopping-mall
at Mumbai had to contemplate restricting entries of visitors by imposing
conditions that such entry was limited to those having mobile phones or
credit cards a.k.a., the income tax department's one in six criterion for filing a
tax return.
NCR and Gurgaon saw some of the initial mall developers become parking
lot operators as well by charging exorbitant parking fees from all visitors.
Rentals, rather than going down with more malls coming up, started moving
up even as the quality of services within the malls started deteriorating. In
this context, therefore, it is somewhat surprising that questions are already
being asked, albeit in whispers, whether shopping-malls can survive and
operate profitably in India.
Many tenants lament about the low percentage of conversions from those
who walk through the portals of these malls, and casual observers routinely
80
81
There is no reason to believe that it should be any different in a shoppingmall, which, in any case, is fundamentally no different from a traditional
shopping-high street, except that a mall has a more modern and compact
structure, in most cases a single roof. Local retailer tenants who move into a
new mall for the first time should not expect any customer loyalty being built
up overnight.
For example, in NCR's case, it is possible for a retailer to be very successful
in Karol Bagh or Lajpat Nagar shopping-districts but he would have to start
from scratch in terms of building up brand recognition as well as generating
customer conversions in a new location such as Gurgaon or Noida. In
contrast, national retailers such as Shoppers Stop, or national exclusive
brand outlets such as those operated by Madura Garments, Arvind Brands,
Raymond, and Zodiac, have national brand recognition and hence the
performance of their outlets in shopping-malls is usually comparable (or
even better) with their outlets in traditional shopping-markets.
Secondly, with most mall developers having blindly opted for a questionable
winning formula of shopping, entertainment (read Multiplex) and food (read
MacDonald's/Pizza Hut as the main draws), it is no surprise to find many
mall visitors having no shopping-bags since they have been enticed to visit
only for watching a movie and/or having a burger or a pizza or even a cup of
coffee. The situation pertaining to shopping, for instance, would be no
different in locations such as Saket or Vasant Vihar in NCR, which are better
known for their movie theatres and eating options. What is the lesson for
mall developers and for the prospective tenants? For the developers, the
82
critical lesson is to invest some quality effort in understanding the shoppingneeds of customers in their targeted "catchment" areas and then build a
carefully planned portfolio of retail options that can meet the needs of these
targeted customers.
In many instances, customers would only need shopping and eating options
rather than a multiplex as well. The developers also have to understand that
their retailer tenants have to earn a profit and hence the rentals have to be
aligned to what the retail business can bear (usually 5-8 per cent of gross
revenues). Mall developers also have to create distinctive identities for their
specific malls, much like the identities that have developed over time for
major shopping-high streets in various cities in the country.
Their work is not done just when the mall has been commissioned! As for the
would-be retailer tenants, it is important to realize that merely moving into a
mall does not guarantee business for them. They have to work as hard to
draw consumers to their own stores once the latter have entered the mall,
and then have the right value proposition for them to get converted into
customers, and then become repeat customers.
The final, obvious, conclusion is that mall developers have to invest in
getting a better understanding about the retail business, while retailers have
to get a better understanding about the dynamics of operating at a new
location.
83
RECOMMENDATIONS
Though lucrative opportunities exist across product categories, food and
grocery, never the less, presents the most significant potential in the Indian
context, as consumer spending is highest on food.
More Shopping malls should be opened in more and more cities across
India.
Wholesale trading is another area, which has potential for rapid growth.
German giant Metro AG and South African Shoprite Holdings have
already made headway in this segment by setting up stores selling
merchandise on a wholesale basis in Bangalore and Mumbai
respectively. These new-format cash-and-carry stores attract large
84
Rural Retailing: Of late, India's largely rural population has also caught
the eye of retailers looking for new areas of growth. ITC launched the
country's first rural mall Chaupal Sagar' , offering a diverse product
range from FMCG to electronics appliance to automobiles, attempting to
provide farmers a one-stop destination for all of their needs. There has
been yet another initiative by the DCM Sriram Group called the Hariyali
Bazaar' that has initially started off by providing farm related inputs and
services but plans to introduce the complete shopping basket in due
course. Other corporate bodies include Escorts, and Tata Chemicals
(with
Tata
Kisan
Sansar)
setting
up
agri-stores
to
provide
to open four more Nature's Basket stores in Mumbai before taking them
national. Setting up cost of a store is about INR 5-10 million and per stores
sales are expected in the range of INR 30- Rs 50 million a year.
Interestingly, the world's largest corporation, Wal-mart, also had its roots in
rural America. Unlike many other retailers who started from urban centres
and then trickled down to rural areas, Wal-mart had started from rural areas
and then came closer to cities over a period of time. Many more such
concepts are likely to be tested in the future as marketers and retailers begin
to acknowledge that the rural consumer is more than a poor cousin' of the
urban counterpart. The IMAGES KSA Report avers that these concepts are
likely to go a long way in bringing a huge untapped population within the
purview of organized retailing, thereby, increasing the size of the total
market.
Potential for all Formats to Thrive:
Most of the global powerhouses in the retailing sector such as Wal-Mart,
Carrefour, and Tesco etc have adopted multi-format and multi-product
strategies in order to customize their product offering for distinct target
segments. Similar trends are likely to be exhibited in India as all formats
present prospects for growth, the Report says.
Further, with the emergence of larger store formats like superstores and
hypermarkets in countries like UK, France, Germany, Spain since the 1980s
and Eastern Europe more recently, traditional food retailers have been able
to stock more extensive non-food ranges. In fact, Tesco, UK's leading grocer,
86
has become the number one apparel retailer in the Czech Republic and also
a major player in Hungary apart from being one of the fastest growing
clothing retailers in the UK. Together with its rival, Wal-Mart-owned ASDA,
Tesco is one of the food sector's most successful exponents of clothing in
Europe.
There are wide varieties of roadblocks that hamper the growth of otherwise
upbeat scenario. A few of them are regulatory barriers, fragmented suppliers,
lack of skilled personnel, differential taxation system, labour legislation and
lack of industry' status. Recounting some critical success factors in retail the
IMAGES-KSA report emphasises that all and any solutions aught to be
India-centric even as strategic and operational attributes like value
proposition,
service,
experience,
efficiency,
hygiene
etc.
must
be
formats (department stores like Shoppers' Stop & Pantaloon) and product
categories (like consumer durables retailing, music retailing etc) were
introduced. As the country marched into the new millennium, the organized
retailing scenario began to stabilize, especially over the last 3 - 4 years when
players like Big Bazaar, Barista, Pizza Hut, and Shoppers Stop etc became
successful in establishing a national footprint. This was also the stage when
international retailers like McDonald's, Subway etc adopted a mix of global
and India-specific strategies in order to entice the local population.
India is now ready to leapfrog into the next stage of evolution where a large
number of Indian and international retailers would build scalable models with
a pan-India appeal with a view to be sustainable in the long term. Already,
players are becoming profitable after having gone through their respective
learning curves indicating the viability of organized retailing across formats.
Opportunities are abundant, across formats and categories, as the new
Indian consumer has clearly demonstrated a readiness for all organized
retailing segments. Moreover, as has been the case in retail markets across
the globe, the influx of foreign brands into India shall transform the retail
landscape as domestic players grow bigger and become more innovative in
the face of enhanced competitive pressures.
All this can only spell good news for the Indian consumers who will be
inundated with a flurry of state-of-the-art products and services at
reasonable prices a state they have long craved for.
88
BIBLIOGRAPHY
BOOKS
MAGAZINE
JOURNAL
WEBSITES
www.google.com
www.businessworld.com
89
www.saharaindia.com
www.mgfindia.com
ANNEXURE
QUESTIONNAIRE FOR CUSTOMERS
Dear Sir/Madam I am conducting a Survey on Consumer Behavior and
Experience about Shopping Malls: A comparative study. May I have five
minutes of yours to help me fill up the Questionnaire?
Please specify your profile:
Name:____________________________________________________
Profession: _______________________________________________
Question 1: What is the Annual household income of your family?
(a) below 2 lakhs
(b) Rs 2-5 Lakhs
(c) Rs. 5-10 Lakhs
(d) Rs. 10 lakhs and above
Question 2: How much you spend on a average on youre per visit to
Shopping Mall?
(a) Up to Rs. 200
(b) Rs. 200-500
(c) Rs.500-2500
(d) Rs. 2500 and above
Question 3: What is the frequency of your visit to the Shopping Malls?
(a) Daily
(b) Once in a week
(c) Twice in a week
(d) Any other
Question 4: Please rate the purpose of your visit to the Shopping
Malls? (1 Being most the most important and 6 being least important)
Purpose
Sahara Mall
Thank You
91
Metropolitan Mall
MGF Plaza
No
No
Unhealthy Trend
Q.4 What according to you is the purpose of the customers visit to the
Shopping Malls?
Purpose
Food and Beverages
Music and Entertainment
Life style products
Latest Fashion and Clothing
Choosing gifts
Consumer Durable
92
Yes
No
Q.5 What according to you are the reasons for buying at that particular
shopping mall (Please rank them in order of preference?)
Nearness to your house/locality
Good ambience
Good bargain
Q.6 Rank (1-6) the following factors, which influence the customer
purchase decision at a shopping mall.
Price
Brand
Location of Mall
Outlet/Mall
Appealing fragrance
Yes
No
No
Q.9 Do you think that organized retail will provide many opportunities
both to existing players as well as new entrants?
Yes
No
No
93
Thank you
94