Analysis of Consumer Preferences in the malls of Delhi NCR Name of the Author : Dr.N.H.Mullick, Professor (Marketing) & Dean (Academics) Asia Pacific Institute of Management, New Delhi. E-mail: naushadmallick@gmail.com Mobile: 9899846750

Extended Abstract Purpose of research : Shopping malls has emerged as a shopping and entertainment destination. In a developing country like India this concept is catching up but more research of the trade area is to be done for better operation of the mall. The purpose of this paper therefore is to assess the expectations of consumers and then design and operate the mall. Methodology: A mall intercept survey has been conducted on a sample size of 750 in NCR Delhi around ten selected malls selected area wise (new and old both) on selected parameters. The technique used in the process is convenience, quota & judgment sampling. Major results: After analyzing the consumer preferences in Delhi NCR based on age, gender, marital status, occupation, income, and family type it was observed that the mall developers must understand the traits and habits of consumers first and then plan the positioning of the mall. The success of malls can not only be achieved by housing the biggest and the best mix of retailers, but by setting up new standards and procedures in mall management. The prime objective therefore of these mall developers, must be to analyze the expectations of consumers in their trade area through proper researches and attract them through various events and promotions, satisfy them by providing products and services as per their choice. This will also boost the retailers turnover and benefit their bottom line. Actually the job of a mall developer does not end by constructing a mall but it starts just after the start of its operation. The success of the mall lies therefore in better mall management, by giving shops to specific tenants who can fulfill the aspirations of the trade area or the footfall being attracted by the mall through its positioning approach and satisfying them with giving them an opportunity to shop products of their choice, taste and liking, give them various

avenues of entertainment to them as well as their family, kids etc so that they get a memorable experience without any hassles and they come again and again. Implications: The sampling frame for this research was limited to NCR Delhi only. The findings therefore can not be generalized due to changed demographics existing in India and the world. Due to the time and resource constraints the study was done in NCR Delhi only and it certainly might have created some biases. Future research must therefore be undertaken in future to cover large samples in varied locations with diverse demography and culture.

Keywords: Retail, shopping malls, consumers, expectations, image, perception.

Analysis of Consumer Preferences in the malls of Delhi NCR India has one of the youngest populations in the world compared to the aging populations of the US, China, Japan, and the UK. By 20258, due to the migration and population growth, the urban population is estimated to account for 378 percent of the total population. By the same time, the Indian consumer market is likely to largely be an urban affair with 62 per cent of consumption in urban areas versus 38 per cent in rural India. The middle class (including aspirers), which accounted for 45 per cent of total households, in 2005 is expected to rise to 68 per cent by 2025 8. Aggregate consumption is also expected to grow four fold in real terms from US $ 420.7 billion in 206 to US $ 1.73 trillion by 20258.

Driven by changing lifestyles, strong income growth and favorable demographic patterns, the number of operational malls has doubled to over 412 shopping malls (205 million square feet) by 20102 and is further expected to reach 715 malls by 20152 on the back of major retail developments even in tier II and tier III cities in India. Malls inspire Fashion based shopping as distinct from the need based shopping inspired in Super markets and Discounts stores18. In India and especially in NCR Delhi this mall culture has grown with an incredible pace due to the rising incomes from continued economic growth, easy availability of credit cards and a demographic composition (as more than 80 percent of the population are aged under 45 and 50 percent less than 25)17 that favors spending in malls, This has also resulted further change in the spending habits of affluent households, as we find many families doing their monthly grocery shopping at malls and paying by cards. With these changed trends, the number of shopping malls is expected to increase at a CAGR of more than 18.9% from 2007 to 2015.13 It has been seen that the total retail mall stock is doubling every year, from a meager one million square feet in 2002 to 40 million square feet by end 2007.It has also been estimated that this will reach 60 million square feet by end 200816 about 300 million square feet by 20106 with around 200 malls. Northern India will lead the retail boom, with 136 new malls by 20106. New Delhi is expected to get 15 malls and its suburbs, Faridabad and Ghaziabad6, will get seven new malls each. Malls throughout the country are also getting bigger as they are now being positioned as one-stop-shop for shopping, entertainment, leisure and eating out needs rather than a place only for shopping for fashion products9. They are becoming image benchmarks for communities. It not only offers a great shopping experience but also a mine of business opportunities10. This has resulted in developers undertaking competition in a better way and giving more importance to factors like parking, mall design and soft strategies like customer relationship to make these malls work. Because the number of department stores and mall store shoppers which enter a shopping mall correlate positively with the amount of time they spend at the mall14. The increase in the number of malls in metros has also resulted in competition for footfalls by these malls because merely creating a shopping mall does not guarantee a success for the promoter. The business of the mall does not end after building the mall but it commences only after the start of the operation of the mall. All these malls have been started by the builders for short term gains

with little research on the trade area and the customer preferences or habits as they wanted to cash on the emerging trends of the markets. They copied a format which led to the success of earlier malls like foreign brands store situated in one floor, Indian branded stores in second floor and food court in the third floor. Sometimes they have also added a multiplex with multi screen and a discount store to attract footfalls and are relying mainly on impulse buying by the customers visiting these malls. Due to this there is no distinct positioning visualized by the consumer, hence the desire to visit the mall and spend their precious time is receding. It is also visualized that the buying habits of consumers are changing. Today a customer comes regularly to a mall with the whole family and is combining his shopping with entertainment. He/She comes in groups with friends, relatives and children and intend to spend a longer time enjoying a movie at multiplex, buying daily needs/ clothes in a discount store/ branded store and dining in the food court. They also want their children to enjoy and have fun time with them. So, if any shopping mall wants to be successful, they have to research the trade area and have a thorough research as regards to the profile of consumers residing in the trade area, their buying habits, consumer behavior, so that they can plan and provide shops and products as per their liking. Most of the footfalls today in these malls are browsers and they are not consumers. They visit the mall for meeting with their friends or relatives or dine in the food court. There is a general tendency that they feel that the products in these malls are costly and hence they do window shopping more and purchase goods at place which are providing value buying. Most of the shopkeepers in these malls are doing less business and day by day the viability of their existence is reducing. Most of them have either reduced the scale of business or in a verge of closing their shop. In these circumstances to succeed in this mall business a promoter has to analyze the preferences of the consumers present in the trade area around the mall, analyze their preferences, create a market with shopkeepers who can provide them the merchandize required as per their taste and liking and provide them a place where they can come with their family and children and extend their visit with

different offering as per their likings and satisfy them to the hilt. This will further result in enhancing the number of visits and also provide better business to the shopkeepers existing in these malls. For this a proper analysis of the consumers are required and planning has to be done ahead by these mall developers further in attracting the right footfalls through events, fairs etc and also provide them the right products and services. Today customers combine shopping with entertainment and a mall visit must be a remembrance for the family so that they can shop as well as spend their valuable time with zest and come back again and again. This study is therefore done around Delhi NCR to analyze the diversity of consumers in NCR Delhi and suggest the mall developers in the region to create strategies to enhance their footfall and be more successful. To analyze the diversity of consumers in NCR Delhi : In this study following 10 shopping malls were selected in and around Delhi NCR and this was done based on the concept of Convenience, Quota and Judgment sampling. The consumers were contacted in person through mall intercept survey.

1.

Ansal Plaza, South Delhi

2. City Walk, South Delhi 3. TDI Mall, West Delhi. 4. City Square Mall, West Delhi. 5. Great India Place, NOIDA 6. Center Stage Mall, NOIDA 7. Pacific Mall, Ghaziabad. 8. Shipra Mall, Ghaziabad. 9. Sahara Mall, Gurgaon. 10. Ambience Mall, Gurgaon.

After collecting the data through a pre-designed questionnaire comparison was done on the following parameters: 1. Perfectionist/ High Quality Conscious (P/HQC), 2. Brand Conscious / Price equals Quality (BC/PEQ), 3. Novelty and Fashion Conscious (NAFC),

4. 5. 6. 7. 8. I)

Recreational & Shopping Conscious (RASC), Price Conscious/ Value for money (PC/VFM), Impulsiveness/ Careless (I/C), Confused by over choice (CBOC) Habitual/ Brand Loyal (H/BL)

- AGEWISE ANALYSIS OF CONSUMER PREFERENCES:

Table : 1 AGEWISE ANALYSIS OF CONSUMER PREFERENCES

Age (years) < 18 Mean N St. Dev 19 - 25 Mean N St. Dev 26 - 40 Mean N St. Dev > 40 Mean N St. Dev Total Mean

P/H QC 4.00 54 0.80 3.66 194 0.96 3.90 270 0.76 3.88 164 0.82 3.83

BC/P EQ 3.60 54 0.71 3.29 194 0.83 3.36 270 0.76 3.33 164 0.72 3.35

NAF C 3.53 54 0.77 3.37 194 0.84 3.38 270 0.74 3.31 164 0.81 3.37 RASC 3.24 54 0.69 3.11 194 0.60 3.15 270 0.60 3.16 164 0.59 3.15

PC/ VFM 3.20 54 0.57 3.34 194 0.74 3.35 270 0.63 3.22 164 0.71 3.30 I/ C 3.00 54 0.55 2.98 194 0.55 3.00 270 0.48 3.00 163 0.53 3.00 CBOC 3.35 54 0.73 3.16 194 0.86 3.20 270 0.78 3.39 164 0.81 3.25 H/BL 3.46 54 0.75 3.28 194 0.86 3.37 270 0.74 3.19 164 0.79 3.31

N St. Dev

682 0.85

682 0.77

682 0.79

682 0.60

682 0.68

681 0.52

682 0.81

682 0.79

After analyzing the consumers based on age in all these selected 10 malls it was found that the teenage consumers (below the age of 18 years) were found to be more fashion conscious, perfectionist in nature, always attracted towards high quality branded products which ,high in novelty and mix shopping with recreation and entertainment. The age category (19-25 years) were found to be more price conscious and looked on the Value for money factor. The age category, above 40 years was found to be confused by over choice. II- GENDERWISE ANALYSIS OF CONSUMER PREFERENCES : Table : 2 GENDERWISE ANALYSIS OF CONSUMER PREFERENCES P/H Gender Male Female Total Mean N St. Dev Mean N St. Dev Mean N St. Dev QC 3.83 412 0.87 3.84 270 0.80 3.83 682 0.85 BC/P EQ 3.39 412 0.77 3.29 270 0.77 3.35 682 0.77 NAFC 3.33 412 0.80 3.42 270 0.77 3.37 682 0.79 RASC 3.10 412 0.59 3.22 270 0.62 3.15 682 0.60 PC/ VFM 3.32 412 0.69 3.28 270 0.66 3.30 682 0.68 I/C 3.03 411 0.51 2.94 270 0.52 3.00 681 0.52 CBO C 3.32 412 0.80 3.13 270 0.81 3.25 682 0.81 H/BL 3.29 412 0.79 3.34 270 0.79 3.31 682 0.79

After analyzing the consumers based on gender in all these selected 10 malls it was found that the females were more perfectionist, fashion conscious, fun loving looking towards recreation and also brand loyal. The males shopping in these malls were found to be looking for value pricing, were found to be impulsive and were also confused by over choice. III- MARITAL STATUS WISE ANALYSIS OF CONSUMER PREFERENCES: After analyzing the consumers based on marital status in all these selected 10 malls it was found that the married persons were perfectionist, brand conscious, fun loving looking towards recreation. Table : 3 MARITAL STATUS WISE ANALYSIS OF CONSUMER PREFERENCES:

Marital Status Married Unmarried Total Mean N St. Dev Mean N St. Dev Mean N St. Dev

P/H QC 3.86 476 0.82 3.76 206 0.91 3.83 682 0.85

BC/P EQ 3.36 476 0.74 3.34 206 0.83 3.35 682 0.77

NA FC 3.37 476 0.77 3.37 206 0.84 3.37 682 0.79

RA

PC/ I/C CBOC 2.99 3.25 475 476 0.51 0.79 3.00 3.24 206 206 0.54 0.85 3.00 3.25 681 682 0.52 0.81 H/BL 3.29 476 0.79 3.35 206 0.80 3.31 682 0.79

SC VF M 3.18 3.27 476 476 0.59 0.67 3.08 3.37 206 206 0.62 0.68 3.15 3.30 682 682 0.60 0.68

IV- OCCUPATION WISE ANALYSIS OF CONSUMER PREFERENCES: Table : 4 OCCUPATION WISE ANALYSIS OF CONSUMER PREFERENCES: Occupatio n Student Mean N St. Dev Housewife Mean N St. Dev Mean N St. Dev Mean N St. Dev P/H QC 3.77 85 0.82 3.73 221 0.90 3.91 376 0.81 3.83 682 0.85 BC/P EQ 3.27 85 0.84 3.32 221 0.82 3.39 376 0.72 3.35 682 0.77 NA FC 3.40 85 0.84 3.44 221 0.78 3.32 376 0.78 3.37 682 0.79 RA PC/ I/ C CBOC 3.03 3.16 85 85 0.56 0.91 2.92 3.11 221 221 0.49 0.82 3.03 3.35 375 376 0.52 0.77 3.00 3.25 681 682 0.52 0.81 H/BL 3.35 85 0.79 3.33 221 0.83 3.29 376 0.76 3.31 682 0.79

Working Total

SC VF M 3.14 3.44 85 85 0.64 0.70 3.17 3.25 221 221 0.61 0.70 3.14 3.30 376 376 0.59 0.66 3.15 3.30 682 682 0.60 0.68

After analyzing the consumers based on occupation in all these selected 10 malls it was found that the working professionals were more perfectionist, fashion conscious, but were confused by over choice. The housewives were found to be having a value orientation, were more fashion conscious, more recreational in nature. The students were found to be more attracted towards

novelty products, were found to be fashion conscious, had an orientation towards entertainment, looking for value for money approach, impulsive, careless but more brand conscious. V- FAMILY MONTHLY INCOME WISE ANALYSIS OF CONSUMER PREFERENCES: After analyzing the consumers based on income in all these selected 10 malls it was found that the consumers in the Income bracket (> Rs 50001) were more perfectionist, brand and fashion conscious, were attracted towards novelty products, were more fun and recreational oriented. The consumers in the income bracket (Rs 20001 -30000) were more price conscious and looked for a value for money approach.

Table : 5 FAMILY MONTHLY INCOME WISE ANALYSIS OF CONSUMER PREFERENCES: Monthly Family Income Rs. 50001 Total

N St. Dev

682 0.85

682 0.77

682 0.79

682 0.60

682 0.68

681 0.52

682 0.81

682 0.79

VI- FAMILY TYPE (FT) WISE ANALYSIS OF CONSUMER PREFERENCES: After analyzing the consumers based on family type in all these selected 10 malls it was found that the consumers with single Income with no kids were more brand conscious and had a value for money approach. The consumers with single income and with kids were found to be recreational and shopping conscious. The consumers with double income and with no kids were found to be novelty and fashion conscious, impulsive and careless. The consumers with Double income and with kids were found to be more quality conscious, were more recreational and shopping conscious and also confused by over choice.

Table : 6 FAMILY TYPE (FT)WISE ANALYSIS OF CONSUMER PREFERENCES P/H FT SIWNK SIWK Mean N St. Dev Mean N St. Dev Mean N St. Dev Mean N St. Dev Mean N St. Dev QC 3.81 196 0.86 3.76 199 0.88 3.77 98 0.83 3.96 189 0.80 3.83 682 0.85 BC/P EQ 3.42 196 0.80 3.26 199 0.79 3.35 98 0.76 3.38 189 0.71 3.35 682 0.77 NA PC/ I/ C 3.01 196 0.54 2.99 199 0.48 3.03 98 0.55 2.97 188 0.53 3.00 681 0.52 CBO C 3.33 196 0.80 3.11 199 0.83 3.20 98 0.70 3.34 189 0.84 3.25 682 0.81 H/ BL 3.36 196 0.82 3.17 199 0.78 3.42 98 0.75 3.34 189 0.78 3.31 682 0.79

DIWNK DIWK Total

FC RASC VFM 3.38 3.07 3.36 196 196 196 0.78 0.60 0.72 3.29 3.17 3.22 199 199 199 0.77 0.57 0.69 3.47 3.11 3.31 98 98 98 0.77 0.62 0.62 3.38 3.23 3.32 189 189 189 0.82 0.62 0.64 3.37 3.15 3.30 682 682 682 0.79 0.60 0.68

SUGGESTIONS FOR MALL DEVELOPERS: After analyzing the consumer preferences in Delhi NCR based on age, gender, marital status, occupation, income, and family type it was observed that the mall developers must understand the traits and habits of consumers first and then plan the positioning of the mall. The success of malls can not only be achieved by housing the biggest and the best mix of retailers, but by setting up new standards and procedures in mall management. The prime objective therefore of these mall developers, must be to analyze the expectations of consumers in their trade area through proper researches and attract them through various events and promotions, satisfy them by providing products and services as per their choice. This will also boost the retailers turnover and benefit their bottom line. Actually the job of a mall developer does not end by constructing a mall but it starts just after the start of its operation. The success of the mall lies therefore in better mall management, by giving shops to specific tenants who can fulfill the aspirations of the trade area or the footfall being attracted by the mall through its positioning approach and satisfying them with giving them an opportunity to shop products of their choice, taste and liking, give them various avenues of entertainment to them as well as their family, kids etc so that they get a memorable experience without any hassles and they come again and again. REFERENCES

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