Retail

N S Gandamani
Asst Advt Manager (Marketing)

Retail
India is fast emerging as a major destination for global retail giants according to AT Kearney study on Expanding Opportunities for global retailers 2010. As some of the major markets globally show signs of saturation, India has certainly emerged as the preferred market for big retailers. If India's size of over one billion people is compared with other countries, it certainly makes perfect sense for retail firms to enter India to sustain their growth. However organized retailing is still in infant stages in India. Hence there is a retail revolution waiting to happen in years to come. India : Immense potential The study says, India and China remain the leaders in GRDI (Global Retail Development Index). These large growing markets still present major retail opportunities, and they will remain so for years to come. While opportunities remain in largest cities, retailers are expanding to smaller and faster growing cities. India has been appearing continuosly in top three positions of Global Retail Development Index since 2005. The retail market in India is worth about $410 billion, but only miniscule percent of the sales are through organized retail, meaning that opportunity in India remains immense. Retail should continue to grow rapidly upto $535 billion in 2013, with 10 percent coming from organized retail reflecting fast growing middle class demanding higher quality shopping environments and stronger brands. Indias Retail Sector Basic Facts According to Morgan Stanley research on Retail Revolution Macro Story done in 2006, Indian distribution system is completely fragmented with about 12 million players operating from small shops. Organized retail sector is about 2.2% in the country (during the year 2006) and is estimated to grow faster in coming years.

The study reveals that, the penetration of organized retail in India is very low (2%) when compared to 80% in USA, 70% in W. Europe and so on. Even the neighbouring China, a country with huge population has the penetration of 20% in organized retail. The following figure illustrates penetration of organized retail in various countries of Asia / Pacific regions. Organised Retail in Asia / Pacific regions

Retail Formats The more recent study by Knight Frank reveals several insightful information on the industry. According to research findings made in mid 2010, the organized retail market will grow at a rate of 31% during 2009-12. The retail sector in India is highly fragmented and mostly owner run mom and pop outlets. The entire sector is dominated by retailers consist of kirana shops, general stores, footwear and apparel shops and pavement vendors. These together formed unorganized retail or traditional retail.

The organized retail which is at a nascent stage in India is expected to show higher growth thanks to signs of economic recovery seen in recent months. In line with economic growth, the retail sector is not only expanding but also modernizing. The structural changes in organized format is happening in retail sector. These organized and modern retail formats generally consists of supermarkets, hypermarkets, discount stores, speciality stores and departmental stores. In 2006, India allowed foreign companies to own up to 51% in retail sector. As a result, organized retail in India got a boost. Due to opening up of FDI, resulted in heavy growth of the retail sector say from just 1 mn.sqft of mall space in 1999 to 28 mn. Sq ft in 2006 and growing further in following years. In view of good trend prevailing, retail sector is expected to reach Tier I and Tier II cities due to low rentals, operating costs and high growth in population. Retail sector in major Indian cities Till recently, research studies by different agencies like At Kearney and Morgan Stanley have focused only on national level retail market scenario and its growth projections. A recent study by Knight Frank, a research agency spread across several countries, focuses on retail trends in India which covered seven important cities of the country. Highlights of Knight Frank Research Study After the lull period 2008 and 2009 when the economic downturn happened, the necessary corrections have been made in retail activity and is poised to grow at a faster pace from the current year. Zero rental schemes, revenue sharing models have become attractive propositions in organized retailing. Retailers are expected to shift focus to Food and related items rather than lifestyle goods. In addition to this, Tier I and Tier II could become more attractive destinations for developers and retailers in coming years.

 During 2010-12, 55 mn.sq.ft of retail space will be ready in seven major Indian cities. Between 2010-12, organized retailing will more than double from the existing 41 mn.sq.ft to 95 mn.sq.ft. Between 2012-12, a higher space of real estate development in comparison to pace of organized retail market growth will create an over supply situation to the magniture of 21 mn sq.ft in 2012. Expected Mall Space supply during 2010-12 Of the total of 55 mn.sq.ft of retail space expected during 2010-12 in seven major cities, the following is the percentage share of each city.
Percentage share mall space expected during 2010-12 (Total - 55 mn.sq.ft)

Pune 9% Kolkata 9% Bangalore 11%

Hyderabad 7%

Delhi (NCR) 29%

Mum bai 21% Chennai 14%

Furnished below is the extract of the study focused on four metropolitan cities, Bangalore and Hyderabad (Pune excluded). All cities have been grouped with various zones and factors like infrastructure developments are analysed in the study. The cities analysed are, 1) 2) 3) 4) 5) 6) Delhi (NCR National Capital Region) Mumbai (MMR Mumbai Metropolitan Region) Chennai Kolkata Bangalore Hyderabad

Delhi (NCR) National Capital Region

Zonal Classification Delhi Noida-Greater Noida Faridabad Ghaziabad Gurgaon Locations North Delhi, South Delhi, West Delhi, East Delhi Sectors 18, 25A, 38A, Park Chowk Sector 12, Sector 15, Sector 20, Mathur Road Indirapuram, Vaishali, Kaushambi, Mohan Nagar NH-18, M.G. Road, Sohna Road

Organised Retail Space in Delhi (NCR) Current (2010) Expected (2010-12) 17.87 mn.sq.ft 16.14 mn.sq.ft

Upcoming Shopping Malls in Delhi Delhi (inlcuding Ghaziabad) Capitol City Mall Ambience Mall Indus Mall Metro Mall (different places) D Mall Parsvnath Mall MGF Market Place Pearls Omaxe Today's North Gate Orbit Plaza Angel Mega Mall Eros Market Place Express Plus Mall Express Mall Opulent Mall Gurgaon R Mall Ninex Mall Metro World The Sapphire SS Plaza Emerald Plaze MGF Metropolis Senior Mall Floral Tower Legend Heights Achievers Centre Point Gardenia Sky Mall Metropolitan Mall Ozone Centre Mall

National Capital Region (NCR Delhi and Neighbourhood) The national capital region has been divided into major zones in the study namely Delhi, the industrial hubs of Faridabad and Gaziabad, the peripheral cosmopolitan Gurgaon & Noida, and the newly emerging micro-market of Greater Noida. The region is the oldest retail hub in Northern India and still continues to account for the higher market share of retail spending in the northern belt though new markets like Chandigarh, Ludhiana and Jalandhar have emerged in recent years. Shopping Mall Space in NCR
Current mall space 17.87 mn.sqft in NCR Expected supply of mall space by 2012 16.14 mn. sqft

Percentage Share

Percentage Share

Gurgaon 29%

Gurgaon 20%
Delhi 36%

Delhi 33% Ghaziabad 4%

Ghaziabad 12% Faridabad 8% Noida & Gr. Noida 15%

Faridabad 16%

Noida & Gr. Noida 27%

The general improvement in infrastructure and the Delhi Metro project has contributed largely towards the growth of the retail sector in Delhi region. Connecting most of the major hubs within Delhi, the Metro has made mobility easy for shoppers. Also, the extension of Metro to Noida recently have improved retail propects of Noida too. With South Delhi Gurgaon link is due to be operational soon, the retail markets in both the locations are expected to witness greater consumer interest. Noida and Greater Noida will be the second largest contributed to the upcoming mall space supply with 27% share. By the end of 2012, Gurgaon also is expected to witness a fresh supply of about 3.22 mn.sqft of retail space, which is around 20% of total expected supply in NCR region.

Existing Malls in Delhi Region (NCR) Existing Malls in Delhi (incl. Ghaziabad) West End Mall TDI Mall DLF Promenade Metro Walk Ansal Plaza MGF Metropolitan Select City Walk Pacific Mall Galaxie Mahagun Metro Mall MMX Mall East Delhi Mall Existing Malls in Gurgaon DT Mega Mall DLF Grand Mall Sahara Mall MGF Mega City Gurgaon Central Ambience Mall Gold Souk Ansal Plaza Omaxe Gurgaon Mall Crown Plaza SRS Mall Only few projects have been listed above. There are several new shopping malls coming up in National Capital Regions (NCR) say Noida, Faridabad and other places.

Retail Advertising in Delhi

The National Capital Region is mainly dominated by Times of India and Hindustan Times in retail advertising. They get a share of 99% of retail advertising from the market leaving The Hindu with just 1% market share. Times of India and Hindustan Times have a stiff competition in the region. Unlike other cities, it is one-sided here to tap advertising volume. With a market share of 55%, Time of India leads in retail advertising followed by Hindustan Times with 44%. It is interesting that Hindustan Times market share is increased by 3% over previous year. The Hindu has not penetrated enough in this market sofar.
Delhi - Retail Print Advertising Market Share (July08-June09)
Hindu-del 2%

Delhi - Retail Print Advertising Market Share (July09-June10)

Hindustan Times-del 41%

Hindu-del 1%

Hindustan Times-del 44%

Times Of India-del 57%

Times Of India-del 55%

The Hindus Opportunities in Retail advertising in Delhi market The Delhi market which includes NCR and neighbouring Gurgaon is going to witness huge retail investments during 2010-12. More than 30 malls are in pipeline and all areas including Noida, Greater Noida and Gurgaon regions have huge potential for retail advertising. With infrastructure and metro rail network making movement of public easier from one place to another, national capital region will become world class in organized retail in coming years. While the leading players have the advantage of this new development, The Hindu can create its own market in the region for tapping retail advertisements.

Mumbai (MMR) Mumbai Metropolitan Region

Zonal Classification Island City Western Suburbs Central Suburbs Navi Mumbai Locations Nariman Point, Haji Ali, Worli, Lower Parel, Dadar, Mahim Bandra, Santacruz, Andheri, Goregaon, Malad, Borivali, Dahisar, Mira Road-Bhayander Stretch Matunga, Chembur, Ghatkopar, Mulund, Thane, Kalyan, Bhandup Airoli, Vashi, Kharghar

Organised Retail Space in Mumbai (MMR) Current (2010) Expected (2010-12) 8.72 mn.sq.ft 11.26 mn.sq.ft

Upcoming Shopping Malls in Mumbai (MMR) Harmony Infinity - II E-zone Mall Express Zone The Dreams Mall Nirmal Lifestyle Phase - II Big Shopping Centre Korum Mall Growel Plaza Viva city Mall Star Mall Kohinoor Mall R City - Phase II R Odean Glomax Mall Phoenix Market City

Mumbai Mumbai bears the tag of being the commercial capital of the country. The city has rich cosmopolitan demographics. The study by Knigh Frank refers Mumbai region as Mumbai Metropolitan Region (MMR) covering the city of Thane, Navi Mumbai along with Mumbai City. Mumbai City is also divided into four zones, say Island City, Western Suburbs, Central Suburbs and Navi Mumbai. As per the current estimates, Mumbai has a total shopping mall space of 8.72 mn.sq.ft and will add another 11.26 mn.sq.ft of retail space in next 3 years. The city is home to some of the most prominent and successful malls in the country and the retail rentals are among the most expensive in the world. Island City covers, Nariman Point, Worli, Lower Parel, Dadar etc. Western Suburbs include Bandra, Santacruz, Andheri etc. Central suburbs include Matunga, Chembur, Thane, Kalyan etc. Shopping Mall Space in Mumbai
Current mall space 8.72 mn.sqft in Mumbai
Island City 15%

Expected supply of mall space by 2012 11.26 mn. sqft

Navi Mumbai 15%

Navi Mumbai 13%

Island City 6% Western Suburbs 20%

Central Suburbs 27% Western Suburbs 43%

Central Suburbs 61%

Island city is considered up market residential area. Recently launched, the worlds tallest residential project World One is located here. The dominant micro markets in the western suburbs are Andheri (West) and Malad (West) accounting for six large malls. The central suburbs of Mumbai is expected to get maximum supply of mall space in years to come. Thane, which is located in Central Mumbai has seen high infrastructural development in recent years which has made projects easier to develop. One major project planned to come up by 2011 is by Sheth developers. The project is going to be called Viva City with a built up area of 8 lakh sqft.

Existing Malls in Mumbai Region (includes Western suburbs, Central Suburbs and Navi Mumbai) Existing Malls in Mumbai (MMR) Crystal Point Mall V Souk Mall Thakur Mall Oberoi Mall Infinity - I Mega Mall Inorbit Mall Evershine Mall Raghuleela Mall Growe Plaza - I The Hub Cinewonder Mall Nirmal Lifestyle - Ph I Highstreet Phoenix Palm Beach Galleria Centre One Mall Like Delhi region, there are several new shopping malls coming up in Mumbai Metropolitan Region (MMR) say Western Suburbs, Central Suburbs, Navi Mumbai and other places. An interesting findings of the whole exercise, the kind of product groups which occupies malls in Mumbai. As per the study Hypermarkets have consumed around 37% of total mall space, Multiplex consumes around 29%, Apparel and Accessories have taken 21%, Electronics and White goods have consumed around 6%, and Others have taken 7% of total mall space. Hypermarket is a store combines a super market with a department store. Some of the major hypermarkets in Mumbai include Big Bazaar, Food Bazaar and Hyper City. Multiplexes also occupy a very large built up area since they are spread across the entire floor and generally have a minimum of four screens.

Retail Advertising in Mumbai

The retail advertising in Mumbai is mainly dominated by Times of India among top three English publictions in the market. The other two are Hindustan Times and DNA. Midday is not considered for the analysis as only main line dailies present in different cities have been considered. Publications like Hindustan Times and DNA have a market share of 11% and 15% respectively. Significantly, Times of India has snatched around 4% of Hindustan Times market share which consolidates its position in the market.
Mumbai - Retail Print Advertising Market Share (July08-June09)
Dna-mum 15%

Mumbai - Retail Print Advertising Market Share (July09-June10)

Dna-mum 16% Hindustan Times-mum 11%

Hindustan Times-mum 16%

Times Of India-mum 69%

Times Of India-mum 73%

The Hindus Opportunities in Retail advertising in Mumbai market As The Hindu doesnt have edition in The Hindu, it depends on big retailers advertising campaign in South India and Delhi. The Hindu has been an important media vehicle to reach main cities of South India for both national and big retail advertisers. Times of India has the advantage of being present in all major cities of South India and hence it becomes necessary to have special arrangement with all Mumbai based retail houses like Pantaloon to reach different cities of South India. As Business Line has an edition in Mumbai, frequent special features on the industry can be tried on all important occasions during the calendar year to reach the market.

Chennai
Zonal Classification Central Business District (CBD) Off-Central Business District West Zone North Zone Locations Anna Salai, T.Nagar, Nungambakkam, Mylapore, Alwarpet, Egmore etc Aminjikarai, Purasawalkam, Gopalapuram etc Sriperumbudur, Poonamallee High Road, Anna nagar, Ambattur etc Perambur etc

Organised Retail Space in Chennai Current (2010) Expected (2010-12) 1.16 mn.sq.ft 6.18 mn.sq.ft

Upcoming Shopping Malls in Chennai Express Avenue Ozone Mall Forum Orchid Mall Chandra Mall Spectrum Mall Market City The Grand River side Mall The Gold Souk Grande' TVH Mall Ramee Mall

Chennai Chennai is the fourth largest city in India by area and capital city of Tamilnadu. The citys focus on manufacturing sector has led to strong infrastructure development in the city. Good intra-city connectivity and presence of air, road and rail network across regions have added to attractiveness of the city. The retail development is expected to grow steadily after witnessing lull period in recent years. The organized retail activity is much lower when compared to other metros of the country. Although Chennai is considered one of the pioneers of retail with Spencer Plaza being the first mall, it has not taken off in a big way. The reason for lack of mall development is because of the consumer buying pattern which is more value driven. After the lull period during last year, the city is expected to witness the infusion of more malls in the next few years with approximately 15 malls being slated to operation by 2012. Unlike other cities across the country, there has not been a significant drop in rental values for malls. Among the upcoming malls 0.9 mn.sq.ft Express Avenue had a soft launch few months back and will be fully operational by year end. It is expected to set the benchmark in mall performance in Chennai. The current retail mall space is around 1.16 mn.sq.ft. The retail markets are spread across the city and primarily constitute high streets. For analytical study, the research agency has classified Chennai retail mall space into two zones namely CBD and Off-CBD based on the presence of existing malls in the city. The CBD which consists of locations like T.Nagar, Nungambakkam, Mylapore, Alwarpet and Egmore houses two malls viz Spencer Plaza at Anna Salai and Chennai Citi Centre along RK Salai in Mylapore. The 0.46 mn.sq.ft Spencer Plaza is the oldest organised retail space in the city and was developed in three phases, gradually extending the malls area. The Plaza has number of major national and local brands in its tenants list which include apparel, footwear, jewellery and electronics. The other mall in this zone is Chennai Citi Centre located on RK Salai at Mylapore. Multiplex, food court and outlets like KFC are the major drivers of footfalls in this mall.

A study on anchor tenants of malls reveals that Apparel and accessories category leads in occupancy with 51% share. Other popular categories are Books, gifts and music category and the hypermarket segment which account for 18% and 11% respectively. Prominent among them are Landmark (bookstore), Star bazaar (hypermarket). The remaining occupants are multiplex operators like PVR and INOX, the prime drivers of footfalls for malls. Locations like T.Nagar and Nungambakkam are high street destinations and pose a serious challenge to malls in this zone, since a greater preference is given to these highstreets as opposed to malls for shopping. A study in T.Nagar reveals that apparels and footwear have the maximum number of retail outlets to the tune of 57% of the total number of stores on the highstreet. They are closely followed by category of Jewellery. About 25% of total number of stores on the high street is occupied by this category. The Off-CBD which consists of Anna Nagar, Aminjikarai, Purasawalkam, Kilpauk and so on has the presence of solitary mall, Ampa Skywalk with a mall space of 0.34 mn.sq.ft. at Aminjikarai. The anchor tenants in this mall are Star bazaar and Westside. The place has a locational advantage with substantial residential nighbourhood. However, the presence of highstreet markets in the adjacent Anna Nagar is expected to affect footfalls in this mall. Future Trends The presence of IT/ITES sector and new residential development happening across south and west Chennai has made these zones preferred location for organized retail. This is evident from the figure that 50% of shopping space is consumed by Chennai South. Chennai would see the infusion of 15 shopping malls across the city where the Chennai South would account for 60% of total mall space which is expected to be around 7.49 mn.sq.ft. by 2012. Development of IT corridor at Rajiv Gandhi Salai has led to a fast paced residential growth in adjoining locations where there are no organized retail developments yet.

Shopping Mall Space in Chennai

Current mall space 1.16 mn.sqft in Chennai Expected supply of mall space by 2012 6.18 mn. sqft

Off -CBD 29%

West Chennai 15%

CBD 22%

CBD 71%

North Chennai 3% South Chennai 60%

Besides Anna Salai and other prominent areas, locations like Sriperumbudur, Ambattur which are expected to full retail development in the future. North Chennai is relatively low in organized retail. Only Spectrum Mall in Perambur with a shopping area of 0.2 mn.sq.ft is under construction. With the boundaries of Chennai constantly expanding, the upcoming mall supply is expected to cater to the needs of new residential developments taking place in new areas. A majority of residents in the city of Chennai falls under middle income category and as retail customers, they believe in value based shopping. People in the city prefer looking for the best buy interms of value, irrespective of whether the product is available in a mall or any other organized space. In other words, they lay more emphasis on a products value rather than convenience shopping which is what malls strives to offer. Existing Malls in Chennai Existing Malls in Chennai Spencer Plaza Chennai Citi Centre Ampa Skywalk

Retail Advertising in Chennai

The top three major English publications carrying retail advertisements in Chennai are The Hindu, Times of India and Deccan Chronicle. For this analysis, the cumulative volume of these publications have been taken as Total Market of advertising in English publications, as these publications drive the market. The data is sourced from TAM-Adex analysis. According to TAM-Adex figures, The Hindu is far ahead of its competitors in Chennai with a lions share in the market. The Hindu has grown by 32.7% during the period of Jul09-Jun10 over Jul08-Jun09. However, the market has grown by 46.9% during the period. The arrival of Times of India in Chennai during April 2008 have made an impact, with a market share increasing from 23% to 32% for the publication.
Che nnai - Reta il Print Adve rtising Ma rket Share (July08-June 09)
Times Of India-chn 23% Deccan Chroniclechn 11%

Che nnai - Re ta il Print Adve rtising Ma rke t Sha re (July09-June10)

Times Of India-chn 32% Deccan Chroniclechn 8%

Hindu-chn 66%

Hindu-chn 60%

The Hindus Opportunities in Retail advertising in Chennai Almost 50% growth in the market of retail advertising over previous years reveals the sign of expanding retail advertising market. While the leader The Hindu has shown good growth, the major competitor in the region Times of India has doubled its previous years performance. TAM Adex study which also covers revenue details based on card rates, reveals that, the yield per colcm is marginally less than previous year for The Hindu. This implies that, the advertisers are opting for lower price options among different product brandss available from The Hindu (Metroplus, Retail Plus, Downtown etc). Hence it becomes necessary strengthen each brand in its own market.

Kolkata
Zonal Classification Central Kolkata East Kolkata South Kolkata West Kolkata North Kolkata Locations Park Street, Camac Street, Elgin Road Rajarhat, Salt Lake, Esteem parts of EM Bypass Gariahat, Rashbehari Avenue, PA Shah Road, Southern parts of EM Bypass NA NA

Organised Retail Space in Kolkata Current (2010) Expected (2010-12) 3.37 mn.sq.ft 5.09 mn.sq.ft

Upcoming Shopping Malls in Kolkata Forum Howrah Forum courtyard Forum II Varnaparichay Diamond Heritage Mall Lake Town Mall Sisirkunja

Kolkata Kolkata, the gateway to the eastern part of the country has always been on radar of national and international retailers. Since early this decade, the city witnessed number of real estate developers who encouraged by governments proactive stance, launched commercial and residential projects thereby bringing the city into limelight. Now. Kolkata is considered to be one of the prime contenders of IT space, alongwith cities like Hyderabad, Chennai and Pune. Out of total mall space of 3.37 mn.sq.ft in the city, East Kolkata which consists of Rajarhat, Salt Lake and EM byebass etc consumed around 55% followed by South Kolkata 31% and Central Kolkata 14%. By 2012, the city is going to witness a supply of approx 5.1 mn.sq.ft of mall space. While East Kolkata will lead with 39%, there will be retail projects West and North Kolkata too. The following chart compares existing and upcoming supply of mall space in Kolkata.
Current mall space 3.37 mn.sqft in Kolkata
Cental Kolkata 14%
North Kolkata 18%

Expected supply of mall space by 2012 5.09 mn. sqft

West Kolkata 31%

South Kolkata 9%

Cental Kolkata 20%

East Kolkata 55%

West Kolkata 14%

East Kolkata 39%

Existing Malls in Kolkata City Centre Mani Square Forum 22 Camac Street Avani Galleria Garia hat Mall South City Mall Metropolis

Retail Advertising in Kolkata

There are two significant factors in Kolkata. Despite being established players, Statesman has not made much out of retail advertising, the other being the recent entry of The Hindu in the market for which the data is not available. Hence the comparison restricts to Times of India, Telegraph and Hindustan Times in the region. The Kolkata market has grown by 23% over previous year. Telegrpah leads in retail advertising in this region closely followed by Times of India. Infact, Telegraph has increased it market share by 1% during the current year, Hindustan Times, the third major player too managed increase of 1% market share from 3% market share last year. The increased volume of these publications have resulted in decrease of 2% share from Times of India during the current year.
Kolkata - Retail Print Advertising Market Share (July08-June09)
Hindustan Times-kol 3%

Kolkata - Retail Print Advertising Market Share (July09-June10)

Hindustan Times-kol 4%

Times Of India-kol 48%

The Telegraphkol 49%

Times Of India-kol 46%

The Telegraphkol 50%

The Hindus Opportunities in Retail advertising in Kolkata market It is significant that, Kolkata is going to witness some good investment from retail players in coming years. There are about 7 malls going to enter in to this market by the year 2012. The Hindu has the opportunity to reach in this market with an aggressive strategy catering to the needs of upcoming scenario.

Bangalore
Zonal Classification Central Business District (CBD) North Zone South Zone Locations MG Road, Brigade Road, Magrath Road, Infantry Road, Cunningham Road, Ulsoor Hebbal, Bellary Road Koramangala, Hosur Road, Bannerghatta Road, Outer Ring Road, Jayanagar, JP Nagar Indira Nagar, Old Airport Road, Marthahalli Junction, Old Madras Road, KR Puram, Brookefields, Sarjapur Road and Whitefield Malleswaram, Rajaji Nagar

East Zone West Zone

Organised Retail Space in Bangalore Current (2010) Expected (2010-12) 3.82 mn.sq.ft 6.18 mn.sq.ft

Upcoming Shopping Malls in Bangalore Soul Space Arena Orion Mall Soul Space Spirit Signature Mall Phoenix Market City Alliance Mall Innovation Mall Karle Mall Royal Meenakshi Mall ITPL Mall Inorbit Mall Maximus Mall Central (International Brands) Viva city (office + retail)

Bangalore Bangalore, a leader Information Technology industry is surprisingly not a frontrunner retail industry when compared to other major cities like Mumbai or Delhi. However, though mall developments in the city started later when compared to Mumbai and Delhi, the pace of growth in retail during last few years is quite aggressive. As of now, there are 16 operational shopping malls in Bangalore which are expected to exceed 30 before 2012. The study divides Bangalore in to different zones say, Central Business District (CBD) consisting of M.G. Road, Infantry Road, Ulsoor etc. North zone consists of Hebbal, Bellary Road etc., South zone includes of Koramangala, Hosur Road, Jayanagar etc., East zone includes Indira Nagar, Old Airport Road, Whitefield etc and finally West zone includes Malleswaram and Rajaji Nagar. As per current figures, the total area of organized retail is 3.82 mn.sq.ft in Bangalore. Whereas South zone leads in percentage of shopping mall space consumed with 36% of total space followed by Bangalore West 24%. Significantly, Bangalore East which shopping space consumption of 21% currently, is expected to get 57% of total supply by 2012 followed by Bangalore south with 24%. The total expected supply of mall space by 2012 is around 6.18 mn.sq.ft. The following chart furnishes the break of shopping mall space utilized by different zones currently and expected supply. Shopping Mall Space in Bangalore
Current mall space 3.82 mn.sqft in Blore Expected supply of mall space by 2012 6.18 mn. sqft

Central Busi. Dist 16% Bangalore South 36% Bangalore North 3%

Bangalore South 24%

Central Busi. Dist 1%

Bangalore North 6%

Bangalore East 21% Bangalore West 24%

Bangalore West 12%

Bangalore East 57%

Existing Malls in Bangalore Existing Malls in Bangalore Forum Mall Sigma Mall Garuda Mall Esteem Mall Eva Mall Total Mall Vasvani Cosmos Gopalan Legacy Mall Oasis Mall The collection Garuda Swagath Mall Arch mall Forum Value Mall Mantri Square Bangalore is witnessing retail market stabilization after the lows of last year. The major upcoming malls in the city include Phoenix Market City in Whitefield with a built up area of over 1.5 mn.sq.ft., ITPL Mall in Whitefield with a built up area of 0.4 mn.sq.ft built by Ascendas, Soul Space Arena and Soul Space Spirit developed by Soul Space at Marathalli and Sarjapur Road respectively with a super built up area of 0.3 mn.sq.ft and 0.23 mn.sq.ft. The Royal Meenakshi Mall being developed at Bannerghatta Road is expected to be completed by the end of the year. The Signature Mall is being developed by Gopalan Enterprises at Old Madras Road. The majority of the upcoming supply of mall space is located in the Bangalore east zone, with 57% of total space to be operational by 2012. This zone is fast developing because of its proximity to commercial markets and development of infrastructure facilities. This zone has attracted considerable residential and commercial development in last few years and it is fast becoming preferred destination for residence. With this in mind, most developers venturing into retail have looked at the east zone as their preferred location. The south zone on the other hand, has always had a large residential attraction which has contributed mall development.

Retail Advertising in Bangalore

The retail advertising in English publications in Bangalore market has grown by whopping 83% in July09-June10 over July08-June09. The top three publications in this market are Times of India, Deccan Herald and The Hindu. With 72% market share, Times of India leads in retail advertising with a heavy margin in this market. Deccan Herald and The Hindu have a market share of 18% and 10% respectively. Though at a lower base, The Hindu has shown good growth in retail advertising during the current year. It has doubled its volume from previous year.
Bangalore - Retail Print Advertising Market Share (July08-June09)
Deccan Herald-blr 18%

Bangalore - Retail Print Advertising Market Share (July09-June10)

Deccan Herald-blr 18%

Hindu-blr 9%

Hindu-blr 10%

Times Of India-blr 73%

Times Of India-blr 72%

The Hindus Opportunities in Retail advertising in Bangalore Market While the market share of all leading publications in the Bangalore market almost remain the same, it is significant that, The Hindu has increased its volume significantly in the current year with a growth of 117% over previous year in retail advertising. The volume base of The Hindu is far lesser than Times of India which gives ample scope of increasing the amount of business done. Also the market is expanding considerably more shopping malls are coming to city by 2012. Downtown like strategy to reach micro markets like North zone, South zone, West Zone and East Zone where the malls are coming up should increase the volume of The Hindu and thus increase the market share in years to come.

Hyderabad
Zonal Classification Old Central Business District Off-Central Business District Suburbs Peripheral Locations Abids, Nampally S.P. Road, Begumpet, Panjagutta, Ameerpet, Himayatnagar Nagarjuna Circle, Banjara Hills, Jubilee Hills Madhapur, Hi-tech City, Kondapur, Kukatpally, Miyapur, Uppal, Saroornagar, LB Nagar, Pocharam

Organised Retail Space in Hyderabad Current (2010) Expected (2010-12) 3.05 mn.sq.ft 3.62 mn.sq.ft

Upcoming Shopping Malls in Hyderabad Prajay Celebrity Mall MPM Bonsai Ashoka Scintila Down town mall Mahavir mall Land mark Times square DLF towers Manjeera trinity Legend mint City Capital Mall

Hyderabad Hyderabad, the capital city of Andhra Pradesh with more than 4 million people, is one of the largest metropolitan cities. Over the last ten years, Hyderabad has transformed in to one of the most developed cities in the country. It has emerged as one of the IT hubs of India. The past decade saw the emergence of several popular retail destinations such as Somajiguda, and Panjagutta. Currently the most popular retail destinations are, Banjara Hills Road No.1 and Jubilee Hills. Today Hyderabad has the presence of a host of popular brands across segments such as apparel, footwear and so on. While some of the large retail players like Lifestyle and Shoppers Stop and mall projects like Hyderabad Central are located on Begumpet Panjagutta strip, other prominent malls like Lumbini Mall are located at Banjara Hills. The study has divided Hyderabad into different zones say, Old CBD (Central Business District) covering Abids and Nampally, CBD/Off CBD covering S.P. Road, Begumpet, Panjagutta, Ameerpet etc., Suburban markets like Banjara Hills, Jubilee Hills etc and Peripheral Markets like Madhapur, Uppal and so on. The total expected mall space is around 3.62 mn.sq.ft as against 3.05 mn.sq.ft as per current estimates. Currently, peripheral market leads with 41% share of total mall space utilization in Hyderabad followed by 30% from Suburban regions. The peripheral zone is expected to get substantial supply of mall space by the year 2012 also with 66% share. The percentage share of each zone is described in following chart. Shopping Mall Space in Hyderabad
Current mall space 3.05 mn.sqft in Hydbad Expected supply of mall space by 2012 3.62 mn. sqft

Peripheral 41%

Old CBD 8% CBD/OffCBD 21%

Old CBD 4%

CBD/Of f CBD 21% Suburbs 9%

Suburbs 30%

Peripheral 66%

Existing Malls in Hyderabad Existing Malls in Hyderabad Sanali mall MPM Mall Prasads Imax Hyderabad Central GS 24 carat GVK one City Centre Ashoka Metropolitan Lumbini Jewel Inorbit The Village Distribution shopping mall space for different categories Category Apparel Food & Beverage Personal Care, Watches, Jewellery Home and Lifestyle Books, Gifts and Music Electronics and White goods Percentage of Mall Space 64% 21% 6% 5% 3% 1%

Apparel and Footwear occupy largest quantum of mall space accounting for about 6% of total retail space. Food and Beverage comes second with 21% of total mall space. It is evident that restaurants, coffee shops etc attract good number of footfalls to shopping malls. Personal care, Watches and Jewellery comes third with 6% of total malls space consumption.

Retail Advertising in Hyderabad

The retail advertising in Hyderabad has shown only marginal growth of 14% during the period July09-June10 over July08-June09 when compared to other major cities in South India. The city witnessed very big growth during last decade in Real Estate and IT sector which resulted in good growth of retail industry in pockets. The total retail advertising market among major English dailies was almost the same in cities like Chennai, Bangalore and Hyderabad markets in terms of advertising volume. The market share of top 3 publications too not changed much during the year. However, Chennai and Bangalore seemed to grow at a faster pace during the current year.
Hyderabad - Retail Print Advertising Market Share (July08-June09)
Deccan Chroniclehyd 29%

Hyderabad - Retail Print Advertising Market Share (July09-June10)

Deccan Chroniclehyd 32%

Times Of India-hyd 53%

Hindu-hyd 18%

Times Of India-hyd 51%

Hindu-hyd 17%

The Hindus Opportunities in Retail advertising in Hyderabad Market According to a research study, the peripheral markets which consists of places like Madhapur, Hi-tech City, Uppal, Saroornagar etc and Off-Central Business District areas like Begumpet, Ameerpet, Himayat nagar are going to develop to a greater extent with 66% and 21% of fresh mall space respectively during 2010-12 to be occupied by these areas. Hence tapping of new micro markets in peripheral areas of Hyderabad may fetch in more volume for The Hindu in coming years.

Findings and Suggestions

As per recent study, the following is the percentage share of different categories organized retail to total market. (Images F&R research 2007 data). The figure implies that almost all categories are still waiting to explode in organized retail market. Retail Categories Watches Footwear Clothing, Textile and Fashion Accessories Health & Beauty Care Books, Music & Gifts Counsumer Durables, Household items Furnishings Mobile handsets Out of home (Catering) Service Entertainment Jewellery Pharmaceuticals Food & Grocery % Share of Organized retail 48.9 48.4 22.7 14.3 13.4 12.3 11.0 9.9 8.0 5.3 3.3 3.2 1.1

The findings from different research studies reveal that, the organized retail market is going to grow leaps and bounds during 2010-12 which opens big opportunities of advertising. The growth of organized retail not only restricts to metro cities, but also reaches Tier II cities like Pune at a faster pace. It is suggested that, Downtown can be extended to more regions and mall wise focus in various cities which will have the potential to fetch in more revenue.