LALA LAJPAT RAI COLLEGE OF COMMERCE &

ECONOMICS

Topic: Success of Malls lies in the hands of mall

developers.

TYBMS C
SEMESTER: VI

FOR ACADEMIC YEAR

2013-2014

GROUP DETAILS:Akshit Kothari 1112261

Jay Samani

1112223

Aarsh Parikh

1112246

Rohan Nihalani 1112291

Benaz Katgara

1112187

Virali Shah

1112220

INTRODUCTION
A shopping mall, shopping center/centre, shopping arcade, shopping precinct,
or simply mall is one or more buildings forming a complex
of shops representing merchandisers, with interconnecting walkways enabling
visitors to walk from unit to unit. Shopping malls often have parking garages or
outdoor areas in which visitors can park their vehicles while they are inside the
establishment. Shopping malls are a modern, indoor version of the traditional
marketplaces.
As traders moved into more spacious shops in the early 19th century high
streetsdeveloped, but wealthier people (who could afford to travel to city centres
for pleasure) started wanting shelter from rain, so shopping arcades were
developed. With new innovations like escalators these evolved into shopping
centres and with the rise of the automobile these evolved into shopping malls.
From early on, the design tended to be inward-facing, with malls following
theories of how customers could best be enticed in a controlled environment.
Similar, the concept of a mall having one or more "anchor stores" or "big box
stores" was pioneered early, with individual stores or smaller-scale chain
stores intended to benefit from the shoppers attracted by the big stores.
Selecting the best location or site for an outlet is a fundamental decision for any
retail business. Location affects customer patronage, market share, sales
revenue, and profit-and consequently the long-term performance and viability of
the business itself. In turn, the performance of businesses at a given location
affects the occupancy and rental rates that the property can achieve. A welllocated retail center can be successful even in a weak economic environment or
an overbuilt market, while a poorly located center may eventually fail.
Therefore, understanding how location affects a retail business is paramount to
the success of owning or investing in shopping centers.
A recent survey of experienced leasing and sales brokers, appraisers, investors,
and lenders provides some insight into selecting successful retail locations.
Specifically, the survey results indicate what criteria real estate professionals
consider predictors of a successful shopping center. The study, conducted in
metropolitan Denver, included 114 practitioners, at least 80% of whom had
more than six years of retail experience and 50% of whom had more than 11
years of retail experience.

OBJECTIVES OF THE STUDY

1. To study the consumer behaviour while purchasing different products from

shopping malls.
2. . To study the services offered by shopping malls to their customers.
3. To study the preference of customers between shopping malls and
departmental stores.

RESEARCH METHODOLOGY

SCOPE OF THE STUDY

Scope of the study is considered only for shopping malls in metros of India.

DATA COLLECTION
This study is descriptive in nature. Secondary data has been used to collect the data. The
information is collected from magazines, internet, business articles and trade journals

RESARCH LIMITATION
The study was restricted only to the malls in India. Keeping in mind the time constraint. and
the study of malls.

DATA PRESENTATION

Six Factors That Determine a Malls Success

1. Comfort
Early malls designed to create the most retail space with the least cost. Traffic
flow was constricted, with a single entrance/exit and crowded, dead-end
corridors. Only the occasional hard bench was provided to allow shoppers some
rest.

Modern mall design focuses on the consumer first, because uncomfortable

consumers mean fewer footfalls and declining business. Forward-thinking mall
developer Westfield Group worked with tvsdesign to develop a comprehensive
amenities package for the furniture, area rugs and accessories in its 57 U.S.
retail centres common areas. Large open areas with comfortable soft furniture
and decorative touches transform a day at the mall into a relaxing, pleasurable
experience.
2. Diversity
Historically, shoppers seeking a specific product or category were forced to
search the mall for their items a tiring, frustrating experience. Malls today
view diversity differently not just a very wide variety of retailers, but a
planned selection of retailers organized to provide convenient shopper access.

The new North Country Mall in Punjab is a great example. North Country Mall
vertically stacks different price points and merchandise zones on different
levels a practice seldom seen in Western malls that permits a broader retail
selection on a smaller geographic footprint.
3. Luxury
Newer malls strive to create a luxury hotel ambience for shoppers.
At tvsdesign we call this resort retail, with an emphasis on creature comfort
and providing a hospitality experience with the same kind of amenities youd
find at a fine resort. Social gathering areas and services like concierge and a
VIP arrival area help create this resort ambience.
4. Mall Essence
Mall essence is harder to define, but it boils down to branding the retail
environment and the shopping experience. Consumers are seeking a shopping
experience that makes them feel comfortable, encourages them to stay longer
and, more importantly, persuades them to return. New malls can meet or exceed
these needs and consumer expectations by creating iconic shoppertainment
locations.
We at tvsdesign call this placemaking. Placemaking
means crafting a
relaxed environment that allows consumers to take home a memorable
experience one that they want to experience again and again. And that
includes almost every element of the mall retailer selection, mall design,
dining options and amenities.
5. Entertainment
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Entertainment is one of the elements in placemaking, and it applies to every

aspect of the mall that encourages shopper enjoyment. Areas for local
community celebrations and festivals, among them an outdoor plaza,
amphitheatre, and outdoor food court terrace are all planned as social
gathering places.

Mall dining areas are another essential

feature of 21 century malls, and should be more than just fuelling areas. Plaza
Egaa in Santiago, Chile, has restaurants on the roof of the mall that offer great
views and open space. Together with a multi-screen cinema, an IMAX theatre, a
food court and a jazz club, they help create a powerful entertainment
destination.
st

6. Convenience
Convenience covers a number of aspects of mall design. Is the facility close to
public transportation, and can that be incorporated into the design, as Plaza
Egaa has? Is sufficient parking available to accommodate a busy shopping
day? Does that parking area support multiple entry points to avoid crowding and
congestion? Does the array of retailers match the needs of local shoppers?

Reasons why mall developers are highlighted in the construction

of the mall

Positioning of a mall
"Mall management isn't just about controlling the crowds and security, but it
starts right from the time when the mall is being designed. Before building a
mall, it is very important to understand the demographics of the area. You
cannot plan a super-luxury mall, in an area where the spending power is not
much," says T Anupam, associate vice-president, Korum Mall. Korum is a
newly-opened mall in Thane, along the Eastern Express Highway.
Location of the mall is one of the main factors that decides its success. Good
visibility and access via roads are some of the main prerequisites for a mall.
Zoning of the mall comes next. This essentially means, deciding which tenants
would occupy what space and where. It is very important to have the right mix
of tenants at the right place, so as to ensure smooth flow of customers.

Promotions and marketing

You have to create visibility in the market, to get the desired footfalls. Timely
events and promotional activities in the mall, will make sure that you remain in
the news. Food festivals, exhibitions, film promotions, are some of the
examples of promotional activities that malls often undertake. According to
Jain, the challenge today, is to constantly keep the interest of the people high.
"We talk to our retailers on a regular basis, to know the consumer trends," he
explains.
Facility management
Facility management refers to the integration of people, place, process and
technology, in a building. It means optimal utilisation of resources, while
ensuring well being of the tenants, providing good ambience and traffic
management. "You have too see to it that all things promised to the retailer are
being delivered, that the ambience of the mall is maintained and there is a
smooth flow of traffic, along with enough security," says Anuradha Gandhi,
business head, Property Solutions.

CONCLUSION

The study gives an insight about the opportunity as well as the challenge of
building customer loyalty for Shopping Malls in India as more and more
Shopping Malls are opening up in the country especially in big cities and
metros. To conclude, the increase in Shopping Mall retail space provide
sufficient space for new brands but it also results in more options to the
customers, which results in low customer loyalty towards a specific Shopping
Mall. To retain customers, Shopping Malls are undertaking several strategies
and tactics like extra services, better facilities etc. As the customer loyalty is
becoming more crucial, differentiation in terms of consumption chain or the
customer experience can help in building the desired loyal customer base to
fight against the nearby Shopping Mall.

SUGGESTION
Providing wide variety of merchandise is important. Having big brands to
attract higher spenders and also having normal merchandise brands and
quality and utility products is important.
Combination of high-quality merchandise and also the normal
merchandise has to be there. So that even people with low-pockets
spend more. And striking the balance between them is too important.
Products have to be priced smartly. High priced products should be
there. Also on the other hand medium and low priced products are
there. So money is generated from the spenders of all the size and mall
can also hold onto the spenders of different potential.
Striking the balance between the products of different sizes is very
important.
Location of the mall has to be chosen very smartly. It should be made
sure that it is in a good area and also the reach and convenience has to
be kept in mind. This also has a severe trade-off with increasing real
estate prices.
The structure of the mall has to be good. It has to have a good ambience
and has to have facilities. It has to be very well organised and has to
have trained representatives.
The mall has to have proper information kiosks and sign boards and
assistance when needed.
Mall can have many entertainment activities to increase the foot-falls.
Adapting to local culture is extremely important. Malls just dont have to
be the replicas of western culture. They have to adapt to local culture.
Different consumers have different buying, spending, and consuming
habits. Malls have to position themselves accordingly.

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Annexure
Questionnaire
Sir/Mam,
As a part of our BMS curriculum, I have undertaken a research study of the factors affecting buying
behavior in shopping malls in Ahmedabad. Please spend your valuable time to respond to following
questions. I ensure that information provided by you will be used only for academic purposes.

Name:
Address:
Gender:
Age:

Below 25

Education: Graduate

25-35

35-45

Post Graduate

above 45
Other______

Family Income: _________

1. Quality of merchandise in the shopping malls attract me to shop from the shopping malls
Strongly agree

agree

neutral

disagree

strongly disagree

2. I prefer to shop from malls as branded and wide variety of products is available.
Strongly agree

agree

neutral

disagree

strongly disagree

3. I dont mind traveling a bit(more than 3kms to go to shop at shopping malls.

Strongly agree

agree

neutral

disagree

strongly disagree

4. I dont mind paying a high price for shopping from shopping malls.
Strongly agree
5.
5.1
5.2
5.3
5.4
5.5
6.

agree

neutral

disagree

strongly disagree

I purchase these product from shopping malls.

Vegetables, grocery and dairy
Household items
Clothes and cosmetics
Electronics and furniture
Others
I like to have a complete shopping experience when I shop. The ambience, facilities and
atmosphere play a major role while shopping.

Strongly agree

agree

neutral

disagree
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strongly disagree

7. I believe that services, approach of representatives, culture in the mall play an important
role
Strongly agree
8.
8.1
8.2
8.3
8.4

agree

neutral

disagree

When I go for shopping

I do window shopping
I have specific thing in mind
I go for entertainment
I go because malls are status symbols

Thank You!!!

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strongly disagree

REFERENCES

Official website of Indian Retail Forum www.indianretailforum.net

Jain(2009) Location Factors Retrieved from www.indianretailforum.com
www.emerald.com
www.thehindubusinesskine.com
www.deadmalls.com
Retailing shopping(Suite101)
http://www.suite101.com/article.cfm/retailing_shopping/65949

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