After a lull of 2-3 years the Indian retail industry and the consumerism within is back on the track. The organised retail outlets and malls have seen a spectacular rise in numbers.
After a lull of 2-3 years the Indian retail industry and the consumerism within is back on the track. The organised retail outlets and malls have seen a spectacular rise in numbers. This has resulted in bringing consumer's attention back to the malls. It is also expected that the total mall space is likely to be close to 75 million sq ft by 2015 covering major cities like Delhi, Mumbai, Pune, Bengaluru and Hyderabad.
During the Indian Retail and eRetail Congress and Awards 2015, Retailer Media spoke to Vivek Biyani, Director, Future Group & Big Bazaar Direct, and asked about his opinion on the same. He said, once again the mall space will see an immense rise in the country. The consumer sentiment is back with a better stock market rating and low end commodities. Though there are certain other categories where they are spending money but still he feels confident about the New Year.
The trend that went against
At a point of time, supermarkets and malls started finding it difficult to manage the footfalls, and so they decided to allow those who had either a credit card or a mobile phone. The growing habit of ordering through online portals due to easy payment options with no difficulty to visit to a shop brought shopping malls to an extinction point.
In the last 1 year, the shopping malls have fought back slowly but steadily. Global investors have shown interest in this perceivably driven market. Many international retailers want to expand their presence in the Indian market and they have been the main target, or in other words, ladder in the comeback strategy for shopping malls.
The trend that will bring it back
Largely, two noteworthy trends have been observed in the mall arena which is fast catching the imagination of mall developers, shoppers and the retailers. A lot of malls in India have started providing not just wholesome shopping experience but are also accommodating offices and hotels. Many malls have been developed around this idea by some of the leading malls developers in the country. Another idea is called "open mall", that are supposed to provide high street shopping experience with some value-ads. These developments have altered the shopping experience at malls, and now the customer base for malls is likely to increase a lot more pleasurably and substantially.
The Omni-Channel Way
These days, a lot of food and beverages giants, luxury retailer, and fashion chains have chosen the omni-channel route to uplift their sales. As per Vivek, a customer engages with a brand across different channels of retail at different points of time. A customer can be at the store at a certain point for a certain product and he might as well go online for a certain product. So, whichever route they take, we will have to serve them there. And Omni-Channel retailing is something The Future Group will be seriously looking at in the coming years.
The competition within
Strong brands like Zara and Mango has signed a lease of five years with DLF Saket Place in New Delhi. On the other hand, Nirmal Lifestyle Mall, Mumbai, is in talks to establish a residential space and a new mall design after the dome-shaped mall that was local attraction in the mid-2000s. Dreams Mall, Mumbai, is planning to give way to a hospital. Supermarkets are reality, interlinked into the urban life and community drivers. Only a few will survive and they will be those who are prepared to reinvest and reinvent.
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