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. Indias 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
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Current Trends inTechnology and Science ISSN:22790535.Volume:2, Issue:1

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.

Sankar A.R.N.,Shopping Malls: A New Shopping Experience, ICMR Case Collection ,ICFAI Centre for
Management Research, 2005

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 Ansals 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 Kolkatas new market (1874) surely have the pride of place as the pioneering malls
in India. Delhis Connaught place (opened in 1931) should also definitely be considered, with
its covered arcades. More recently, new Delhis partially underground palika Bazaar, the
mini- malls of the late1980 on Bangalores Brigade Road and shopping centers built by
private developers in Ahmadabad and other cities have all had a role to play in the evolution
3

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 attractionshigh 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
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Roy.K.and Malleria Ahoy., available at: http://www.coolavenues.com/cafe/articles/kisholoy-malleria- 1.php

Lather.A.S. and Kaur T., Shopping Malls: New retail formats keeping pace with the shoppers 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.
4

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 weekends 9. 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

Prabhudesai A., Is mall culture capturing India? available at: http://trak.in/tags/business/indian-mall-cultureorganised-retail-sector-business-growth/2008/03/23

9
Basu B., Indias 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.

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, its 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,
6

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 Frances 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 dont 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

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 ambienceseeking, 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. Its being revealed that consumers
who have been directly hit by the slowdown have tightened their belts and are re-

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 nonessentials without prior planning presently requires a month's budgeting and scheduling of
the purchase. Its 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 realestate 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 TierII cities where retail real-estate has not
9

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 valuefor-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

10

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.

11

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. Its 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.

12

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
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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.

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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. Its 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 dont 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 Indias 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.
No. of malls

Year

25

1996

37

2000

60

2004

137

2007

247

2010

410

2014

Source: Wikipedia
Table 4.1 Growth of malls in India

15

Number of Malls

No. of Malls in India

450
400
350
300
250
200
150
100
50
0
1996

2000

2004

2007

2010

2014

Number of Years

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
16

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

City

Mall supply (in sq. Ft.)

Vacancy %

Ahmedabad

1,50,000

39

Bang lore

20,93,000

Chennai

11,50,000

Hyderabad

12,00,000

17

Kolkata

7,35,000

Mumbai

22,55,000

NCR

8,75,000

26

Pune

1,00,000

19

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

17

with the right marketing strategies and the lease arrangement, apart from the other
factors like mall management services, location, etc.

Vacancy

45
40
35
30
25
20
15
10
5
0

Vacancy %

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

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

3
4
5

STRENGTH

WEAKNESS

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
Developed in contemporary style, these
Lack of adequate infrastructure
Flashy malls promises just about everything including supply chain, parking facilities
under the sun, from foreign gizmos to the
very desi brands.
Attractive destinations for civic and
Unavailability and skyrocketing
Official meetings, hang out, reducing stress. prices of prime catchments areas
Procure goods directly from factories
Poor positioning and zoning of malls
and farmers in case of lifestyle and
food/beverages respectively
Bouquet of value propositions like
Shortage of qualified human
value for time, value for quality, value for Personnel in the area of facility
experience, value for money
management, creative firms, and design
houses.

18

High quality shopping environment

Quality assortment at variant shopping
format.

S. No

Lack of differentiated offerings i.e.

same mix of shopping, foods and films

OPPORTUNITIES

THREATS

Tier II and Tier III cities are still

untapped

Non availability of adequate finance

Growing urbanization and increase in

purchasing power of consumers

Undeveloped supply chain

Outsourcing from other developed retail

market

Vigorous competition from

unorganized retailers Keeping up brand
loyalty

Progressive growth of apparitional

consumer class

Disturbance in income strata of

consumers greatly influence malls growth

Believing more in spending than

Threat from online players, (even
savings , as most of the population is youth though internet penetration is low in
(with median age 24 and 35 percent of
India
population below 14 years)
Table 4.3 SWOT Analysis of Malls

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

19

Mall culture capturing India

50

46

40
30
No of Respondent
20
10

0
Yes

No
Options

Figure 4.4 Mall Culture in 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%

50

100

Total

Table 4.5 Shopping Mall a One Stop Shop

20

One stop shop

50
45
40
35
30
No. of respondent 25
20
15
10
5
0
Yes

No
Options

Figure 4.5 Shopping Mall a 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
Daily
Weekly
Monthly
Occasionally
Total

No. of Respondent
06
21
10
13
50

Table 4.6 Frequency of visiting shopping malls

21

% of Respondent
12%
42%
20%
26%
100

Frequency of visiting shopping malls

50
40
30
No of respondent
20
10
0
Daily

Weekly

Monthly

Occasionally

Options
Figure 4.6 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
Actual Shopping
Eating
Window Shopping
Happening Place
Enjoyment
Status Symbol
Total

No. of Respondent
10
07
09
02
21
01
50

Table 4.7 Go to Shopping Malls

22

% of Respondent
20%
14%
18%
04%
42%
2%
100

Go to shopping malls
50
40
No of respondent

30
20
10
0

Options
Figure 4.87Go 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

No. Of
Respondent
05
15
20
10
50

Options
1 Hour
2 Hour
3 Hour
4 Hour
Total

Table 4.8 Time Spend in Shopping Mall

23

% Of
Respondent
10%
30%
40%
20%
100

Time spend in shopping mall

5

10

1 Hour
2Hour
15

3 Hour
4 Hour

20

Figure 4.8 Time Spend in Shopping Mall

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

Atmosphere in shopping malls

20

Friendly

Informative
19

Air conditioning
Attractive infrastructure

Figure 4.9 Atmosphere in Shopping Malls

24

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

Satisfaction with the brands available

16%

Yes
No

84%

Figure 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%

25

Very Low

00

0%

Total

50

100

Table 4.11 Prices Charged at Malls

Prices Charged at Malls

0%
14%

4%
38%

Very high
High
Moderate
Low

44%

Very low

Figure 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

26

Services in comparision to Other Stores

4%
Satisfied
38%

Neutral
58%

Dissatisfied

Figure 4.12 Services Provided by Malls in Comparison to Other Stores

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
Shopping malls are better compared to other traditional shops
50
45
40
35
30
No of respondent 25
20
15
10
5
0
Yes

No
Options

Figure 4.13 Shopping Malls are Better Compared to Other Traditional Shops

27

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

Shopping malls should be encouraged

No
Options
Yes

10

20

30

40

50

No of respondent

Figure 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

28

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 2 nd position of
ranking due to wider range of availability of things, quality on 3 rd 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.
Percentage Level Of Satisfaction

Options

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

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

29

Future of shopping malls in India

Declining
6%

Cannot say
Very successful
14%
24%

Moderate
16%
Successful
40%

Figure 4.16 Future of Shopping Malls

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

No. of

% of

respondent

respondent

Yes

41

82%

No

09

18%

Total

50

100

Options

Table 4.17 Shopping Malls have Positive Impact on Lifestyle

30

Shopping Malls Have A Positive Impact On Lifestyle

50
45
40
35
30
No of respondent 25
20
15
10
5
0
Yes

No
Options

Figure 4.17 Shopping Malls have Positive Impact on Lifestyle

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.

31

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 todays
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

32

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,
33

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 noncrucial 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 shoppers 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.

34

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

35

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

36

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.
Percentage level of Satisfaction
100-75% 75-50% 50-25% 25-0%

Options
Brand availability
One stop shop
Accessibility of malls
Friendliness of staff
Entertainment

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
___________________________________________________________________________
___________________________________________________________________________
37