1

CHAPTER I

INTRODUCTION

1.1 Overview

The retail sector in India is witnessing a huge revamping exercise as traditional markets make

way for next formats such as departmental stores, hypermarkets, supermarkets and specialty

stores. Western-styles malls have begun appearing in metros and second-running cities alike

introducing the Indian consumer to a shopping experience like never before. India‟s vast

middle class and its almost untapped retail industry are key attractions for global retail giants

wanting to enter newer markets. The structure of retailing is developing rapidly with

shopping malls becoming increasingly common in large cities, and development plans being

projected to 500 shopping malls by 20151.

The latest trend in the corporate universe is of the emergence of the shopping malls.

Shopping malls are an emerging trend in the global arena. The first thing that comes in our

mind about the shopping malls is that it is a big enclosed building housing a variety of shops

or products. According to historical evidences shopping malls came into existence in the

Middle Ages, though it was not called so. The concept of departmental stores came up in the

19th century with the Industrial Revolution. Consumers wanted a better shopping experience

and this demand gave rise to the emergence of shopping malls in India.

Originally the first of the shopping malls was opened in Paris. Then the trend followed in the

other metros over the world, and there was a spree of shopping malls coming up at various

places. In this age of mass production and mass consumption, the concepts of shopping malls

are most modern method of attracting consumers. The concept of shopping was altered

completely with the emergence of these shopping malls.

Shopping is no longer limited to a mere buying activity - it has become synonymous with

splurging time and money. People simply go about roaming through the shopping mall in

order to peep through the window of the shop and often ending up buying something they

like. The consumers desire a combination of comfort and suitability which the shopping malls

cater to, and so this format of shopping has become so popular all over the world, and

1Current Trends inTechnology and Science ISSN:2279–0535.Volume:2, Issue:1

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especially so in India. The inclusion of amenities like restaurants, multiplexes, and car parks

attract more and more crowds to shopping malls that are considered family hangout zones.

1.2 Definition

“A shopping mall (or simply mall), shopping center, or shopping arcade is a building or

set of buildings that contain stores, and has interconnecting walkways enabling visitors

to easily walk from store to store. The walkways may or may not be enclosed.” The

above mentioned definition can be explained as

A shopping mall is typically, a shopping complex connected by walkways. It provides

shopping as well as entertainment options to the target consumers. It generally, contains one

anchor store, which consumes twenty five percent of its retail space. In addition a mall

contains specialty stores for clothes, accessories, home needs, books, as well as food court,

multiplexes and entertainment zones2. A Shopping Mall or Shopping Center is a building or

Set of buildings that contain retail units, with interconnecting Walkways enabling visitors to

easily walk from unit to unit. Mall is generally used to refer to a large Shopping area usually

composed of a single building which contains multiple shops. Therefore mall can refer to a

place where a collection of shops all adjoins a pedestrian area that allows shoppers to walk

without interference from vehicle traffic. The term, Mall can mean market for all„. The first

mall was constructed in Canada and was known as West Edmonton mall. A mall comprises

of Shopping complexes, food courts and retail outlets.

1.3 Conclusion

Malls usually cater to Shopatainment (Shopping and Entertainment). Today malls are gaining

importance as the disposable incomes of consumers are increasing. Consumers visit malls to

pass time shop and also to dine at the restaurants located in the malls. There is development

of rich in mall segment, which is catering to particular segment of people, they are meant for

specific types of products which are called as specialty malls. The study is about how the

shopping malls are helping the economy to grow. It focuses on the trends in shopping, the

satisfaction level of the people and the scope of malls. Advantages and disadvantages of

shopping malls are also an important concern of this project.

2Sankar A.R.N.,―Shopping Malls: A New Shopping Experience‖, ICMR Case Collection ,ICFAI Centre for

Management Research, 2005

3

CHAPTER II

LITERATURE REVIEW

2.1 Introduction

In this chapter the history of malls, the evolution of malls in India, the various concept of

shopping malls, types of malls, advantages and disadvantages and impact of malls are

studied. The benefits of shopping malls and various problems of mall development in India

are also highlighted.

2.2 History of Malls

The concept of shopping malls first appeared in 1950s.The credit towards invention of

modern mall goes to Australian born architect and American immigrant Victor Green.

The first generation of malls was set up in Northgate Mall, US in 1950.

NorthlandShoppingCenterwasconstructedbyVictorGreenintheUSin1950.

Gulf gate Mall in Houston was an open air shopping center for customers.

Later as time passed the malls were then shifted from the crowded commercial areas to the

residential suburbs. These malls were accessible only through automobiles and therefore

gradually became a famous destination for retailers across the world.

2.3 Evolution of Shopping Malls in India

For many people, organized, retail appeared in India with the launch of the „first malls‟ in

1999. The launch of „Ansal‟s plaza‟ in Delhi and “cross roads‟ in Mumbai are hailed as the

spark that led to the explosion of organized retail in the country and transformed the retail

landscape in India. Even highly respected news journals have reported that “only three

shopping malls” existed in India at the end of 2002. However, if one were to define shopping

centers or malls as enclosed shopping spaces, then Mumbai Crawford market (opened in

1869) and Kolkata‟s new market (1874) surely have the pride of place as the pioneering malls

in India. Delhi‟s Connaught place (opened in 1931) should also definitely be considered, with

its covered arcades. More recently, new Delhi‟s partially underground palika Bazaar, the

mini- malls of the late1980 on Bangalore‟s Brigade Road and shopping centers built by

private developers in Ahmadabad and other cities have all had a role to play in the evolution

4

of organized retail spaces in the country. So, it would be accurate to view the most recent off

spring of a long lineage or organized shopping centers.

2.4 Concepts of Malls

The concept of Retail as entertainment came to India with the advent of malls. Mall fever has

touched every facet of Indian society. Whatever is the income stratum of consumers,

malls make no distinction in proffering most-revered national and global brands3Shopping

Mall refers to a set of homogenous and heterogeneous shops adjoining a pedestrian, or an

exclusive pedestrian street, that make it easygoing for shopper to walk from store to store

without interference from vehicular traffic. Malls are incorporated with a whole bank of lifts

and escalators for smooth transit of shoppers. Malls are located in proximity to urban

outskirts, and ranges from 60,000 sq. ft. to 70,000 sq. ft. and above4. The future of organized

retailing is largely in the hands of mall where the shoppers get quality, quantity, aspirational

appeal, recreation facilities and ambience Under one roof, the flashy malls promises just

about everything under the sun, from foreign gizmos to the very desi, virtually an airbus full

of national and international brands, to say the least. Malls offer a plethora of attractions-

high profile shopping, impulse eating establishment, a glitzy and glamorous environment…

to discerning shoppers of more refined tastes, who are more concerned with quality

and fashion and less concerned with budgets. Mall reveals six factors namely comfort

diversity, luxury, mall essence, entertainment, and convenience which are a source of

cynosure.

In India, malls have transformed shopping from a need driven activity to a leisure time

entertainment. The quality mall space which was just one million square feet in 2002 has

accomplished new milestones of 40 million square feet and 60 million square feet in

2007 and 2008 respectively5. There is a paradigm shift in the mall scenario, from just 3

malls in the year 2000; the country witnessed 220 malls in the year 20066. Exhibiting signs

of further enlargement India is likely to have more than 600 in 2010 and 715 malls in 2015,

with an estimated cumulative retail space of 100 million sq. ft.7. Shopping malls in India are

reckoned to worth Rs.38, 447 crore by the year ending 2010. Real estate corporations like

3 Roy.K.and Malleria Ahoy., available at: http://www.coolavenues.com/cafe/articles/kisholoy-malleria- 1.php 4 Lather.A.S. and Kaur T., Shopping Malls: New retail formats keeping pace with the shopper‟s mood JIMS 8M,

pp. 22-27, 2006. 5 Retail Management Practices in Indian Industries.

6 Arora A and Rahate V., Mall Culture, Effulgence, Vol.6, No.1, pp. 1-5, 2008.

7 Pradhan, S., Retailing Management, Tata McGraw Hill, Second Edition, Noida, 2004.

5

DLF and Unitech are coming forth with the plans catering the ever-escalating demand of

shopping malls. In the next four to five years Rs 65,000 is budgeted to be invested in retail

real estate development8.

In most of traditional Indian malls, around 30 percent of space is allocated to apparel retailers

while 12-20 percent space is dedicated to Food and Beverages. Indian malls vary from 35,000

sq. ft. to 10, 00,000 sq. ft. while U.S. version is between 4, 00,000 sq. ft. to one million sq.

ft... The largest malls in Indian metropolitan cities enjoy 25,000 footfalls per day which

hikes to an average of 40,000 on weekends9. Due to radical revival of shopping and

consumerism shopping mall syndrome has hit India in all earnest. Even though the malls are

mushrooming from metros and mini metros to tier III cities, the spread of malls is highly

concentrated in India. North Zone is having the peak attractiveness with 39 percent while

South, East, and West Zone respectively holds 18 percent, 10 percent, 33 percent of total

malls. The shopping behaviour of consumers is likely to change as these formats were not in

existence in the country until recently10

.

2.5 Types of Malls

The malls basically are classified on the basis of their Merchandise orientation means types

or Goods and Services sold and their size. The trend towards differentiation and segmentation

will continue to add new terminology as the industry matures. Following are the

different types of malls.

2.5.1 Regional Malls: According to International Council of Shopping Centers a regional

mall is a Shopping Mall which is designed to service a larger area than a conventional

Shopping Mall. It is typically larger than 400,000 square feet to 800,000 square feet gross

leasable area with at least two anchors and offers a wider selection of stores.

2.5.2 Super Regional Malls: This is a mall which is almost similar to a regional mall,

but it is larger in size than a regional mall. It has more anchor stores, a deeper selection of

Merchandise and draws from a larger population base. A super regional mall is according

to International Council of Shopping Centers, a Shopping Mall with over 800,000 square

8 Prabhudesai A., Is mall culture capturing India? available at: http://trak.in/tags/business/indian-mall-culture-

organised-retail-sector-business-growth/2008/03/23 9 Basu B., India„s mall explosion: Sense and direction, Images Retail, pp. 6-9, 2006.

10 Pancholi R., ―Growth off the Shelf‖, Hindustan Times, New Delhi, July 22 2006.

6

feet (74000 m 2 ) of gross leasable area and which serves as the dominant Shopping

venue for the region in which it is located.

2.5.3 Outlet Malls: An outlet mall or outlet center is a type of shopping mall in which

manufacturers sell their products directly to the public through their own stores. The other

stores in outlet malls are operated by retailers selling returned goods and discontinued

products often at heavily reduced price. In India these outlet stores are not shopping malls,

they are called generally called as factory outlet shops because they generally call general

products directly offered by the company.

2.5.4 Vertical Malls: Vertical Malls are the malls typically multistory building. The vertical

mall is common due to the high land price in densely populated and the higher yield on retail

property. The concept of the vertical mall departs from the common Western model of the

flat shopping mall in which space allocated to retail is configured over a number of stores

accessible by escalators linking the different levels of the mall. The challenge of this of mall

is to overcome the natural tendency of shoppers to move horizontally and encourage shoppers

to move upwards and downwards.

2.5.5 Lifestyle Centers: Lifestyle Center is new designated that has a loose definition.

Generally, it„s a center that does not have on anchor tenant in the classic sense that is,

department store. Lifestyle centers have a cinema as a major tenant.

2.5.6 Dead Malls: The dead malls are those which have failed to attract new business

and often set unused for many years until restored or demolished. Interesting example of

architecture and urban design, these structures often attract people who explore and

photograph them. This phenomenon of dead and dying malls is examined in detail by the

website Deadmills.com which hosts many such photographs as well as historical accounts.

2.5.7 Strip Mall: Strip mall also called Shopping Plaza or Mini mall. It is an open area

shopping center where the stores are arranged in a row with a sidewalk in front. Strip major

traffic arterials and tend to be self- contained with few pedestrian connections to

surrounding neighborhoods. Malls are typically developed as a unit and have large parking

lots in front.

2.5.8 Outlet Mall: Outlet Mall is a type of Shopping Mall in which manufacturers sell their

products directly to the public through their own branded stores. Clothing, sporting goods,

7

electrical products, cosmetics and toys are among the types of items sold at outlet malls.

Outlet malls first appeared in the United States as a development of the traditional

factory outlet a store attached to a factory or warehouse. An outlet mall places several such

outlets under one roof in a convenient location, usually an out of town site. The out of town

site minimizes overhead costs.

2.5.9 Luxury Malls: Luxury Mall is mall which only house luxury brands. The mall in

India luxury malls have been planned to be built soon, most of the tenants are expected to

be the best brands in the world such as France„s Louis Witton, Greece Dunhill Fendi Mont

Benc, Van Clef and Arpels Rolex and Omega.

2.6 Advantages and Disadvantages of Malls

Advantages of Shopping Malls

Many types of stores within one location

Merchandise assortments available within those stores

Opportunity to combine shopping with entertainment

Attract many shoppers

Large trade area

Generate significant pedestrian traffic

Inexpensive form of entertainment

Customers don‟t have to worry about weather

Disadvantages of Shopping Malls

Occupancy costs are higher than those of strip centers, freestanding sites, most central

business districts

Retailers may not like mall managements control of their operations

Strict rules governing store displays and signage

Competition within shopping centers can be intense

Similar merchandise sold in a close proximity

8

2.7 Impact of shopping Malls

Malls as a single-point destination for shopping, food and entertainment appeal

simultaneously to the browsing, the brand-conscious, the quality-conscious, the ambience-

seeking, the discount-seeking and the impulsive buyers. In the face of deteriorating consumer

sentiment, malls are finding it difficult to attract footfalls and occupancy rate is also slow.

The presence of shopping malls impact both consumer and retailers. Consumers can chose

best from the available stock whereas the small retailers have to strive for survival.

2.7.1 Impact on Consumers

Studies reveal that when a shopper has a planned list, there is a difference between the list

and the products bought – reasons for which can be attributed to the factors in the store. In

the malls, along with the air-conditioned shopping ambience, quality products, service,

convenience and comfort, consumers are offered in-house parking, coffee shops,

entertainment in multiplexes, gaming facilities, play areas for children and food courts;

which have transformed the mere activity of shopping, movie-watching or dining, to an

experiential, lifestyle activity. But amidst growing fear of a severe slowdown that will

threaten future earnings, urban consumers have become apprehensive. Though they are

buying the day-to-day essentials, it's the impulse buying that is minimal, with consumers

preferring only compulsory purchases as per predetermined list. So the volumes have gone

down as shoppers are choosing to spend less.

A curious trend has been observed among consumers of luxury goods in "Luxury

Considered", a global report by Ledbury Research for the De Beers Group. As the global

economic climate worsens and consumer-fatigue with mass-marketed luxury products

escalates, there is s shift from conspicuous consumption governed by status and prestige

needs to discerning consumption marked by greater scrutiny of product quality,

craftsmanship, preference for exclusivity and heightened awareness of social and

environmental responsibility – so consumers gravitate towards fewer but better things that

represent genuine value. A study by Rural Marketing Association of India shows that

spending on marriages and travel for pilgrimages also has not shown any reduction.

Weddings and celebrations account for 58 percent of non-routine expenditure. Thus

requirement-based shopping does not reflect any decrease. It„s being revealed that consumers

who have been directly hit by the slowdown have tightened their belts and are re-

9

evaluating their buying patterns. The rest, though aware of the economic environment,

report no significant deflection in consumption pattern. Thus when previously every

weekend in a month meant a visit for the whole family to the mall for shopping or watching

a movie in a multiplex, it has now been curbed by giving one or two weekends a

miss. What earlier constituted unpremeditated purchases like apparel, gifts and other non-

essentials without prior planning presently requires a month's budgeting and scheduling of

the purchase. It‟s further echoed by maximum consumer to be the weaker consumer

sentiment which states that this cautious attitude towards shopping is augmented by a

growing fear of a sharp crisis in the future, which with a further decline in international trade

and commerce, may affect the employment of maximum consumers. Therefore the

consumers have started curbing the impulse buying habit and are deferring unscheduled

purchases.

2.7.2 Impact on retailers

With dipping sales figures, retailers' profits have gone down by over 35 percent as compared

to last year. Even during the festive season from October-December 2008, when consumers

loosen their purse-strings, products usually in high demand have not seen enough takers.

Cheaper items are selling more as compared to expensive items. Same-store sales have

contracted. Retailers are scaling down expansion plans or shelving them temporarily to

minimize immediate capital-intensive ventures. India Retail Biz reports that Pantaloon

Retail India Limited is adding 2.5 million Sq.Ft. of retail space instead of 4million Sq.Ft.

originally planned for next financial year beginning 1st July, 20013. To optimize cost, they

are integrating management, marketing, human resource and IT departments of units into

one. Shoppers Stop is also studying options for cost rationalization. Spencer's Retail has

closed 56 stores and while focusing on large format stores, plan to add 15 Hyper stores

in the next two years. Vishal Retail has closed large warehouses in Kolkata and Mumbai

until current situation of economic slowdown reverses. Adidas, Raymond Apparel, The

Mobile Store, Gini and Jony and Crossword are closing down stores, re-locating and

expanding where business is viable. One of the chief reasons for closing stores is that real-

estate rentals had doubled in the last three years constituting up to 35 per cent-40 per cent of

operating costs in high-end locations. Retailers are re-negotiating rentals to 15 per cent-20

per cent or proposing rentals on a revenue-sharing basis. Where such negotiations fail,

decreasing footfalls coupled with sky-rocketing operating costs render the business

proposition unviable and they exit. Thus Tier–II cities where retail real-estate has not

10

reached unrealistic proportions, are noting rapid growth in organized retail as compared to

urban cities. Ancillary to stores facing severe cash crunch, retailers are delaying payment to

suppliers and with stores finally downing shutters, staff requirement is declining resulting in

jobs becoming redundant.

So rather than open more stores, retailers have shifted their focus to consolidate and improve

operations by enhancing efficiency and profitability through effective supply chain

management, to save inventory and logistic cost and check on wastages. To build up

customer loyalty, renewed efforts are being made to undertake intensive relationship

marketing and improve in-store service. Retailers are also pushing private labels to protect

their profit margins while promoting sales by offering special discounts or other value-

for-money schemes.

2.8 Problems of Mall Development in India

2.8.1 Lack of Research Resources: Mall Management invites a huge investment. The

developers need to analyze various factors so that adequate information is available and then

set the malls because minute factors may become the cause of its success or failure. In India

the status of retail research is not up to required standards.

2.8.2. Tenant Mix: A proper tenant mix contributes lot in the success of a malis.in India the

mall developers face a problem of maintaining these tenant mix, where they can attract

maximum traffic. Developers lease out retail space on a first come first served basis. This

therefore creates a sub optimal tenant mix like a food and beverage outlet next to a designer

apparel shop instead of an accessories or a footwear shop. If the developers think of making a

tenant mix as per logical requirement of the mall, then some stores may not be lent out in

time and developers incur loss of rent.

2.8.3. High Costs of Land and Construction: In India the traffic in malls can be seen

maximum in metro cities where the costs of land and construction are very high. If the

developers do not find tenants in time, even the break becomes very difficult. Therefore this

increases the cost and this rise in cost significantly increased the rents and this discourages

retailers to have a space.

2.8.4 Facility Management and Parking: Good infrastructure or facility management of

common areas becomes a problem in malls where retail outlets are sold as starta title. In India

due to constraints of space malls are built in the city and due to which they do not have

11

adequate parking as the developers provide basement parking facilities, where parking spaces

are inefficient due to low ceiling heights, bad lighting and single entry and exit points.

2.8.5 Inadequate Promotional Activities: Promotional activities are very much needed to

communicate about malls to give them a brand. In India promotional activities are few in

majority of malls, developers perceive that these events only help increase foot traffic and not

revenues, but this is helpful and effective for the future perspective.

2.9 Benefits of Shopping Malls

1. There are multiple people to meet. No matter what mall you visit, there is always a

group of people walking around. Malls are one of the friendliest places. They are almost

like an indoor park.

2. There is food. There should be no reason to leave a mall too early. If anyone gets hungry,

the food court is right inside. We do not have to relocate or drive through that busy line at

McDonald's just to get a meal. The food court is very beneficial to mall shoppers.

3. We find everything needed at one stop. This is one of the great benefits of shopping at

malls. Everything we need is more than likely in the mall. We don't have to waste gallons

of gas just to get everything done. The mall is our one-stop shop.

4. We get to walk around. Exercise is always a plus. While we shop, we can get our

exercise going on too. Most malls are large enough to get at least a 30-minute workout.

What a win-win situation.

5. There are a lot of different events and offers. If a certain promotion, sale, or giveaway

is being offered, the companies know that the mall is the best place to target people.

You'd be surprised at how many offers are present in the mall. One day you might get

lucky or discover a unique product.

6. Beat the weather and still shop. Some people don't like to go out because it may be too

hot, rainy, or cold. In the mall, the temperature is controlled to the right temperature. You

may forget all about the weather once you are inside.

7. There is always a place to sit down. If you ever get tired of standing, there are always

benches nearby. Most people never get tired of shopping, but it is always nice to know

that we can stop and take a rest if we want to.

12

8. We do not always have to spend our money. Just because we go to the mall does not

mean we have to buy something. We could just hang out with our friends or whomever

we may be with. We could just check out the latest fashion and all the free benefits of

shopping at malls.

9. We always find something we like or want to buy. It is hard to go out to the mall and

not find anything we like. Even if we do not buy anything the same day, we will

eventually buy something that excites us. It‟s beneficial to find something that we like so

much.

10. We get to dress up just because. Almost everyone dresses up to go to the mall. We wear

our best stuff to look good. Since there are sure to be other people at the mall, it is always

smart to give a good impression.

2.10 Conclusion

The concept of shopping malls is a modern trend it needs lot of expenditure. Customers have

become price-conscious due to weak market sentiments and are not willing to buy anything

overtly expensive. In some cases shoppers are shifting back to traditional stores to get

assurance of quality at reasonable pricing. The mall developers in India should consider all

the societal factors before making a new venture. The benefits and challenges must be taken

note when establishing a mall. In this age of mass production and mass consumption, the

concept of shopping malls is most modern method of attracting consumers. The concept of

Shopping was altered completely with the emergence of these shopping malls.

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CHAPTER III

RESEARCH DESIGN

3.1 Introduction

Research design is the framework for the study that guides the collection and analyzing of

data. The fundamental to the success of any research project is the sound research design.

The research design is the conceptual structure within which research is conducted; it

constitutes the blueprint for the collection, measurement and analysis of data. As such the

design includes an outline of what the researcher will do from writing the hypothesis and its

operational implications to the final analysis of data. According to Kothari, “A research

design is the arrangement of conditions for collection and analysis of data in a manner that

aims to combine relevance to the research purpose with economy in procedure”. The

following research designed has been stated to carry out the project.

3.2 Objectives of Study

1. To know the trends of shopping malls in India.

2. To know the strengths, weaknesses, opportunity and threats of malls in India

3. To find out the scope of shopping malls

4. To know the satisfaction level of the people from shopping malls in India.

3.3 Hypothesis

Contribution of shopping malls to the Indian economy is high.

3.4 Research Methodology

Research methodology refers to method of acquiring information needed to solve the problem

at hand i.e. research methodology is a way of systematically solving the research problem.

Data Collection

Research project is affected very much by data collection method. Reliability of collected

data depends a lot on method of data collection. Data is collected through:

1. Primary Source

14

The data was collected personally through question air and it took a week (February) to get

the data. The questionnaire was designed and necessarily modified after due correction. The

questions asked were mainly close ended.

Sample size: data was collected from 50 respondents. Random sampling method was used.

The respondents were selected proportionally from each class. The data was analyzed using

Microsoft excel function.

2 Secondary Source

Secondary sources include information collected from various journals, magazine and books.

Internet was also used for collecting the relevant information.

3.5 Limitation of study

There could be bias when collecting data from students. The respondents were mainly the

known students. Hence the sample may not be correct for generalization.

3.6 Conclusion

The research design is a great help in guiding the framework of project. The objectives are

carefully designed to prove the stated hypothesis. The method of collection of data and the

limitations of the study is also clearly stated.

15

CHAPTER IV

DATA ANALYSIS AND INTERPRETATION

4.1 Introduction

This western form of retailing has increased since its inception. In India rapidly developing

mall environment is living investors, domestic and foreign to make a pitch for a portion of the

great Indian market. In this chapter the growth of malls in India and its reasons, the rising

vacancy in mall space and the primary survey on malls is systematically illustrated. Data is

analyzed using Microsoft excel function.

4.2 Growth of Malls in India

Shopping malls began in India since 1990 after globalization since then this concept of malls

has been gradually growing. It„s growing and every hungry consumers, their apparently

installable demand for all the good things in life from groceries to vegetables to fancy

gadgets to fancier cars. The malls have change the way people are shopping. Malls are

teaching shoppers how to appreciate the good things of life. There are phrases like comfort,

style, convenience and cool which the shoppers and retailers in mall culture are using. The

consumers are happy due to mall culture, now they don„t visit mall only to purchase but

shopping has become an entertainment and roaming in malls on occasions and weekends.

The encouraging mall culture in India has resulted in enthusiastic erection of new malls by

the mall developers. Retail trade contributes around 10-11% of India‟s GDP and currently

employs over 4crore people. The range and scope of the economic activity generated from

mall culture promises many things to many people. It not one offers shoppers more value for

money but it also generates employment opportunities, direct and indirect for thousands of

people.

Source: Wikipedia

Table 4.1 Growth of malls in India

No. of malls Year

25 1996

37 2000

60 2004

137 2007

247 2010

410 2014

16

Figure 4.1 Growth of malls in India

In the figure 4.2 we see that there has been gradual increase in the number of malls in

India.Since1990-2014.As theyearspassedfrom1996number of malls kept on rising slowly. In

the year1996 there were around 35 malls and now there are more than 400 malls in the

country. Malls have been flourishing in the country only after the opening of the Indian

economy in 1990s.

4.2.1 Reasons for growth of Malls in India

Fast growing middle class with higher discretionary income.

Emergence of youth as an independent shopper with a lot of disposal income.

Ruggedness of Indian shoppers for a new shopping experience.

Ability of Mall developers to make shopping an enjoyable experience.

Presence of factors like cost effectiveness, convenience wide variety of products with the

fun element entertainment and good time pass plus shopping on weekends.

Influence of media and marketing communication resulting in changing aspirations,

lifestyle orientation and change in consumer perceptions about shopping.

4.2.2 Mall Culture in India

Culture could be defined as the set of learned beliefs and values and mall culture is learned

shopping experiences. This culture is different from the typical Indian Shopping Culture (i.e.

convenience/Kirana shops or Mom and Pop stores). The mall culture in the society is created

due to shopping, roaming, enjoying movies and entertainment and also making routine to

visit a mall. In India all this has happened rapidly but there is still a huge potential market

0

50

100

150

200

250

300

350

400

450

1996 2000 2004 2007 2010 2014

Nu

mb

er o

f M

alls

Number of Years

No. of Malls in India

17

remains untapped. The malls developed in India due to following reasons. They are listed

below:

Population Density: Market is the sum total of existing and potential customers. Prominent

cities of India cover a huge part of population. A huge percentage of population lives in these

areas. This gives developers a very big market to serve.

High income: These cities are known as industrial hubs. Here the income level of people is

higher than the level in rural and some urban areas. People have more money to spend on

good shopping experience they can think more than bread and butter and also are ready to

spend for entertainment.

Different buying habits: In metro cities shoppers are broader conscious. Malls collect these all

of international brands of reputed companies are made available by malls. Change in culture

again developed a situation where both husband and wife are working and they want all the

required materials beneath one roof, this led to developing of more and more malls.

.4.3 Increasing vacancy in malls

Source: Cushman &Wakefield Research

Table 4.2 Increasing vacancy in malls

According to the data of one of the leading global real estate consultants Cushman & wake

field (C & W), shown in the above table that mall vacancy has risen 40% in Ahmadabad

due to geographical distribution malls is poor with the western part of the city having a

majority of the organized mall space followed NCR (26%), Pune (19%), & Hyderabad (17%)

and Mumbai (9%). Vacancy in malls becomes a crucial factor, far as the operational

effectiveness & revenue of mall is concerned. There is need to plan out proper tenant mix

City Mall supply (in sq. Ft.) Vacancy %

Ahmedabad 1,50,000 39

Bang lore 20,93,000 6

Chennai 11,50,000 1

Hyderabad 12,00,000 17

Kolkata 7,35,000 5

Mumbai 22,55,000 9

NCR 8,75,000 26

Pune 1,00,000 19

18

0

5

10

15

20

25

30

35

40

45

1,50,000 20,93,000 11,50,000 12,00,000 7,35,000 22,55,000 8,75,000 1,00,000

Ahmedabad Banglore Chennai Hyderabad Kolkata Mumbai NCR Pune

Vacancy Vacancy %

with the right marketing strategies and the lease arrangement, apart from the other

factors like mall management services, location, etc.

Figure 4.2 Vacancy in malls

From the above graph it can be seen that there is lot of vacancy in malls. Ahmedabad and

NCR have the highest vacancy whereas the vacancy is less in Chennai and Kolkata. The

vacancy in malls is a serious concern for the mall culture in India.

4.4SWOT Analysis of Indian Malls

S. No STRENGTH WEAKNESS

1

Skyscrapers with perfect blend of

shopping, eating and entertainment, in

short ―shoppertainment‖

Mall developers are enacting as mall

managers Retail not accredited as an

industry in India

Complicated taxation system 2 Developed in contemporary style, these

Flashy malls promises just about everything

under the sun, from foreign gizmos to the

very desi brands.

Lack of adequate infrastructure

including supply chain, parking facilities

3 Attractive destinations for civic and

Official meetings, hang out, reducing stress.

Unavailability and skyrocketing

prices of prime catchment„s areas

4 Procure goods directly from factories

and farmers in case of lifestyle and

food/beverages respectively

Poor positioning and zoning of malls

5 Bouquet of value propositions like

value for time, value for quality, value for

experience, value for money

Shortage of qualified human

Personnel in the area of facility

management, creative firms, and design

houses.

19

4.5 Primary survey on shopping malls

1. Mall culture capturing India

Options No. of

respondent % of respondent

Yes 46 92%

No 04 08%

Total 50 100

Table 4.4 Mall Culture in India

6 High quality shopping environment

Quality assortment at variant shopping

format.

Lack of differentiated offerings i.e.

same mix of shopping, foods and films

S. No OPPORTUNITIES THREATS

1 Tier II and Tier III cities are still

untapped

Non availability of adequate finance

2 Growing urbanization and increase in

purchasing power of consumers

Undeveloped supply chain

3 Outsourcing from other developed retail

market

Vigorous competition from

unorganized retailers Keeping up brand

loyalty

4 Progressive growth of apparitional

consumer class

Disturbance in income strata of

consumers greatly influence malls growth

5 Believing more in spending than

savings , as most of the population is youth

(with median age 24 and 35 percent of

population below 14 years)

Threat from online players, (even

though internet penetration is low in

India

Table 4.3 SWOT Analysis of Malls

20

46

4 0

10

20

30

40

50

Yes No

No of Respondent

Options

Mall culture capturing India

From the above graph it is clear that 92% people feel that the mall culture is capturing India

and only 8% people feel that it is not.

2. Shopping mall is a one stop shop

Options No. of respondent % of respondent

Yes 27 54%

No 23 46%

Total 50 100 Table 4.5 Shopping Mall a One Stop Shop

Figure 4.4 Mall Culture in India

21

0

5

10

15

20

25

30

35

40

45

50

Yes No

No. of respondent

Options

One stop shop

From the above graph it is clear that 54% persons feel that shopping mall is a one stop shop

while 46% feel that it is not.

3. Frequency of visiting shopping malls

Options No. of Respondent % of Respondent

Daily 06 12%

Weekly 21 42%

Monthly 10 20%

Occasionally 13 26%

Total 50 100

Table 4.6 Frequency of visiting shopping malls

Figure 4.5 Shopping Mall a One Stop Shop

22

0

10

20

30

40

50

Daily Weekly Monthly Occasionally

No of respondent

Options

Frequency of visiting shopping malls

In the above graph it is clear that 12% of the respondent go to shopping malls daily,

42%weekly, 20% monthly and 26% occasionally.

4. Go to shopping malls

Options No. of Respondent % of Respondent

Actual Shopping 10 20%

Eating 07 14%

Window Shopping 09 18%

Happening Place 02 04%

Enjoyment 21 42%

Status Symbol 01 2%

Total 50 100

Table 4.7 Go to Shopping Malls

Figure 4.6 Frequency of visiting shopping malls

23

0

10

20

30

40

50

No of respondent

Options

Go to shopping malls

Most likely 20% go to shopping malls for actual shopping, 14% eating, 18% eating, 4%

happening place, 42% for enjoyment and only 2% for status symbol.

5. Time spend in shopping mall

Options No. Of

Respondent

% Of

Respondent

1 Hour 05 10%

2 Hour 15 30%

3 Hour 20 40%

4 Hour 10 20%

Total 50 100

Table 4.8 Time Spend in Shopping Mall

Figure 4.87Go to Shopping Malls

24

From the above chart it is clear that 10% spent 1hour at shopping mall, 30% spent 2 hours

40% spent 3 hours and 20% spent 4 hours and above time in the shopping malls.

6. Atmosphere in shopping malls

Options No. Of Respondent % Of Respondent

Friendly 05 10%

Informative 06 12%

Air Conditioning 19 38%

Attractive Infrastructure 20 40%

Total 50 100

Table 4.9 Atmosphere in Shopping Malls

5

15

20

10

Time spend in shopping mall

1 Hour

2Hour

3 Hour

4 Hour

5 6

19

20

Atmosphere in shopping malls

Friendly

Informative

Air conditioning

Attractive infrastructure

Figure 4.8 Time Spend in Shopping Mall

Figure 4.9 Atmosphere in Shopping Malls

25

From the above graph it can be seen that 10% of the respondent found friendly atmosphere in

shopping malls, 12% found informative, 38% air conditioning and 40% found the atmosphere

as attractive infrastructure.

7. Satisfied with the brands available at malls

Options No. Of Respondent % Of Respondent

Yes 42 84%

No 08 16%

Total 50 100

Table 4.10 Satisfied with Brands Available at Malls

From the above chart it is clear that 84%of the respondent were satisfied with the brands

available at malls while only 16% were not satisfied.

8. Prices charged at shopping malls

Options No. Of Respondent % Of Respondent

Very High 19 38%

High 22 44%

Moderate 07 14%

Low 02 4%

84%

16%

Satisfaction with the brands available

Yes

No

Figure 4.10 Satisfied with Brands Available at Malls

26

Very Low 00 0%

Total 50 100

Table 4.11 Prices Charged at Malls

From the above chart it is clear that 38% feel that the prices charged at malls are very high,

44% feel that they are high, 14% feel they are moderate and 4% feel they are low.

9. Services provided by shopping malls in comparison to other stores

Options No. Of Respondent % Of Respondent

Satisfied 29 58%

Neutral 19 38%

Dissatisfied 02 4%

Total 50 100

Table 4.12 Services Provided by Malls in Comparison to Other Stores

38%

44%

14% 4%

0%

Prices Charged at Malls

Very high

High

Moderate

Low

Very low

Figure 4.11 Prices Charged at Malls

27

0

5

10

15

20

25

30

35

40

45

50

Yes No

No of respondent

Options

Shopping malls are better compared to other traditional shops

From the above diagram it is clear that 58% of the respondents are satisfied, the services

provided by shopping malls in comparison to other store38% are neutral and only 4% are

dissatisfied.

10. Shopping malls are better compared to other traditional shops

Options No. Of Respondent % Of Respondent

Yes 37 74%

No 13 26%

Total 50 100

Table 4.13 Shopping Malls are Better Compared to Other Traditional Shops

58%

38%

4%

Services in comparision to Other Stores

Satisfied

Neutral

Dissatisfied

Figure 4.12 Services Provided by Malls in Comparison to Other Stores

Figure 4.13 Shopping Malls are Better Compared to Other Traditional Shops

28

From the above table it is clear that 74% of the respondent feel that the shopping malls are

better compared to other traditional shops. While 26% does not feel so.

11. Shopping malls should be encouraged

Options No. Of Respondent % Of Respondent

Yes 38 78%

No 12 24%

Total 50 100

Table 4.14 Shopping Malls Should be encouraged

In the above graph we see that 78% of the respondents are in favor of shopping malls while

24% are against the malls.

12. Rank (1-10) (1-most preferred; 10-least preferred) the following factors that you consider

at shopping malls.

a. Interior/Exterior b. Cleanliness

c. Services d. Safe

e. Exclusive Range f. Quality

g. Happening place h. Fixed Price

i. Status symbol j. Credit facility

0 10 20 30 40 50

Yes

No

No of respondent

Options

Shopping malls should be encouraged

Figure 4.14 Shopping Malls Should be Encouraged

29

In ranking the factors of shopping malls in the above ranking the following ranks were found.

services to 1 s t number due to good services, exclusive range ranked on 2nd

position of

ranking due to wider range of availability of things, quality on 3rd

Rank due to

large kind of availability of quality products .4th

ranking is for the fixed price because

many stores have fixed prices.5th

ranking is for credit/debit card facility. 6th

is for safety of

mall. 7th

is for cleanliness because malls are more clean then other normal shops. 8th

rank is

for interior/exterior design.9th

is for happening place and 10th

is for status symbol.

13. Rate your satisfaction level for the following factors in shopping malls.

From the above table we can see that most of the respondents are satisfied with Brand

availability, one stop shop, Accessibility of malls, Friendliness of staff and Entrainment. Only

few are dissatisfied with the activities at the malls.

14. Future of shopping malls in India

Options No. of respondent % of respondent

Very successful 12 24%

Successful 20 40%

Moderate 08 16%

Declining 03 6%

Cannot say 07 14%

Total 50 100

Table 4.16 Future of Shopping Malls

Options Percentage Level Of Satisfaction

100-75% 75-50% 50-25% 25-0%

Brand Availability 18 25 06 01

One Stop Shop 17 18 09 06

Accessibility Of Malls 14 21 12 03

Friendliness Of Staff 11 21 12 06

Entertainment 27 17 04 02

Table 4.15 Rate of Satisfaction Level

30

From the above chart it is clear that 24% of the respondent feel that the future of shopping

malls in India is very successful,40% feel successful,16% feel moderate,6% feel declining

and 14% feel that it cannot say.

15. Shopping malls have a positive impact on lifestyle

Options No. of

respondent

% of

respondent

Yes 41 82%

No 09 18%

Total 50 100

Table 4.17 Shopping Malls have Positive Impact on Lifestyle

Very successful 24%

Successful 40%

Moderate 16%

Declining 6%

Cannot say 14%

Future of shopping malls in India

Figure 4.16 Future of Shopping Malls

31

From the above chart it is clear that 82% of the respondent feel that shopping malls have

positive impact on lifestyle.

4.6 Conclusion

Mall growth is being seen as a clear indicator of the economic prosperity in India. Significantly,

the number of malls in the country has increased at a fast pace. And they are doing a very good

business. This phenomenon is not restricted to major cities of the country alone. It has

percolated to the “Tier II” and “Tier III‟ cities as well. The contribution of Tier II cities in

organized retail sales is expected to be about 20 – 25%. There has been a slow growth in the

number of malls in India. Over the period of time the footfall in malls is increasing. People are

frequently making visits to malls. The mall culture is slowly capturing India. The emergence of

shopping malls has mostly altered the lifestyle of the consumers. With the growth in income,

changing attitudes, and also the demographic patterns favor the emergence of shopping malls.

0

5

10

15

20

25

30

35

40

45

50

Yes No

No of respondent

Options

Shopping Malls Have A Positive Impact On Lifestyle

Figure 4.17 Shopping Malls have Positive Impact on Lifestyle

32

CHAPTER 5

FINDINGS AND CONCLUSION

5.1 Introduction

Retail is currently the booming sector of the Indian economy. This trend is expected to

Continue uninterrupted for at least the next two-three decades, attracting huge attention From

all quarters of the economy -entrepreneurs, business heads, investors as well as Real Estate

owners and builders Retail sector is also expected to create huge employment as It will

expand across the country at a massive scale. Shopping malls are the important form of

organized retail they provide lot employment to young generation. Shopping malls have

become increasingly important in large cities and development plans being projected to 500

malls by 2015. People are frequently visiting malls to purchase various things right from

grocery to fashionable clothing. Shopping malls occupy a significant place in today‟s

lifestyle.

5.2 Growth of Shopping Malls

Shopping malls have been flourishing in since 1990. The encouraging mall culture in India

has resulted in enthusiastic erection of new malls by the mall developers. Fast growing

middle class , ability of Mall developers to make shopping an enjoyable experience, and

presence of factors like cost effectiveness, convenience wide variety of products with the fun

element entertainment and good time pass plus shopping on weekends are some of the key

reasons for growth of malls in India. The mall culture i.e. shopping, roaming, enjoying

movies and entertainment has increased due to high population density, different buying

habits, and a good disposable income.it has been noticed that shopping malls have a bright

future ahead.

5.3 Increasing Vacancy in Malls

It has been noticed that there is growing vacancy in shopping malls space. The numbers of

malls is increasing in India but the growing vacancy is a cause of concern. The mall

developers have to skillfully tackle this issue otherwise the future of malls is very much

33

uncertain. The concept of shopping malls is slowly gaining importance in the Indian

economy.

5.4 Contribution of Shopping Malls

In this era of globalization shopping malls contribute greatly to the Indian economy.

Shopping malls is the place of regular enjoyment for the youth. They spend a lot of time in

malls with friends and colleagues; it is also the place of socialization for many. The attractive

and informative infrastructure provided by malls give this format of organized retail an edge

over other shops. Malls provide a variety of goods and services along with entrainment and

food. They make available the latest fashion to the customers with almost all the international

brands. Though the prices charged at mall are high their services are comparatively better

compared to others. Malls give due importance to cleanliness, quality, convenience and

safety. Along with this they also provide credit facility to the customers. Malls have a

positive impact on the lifestyle. The future of shopping malls is very certain since people

have accepted this form of retail and are increasingly making all their purchases through

malls.

5.4 Suggestions

1) Shopping malls should advertise more to attract peoples.

2) The price range should be affordable which attracts everybody.

3) The discount stores in shopping malls should also be opened

4) Shopping malls should promote local brand.

5) Special promotional activities may be conducted on weekdays to avoid rush on weekends,

so as to increase the number of footfalls in the weekdays, in which a great disparity was seen

between the weekend and weekdays figures.

6) Shopping mall should not only be situated in good locality but also near to the city so that

is easily accessible by every age group.

7) Shopping malls should have big, easy and comfortable parking area. Free parking facility

should be provided to the regular / heavy purchase customers

5.5 Conclusion

In India, while organized retail has yet not been accorded the status of an industry, it is

witnessing a large number of formats emerging in the market at a very fast pace. Indian

organized retail is moving with an exponential rate that no other sector has witnessed. Ample

opportunities are present as 94 percent of the Indian retail is still unorganized. Moreover,

34

Indian retailers can learn from the mistakes committed by their global counterparts and fuel

the tremendous growth of Indian organized retail sector.

In the present scenario, making the biggest malls with top class retailers is not the key to

success. A cool and refreshing environment is required which makes the shoppers to forget

all worries of the day. Malls are here for putting smiles on the face of shoppers. It is non-

crucial whether a purchase is made or not, entry into the mall has given the right to courtesy.

It should be the USP of the malls as the window shopper of today is the prospective customer

of tomorrow. Further, malls should commune a feeling of oneness-with retaining the

individuality of each store. Something fresh and novel always attracts shopper‟s attention but

raises the bar for future innovation. Thus, malls should be designed in a manner that the new

and innovative aspects can be added later on to keep up the consumers delight. Successful

malls are those that will adjust its mall culture with the consumer sensitiveness and

preferences. Managing consumer attitude and innovation are the keys to stay afloat amid

competition. Indubitably, malls have enlarged social fabric, cultural mixture and retail

feasibility. And when the core focus is on higher conversion than footfalls, then mixed use

and open malls is the way towards accomplishing the aforesaid goal.

Malls give value to quality, time and money and thus increase the prosperity of the nation.

35

BIBLIOGRAPHY Books

Lovelock, C., & Wirtz. J. (2010). Services Marketing: People, Technology, Strategy. Prentice

Hail.

Rampal, M. K., & Gupta, S. L. (2000). Services Marketing. Galgotia.

Bhupta, M. and Vaish, N. (2010). “M-Alls not well”, Business Today, 15 (6), pp 25 – 29.

Reports

Global Retail. Time to Change. KPMG (2009).

Indian retail report (2010).

Journals and periodicals

Goyal, B. B. & Aggarwal, M. (2009). Organised Retailing in India – An Empiribal Study of

Appropriate Formats and Expected Trends. Global Journal of Business Research.

Innovative Journal of Business and Management 2 : 5 September – October (2013) 97 - 102.

International Journal on Emerging Technologies 5(1): 69-73(2014)

Internet

www.scribib.com

www.slideshare.net

www.wikipedia.com

www.gogle.com

www.retailbiz.com

www.economictimes.com

www.mapsofindia.com

http://www.epw.in/commentary/shopping-malls-india.html

http://www.icsc.org/research/shopping-center-facts-and-stats

http://shodhganga.inflibnet.ac.in/bitstream/10603/9375/17/17_chapter%206.pdf

36

ANNEXURE I

QUESTIONNAIRE

Name: ________________________

Age: _________________________

Gender: ______________________

1. Is Mall culture capturing India?

a. Yes b. No

2. Do you feel a shopping mall is a one stop shop?

a. Yes b. No

3. How often do you visit a shopping mall?

a. Daily b. Weekly

c. Monthly d. Occasionally

4. Why do you go to a shopping mall?

a. Actual shopping b. Enjoyment

c. Eating d. happening place

e. Window shopping f. Status symbol

5. How much time do you spend in a shopping mall?

a. 1 hour b. 2 hours

c. 3 hours d. 4 hours or above

6. What kind of atmosphere do you find in the shopping mall?

a. Friendly b. Air conditioning

c. Informative d. Attractive infrastructure

7. Are you satisfied with the brands which are available in the shopping malls?

a. Yes b. No

8. What do you think about the prices charged at the shopping malls?

a. Very high b. High

c. Moderate d. Low

e. Very Low

37

9. What do you think about the services provided by these shopping malls in comparison

to others stores?

a. Satisfied b. Neutral c. Dissatisfied

10. Are shopping malls better compared to other traditional shops?

a. Yes b. No

11. Should shopping malls be encouraged?

a. Yes b. No

12. Please rank (1-10) (1-most preferred; 10-least preferred) the following factors that you

consider at shopping malls.

a. Interior/Exterior b. Cleanliness

c. Services d. Safe

e. Exclusive Range f. Quality

g. Happening place h. Fixed Price

i. Status symbol j. Credit facility

13. Rate your satisfaction level for the following factors in shopping malls.

14. What do you think about the future of shopping malls in India?

a. Very successful b. Successful

c. Moderate d. Declining

e. Cannot say

15. Do shopping malls have a positive impact on lifestyle?

a. Yes b. No

Suggestions

___________________________________________________________________________

___________________________________________________________________________

Options Percentage level of Satisfaction

100-75% 75-50% 50-25% 25-0%

Brand availability

One stop shop

Accessibility of malls

Friendliness of staff

Entertainment