MALL MANAGEMENT

GROUP MEMBERS :

Ashutosh Anand (01)Sandeep Bansal (04) Soumyadeep (05) Taru Gupta (15)Honey (28)Vatsal Parikh (30)

WHAT IS A MALL?

Mall is one of the basic configurations of the term “shopping centre”. It is the most common design mode for regional and super-regional centres which is often referred to as a ‘shopping mall’.

typically enclosed, climate-controlled and lighted, flanked on one or both sides by storefronts and entrances.

On-site parking, usually provided around the perimeter of the centre, may be surface or structured.

TYPES OF MALLS

Regional malls

Outlet malls

Seamless mall. Ex: CENTRAL

Vertical mall: Ex. TIMES SQUARE in Hong Kong.

Strip malls

Speciality malls. Ex. Ishanya mall, Eva Mall.

Discount malls

Vertical mall:

TIMES SQUARE,Hong Kong

Speciality malls.

Ishanya mall, Pune

Discount malls

Brand Factory

IN ORBIT MALL ,MALAD

LUXURY MALLATRIA MALL,WORLI

MALL SPACE AVAILABILITY From the setting up of India’s

first mall in 1999, there has been a steady migration of retail from the traditional to the organized format, the trend being more pronounced in the urban areas.

The total mall space across seven cities (NCR, Mumbai, Bangalore, Kolkatta, Hyderabad, Pune and Chennai) was spread over 40 million Sq.ft. in 2006- 2007.

Mall space is projected to increase to over 60 million Sq.ft. in 2007-2008.

MALL SPACE AVAILABILITY

The number of malls in Delhi, Mumbai, Hyderabad and Pune may touch 250 by 2010.

The total number of malls is projected to increase to 600 by 2010-2011.

ASPECTS IN MALL MANAGEMENT Accessibility :The site should be easily accessible by automobile and

within walking distance of some potential users

Visibility: A highly visible site along a major street with easy accessibility is ideal

Demographic Patterns: The mall should be located in an area which consists of the population that forms a large percentage of the target population

Site Capacity: The site should be large enough to provide a sufficient covered area, or the actual shopping area

Competition : The location of the mall should be such that it should neither face extreme competition,

Legal Matters: The chosen location must also satisfy legal considerations regarding fire regulations, licenses to operate, the area that can be built upon, etc.

ASPECTS IN MALL MANAGEMENT CONT.

Utilities Availability.: To avoid extra costs, the presence of electrical, water, gas, sewer, and other services should be in place now

Tie-Breaker Criteria. factors: Any acquisition costs. Demolition costs of any existing facilities on the site. Relocation costs of any existing business or residents

currently on the site. Any unusual site development costs that may occur, such

as from a site with underground utilities and/or water. The cost of providing sufficient utility service to the site.

  Transportation : The location must also consider the availability

of transportation facilities, especially public transport, to allow the customers to reach it easily.

MALL MANAGEMENT- CONSIDER SHOPPING MALLS AS “RETAIL” BUSINESS.

Demographic Segmentation Physiographic Segmentation

Anchor Tenant

Specialty Retailers Multiplex Food Court Entertainme

nt

End Consumers

Demographic Segmentation Physiographic Segmentation

TenantsAnchor Tenant

Specialty Retailers Multiplex Food Court Entertainme

nt

Mall Developer/Management

Primar

y

Consum

er

Secondar

y

Consum

er

STRATEGIC METHOD OF MALL MANAGEMENT

Location / Site Analysis

Catchment Profiling

Retail Market Assessment

Financial Feasibility

Leasing & Operations

Planning & Design

Concept Development

Competition Scanning

PLANNING OF MALL : METICULOUS

Plann

ing

Impl

emen

tatio

n

Let market forces determine the size, concept, positioning and tenant mix in the mall

DIFFERENTIATE YOUR MALL

Like any other consumer facing business, clear positioning and differentiated value proposition is critical for success of a mall and its tenants

Various ways to differentiate: Right Sizing Positioning - Luxury, Premium, Mass, Discount etc. Themes Structure - Enclosed, Open or Hybrid Tenants - unique / new / local successful formats -

diversity

BRING PROFESSIONAL MALL MANAGEMENT

Hygiene Factors: Public facilities such as bank ATMs, travel desks, foreign

exchange counters and other such services Cleanliness of restrooms Security

However the role of mall management could be much more than maintenance: Marketing & Promotion of the mall in collaboration with

tenants Monitoring tenants’ performance and bringing in new

tenants by replacing poor performing ones Provide business support to smaller tenants –

recruitment, training & benchmarking services

MALL PRICING TO MOVE “MORE” TOWARDS REVENUE SHARE

Revenue share Model: A common practice in developed markets Few early adopters in India As developers have more experience and learning on the business of their

tenants, this practice would catch up

• Shops sold to retailers/ investors• Short term investment• Lack of discipline, maintenance & control over trade and tenant mix, high vacancy rates

SALE MODEL

• Revenue from Rents• Lesser Risks• Medium term investment (low-risk/medium returns)• Some Control over Mix & therefore the shopper• Some Ability/ Flexibility & Incentive to improve

LEASE/ LICENSE MODEL

• Base rent or %age of sales, whichever is higher• Business partnerships between retailer & developer• Incentive to build a better product• Result oriented events and promotions• Better equipped to face competition• Same risk profile but greatest returns

Occupier Outflow : Monthly Minimum Guarantee Or a fixed % of sales, which ever is higher

REVENUE SHARE MODELSta

ge 1

Stage

2

Stage

3

INNOVATIVE FORMATS IN MALLS

Specialty formats

Formats like ‘Wedding Malls’, which are unheard of in the far west are making their presence in the Indian market. These stores stock the complete range of wedding needs from apparel to jewellery.

Khadi & Village Industries Commission (KVIC) is set to roll

out a string of swanky ‘Khadi Plazas’, which would showcase the handloom textiles in a new form. Over 7,000 existing outlets are to be beefed up to cater to the changing tastes of the young consumer.

A latest addition to the diverse formats are the ‘VillageMalls’, with the fair price shops being revamped to cater to larger needs of the local populations. Gujarat Government has spearheaded this initiative with 512 “malls” launched and another 508 on the anvil.

SOME OTHER TRENDS….

Malls as Marketing media:

The most important advantage being captive consumers with no distraction of traditional media while shopping at the mall

Malls as community centers:

An offering through creating a soul for the place and exploit the opportunity to accomplish several errands in one place

While people come to shop, they also come to gather at a place that offers greater meaning and experience

As more and more shopping malls start operating, the place will cease as a shopping place alone, rather would take on the role of a “third place” – a public gathering spot

This concept would be more relevant in smaller cities

FUTURE OF INDIAN MALLS

Virtual and 3D shopping malls

Theme based malls

Destination malls

Specialty Malls

CONCLUSION

To ensure that a mall attracts retailers and consumers, professional mall management is a necessity. The mall market is an extremely competitive one, having a high degree of internal and external competition, the latter being from established high-street locations across all cities.

To lure retailers and consumers to its mall, a developer has to ensure that their property follows the best practices in the market especially in terms of mall management.

Thank you