For more details: www.bangalore5.com
For legal Consulting : www.advocateselvakumar.com
The Indian retail industry no longerconsists of irregular family run efforts but has evolved into an organized wellmanaged business. It is of critical importance that this beginning be properlychanneled in a coordinated way so that it grows. This sector has much potentialfor growth as only 4% ofIndia's retail industry consists of the organizedsector unlike Malaysia where it is 55%, Thailand where it is 40% and 20% inChina. Consumers however have now shown tastes and preferences for an enjoyable
shopping experience along with this growth. Now there is more than 40 million
sq ft of retail space operating over 130 malls in this country. Within the next
3 years this development would be more than 100 million sq ft in the fast growing
organized retail and within the next 5 years it would average 200 million. The
success of development now depends on the factors of differentiation and
convenience as there is such a large scale of mall supply.
The condition of development of malls
is well summed up in the words of the famous General Georges. Patton - 'If
everyone is thinking alike, then someone isn't thinking.' There would be a
peculiar set of challenges in the operation of each development incumbent
depending upon size, location, ownership patterns and positioning. There would
be sharp competition among these malls and the ability of a mall to adjust to
the needs of the consumer and provide the needed experience and merchandise to
its customers would decide its survival.
The efficient management of the
business would decide the success of malls. Just as airline passengers choose
which airline to fly according to the services provided, developing a mall is
also akin to establishing a business unit. There are many aspects to the management
of retail space beginning with the planning, design, infrastructure, trade mix
and tenant mix, operations, planning peak hours and seasons, safety, preparing
for emergencies and marketing. The success and sustenance of the mall depends
on each ofthese.
First of all the development has to
be rightly positioned and it is necessary to pinpoint the personality of the
development and specify the target audience with their requirements. Retailers
should be given the benefit of right spaces for them in the mall and consumers
should be given an outstanding shopping experience. The customers should be
given enough reason to make them walk through the mall and each zone in it
should be exciting and enjoyable for them. This would keep the cycle of
retailer attraction and customer satisfaction going. A mall of an average size
would produce INR 6 billion annually and give employment to 800-1000 people.
The activity behind the scenes should be well-planned so that it does not
interfere with the experience of the customer. Chaos can be avoided by planning
services and back end infrastructure in advance. Time spent by the consumer in
parking should also be reduced to the minimum by careful planning on the part
of the retailer.
A mall should be well-planned so thatit can take care of the hardware of the mall development and should carefullychoose the trade and tenant mix because it helps in the day to day aspects ofthe shopping experience. A very patient approach is needed while keeping
retailers in the mall. The time factor must always be kept in mind by the
developer and the best retail formats should be brought in. Economic activity
in the catchment area must be foreseen and leases planned with different
retailers in a way that will be flexible for repositioning the mall in the days
to come.
The whole purpose of the mall
operating efficiently is to meet the needs of the shoppers and make way for the
success of the retailers who are the business partners. The peak and non peak
business hours or days have to be planned and the malls need special staff for
meeting the needs of the shoppers during peak hours and the festive season for
the convenience of the public. The benefit of the retailers lies in the maximum
amount of time spent in the mall by the customer. There should be an effective
plan for any emergencies in this business centre to ensure the safety of the
customers. There should be regular safety drills and the mall and retailer's
staff have to be trained to assist shoppers at such times.
All mall operations should be
efficient, effective and transparent. Provisions for the Common Area Maintenance (CAM) must be made
by the retailers who run their shops in different malls or they should pay the
service charge as it applies to them. The CAM charge should not be different
each month and a budget for the service charge should be planned properly.
Provisions should be made for major repairs well in advance by the operator of
the mall and a yearly budget should also be prepared for the operations. This
will bring in discipline to the functioning and give improved control.
The time when the shopper decides to
enter the shop and not when he enters it, will be largely influenced by the
retailers' treatment. Factors in a high street shop such as the signage, neat
footpath, parking ease and entrance into the shop are the initial steps the
cus- tomer takes in relation to the retailer. While selecting and designing the
store it is necessary to consider these points. The retailers must make sure
that there is good signage and clear corridors in the mall. Once the customer
is in the shop what is important is the interaction with the customer, the easy
possibility of looking through the goods and the appearance, display and feel
of the store. The layout of the store is the first introduction of the brand to
the customer. The brand's image can be made or broken through this and
therefore needs to be carefully planned. Buying on impulse is likely to be more
frequent in a warm and organized atmosphere.
This kind of organized retail shopping
malls is still a novel idea in India. Few professionals are available with
experience in the field to manage it. There is lack of exposure to the finer
aspects of retailing and managing retail realty. It is hard to employ retail
professionals with experience for both retailers and developers. To help us to
learn we need to import the knowledge, processes and procedures and for a long
term solution invest in training and making rofessional courses in order to
obtain a suitable pool of talent.
There are innumerable opportunities
for retailers and consumers given the size of the Indian retail market and the
increased consumption expenditure and retail sales. The choice of a mall to
shop might become the problematic decision for the consumer. As there are rising
incomes and induction of western lifestyles, quality and experience matter the
most. High quality and standards of services will create a lasting impression
on the consumers.
For more details: www.bangalore5.com
For legal Consulting : www.advocateselvakumar.com
No comments:
Post a Comment