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STUDENT DECLARATION I hereby certify that the project report entitled on “Factors Affecting Consumer Behaviour while Shopp... TABLE OF CONTENTS S.NO. CONTENTS PAGE NO. 1 Introduction 1 2 Review of Literature 9 3 Research Methodology 13 4 Industry P... INTRODUCTION 1.1 INTRODUCTION The only thing static in human life is “change”. Shopping in India has witnessed a revolution with the ch... at the same time and are the basic shopping contexts with highest customer drawing power; they are rarely used as the unit... 1956 The first enclosed mall called Southdale opened in Edina, Minnesota. 1972 By 1972, the number of shopping malls had d... 2005. Thereafter the demand for retail space increases and the growth of organized retail sector started increasing. Table... consumers differ from one another in buying and using products and services. We receive stimuli from the environment and r... The malls as a retail format have been emerging very rapidly in India. It began a long ago, with the advent of “shopping c... consumers’ towards shopping. Further, a review of literature related to behaviour of consumers towards shopping malls has ... • There can be many interpretations and explanations to the data collected. This is an empirical study and the research pr... REVIEW OF LITERATURE REVIEW OF LITERATURE For the purpose of this study, many research papers in different journals have been referred to. Some... Banerjee Mohua and Dasgupta Rajib, (2010), “Changing pattern of consumer behaviour in Kolkata with advent of large format ... Masha Sandeep and Singh Raghbir, (2010), “Consumer Preferences towards New Retail Formats”, The Apeejay Journal of Managem... Rajagopal, (2009), “Growing shopping malls and behaviour of urban shoppers”, Journal of Retail and Leisure Property, Vol. ... RESEARCH METHODOLOGY RESEARCH METHODOLORY 3.1 POPULATION For the current study customers visiting selected shopping malls in Delhi have been co... INDUSTRY PROFILE INDUSTERY PROFILE 4.1 RETAIL INDUSTRY – AN OVERVIEW Retailing is not only an important aspect of the economic structure bu... resulting in the change of retailing. The first few companies to come up with retail chains were in textile sector, for ex... In today’s dynamic and shaky business world, the retail industry is constantly upgrading itself. With an endless array of ... The BMI India Retail Report for the first-quarter of 2011 forecasts that total retail sales will grow from US$ 392.63 bill... centre and multiplexes under construction To open 35 hypermarkets, 325 large department stores, 1500 supermarkets and over... According to ASSOCHAM president, Anil K Agarwal, “The organized sector retailing is all set to grow at much faster speed t... Table 4.1 Few Retail Formats in India Format Description The Value Proposition Branded Stores Exclusive showrooms either o... Malls are the largest form of organized retailing today. They are located mainly in metro cities, in proximity to urban ou... emergence of the shopping malls. The malls have become a sensation in terms of changing lifestyle of Indians- the way they... going to the mall now are no longer confined to shopping for necessities in terms of foods and clothes but have expanded t... • Rapid urbanization is major contributor to the acceptance of mall culture. • Availability of labor in abundance at cheap... • The Indian middle class is already `30 crore & is projected to grow to over `60 Crore by 2010 making India one of the la... • Shopping culture has not developed in India as yet. Even now malls are just a place to hang around with family and frien... 4.8 KEY SHOPPING MALLS IN DELHI Delhi is slowly catching up with rest of the world in terms of market openness and globali... • 25,000 sq. ft. food court • Four screen Multiplex cinema by Fun Republic. • Two level basement parking for over 700 vehi... shopper and is really exhaustive with the number of brands and products it houses. The mall has entertainment facilities b... District Center, Pitampura. The said mall has huge catchment area catering to the population of Shalimar Bagh, Prashant Vi... across 3 levels, Travel Desk, Business Centre, Gift Wrapping are offered to enhance the shopping experience. Amenities suc... The convenient location of the mall is the greatest advantage. It is connected to most of the posh areas of Delhi and NCR.... developed by DLF Universal and opened in August 2008. Recently the promoters also opened a 180 seater high end restaurant ... DLF GALLERIA DLF Galleria - Shopping Mall located at Mayur Vihar District Centre, East Delhi, is a project developed by DL... and escalators backed up by electronically manned/computer operated security system. The Mall has established a name in ea... shopping, leisure and entertainment options to a population of 3 million people having considerable disposable income. The... • Located on wide roads right opposite sector 14 metro station, Dwarka. MALL MANAGEMENT STRATEGIES MALL MANAGEMENT STRATEGY Mall management strategy is a whole process of enhancing customer traffic, sharing costs and incr... Pulling in the Customers The biggest benefit of this strategy would be in facilitating enhanced customer traffic. Internat... Another way of Collaborated Merchandise Planning would be by keeping the Retailers informed about Mall Events Calendar, so... A well-planned and executed tenant mix can help a mall sustain its “destination” status even in the face of ferocious comp... Parking An often ignored part of long-term mall strategy is parking. Malls that target middle to upper middle class consum... • Makeovers done by Maybelline are one of the tools adopted by malls in order to draw girls and thereby making them aware ... FINDINGS & ANALYSIS FINDING ANALAYES 6.1 GENERAL FINDINGS • The foremost factors that motivate an individual to choose mall over other retail ... • Accelerated convergence of consumer tastes, increase in spending behaviour and shift in consumer demand for foreign bran... Figure 6.1 shows that majority of the respondents i.e. 35% comes under the age group of 18-27, 28% fall in the age group o... • Marital status of the respondents Marital status Percentage No. of people Married 67% 67 Unmarried 33% 33 Total 100% 100... • Educational qualification of the respondents Educational Qualification Percentage No. of people School Level 7% 7 Gradua... Business 15% 15 Service 43% 43 Students 31% 31 Others 11% 11 Total 100% 100 Table 6.5 Figure 6.5: Occupation of the Respon... Below `10,000 12% 12 `10,001 – `20,000 32% 32 `20,001 – `30,000 35% 35 above `30,000 21% 21 Total 100% 100 Table 6.6 12% 3... GENERAL SHOPPING ATTRIBUTES 1. Frequency of shopping Category Percentage No. of people Weekly 22% 22 Monthly 43% 43 Quarte... Category Percentage No. of people Local market 23% 23 Multi-utility stores 16% 16 Exclusive showrooms 8% 8 Shopping malls ... Category Percentage No. of people Weekly 22% 22 Monthly 43% 43 Quarterly 8% 8 Random 27% 27 Total 100% 100 Table 6.9 22% 4... 4. Bases of choosing a shopping mall Category Percentage No. of people Recommendations of family/friends 79% 79 Advertisem... 5. Reasons for visiting shopping malls Category Percentage No. of people Shopping 83% 83 Entertainment/Leisure 61% 61 Faci... Table 6.12 Figure 6.12: Purchasing Intentions of Respondents at Shopping Mall Figure 6.12 represents that 71% of the respo... intension for purchase, 63% due to special occasions and 44 respondents on the recommendations of others. 7. Amount spent per visit Category Percentage No. of people Below `500 28% 28 `500 - `1000 31% 31 `1001 - `2000 26% 26 Abo... 8. Items shopped in malls Category Percentage No. Of people Food & Beverage 53% 53 Clothing/Accessories/Shoes 81% 81 Toys ... CONSUMER SATISFACTION RELATED TO SHOPPING IN MALLS 9. Factors that motivate respondents to shop in malls against tradition... Category Percentage No. of people Yes 21% 21 No 46% 46 Can’t say 33% 33 Total 100% 100 Table 6.16 Figure 6.16 Perception o... 11. Satisfaction level of respondents with their shopping experience in malls Category Percentage No. of people Very satis... 12. Overall Shopping Mall Experience in Comparison to other retail outlets Category Percentage No. Of people Much better 6... 13. Promotional tools adopted by mall retailers to motivate shopping in malls Category Percentage no. of people Coupons/Di... 14. Mode of payments while shopping in malls Category Percentage No. Of people Credit Card/Debit Card 36% 36 Vouchers 21% ... 15. Problems faced while shopping in malls Category Percentage No. of people Difficulty in finding a specific product 21% ... OVERALL FACTORS INFLUENCING SHOPPING IN MALLS 16. Infrastructure quality Infrastructure quality Percentage No. of people N... One roof arrangements Percentage No. of people Not at all important 6% 6 Some importance 21% 21 Indifferent 12% 12 Importa... Some importance 14% 14 Indifferent 0% 0 Important 27% 27 Extremely important 59% 59 Total 100% 100 Table 6.24 Figure 6.24:... Indifferent 19% 19 Important 53% 53 Extremely important 11% 11 Total 100% 100 Table 6.25 Figure 6.25: Good Price/Deal Abov... 20. Approachability Approachability Percentage No. of people Not at all important 6% 6 Some importance 11% 11 Indifferent ... Outlet of your choice Percentage No. of people Not at all important 8% 8 Some importance 17% 17 Indifferent 33% 33 Importa... Some importance 41% 41 Indifferent 14% 14 Important 22% 22 Extremely important 19% 19 Total 100% 100 Table 6.28 Figure 6.2... 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FACTORS AFFECTING CONSUMER BEHAVIOUR WHILE SHOPPING AT SHOPPING MALLS 1. 1. A STUDY ON “FACTORS AFFECTING CONSUMER BEHAVIOUR WHILE SHOPPING AT SHOPPING MALLS” SUBMITTED BY: GIRISH KUMAR SESSION: 2013-2015 2. 2. STUDENT DECLARATION I hereby certify that the project report entitled on “Factors Affecting Consumer Behaviour while Shopping At Shopping Malls ” Submitted in Institute of marketing and management Delhi (India) is my original work and not submitted or the award of any other degree, diploma, fellowship, or any other similar title or prizes anywhere else. GIRISH KUMAR 2013-2015 013-III-310 3. 3. TABLE OF CONTENTS S.NO. CONTENTS PAGE NO. 1 Introduction 1 2 Review of Literature 9 3 Research Methodology 13 4 Industry Profile 14 5 Mall Management Strategies 35 6 Findings & Analysis 41 7 Conclusion 86 8 Recommendations 88 9 Sample Questionnaire 108 4. 4. INTRODUCTION 5. 5. 1.1 INTRODUCTION The only thing static in human life is “change”. Shopping in India has witnessed a revolution with the change in consumer behaviour and the whole format of shopping is also altering. The phenomenon called shopping centre or shopping mall is rocking India - metros and now even the smaller towns are buzzing with the mall mania. Modern retail format i.e. shopping malls are characterized by professionally managed large format stores, providing goods and services that appeal to consumers, in an ambience that is conducive for shopping. The recent surge in the growth of shopping malls is changing the way people shop. Today consumers look for facilities like cost, comfort, convenience, in-house parking, entertainment, coffee shops, food courts and children play area when they step into the malls and they demand the best of everything. It’s not about shopping, dining or watching a movie, it’s an experience in itself, a lifestyle activity, and providing this experience is what these malls are building up as their Unique Selling Proposition. Mall culture in India and especially in Delhi has grown with an incredible pace. Just a few years back, people had to make a choice among shopping, movies or hanging out on a holiday but thanks to our malls, all these jobs can be performed at the same time, under the same roof and that too with a wonderful experience. The possibility of shopping for clothes, shoes and grocery, while simultaneously having provision for eating and entertainment in the form of movies or video game parlors, has been a convenient experience for the consumers. Pollution free, air conditioned shopping ambience in the malls is preferable to the heat, humidity, noise associated with roadside shopping. The mall culture has become a sensation in terms of changing the lifestyle of Indians – the way they are shopping and socializing. The changing lifestyles of consumers, strong income growth and favorable demographic patterns have provided various opportunities as well as set more challenges for retailers. Increase in the number of nuclear families with double –income groups and tight working schedules have left consumers with less time for leisure and entertainment. This has spurred the demand for one-stop destinations that may help the people to fully utilize their scant time. Shopping and shopping behaviour have been interesting subjects for academicians over the decades. The is a gradual shift in shopping environments, significance of shopping in different social/cultural contexts, and individuals’ shopping motives and behaviours However, although shopping malls represent the main consumer habitats in most Western cultures within which all individual, social, or cultural aspects of shopping can be examined 6. 6. at the same time and are the basic shopping contexts with highest customer drawing power; they are rarely used as the unit of analysis in most retailing studies. Specifically, consumers’ perceptions of shopping mall attributes are found to have greatest influence on their level of mall satisfaction and patronage likelihood, while personal characteristics are shown to have greater impacts on mall visit frequencies and the amount of time and money spent in malls. On the other hand, although emotional experiences at a mall is proved to be unrelated to shoppers’ patronage behaviours, cognitive responses to the mall environment is reported to increase the total amount of mall spending and future mall visits significantly and activity patterns in a mall is found to be positively associated with the time spent in the mall. 1.2 HISTORY OF MALLS The shopping mall is a global phenomenon that has its roots in ancient outdoor bazaars where people would go to buy goods from local artisans, farmers and craftsmen. The shopping malls came into being in the beginning of the 20th century and since then they have grown to cover the major cities of the world in a few different forms. Shopping malls are typically known to be indoor shopping centers, though some have outdoor areas with the shops having their own indoor space. The idea came from old covered marketplaces that were popular between the 10th and 15th centuries, and are even still around today. In 1785, the first purposely-built shopping center was created, but it was not until 1916 that a shopping mall as we consider them today was built in the United States. 1922 The first shopping mall was the Country Club Plaza, founded by J.C. Nichols Company and was opened near Kansas City, Missouri. 1928 In 1928, Grandview Avenue Shopping Centre in Columbus, Ohio was opened, included 30 shops and parking for 400 cars. 1931 In 1931 Highland Park Shopping Village in Dallas, Texas, developed by Hugh Prather, was the first planned shopping center. 7. 7. 1956 The first enclosed mall called Southdale opened in Edina, Minnesota. 1972 By 1972, the number of shopping malls had doubled to 13,174. During 1970s a number of new formats and shopping centers evolved. 1976 In 1976, the Rouse Co. developed Faneuil Hall Marketplace in Boston, Massachusetts, which was the first of the “festival marketplace” built in the United States. 1980 The 1980s saw an unparalleled period of growth in the shopping center industry, with more than 16,000 centers built. 1981 In the 1980s, giant megamalls were developed. The west Edmonton Mall in Alberta, Canada, opened in 1981-with more than 800 stores and a hotel, amusement park, miniature-golf course, church, Water Park and a 438 foot long lake. Between 1989 and 1993, new shopping centre development dropped nearly 70%, from 1,510 constructions start in 1989 to 451 starts in 1993. The sharp decline in new centre starts was contributed to savings and loan crisis. The largest mall in America is Mall of America in Bloomington, Minnesota, which includes a seven acre amusement park, night clubs, restaurants and covers 4.2 million square feet. Entertainment quickly became an industry buzzword in the early 1990s as technological advances allowed shopping center developments to foster the same magical experiences that were only seen in amusement parks such as Disney World. Since the start of the entertainment wave, retailers have focused on keeping their presentations exciting and shopping malls owners have striven to obtain tenant mixes that draw traffic from the widest audience possible. The Indian consumer market has seen a significant growth in the number of modern-day shopping centers popularly known as malls. From just 3 malls in 2000, India had 220 malls in 8. 8. 2005. Thereafter the demand for retail space increases and the growth of organized retail sector started increasing. Table 1.1: Some of the largest malls in the world SHOPPING MALL YEAR OF OPENING TOTAL AREA IN SQUARE FEET NUMBER OF STORES South China Mall, Dongguan, China 2005 9.6 million 1,50000 Beijing Mall 2005 4.7 million 600 Grandview Mall, China 2005 4.5 million 600 Golden Resources Shopping Mall, Beijing, China 2004 7.3 million 1,000+ Mall of America 1992 4.2 million 520 Aricanduva Mall, Sao Paulo, Brazil 1991 3.7 million 535 West Edmonton Mall, Alberta, Canada 1981 5.3 million 800 South Coast Plaza, USA 1967 - 280 Source: Das Abhijit, “Mall Management”, Taxmann Allied Services Ltd. 1.3 CONSUMER BEHAVIOUR TOWARDS SHOPPING MALLS IN INDIA Industry of retail in India which has become modern can be seen from the fact that there is an increase in the number of malls. Droves of middle-class Indians have broken off their love of traditional stand-alone Indian stores that have no air conditioning, organized parking and other public amenities. Malls throughout the country are getting bigger as they are now being positioned as a one-stop-shop for shopping, entertainment, leisure and eating-out needs rather than a place only for shopping for fashion products. As a consumer we are all unique and this uniqueness is reflected in the consumption pattern and purchase behaviour. The study of consumer behaviour provides us with reasons why 9. 9. consumers differ from one another in buying and using products and services. We receive stimuli from the environment and respond to these stimuli in terms of either buying or not buying product. The mall phenomenon is changing the way people shop and the way they look for entertainment for the family in India. Malls in India are becoming the single-point destinations for food, shopping and entertainment. Malls have been revolutionizing retailing that is leading to a significant increase in the consumption spending. Customers in India are enjoying the environs of the malls as they provide opportunities for fun and entertainment besides shopping and dining. In India we have nuclear families and malls address all the needs of the family members irrespective of their demographic differences. More than 50% of India’s population is less than 25 years of age currently and hence malls focus on teenage and youth segments largely with appropriate offerings in all categories. Changing demographics and psychographics have empowered modern consumer to choose from a variety of value propositions. Growing purchasing power, coupled with changing lifestyle of young customers has a major impact on choices of product categories and retail stores. Consumers are developing new tastes, preferences and buying habits. Changing perceptions and new experiences are reshaping the customers’ expectations and motives for buying decisions. Consumer behaviour is evolving in a newer direction, embracing basic structural changes brought out by the dynamic market forces. Cognitive and emotional factors play a major role, with varying degrees, in determining consumer choices for products and services. Malls are perceived to be great places to visit, do a good deal of walking around along with shopping and dining. Many malls come with multiple screens in the multiplex format offering the movie entertainment which is very popular in India. So, malls are perceived to be a one- stop destination for family entertainment and for enjoying the fun of shopping and eating out. In the urban areas the frequency of visits to malls is almost once a week. As mall development would happen in tier 2 and tier 3 towns, we can expect to see a similar trend there too. Earlier, many were of the opinion that malls have more footfalls and fewer conversions into business, but this is being addressed by mall management teams effectively ensuring the availability of merchandise and services at the right place, time and price. 10. 10. The malls as a retail format have been emerging very rapidly in India. It began a long ago, with the advent of “shopping complexes”, where the entire structure assumed a ‘build and sell’ real estate model. Since the late nineties, the actual mall format has been founded- a format which only leases out spaces and manages the mall mix with a professional mall management team. This has led to many retailing companies looking at malls as a good retail destination. Over the last few years malls in India have been very successful and can be compared to those in developed economies. They have contributed to the growth of modern retailing in India, giving global brands the promise of good selling space in India. The emergence of the mall culture in India is a sign of positive development. The availability of key real estate space in future will determine the faster growth of retailing companies that want to expand at a rapid space. Rapid urbanization coupled with a plethora of infrastructural developments has put many Indian cities on the global market. Retailers now look up to the developing malls for filling their expansion plans. 1.4 OBJECTIVES OF THE STUDY The mall phenomenon in Delhi is changing the way people shop. While exhibiting gradual acceptance of the organized retail formats, people are moving out of their zone-based buying behaviour and have significantly increased their spending at the malls. This study covers the following objectives: 1. To determine and study the key factors that influence consumer behaviour towards shopping malls. 2. To know and analyze the level of satisfaction of customers with regard to shopping malls as one of modern retail format 3. To analyze consumers’ overall shopping experience in malls 4. To understand the mall management strategies followed by retailers or mall developers to lure customers towards shopping malls. 1.5 SCOPE OF THE STUDY The current study focuses on consumer behaviour towards shopping malls. The project begins with information about the mall culture and the way it has changed the behaviour of 11. 11. consumers’ towards shopping. Further, a review of literature related to behaviour of consumers towards shopping malls has been mentioned in this project. This project covers the research methodology & data collection tools used for the project. A complete analysis of data collected has been done to reach a conclusion. Detailed information regarding the retail industry and modern retail formats (shopping malls) has also been mentioned. The focus of this project is on mall shoppers. Various factors affecting shopping behaviour of consumers in shopping malls have been studied. Also the mall management strategies adopted by mall developers/retailers to lure consumers have been studied. A questionnaire was prepared which was based on different parameters to judge and understand the consumer behaviour towards shopping malls. The project has been completed in the span of three months and area covered for the study was Delhi only. Lastly, this project helps us in understanding what exactly a customer looks while shopping in malls. It gives an idea about the shopping pattern in malls and the strategies which are essential for the retailers to attract customers towards shopping malls in this competitive world. 1.6 RESEARCH LIMITATIONS The limitations of the study are as follows: • The study was limited to Delhi only, thus it is not a very comprehensive study to represent the whole of the economy. Size of the sample is 100, which is of course small in comparison to entire population. • Since the responses were only from some parts of Delhi, the study cannot be generalized for whole Delhi. • Time constraint also put a limitation on the number of respondents surveyed so the sample may not be sufficient enough to generalize the study. • Due to reluctant nature of respondents, it was not easy to collect all the relevant information from them. • It may be possible that the respondents may not have provided true information • Respondents may have given bias information. 12. 12. • There can be many interpretations and explanations to the data collected. This is an empirical study and the research provides the explanation as understood by the researcher only. • The data taken from the secondary source like internet, newspaper, books may lack some proper explanation or may be not correctly interpreted. • Retail sector in itself is a big concept and it is quite difficult to focus on every part of it. • Unavailability of current statistics on shopping malls was another limitation. 13. 13. REVIEW OF LITERATURE 14. 14. REVIEW OF LITERATURE For the purpose of this study, many research papers in different journals have been referred to. Some of the most prominent ones are as follows: Arora Shweta, Malhotra Vaishali and Rathi Priya, (2010), “Impact of Organized Retailing on Unorganized Sector”, Journal of IPM Meerut, Vol. 11, No. 1, Pages 36-48 studied the impact of organized retailing on unorganized sector. The objective of their study was to analyze the consumer behaviour towards organized and unorganized retailing in India, their source of purchasing and the factors which influence their mall purchasing in India. The researchers concluded with their study, that India’s organized and unorganized sector can coexist and flourish. The growth in India’s organized sector is due to change in consumer’s behaviour. This change was the result of change in income, lifestyles. But in India it is quite skeptical that organized sector will be ever able to overcome the unorganized retail completely. The values, culture and beliefs prompt them to go to shop retail shops where they can get cheap products. Arslan Vural Tulin, Isigicok Erkan and Sezer Senkal Filiz, (2010), “Magnetism of shopping malls on young Turkish consumers”, Young Consumers: Insight and ideas for responsible marketers, Vol. 11, Issue 3, Pages 178-188 studied the reasons behind the attractiveness of shopping malls for young consumers in turkey. They carried out their study in few selected malls in Bursa, Turkey. They surveyed 621 young consumers aged 12-24. The researchers found that five mall attractiveness factors according to young Turkish consumers perceptive were- retail environment, leisure conditions, socializing in a secure environment, accessibility and leisure. Aykol Bilge, Özgen Özge and Tabak İlter Burcu, (2006), “High School Girl’s Shopping Mall Experiences, Perceptions and Expectations – A Qualitative Study”, Ege Academic Review, Vol. 6, Issue 1, Pages 107-120 focused on the expectation, experience and perception of the high school girls to see what attracts them to malls. The objective of their study was to identify image attributes of participants’ ideal shopping malls, shopping motives and expectation of high school girls. They discovered that six factors related with the malls were found to shape the girl’s expectations, experiences and perceptions. Those factors were – merchandising, entertainment, atmosphere, location and accessibility, security and personal service. Among the above stated factors, entertainment got the highest weight age. 15. 15. Banerjee Mohua and Dasgupta Rajib, (2010), “Changing pattern of consumer behaviour in Kolkata with advent of large format retail outlets”, The IUP Journal of Marketing Management, Vol. 9, No. 4, Pages 57-80 tried to examine the changing preferences of consumers in Kolkata . The basic objective behind their study is to analyze the perceptual change in consumer frame of mind regarding the gradual acceptance of organized modern retail formats i.e. Shopping Malls. The study conducted over the period July 2004- March 2007. They discovered that the mall culture has gained acceptance and consumers are frequently visiting the malls like the Gariahaat mall, INOX etc. Thus it can be opined from their research study that the “mall culture” has brought about dramatic changes in the lifestyle of Kolkata consumers. Nowadays people are changing their consumption habits and leisure activities to lay the foundation for the organized retail industry. Bansal Gautam and Singh Amrinder, (2008), “Study on Consumer Perception Regarding Purchase of Products from Big Shopping malls”, Journal of IMS Group, Vol. 5, No. 2, Pages 13-23 studied the consumer perceptions regarding purchase of products from big shopping malls in Ludhiana. This study included awareness level of Ludhiana citizens regarding the shopping malls, and the factors influencing the customer’s decision to visit shopping malls and their satisfaction. About 200 respondents were surveyed in the studies who regularly visit to malls for purchase of goods. Quality of products, convenience, sales promotion and availability of key different brands influenced consumers towards the shopping malls. Shopping malls around the world share a basic line- look and feel. Thus, the true measure of success depends on how rapidly consumers adopt themselves to new culture. Eastlick Ann Mary, Lotz Sherry, L., Mishra Anubha and Shim Soyeon, (2010), “Understanding Patrons’ Participation in Activities at entertainment malls”, International Journal of Retail and Distribution, Vol. 38, Issue. 6, Pages 402-422 tried to examine the factors contributing to participation in entertainment and shopping activities at shopping malls. Their research study was conducted at two major entertainment shopping malls located in major metropolitan areas in US states of Arizona and California. They discovered that future patronages were most directly influenced by participation in mall entertainment activities followed by shopping centers. The customers’ motivation to visit malls was to have entertainment and shopping too. The research study demonstrated that mall patrons do experience “flow –like” mood states which influence activity levels in pursuing both mall entertainment and shopping. 16. 16. Masha Sandeep and Singh Raghbir, (2010), “Consumer Preferences towards New Retail Formats”, The Apeejay Journal of Management and Technology, Vol. 5, No. 2, Pages 16-125 tried to investigate the factors behind the preferences of consumers towards various modern retail formats. Various demographic variables like sex, age, income, education, occupation, etc affect the preferences of the consumers but the researchers took only two variables viz., age and income for their study. The choice of two variables was based on the fact that the shopping behaviours of consumers differ over different age groups. The behaviour of the consumers also differs with their needs and capacity to shop, which is directly related to their income. Their study made comparison for indoor retail formats like shopping malls, supermarkets, Hypermarkets, Departmental stores etc. with outdoor retail formats like Tele marketing, Door- to- Door selling, Melas / Haats , Electronic shopping etc. They discovered that Shopping Malls were the most preferred mode of indoor retailing among consumers of all age groups but as compared to shopping outdoor, Melas/Haats are the top preferred mode among the respondents. They also found that consumers with higher income are more attracted towards shopping malls. The major factor that attracts consumers towards shops in malls is the variety of products available, various discounts, and schemes tempted them to visit malls. Prakash Chandra Dash and Swaroop Chandra Sahoo, (2010), “Consumer Decision Making Styles in Shopping malls - An Empirical Study In The Indian Context”, Indian Journal of Marketing, Vol. 40, No. 8, Pages 25-30 tried to investigate the consumer decision making styles in shopping malls and also to ascertain the variations in the consumer decision making styles across different demographic variables. For their research study, they adopted items from CSI (consumer style inventory) developed by Sproles and Kendall. Sproles and Kendall identified nine decision making styles, while the researchers found only six decision making styles in the Indian environment. The decision making styles that they discovered were price consciousness, quality consciousness, recreational, confused by over choice, novelty consciousness and variety seeking. This study did not confirm four dimensions- fashion consciousness, brand consciousness, impulsiveness and brand consciousness. They found in their study that single consumers are more price conscious than married ones; Indian consumers were recreational in their shopping. They recommended with help of their study that understanding of Indian mall shopper behaviour, with particular reference to their decision making styles are crucial. 17. 17. Rajagopal, (2009), “Growing shopping malls and behaviour of urban shoppers”, Journal of Retail and Leisure Property, Vol. 8, No. 2, Pages 99-118 studied the impact of growing congestion of shopping malls in urban areas of Mexico on shopping convenience and shopping behaviour with regard to personality traits of shoppers affecting the preference for shopping mall concerning store assortment, convenience, distance to malls, economic advantage and leisure facilities. The result of the study revealed that the ambience, sales promotions and comparative economic gains in the malls attract higher customer traffic to the malls. It was found during this study, that urban shoppers visit shopping malls as leisure centers to relax and spending long hours. Srivastava, R.K., (2008), “Changing Retail scene in India”, International Journal of Retail & Distribution Management, Vol. 36, Issue No. 9, Pages 714 – 721 studied that malls in 2006 were more developed in the North and West part of India. Food, groceries and apparel purchase by customers contributed to 52 percent. On average 75 percent of customers spend about 1-3 hours in the mall. Malls with multiplexes such as cinema theatres, food courts, and play places for children are becoming the centre for family outings. Small retailers have improved their service to cater to Indian consumers, credit limits and home services are helping them to hold on to their customers. Retailing focus is changing towards satisfying the different hierarchy of needs of customers. Verma Priyanka and Verma Rooble, (2008), “Retail marketing – A Challenging Journey of an Epic Transformation”, Journal of IMS Group, Vol. 5, No. 2, Pages 64-72 focused on the changing face of the retail sector i.e. organized and unorganized sector and proposed that the retail sector has played a phenomenal role throughout the world in increasing productivity of consumer goods and services. This study talk about the challenges with respect to retail industry like price, distribution channel, location, target customers, scale of operations, competitors etc. and also emphasize on new retail formats like shopping malls, department stores, hypermarkets/supermarkets etc. 18. 18. RESEARCH METHODOLOGY 19. 19. RESEARCH METHODOLORY 3.1 POPULATION For the current study customers visiting selected shopping malls in Delhi have been covered. A total of 122 respondents were approached. Out of these 122 respondents, 22 respondents were uninterested in responding or were falling short of time, for which this analysis is being made. Thus a sample of 100 respondents was taken finally for the study. 3.2 SAMPLING It was not feasible to cover all the customers visiting shopping malls. So for the purpose of this study 100 random customers were selected for the study. Convenience sampling method has been used for selecting the sample. 3.3 DATA COLLECTION METHOD For the study, both primary and secondary data were collected. For primary data, a structured questionnaire was developed and administered to the respondents. For secondary data, existing literature in form of magazines, papers, company literature, book, journals, web sources were consulted. 3.4 DATA COLLECTION TOOL To collect first hand/ primary data a structured, closedended, multiple choice questionnaire was prepared and was administered the sample of respondents selected for the study. Questions are related to general profile of respondents, attributes of shopping in malls, customer satisfaction related to shopping in malls, problems faced by shoppers and overall factors influencing shopping in malls. 3.5 DATA PRESENTATION TOOLS In the project report the data is presented with the help of Bar Graphs, Pie Charts, Tables, etc. These have been specifically used to present the data collected from respondents through questionnaire. 20. 20. INDUSTRY PROFILE 21. 21. INDUSTERY PROFILE 4.1 RETAIL INDUSTRY – AN OVERVIEW Retailing is not only an important aspect of the economic structure but very much a part of our lives. Although trading of goods has been in existence since the olden days, it is only in the recent past that the buying and selling of goods have become more of a formal and a brand dominated activity. In fact, today retailing is evolving into a global, hi-tech business. Nevertheless, the traditional forms of independently owned small businesses co-exist along with the organized retailers like departmental stores, speciality stores, shopping complexes, malls, large scale multiple chains, etc. Organized retailing has emerged in a big way since 2000 onwards and with it, we are witnessing the emergence of new forms of retailing. The retailers’ market can be segmented on the basis of various retail formats to concentrate or focus on the needs of particular consumer groups. Ultimately, this has led to the development of a very complex retail environment. With the increase in competition in the retailing market, retailers are seeking new consumer groups and new ways to tap this market. Some of the important reasons for the growth in the consumer demand for retail outlets could be that there is a growing middle class of consumers with high disposable income, rise in consumer aspiration level for global lifestyle due to media exposure, etc. The retail industry emerged in the US in the eighteenth century, restricted to general stores. The modern retail industry is booming across the world. Revenues from retail sales in the US alone stood at $4.48 trillion in 2007, according to a report by the US Census Bureau. The retail industry is focused on the sale of goods or merchandise from a specific location for direct consumption by the purchaser. North America is the home of most of the world’s largest retailers, since the U.S. dominates the global retailing industry. 4.2 EVOLUTION OF THE INDIAN RETAIL SECTOR The origins of retailing in India can be traced back to the emergence of Kirana stores and mom-and-pop stores. These stores used to cater to the local people. Eventually the government supported the rural retail and many indigenous franchise stores came up with the help of Khadi & Village Industries Commission. The economy began to open up in the 1980s 22. 22. resulting in the change of retailing. The first few companies to come up with retail chains were in textile sector, for example, Bombay Dyeing, S Kumar's, Raymonds, etc. Later Titan launched retail showrooms in the organized retail sector. With the passage of time new entrants moved on from manufacturing to pure retailing. Retail outlets such as Foodworld in FMCG, Planet M and Musicworld in Music, Crossword in books entered the market before 1995. Shopping malls emerged in the urban areas giving a world-class experience to the customers. Eventually hypermarkets and supermarkets emerged. The evolution of the sector includes the continuous improvement in the supply chain management, distribution channels, technology, back-end operations, etc. this would finally lead to more of consolidation, mergers and acquisitions and huge investments. 4.3 RETAILING IN INDIA – CURRENT SCENARIO & FUTURE PROSPECTS Retailing is one of the pillars of the Indian economy and one of India’s largest industries, accounting for over 10 percent of the country’s GDP and around 8 percent of employment. Retailing is the most active and attractive sector of last decade and it has been present since ages in our country. In the recent past it has witnessed so much dynamism. The emergence of retailing in India has more to do with the increased purchasing power of buyers, especially since post liberalization, there has been increase in product variety and increase in economies of scale with the aid of modern supply and distribution solution. Indian retailing is at an interesting crossroad. The retail sales are at the highest point in the history and new technologies are improving retail productivity. Retail sector is one of India's fastest growing sectors with a 5 per cent compounded annual growth rate. India's huge middle class base and its untapped retail industry are key attractions for global retail giants planning to enter newer markets driven by changing lifestyles, strong income growth and favorable demographic pattern. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. The Indian retail industry is valued at about $300 billion. The retail industry is an ever growing and changing sector that caters to the dynamic needs to the consumers by providing merchandise at outlets from where they can be purchased by the latter. 23. 23. In today’s dynamic and shaky business world, the retail industry is constantly upgrading itself. With an endless array of customer choices, fierce competitors, pervasive use of the internet, and a complex global economy, retailers need to focus on finding ways to sustain and grow their businesses. Traditional growth models that focused on rolling out more stores and adding more product lines, no longer enjoy the return on investment they once did. Successful retailers are those who are able to adapt and change to the environment and develop new ways of serving customers, respecting the dynamics of current trends and adapting accordingly. The major reason behind the low participation in the Indian retail sector is the need for lumpy investments that cannot match up their break even points. The government policies are being revised from time to time to attract investments in this sector. It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion. Shopping in India has witnessed a revolution with the change in the consumer buying behaviour and the whole format of shopping also altering. Industry of retail in India which has become modern can be seen from the fact that there are multi- stored malls, huge shopping centers, and sprawling complexes which offer food, shopping, and entertainment all under the same roof. India retail industry is expanding itself most aggressively; as a result a great demand for real estate is being created. Indian retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. It is expected that by 2010, India may have 600 new shopping centers. In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. The branded food industry is trying to enter the India retail industry and convert Indian consumers to branded food. Since at present 60% of the Indian grocery basket consists of non- branded items. India retail industry is progressing well and for this to continue retailers as well as the Indian government will have to make a combined effort. 24. 24. The BMI India Retail Report for the first-quarter of 2011 forecasts that total retail sales will grow from US$ 392.63 billion in 2011 to US$ 674.37 billion by 2014. Strong underlying economic growth, population expansion, the increasing wealth of individuals and the rapid construction of organized retail infrastructure are key factors behind the forecast growth. 4.4 CLASSIFICATION OF RETAIL INDUSTRY & TYPES OF RETAIL FORMATS India retail sector comprises of organized retail and unorganized retail sector. Traditionally the retail market in India was largely unorganized; however with changing consumer preferences, organized retail is gradually becoming popular. India has more than 12 million retail outlets; they are small and greatly unorganized. In fact, out of the entire retail sector in India, the organized sector is only 3-5 per cent and the rest is unorganized. 96 per cent of the retail outlets are smaller in area than the standard norms. The Retail Industry is divided into two sectors: • Organized Retail • Unorganized Retail Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. Organized retail in India is expected to grow at 2530 per cent yearly and is expected to increase from `35, 000 crore in 2004-05 to `109, 000 crore by 2010. The organized sector is largely concentrated in big cities. Organized retail business in India is very small but has tremendous scope. This is despite the fact that India is one of the biggest markets. Retail business contributes around 10-11 per cent of GDP. India also has the largest number of retailers, about 12 million, though they are mostly small. Most of the organized retailing in the country has just started recently, and has been concentrated mainly in the metro cities. Organized retailing in India has a huge scope because of the vast market and the growing consciousness of the consumer about product quality and services. Organized retail only accounts for 3% of the total retail industry as yet and is estimated to grow to $64 billion by the year 2015. As a result, the retailing space in the country will also rise by 15-20% by 2010. 50 million sq ft of quality space under development 7 major cities to account for 41 million sq ft development 300 malls, shopping 25. 25. centre and multiplexes under construction To open 35 hypermarkets, 325 large department stores, 1500 supermarkets and over 10,000 new outlets To add US $ 10 billion of business to organized retail. 26. 26. According to ASSOCHAM president, Anil K Agarwal, “The organized sector retailing is all set to grow at much faster speed than unorganized sector and the higher growth speed will alone be responsible for its higher market share which has been projected for $17 billion by 2010-11. Cities and metropolis in which retailing will show booming prospects include Mumbai, Delhi, Chennai, Kolkata, Bangalore and Kanpur. The popular mode adopted for building shopping malls in these cities will be based on build, operate, lease and sell basis.” Organized retailing will grow faster than unorganized sector and the growth speed will be responsible for its high market share, which is expected to be $ 17 billion by 2010-11. This organized retail sector mix includes supermarkets, hypermarkets discounted stores and specialty stores, departmental stores and shopping malls. Unorganized retailing refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. In India, a shopkeeper of such kind of shops is usually known as a dukandar. The unorganized retail sector includes the big, average and modest grocery stores and the chemist shops. The unorganized segment still dominates and leads the industry. By 2010, the Indian retailing sector is anticipated to become Rs. 12.5 trillion markets. According to the report India Retail Sector Analysis (2006-2007) by RNCOS, the total retail market is primarily focused in rural regions, which makes up 55% or US $ 165 billion of the overall retail market as opposed to urban segment, which represents 45% or US$ 135 billion of the gross retail market. The rural market is spread over 627,000 villages, even though its centre of attention is focused around a core group of 100,000 villages that makes up 50 per cent of the rural population. 27. 27. Table 4.1 Few Retail Formats in India Format Description The Value Proposition Branded Stores Exclusive showrooms either owned or franchised out by a manufacturer. Complete range available for a given brand, certified product quality. Specialty Stores Focus on a specific consumer needs, carry most of the brands available. Greater choice to the consumer, comparison between brands is possible. Department Stores Large stores having a wide variety of products, organized into different departments such as clothing, house wares, furniture, appliances, toys, etc. One stop shop catering to varied / consumer needs. Supermarkets Extremely large self-service retail outlets. One stop shop catering to varied consumer needs. Discount Stores Stores offering discounts on the retail price through selling high volumes and reaping economies of scale. Low Prices. Hyper-mart Larger than a supermarket, sometimes with a warehouse appearance, generally located in quieter parts of the city. Low prices, vast choice available including services such as cafeterias. Convenience stores Small self-service formats located in crowded urban areas. Convenient location and extended operating hours. Shopping Malls Enclosure having different formats of in-store retailers, all under one roof. Variety of shops available to each other. 4.5 SHOPPING MALLS – MODERN RETAIL FORMATS 28. 28. Malls are the largest form of organized retailing today. They are located mainly in metro cities, in proximity to urban outskirts. But now a day’s across India Malls are developing. Generally ranges from 60,000 sq ft to 7, 00,000 sq ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof. Examples include Shoppers Stop, Westside, and Pantaloon. The new shopping malls that have been expanding their footprint across Indian cities are well designed, built on international formats of retailing and integrated with entertainment and restaurants to provide a complete family experience. Over 300 malls are expected to be built over the next two years and most Indian cities with over a million populations will be exposed to this modern method of retailing. Shopping malls have existed in India since several decades but were designed and built to house several shops in a single facility. These malls also known as Shopping Arcades offered only rows of shops, most of which were small stores that promised bargains for their various goods. These Shopping Arcades tried to maximize on their store space and did not offer any areas for recreation and entertainment. The present day malls are a creation of the past few years post 2000. They are designed professionally using a lot of international experience and combine shopping with a lot of brand building, recreation, food and entertainment. Malls also have a large format store that serves as their anchor for shopping and a prominent restaurant that anchors the food needs of visitors. Most malls also feature a multiplex cinema that offers entertainment to the visitors of the mall. Overall the mall has architectural beauty and open spaces to allow visitors and families to hang-out. Shopping malls are an emerging trend in global arena. A shopping mall is the historical adaption of the traditional market place. The mall is the collection of independent retail stores, services and a parking area, which is conceived, constructed and maintained by a separate management firm as a unit. The first shopping mall was the Country Club Plaza, founded by the J. C. Nichols Company and opened near Kansas City in 1922. The first enclosed mall called Southdale was opened in Edina, Minnesota in 1956. In 1980s, giant megamalls were developed. The shopping mall culture is rocking India –metros and now even the smaller towns are buzzing with the mall mania. The concept of shopping has been altered completely with the 29. 29. emergence of the shopping malls. The malls have become a sensation in terms of changing lifestyle of Indians- the way they are shopping and socializing Consumers wanted a better shopping experience and this demand gave rise to the emergence of shopping malls in India. In this age of mass production and mass consumption, the concept of shopping malls is the most modern method of attracting consumers. Shopping is no longer limited to a mere buying activity; it has become synonymous with splurging time and money. Shopping malls cater to the demands of consumers by offering them- comfort, entertainment under one roof and food. The inclusion of all these facilities, make shopping malls popular all over world and especially so in India. Malls are the largest form of organized retailing today. They are located mainly in metro cities, in proximity to urban outskirts. But now a day’s across India Malls are developing. Generally ranges from 60,000 sq ft to 7, 00,000 sq ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof. Mall culture in India and especially in Delhi has grown with an incredible pace. Just a few years back, people had to make a choice among shopping, movies or hanging out on a holiday but thanks to our malls, all these jobs can be performed at the same time, under the same roof and that too with a wonderful experience. It is basically the experience and not the intention that counts when it comes to malls. All shopping malls have some or all of these features: food court, movie theaters, customer service/information desk, security, stroller rental, "anchor stores" (big department stores like Sears, Macys or Bloomingdales in the US, Shoppers Stop, Lifestyle or Pantaloons in India), play areas, recreation areas, kiosks, vending machines and ATMs. Often, inside the Mall, it is impossible to tell which country you are in. They all look plush, with shiny floors, lots of glass, bright lights and escalators. One design feature they share is that stairs and escalators for different floors are always located some distance apart. One invariably has to walk through part of a floor to get to the escalator for the level one want to reach. In all likelihood, malls are so designed to ensure that consumers walk around to see more stuff. The more merchandise they see, the more likely they will be to make that impulse purchase Shopping mall has become part of a ‘way of life’. The place is a destination frequented by many levels and age groups of people during leisure time and weekends. The intentions of 30. 30. going to the mall now are no longer confined to shopping for necessities in terms of foods and clothes but have expanded to the act of seeking for leisure satisfaction. The reason being that leisure in form of shopping can be achieved rather easily as it can be done casually and quite frequently without much planning and collective agreement among a group of people. 4.6 PROSPECTS OF SHOPPING MALLS IN INDIA Introduction of malls has not been able to replace traditional markets, which are still popular among the pocket conscious people, but has definitely added a new adventure to the shopping experience. The retail business in India is set to witness heady growth in the years ahead. The country has some 100 malls now, with the National Capital Region (NCR) and Mumbai accounting for maximum numbers of the gleaming shopping centers, says a study by the Images fashion magazine. The retail sector will see over 34 million sq ft of shopping centre space by the year end, said the report on shopping centre development in India. According to Images, there are a total of 96 operational malls in India with a total built-up area of 21.6 million sq ft. The number will rise to 158 malls by the end of the current year. Organized retailing is projected to grow at the rate of 25-30 per cent per annum to touch $24 billion by 2010, said the Images study. Investments in the retail sector are estimated at between $400 million and $500 million over the next two to three years and over $4 billion by the end of 2010. The retail industry in India is currently estimated at $205 billion, which is likely to grow at a rate of five percent per annum in the coming years 4.7 SWOT ANALYSIS OF SHOPPING MALLS AS MODERN RETAIL FORMATS STRENGTHS • Number of earning members have increased in family, thus rise in disposable income of the people and have shifted their preference towards shopping at malls. • Shopping at malls is easy and convenient for people as they have access to everything under one roof. 31. 31. • Rapid urbanization is major contributor to the acceptance of mall culture. • Availability of labor in abundance at cheap wage rate. • Changing consumer habits and lifestyles of people is the major factor that attracts more footfalls. • With the availability of different modes of payment like cash, plastic card revolution etc has made the task easier. • The greater availability of quality retail space for the establishment. • It is technology that helps the organized retail formats to score over the unorganized retail formats. Successful mall retailers today work closely with their vendors to predict consumer demand, shorten lead times, reduce inventory holding and ultimately save cost. WEAKNESSES • Numerous license, permits and registration requirement and other policies related issues. • Lack of trained personnel and inadequate human resources at all. • Organized retail sectors pays high rate of taxes as compared to small retail business. • Stringent employment and industry laws set by government • Constant changes in consumer preference are faced by mall managers and therefore supply chain and distribution channels require a constant check. • Some people are not acquainted to the modern retail formats, thus they may prefer unorganized formats over organized formats. • Customer Loyalty: Retail chains are yet to settle down with the proper merchandise mix for the mall outlets. Since the stand-alone outlets were established long time back, so they have stabilized in terms of footfalls & merchandise mix and thus have a higher customer loyalty base OPPORTUNITIES 32. 32. • The Indian middle class is already `30 crore & is projected to grow to over `60 Crore by 2010 making India one of the largest consumer markets of the world. • Organized retail is only 3% of the total retailing market in India. It is estimated to grow at the rate of 25-30% p.a. and reach `100,000 crore by 2010. • In India it has been found out that the top 6 cities contribute for 66% of total organized retailing. While the metros have already been exploited, the focus has now been shifted towards the tier-II cities. The 'retail boom', 85% of which has so far been concentrated in the metros is beginning to percolate down to these smaller cities and towns. The contribution of these tier-II cities to total organized retailing sales is expected to grow to 20-25%. • Rural retail is also catching up slowly. India's huge rural population has caught the eye of the retailers looking for new areas of growth. ITC launched India's first rural mall “Chaupal Saga” offering a diverse range of products from FMCG to electronic goods to automobiles, attempting to provide farmers a one-stop destination for all their needs. • There is much potential for investment in the organized sector. • It is one of the organized format which carry high growth potential and fastest growing format. THREATS • Inflation decreases the purchasing power of money, which will reduce the spending of consumers at malls. • Consumer’s personal choice for one particular mall can be a threat for others. • Lack of differentiation among the malls that are coming with every possible trait. • Lack of stock availability in stores can turn out to have negative perception in mind of consumers. • New entry of other players may also emerge in the near future. 33. 33. • Shopping culture has not developed in India as yet. Even now malls are just a place to hang around with family and friends and largely confined to window-shopping. • If the unorganized retailers are put together, they are parallel to a large supermarket with no or little overheads, high degree of flexibility in merchandise, display, prices and turnover. 34. 34. 4.8 KEY SHOPPING MALLS IN DELHI Delhi is slowly catching up with rest of the world in terms of market openness and globalization. It's been only a decade and half and the signs can be seen in cities. Shopping Malls are the visible witness of that change. Wherever you go in Delhi, you will find some or other glittering mall. Due to the emergence of the 'Great Indian Middle Class', the country is witnessing a kind of retail revolution and shopping malls are coming up like mushrooms, to cash in that revolution. Few years back west Delhi had not even a single shopping mall but today you will a mall here after every 5Km ,same is the case with all other parts of the city. The shopping malls in Delhi represent the ultimate cure in retail therapy The key shopping malls in Delhi are: CROSS RIVER MALL Cross river mall is a dream venture of Suncity Projects Pvt. Ltd. It was built in 2007 and has redefined the business of large format retailing in East Delhi. The Mall houses top-of-the-line brands in fashion, lifestyle, food & beverage, entertainment and leisure, all encased in a world class mega ambience that replicates the best of replicates international retail practices. It is located in the heart of Shahdara's Business District. This 2.5 lakh sq. feet mall gives a new genre of cutting edge retail and entertainment experience to over 4.5 million urban consumers from the area and other parts of the Capital and the NCR. The Crossriver Mall is an extraordinary structure flaunting superb designs in high quality heat-reflective glass, marble, steel and granite. The Mall arcs over 12,380 metres which flows across 800 feet in sleek lines coupled with mind blowing landscaping and lighting. A 150 feet wide road to the front and an 800-feet common frontage lends the plot a distinct locational advantage. The mall is the viable mix of retail, entertainment and commercial attractions for consumers and potential investors alike, with four floors containing carefully demarcated sections for shopping, entertainment, leisure, all accompanied by strategic branding opportunities. Features: • 23226 sq. meters area for retail & leisure. • Centrally air conditioned 2323 sq. meter atrium. 35. 35. • 25,000 sq. ft. food court • Four screen Multiplex cinema by Fun Republic. • Two level basement parking for over 700 vehicles. • Integrated HVAC system, rain water harvesting system. • Fire detection and fire lighting systems. • Integrated building management systems. • Modern elevators and escalators. • 500 vehicles can be accommodated in the two-level basement parking area in the surface and basement parking in the mall Brands at Cross River Mall - Delhi Action, Allen Solly, Anmol Suits, Baskin 31 Robbins, Bizarre, Book Shoppe, Bossini, Carmichael House, Catmoss, Chicking, Citizen, Cotton by Century, CTC Mallet, Diwan Sahib, Dosa Junction, Doyal Opticals, Eleven O Eleven, Excalibur, Flemming Work, Fun Cinemas, Gini & jony, Hallmark, Java Green, Kabab Gallery, Kappa Kavitras, Kavitras Saree, Keune The Saloon, Killer, Koppo, Koutons, Levis, Lilliput, Louis Philippe, Mardigras, Mc Donald, Meena Bazaar, Nike, Panna Sarees, Pantaloons, Papa Jones, Pepe Jeans, Peter England, Portland, Priknit, Provogue, RBK, Reid & Taylor, Rich Look, Ritu Kumar, Satya Paul, Sony, Srimathi, Study Janak, Stupid Cupid, Tamanna, Tycoon, Uni Sex, Usi, Van Heusen, Vedha Collection, VIP, VIP Happy Journey, Woodland, World of Titan, Yummy Yok. WEST GATE MALL West Gate Mall is a shopping mall located in Shivaji Place District Centre. It was developed by the Today Homes Group in 2007. The mall has five floors plus two levels of basement parking and is currently the largest mall in Shivaji Place. The mall has three anchor stores which include Pantaloons and Marks & Spencer along with stores representing many major international brands of clothes and apparels including United Colors of Benetton, Lacoste, Next, Guess, Adidas, Reebok, Nike, Van. The shopping mall has something for every kind of 36. 36. shopper and is really exhaustive with the number of brands and products it houses. The mall has entertainment facilities by Movie Time cinemas that play some of the most happening films in town. They also have a range of restaurants names such as Papa Jones, Golden Dragon, TGI Fridays, Toast, Moti Mahal, Ambrosia and American Hot. With so much on offer, West Gate Mall makes for a wonderful visit any time of the day. The Rajouri Garden metro station is also nearby. This mall serves as one of the destination points for the localities nearby, such as Punjabi Bagh, Rajouri Garden, Tilak Nagar,Mansarovar Garden, Kirti Nagar, Paschim Vihar and Patel Nagar. West Gate Mall is pretty large, having 2 levels of basement parking (although there is a huge open air parking just next to the mall that is preferred by most people), and also has 6-7 movie halls located on the top floor. In between the basement and the top floor, there are a large number of shops and eating joints that draw a number of people Clothing/Accessories shops United Colors of Benetton, Lacoste, Next, Guess, Adidas, Reebok, Nike, Van Heusen, Levi’s, Jockey, Franco Leene, Urban 10, Taniya Khanuja, BE ME, Leela’s Studio, Lyallpur Instyle, Art Karat, Etam, Max Fashion Retail, Allen Solly, Lee, Straps, Freiburg, Shaw Brothers, Just She, G & B Fashion Pvt. Ltd, Bossini, Arrow, Latin Quarters, Planet Retail Holdings Pvt. Ltd, Lacoste, Puma, Kipling, Portland, GFO, Dremz, Mark and Spencer, Kazo, Pepe, Satya Paul, Pantaloon, etc Restaurants Food Court, TGIF, Ambrosia, Freeze (a luxury bar with the temperature at -10 Celsius), Papa Jones, Golden Dragon, Toast, Moti Mahal, American Hot, Quik Bites Miscellaneous Elvy Lifestyle Private Limited, World of Titan, Aryan Lifestyle Private Limited, Ambience, Gelato Vittorio, The Mobile Store, Food Bazaar, The Body Shop etc. NORTH SQUARE MALL North Square Mall located in North Delhi, is a project undertaken by Suncity Projects Pvt. Ltd. It was built in 2007. As a salutation to womanhood the ‘North Square Mall’ is the first of its kind a Woman’s Mall in North Delhi. This mall offers great ambience, panache and ease of shopping which every individual craves for. North Square Mall is strategically located on a 77 acre commercial hub of North West Delhi, known as Netaji Subhash Place, Wazirpur 37. 37. District Center, Pitampura. The said mall has huge catchment area catering to the population of Shalimar Bagh, Prashant Vihar, Ashok Vihar, Pitampura, Rohini etc. The mall became operational in 2006. Features: • Superior design and efficient space planning • Centrally air conditioned environs • Ample systematic parking for over 400 vehicles • Complete power back up facility • 3-screen multiplex by 'Fun Republic' • Multi cuisine restaurants • Kids play area SELECT CITYWALK Select Citywalk, is a vibrant, upscale, unique shopping & leisure environment in the heart of South Delhi, Saket. Select Citywalk was promoted by Select Infrastructure Pvt. Ltd., a joint venture between the Select Group, Pioneers in the travel & tourism Industry and the Aarone Group, niche Delhi based developers in 2007. Housing, some of the most exciting Indian & International brands under one roof, it combines luxury and high street shopping, together with destination cafes, bistros, restaurants and bars. Select Citywalk, offers the experience of blending in a modern, cutting edge shopping experience with the irresistible charm of a laid back walk, through the city square. Select Citywalk, spread over 6 acres in the heart of posh South Delhi, Saket; comprises of a gorgeous shopping podium, Serviced Apartments, a 6- screen, upscale PVR Premiere, destination restaurants, cafes, bistros and bars, with parking for approximately 2,000 cars. More than just the ultimate shopping destination, Select Citwalk treats guests to a sensory experience & provides integrated, high quality infrastructural facilities at par with international standards. Breathtaking architecture creates a distinct environment that exceeds all expectations. Elders & Physically Challenged, Children’s Play Area, Parking spread 38. 38. across 3 levels, Travel Desk, Business Centre, Gift Wrapping are offered to enhance the shopping experience. Amenities such as Optional Valet Parking, Foreign Currency Exchange, Driver Lounges & Basement Restrooms, Doctor on Call and Infirmary are available. Services Offered • Florist • ATM • Pharmacy • Foreign Exchange • Baggage Counter (PVR Cinemas) • Privileged Parking Senior Citizen • Privileged Parking Pregnant Women • Gift Wrapping • Entertainment • Handicap Assistance • Feeding Room • Rent a Stroller • Nail Bar/Saloon • First Aid • Styling Services LIVING STYLE MALL Living Style Mall is a world-class shopping mall equipped with the facilities of international standards. It is built by Apex-Builtech Ltd. It is located at Jasola , South Delhi. The mall is the paradigm of prosperity that the real estate industry has witnessed in the recent years. It was built in 2010.It is strategically designed in order to cater to the needs of the people living in modern societies. The mall is enriched with all the ultramodern facilities. Rich construction specifications will make it a truly global structure. Every aspect of the mall will be astounding. Utmost attention is given in the designing of the interior of the mall so that it can attract the attention of everyone. Living Style Mall is going to be the hub of most of the renowned brands where the people will have an all-new experience. 39. 39. The convenient location of the mall is the greatest advantage. It is connected to most of the posh areas of Delhi and NCR. It is easily accessible from Noida through Kalindi Kunj. It is also well connected to New Friend’s Colony, Nehru Place and Mathura Road. This shopping mall is encompassed by the colonies of thousands of potential customers. About 3 million people are residing in surrounding areas like Sarita Vihar, Noida, East of Kailash, Greater Kailash-I, Greater Kailash – II, Panchsheel Enclave, Chirag Delhi etc. The populations of these areas are growing rapidly creating more and more potential customers of this ultramodern Living Style Mall. Features: • Located at posh South Delhi • State-ofthe-art structure • Three side on ground and) One level basement parking • 24 hours CCTV security surveillance • 45 meters wide road • 100% power back-up • Round-the-clock security • Centrally air-conditioned with energy efficient chillers • World-class mall management DLF EMPORIO DLF Emporio is a shopping mall situated in Vasant Kunj, New Delhi. It is one of the first truly zoned luxury malls to open in India. It is also one of the most expensive malls in the country with rental rates of Rs.900-Rs.1,000 per sq. ft. per month . The mall has been designed by architects Mohit Gujral and Chandu Chadha in Italian marble, burnished wood, and gleaming brass detailing. It has five floors and comprises an area of 320,000-square-foot (30,000 m2 ). The mall features over 170 brands including 75 International Brands. It was 40. 40. developed by DLF Universal and opened in August 2008. Recently the promoters also opened a 180 seater high end restaurant called SET’Z with a bar; lounge and section style seating serving 7 International cuisines. Famous brands includes like DKNY, Emporio Armani, Satya Paul, Versace, Gucci, H2O Cue, SET’Z-Restaurant & Bar etc. Hands Free Shopping - Now at DLF Emporio, we don't even have to carry your own shopping. Their hands free Shopping service makes shopping a pleasure whilst you continue Shopping, eating or catching up with friends. Register for their complementary Hands Free Shopping Services at the Concierge Desk on Ground floor & shop stress free. Have your bags carried to your car by a team of dedicated Bell Boys. Valet Parking - If you are running short of time, book Valet Parking Services. Drop off your car keys and they will find you a space while you enjoy shopping. Personal Stylists - you can expert shopping advice with a consultation from their Personal Stylists team. The mall features many international luxury brands like Louis Vuitton, Christian Dior, Fendi, Armani, Dolce & Gabbana, Cartier, Alfred Dunhill, Versace, Hugo Boss, Escada,Tod's, Paul Smith and the watch brands Piguet, Chopard and IWC.Many of these luxury brands are appearing for the first time in India. The mall also features 34 top Indian designers as well. The mall also includes fine dining restaurants, a spa, a salon and a member’s club.There will be a signature luxury restaurant designed by top Japanese designers. CITY SQUARE MALL City Square Mall is a medium sized mall in Rajouri Garden. Located in Shivaji District Centre, close to the metro station, City Square Mall was developed by the MGF Group in 2009, which has constructed many malls in the Gurgaon area. The main feature of this mall is its large lifestyle department store. There are branded stores at the mall likeW,Nike and KFC, United Colours of Benetton, Dockers, Republic of Chicken, Punjabi by Nature, Koutons, Time Factory, Cantabil, Lifestyle, Numero Uno, Levis, Archies, Lilliput, Yo China, Bausch and Lomb, Rock port, Lee Cooper, Woodland, W, Nestle, Pizza Hut, Quality Walls, Bose and Royal Sporting House among others.. The food court on the top floor is a great place to sit around and hang out with your friends. Games like air hockey, trampoline and rides for kids are also available outside the mall in a separate area 41. 41. DLF GALLERIA DLF Galleria - Shopping Mall located at Mayur Vihar District Centre, East Delhi, is a project developed by DLF Group and was built in 2010. It is a retail complex shopping mall, strongly positioned to tap the emergent market of East Delhi. Vantage location coupled with excellent connectivity to immediate and surrounding areas will be a critical success factor for this mall. In addition, the upcoming Commonwealth Games Village Complex in the vicinity will help catalyze rapid development in terms of infrastructure, connectivity and amenities. All these factors would contribute to the transformation of Mayur Vihar into a satellite town in the league of Gurgaon and Noida. Features & Benefits: • Area: The Area of the ‘DLF Galleria Mall’ comprises of near about 1.5 lakh sq. ft. • Components: The Components include - Retail arcade, a hypermarket and gourmet outlets. • Vehicular Access: The ‘DLF Galleria’ has vehicular access to roads like - Noida link Road. • Anchor Store: Anchor Stores like Sabka Bazar and The Home Store. • Number of Floors: The ‘DLF Galleria’ has Ground Floor and additional 2 floors. • Parking: Sufficient parking space with Surface parking of 500 cars (Approx.). • Traffic movement: The traffic movement is well controlled through the installation of Escalators and Elevators in the Mall. • Architect: The ‘DLF Galleria’ has distinctive architectural design by renowned architect Shri. Mohit Gujral. EAST DELHI MALL (EDM) East Delhi mall has been designed as the perfect family destination encompassing all the needs of today’s families. It was developed by CCPL Developers Pvt. Ltd in 2005. East Delhi Mall is a unique attempt, offering best in shopping, fine dining and entertainment. It has an air conditioned and a smoke free environment, facilitated by a network of elevators 42. 42. and escalators backed up by electronically manned/computer operated security system. The Mall has established a name in east Delhi, being the pioneer in opening of a good shopping complex and an entertainment era along with EDM Hatt for handicraft and handloom weavers to exhibit their product to the public particularly in the eastern region of Delhi and around Delhi habitants. It is catering to needs of affluent residential colonies including upper/middle class neighbor-hoods with high disposable income. intending to be a modern day market place, the mall is offering a diversified range of product to the consumers through brand leaders such as McDonalds, Pizza Hut, Arches, Meena Bazaar, lilliput, Bruno-Manetti, Café Coffee Day, Plant M, Kwality Express, Fortune Cookies, Oswal (AO Brand), Lee Cooper, Madhura Garments, Zodiac, Numero Uno, Raymond’s, BIBA, Adidas, and variety of commodities available under one roof The anchor “BIG BAZAR” which has already attracted a lot of customers. The Shopping Zone Spread over three floors the Shopping Zone houses a Big Bazaar Department Store and Specialty Stores with leading names such as Cantabil, Spykar, Catmoss etc. The Entertainment Zone Spread over 50,000 sq.ft., it houses a three screen multiplex (PVR), an entertainment area comprising of children's play area, virtual reality game stations internal children's play land and a large multi-cuisine Food Court. Big names like Pizza Hut, McDonalds, Cafe Coffee Day, etc. are already in. The Banquet and Hotel Zone The Banquet and Hotel Zones have been designed with an emphasis on privacy. The Banquet halls have a covered area of 24,000 sq.ft., with an open terrace of 20,000 sq.ft. The scientifically designed two level basement parking space and surface level parking space both inside and outside the complex can together accommodate as many as 700 cars and 300 two wheelers. THE AEZ SQUARE The AEZ Square at Delhi is situated in Vikaspuri in West Delhi. It is the latest venture of the AEZ Group, a leading name in the Indian real estate area. Their commercial structures and modern residential and retail complexes are known to set standards in architectural plans, designs and construction quality. The AEZ Square mall at Delhi offers exclusive dining, 43. 43. shopping, leisure and entertainment options to a population of 3 million people having considerable disposable income. The AEZ Square mall offers a total entertainment package for shopaholics with a plethora of choices, be it shopping, eating out and gaming for kids or an evening outing for adults. Music lovers can spend time at Music World, young lovers can leaf through the latest cards at Archies’' Gallery while those in need of some beauty treatment can visit Shahnaz Hussain’s. The AEZ Square also offers film regulars a chance to catch up with the latest movie at PVR Vikaspuri, one of Delhi's most popular theaters. The shopping mall also houses a number of restaurants, of which the most popular hangouts are McDonald’s and Pizza Corner. Facilities offered are food courts, restaurants, coffee shops and pubs, Apparel and toys, Home appliances and many others. EROS METRO MALL EROS METRO MALL Dwarka, Delhi, is a Dwarka's first world - class shopping mall. It was constructed by the Eros Group, a renowned name in the real estate business for over 60 year in 2008. This fast-growing sub-city south-west of Delhi has been created with a focus on the future with eventually 29 sectors covering on area of 5648 hectares; Dwarka will house a population of around 10 lakhs. In these resident-friendly environs, 20% of the area has been dedicated to greenery, and main roads are wider to facilitate movement. Eros has chosen this high-demand suburb for its one-of-a-kind retail destination opposite Sector 14 metro station. Eros Metro Mall will be the very first modern, all facilities retail park at Dwarka. It has a well-conceived design comprising exclusive retail space built around an atrium. Most significantly, it will offer a contemporary, elite environment complete with contemporary conveniences, exuding an international ambience. Features: • 2 levels of car parking with ample ground level parking • 100% power backup • Water bodies and fountains with terrace garden • Central air-conditioning & hi-tech security system 44. 44. • Located on wide roads right opposite sector 14 metro station, Dwarka. 45. 45. MALL MANAGEMENT STRATEGIES 46. 46. MALL MANAGEMENT STRATEGY Mall management strategy is a whole process of enhancing customer traffic, sharing costs and increasing the profit margins. The mall management strategy is built on the basic idea of interdependence between the Mall and the Retailer. It focuses on the business benefits that can accrue out of collaborated business management between the Mall Developers and the Retailers. Mall investments are significant and require a break-even horizon of anywhere from 5 to 10 years. To sustain interest in a mall for that period of time requires serious thought and long-term planning. Some of the key long-term strategic imperatives of establishing a successful mall are. Strategic Perspectives: Sharing the Burden-Collaborative Management If we look at the customer's perspective, there are two major benefits that every customer seeks out of shopping in a Mall. One is an overall experience and the other is a whole variety of goods under one roof. These two expectations cannot be met satisfactorily either by the Mall developer or the Retailer. But if roles are clearly defined and each one develops a core competence, then a fantastic synergy can arise between the two parties. The Mall and the Retailer should work out a strategy where the Mall focuses on enhancing the overall experience and the Retailer focuses on the delivering a good variety of products. To formalize this association, there would have to be a clear definition of expectations and most importantly sharing of profits. To summarize, the nature of collaboration would be: • Redefinition of relationship between malls and retailers. It is no more the tenant landlord relationship that existed traditionally. Both need to consider each other as partners or associates, where one party’s growth is greatly dependent on the other. • Malls and Retailers work together to offer the Customers the complete experience. This complete experience would include products that can offer value for money on the one hand and attractive entertainment on the other hand. • Through mutual discussions, collaborative strategy is defined and areas of core competence are identified. Each one seeks to improve and perfect the specific area of Competence. For e.g. Mall Developer could take up the responsibility of organizing promotions, while the retailer plans the merchandise according to the promotions requirements. 47. 47. Pulling in the Customers The biggest benefit of this strategy would be in facilitating enhanced customer traffic. Internationally Malls are supposed to be places of entertainment. For e.g. Malls in Germany, U.S.A offer round the clock entertainment services either in terms of carnivals, music shows or events. Mall developers should organize regular events which have the capability of attracting huge masses of audience, which would benefit the occupant retailers hugely. Although while undertaking such events a few things would have to be kept in mind: • The events would have to be organized in such a way that Malls do not become merely places of entertainment and buying becomes occasional. In such a case the whole point of organizing these events would be lost. This problem can be tackled by associating a major percentage of the events with direct purchases. Retailers could be intimated about the promotion beforehand so that the retailers organize their merchandise accordingly. Mall developers should come up with a “Mall Events Calendar”. • Another thing that the Mall developer needs to be convinced about is the benefit of investing in these promotional events. While on the face of it Mall developers might feel that there are no tangible benefits in undertaking such events, such an assumption is far from reality. Promotion events not only increase the popularity of the Mall, they also increase the value of the space available in the mall. A mall which is more popular would definitely attract better brands at better prices. In any case to tackle the apprehension of the Mall developers the retailers and the mall developers would have to work out a financial strategy which creates sharing of the costs, the benefits and at the same time does justice to both parties involved. Strategic Planning for Merchandise The Mall management would also have to restructure the way products are sold in their malls. One of the ways could be to create mini-malls within malls. For e.g. all stores in related categories could be placed in close proximity, so as to provide a better variety to the customers and at the same time increase impulse within the stores. Thus Apparel stores, Accessories stores and Shoes stores could be placed together and thus create complete segments of related products within the Mall. The malls could organize specific promotion events for these sections or categories. 48. 48. Another way of Collaborated Merchandise Planning would be by keeping the Retailers informed about Mall Events Calendar, so that retailers can respond to the promotions by bringing about slight modifications in their product mix for that particular period. This way the retailer benefits as well as the Mall Developer. Developing the Team To support these futuristic ideas of mall management, a competent team would need to be developed which is fully devoted to these aspects, whose primary focus is to be in touch with the customers psyche and constantly innovate promotion schemes. The team should ideally have a two three representatives who are reporting to one person. Each of these representatives may hold accounts of occupant retailers. Their primary responsibility would be to coordinate with these retailers and derive business out of them. At the same time it would also be essential for them to be in touch with their requirements. The team would also include traditional roles such as Marketing, Housekeeping etc. Have a balanced tenant mix Source: www.cedar-consulting.com Figure: 5.1 49. 49. A well-planned and executed tenant mix can help a mall sustain its “destination” status even in the face of ferocious competition. The objective of a tent mix strategy is to maintain the delicate balance between diversified product and service offering and revenue imperatives of the leasing business. Jewelry and food tenants typically pay the highest rentals while occupying the least rental area. Books, Music, Apparel and Footwear pay the next highest rentals while anchors such as departmental stores pay 25-30% of the sq. ft. rentals of the in- line stores. Maintaining a balance between entertainment, food and retail space is equally important to ensure that lack of sufficient options of any one of these does not become a differentiating sector in a mall-visit decision. A mall visitor would find it excruciatingly painful to spend an entire day in a mall only browsing shops. An entertainment break can increase the customary two to three hour mall visit to the food court or another look at the new jewelry shop. In the Indian context families are a large target segment and absence of an adequate children’s play area or a senior citizen’s resting area can be decisive in a mall visit decision. Malls also need to balance between the relatively modest price and high range option of the food court with specialized and maybe high priced restaurants. Working out the Financials Innovative ideas are of no use if they do not make business sense. Without a feasible financial strategy to backup, the strategy would be a failure. While financial strategies would always be specific to the Mall and Retailers, this strategy in its basic form incorporates the following strategies: • Sharing of expenses between the Retailer and Mall would be undertaken. Possibilities include a fixed fee to be paid by all the Retailers to the Mall developer. This fee would be over and above the rentals being paid already. As a justification to the costs the strategic team may be held accountable for either footfalls or certain minimum number of events in a year. Since these events would always be held in consultation with the Retailer, retailer would stand to benefit directly from these events. • Another strategy for financial collaboration could be by way of Revenue sharing. The Mall developer gets cut out of the revenues of the Retailers during a specific promotion. 50. 50. Parking An often ignored part of long-term mall strategy is parking. Malls that target middle to upper middle class consumers have to provide adequate parking for visitors. Absence of adequate parking can cause visitors to be turned away frequently. This can reduce mall loyalty besides revenue loss. At least 200 parking spaces need to be provided for. This is rarely the case especially in cities such as Mumbai and Delhi because in such cities this can be a difficult proposition to meet and can make projects financially unviable. However all mall strategies can be of no use if parking is inadequate and customer is turned away from the gate by the security guard. Apart from these key strategies, a mall strategy will also include zoning of tenants, mall maintenance strategy, competitive positioning, promotion and marketing strategy for the entire mall off and during festival seasons. Mall managements also need to manage mall-wide tenant behaviour. To ensure mall visitors know where they stand in terms of mall timings, malls should have standard opening and closing times for all tenants – with entertainment and food zones being the exception only. Mall management should conduct following activities in order to attract people: • Promotional events- many brands promote their products or goods by displaying them in malls like car promotions, movies, credit cards etc. which provide them an edge over other malls. • Conducting workshops like radio jockey workshop, robotics, photography, kids carnival and many other. • Live shows- live performance by bands attract the youth, which visit malls maximum number of times. • Sales carnivals- Flat 50% on apparels, shoes etc draw more consumers towards malls. • Conducting fashion shows can help in pulling more number of people. • Activities like shop & win weekend couple candle light dinner, movie tickets etc • Frequent visit made by celebrities catch the attentions of people. 51. 51. • Makeovers done by Maybelline are one of the tools adopted by malls in order to draw girls and thereby making them aware about the products they offer. Although there are many malls that have mushroomed in the Indian context, the market is still ripe with opportunity. This is reflected in the famous quote of John Wooden, “It is not so important who starts the game but who finishes it.” 52. 52. FINDINGS & ANALYSIS 53. 53. FINDING ANALAYES 6.1 GENERAL FINDINGS • The foremost factors that motivate an individual to choose mall over other retail formats are One roof arrangements, Global Brands available, Wide Range of Products and Ambience & Quality • Overall shopping experience at malls is far better in comparison to other formats. • Consumers are satisfied with the promotional tools adopted by malls like coupons, membership cards, premium and contests. Earlier malls were initially visited by consumers who would familiarize themselves with the mall culture but now, with passage of time, visits by regular users have consistently increased at the malls. • Difficulty in finding a specific product and problem of choice are major problems faced by consumers. • Overall impression regarding shopping mall is enthusiastic and positive. • Consumers prefer shopping malls over other retail formats because of one roof arrangements. Availability of food, shopping and entertainment at one place is the main factor that has changed the consumer behaviour towards shopping malls. • Key purchase items include clothing/accessories/shoes & computer/electronics/software. • Factors like technology for faster billing, sufficient open space, customization of products, access to global brands, direction marks, waiting and sitting place, parking place, cleanliness, approachability, etc have a significant impact on consumer behaviour towards shopping malls. • Other factors that attract consumers towards malls are the quality of products, surroundings, customization of products, sufficient open space, cleanliness and hygiene, parking place and access to global brands. • Mall retailers offer discount schemes, membership cards; lucky draws etc which also helps to increase more footfalls. 54. 54. • Accelerated convergence of consumer tastes, increase in spending behaviour and shift in consumer demand for foreign brands like McDonalds and consumer preference for shopping in new environments have led to the acceptance of mall culture. 6.2 FINDINGS BASED ON QUESTIONNAIRE GENERAL PROFILE OF RESPONDENTS • Age group of the respondents Age Percentage No. of people 18-27 35% 35 28-35 28% 28 36-42 21% 21 42 & above 16% 16 Total 100% 100 Table 6.1 Figure 6.1: Age Group of the Respondents 55. 55. Figure 6.1 shows that majority of the respondents i.e. 35% comes under the age group of 18-27, 28% fall in the age group of 28-35, 21% come under the age group of 36-42 and 16% are above 42 years of age who visit shopping malls. • Gender of the respondents Gender Percentage No. of people Male 47% 47 Female 53% 53 Total 100% 100 Table 6.2 Figure 6.2: Gender of the Respondents Figure 6.2 shows that 53% of the respondents who were interviewed were female and rest 30% were males. 56. 56. • Marital status of the respondents Marital status Percentage No. of people Married 67% 67 Unmarried 33% 33 Total 100% 100 Table 6.3 Figure 6.3: Marital Status of the Respondents Figure 6.3 represents that 67% of respondents were married and 33% of respondents were unmarried. 57. 57. • Educational qualification of the respondents Educational Qualification Percentage No. of people School Level 7% 7 Graduate 54% 54 Post Graduate 30% 30 Others 9% 9 Total 100% 100 Table 6.4 Figure 6.4: Educational Qualification of the Respondents From figure 6.4 it can be analyzed that more than 50% of the respondents belong to the group of graduates, 30% of the respondents were postgraduates who visit malls and only 7% belong to school level. Thus it shows that people who had visit malls have good academic background . • Occupation of the respondents Occupation Percentage No. of people 58. 58. Business 15% 15 Service 43% 43 Students 31% 31 Others 11% 11 Total 100% 100 Table 6.5 Figure 6.5: Occupation of the Respondents Figure 6.5 shows that 15% respondents belong to the category of business class, whereas 43% of respondents belong to the category of service class. 31% of respondents are students and rest 11% fall in the category of others which include home makers or professionals. However it is analyzed that service class and students were the majority who visit shopping malls. • Monthly Income of the respondents Monthly income Percentage No. of people 59. 59. Below `10,000 12% 12 `10,001 – `20,000 32% 32 `20,001 – `30,000 35% 35 above `30,000 21% 21 Total 100% 100 Table 6.6 12% 32% 35% 21% Monthly Income Below 10,000 10,000-20,000 20,000-30,000 Above 30,000 Figure 6.6: Monthly Income of the Respondents Figure 6.6 depicts that 35% of the sample contacted had monthly income ranging from `20,000 - `30,000, whereas 12% of the respondents had monthly income below `10,000. It can be analyzed from the figure that the majority of the respondents who visited shopping malls had income ranging above `20,000 which signifies that people with greater disposable income visit malls. 60. 60. GENERAL SHOPPING ATTRIBUTES 1. Frequency of shopping Category Percentage No. of people Weekly 22% 22 Monthly 43% 43 Quarterly 8% 8 Random 27% 27 Total 100% 100 Table 6.7 Figure 6.7: Respondents’ shopping frequency The above charts depicts that large proportion of the respondents i.e. 43 % go for shopping on monthly basis, whereas a small fraction of respondents i.e. 8% go for shopping on quarterly basis. 27% of the respondents go on random basis. 2. Respondent’s choice of shopping place 61. 61. Category Percentage No. of people Local market 23% 23 Multi-utility stores 16% 16 Exclusive showrooms 8% 8 Shopping malls 53% 53 Total 100% 100 Table 6.8 Figure 6.8: Respondents’ Choice of Shopping Place Figure 6.8 depicts that 53% of people who were surveyed preferred to shop from shopping malls. This shows that a comparatively large proportion of people prefer to shop from shopping malls in Delhi. One of the reasons behind this observation could be the changing shopping needs and aspirations of consumers. Only 8% of respondents preferred to shop at exclusive showrooms. ATTRIBUTES OF SHOPPING IN MALLS 3. Frequency of visiting shopping malls 62. 62. Category Percentage No. of people Weekly 22% 22 Monthly 43% 43 Quarterly 8% 8 Random 27% 27 Total 100% 100 Table 6.9 22% 43% 8% 27% Weekly Monthly Quarterly Random Figure 6.9: Respondents Frequency of Visiting Shopping Malls Figure 6.9 depicts that majority of the respondents (43%) visit shopping malls on monthly basis. 27% of the respondents visit malls on random basis. 22% respondents visit shopping malls on weekly basis and remaining 8% visit shopping malls on quarterly basis. 63. 63. 4. Bases of choosing a shopping mall Category Percentage No. of people Recommendations of family/friends 79% 79 Advertisements 68% 68 Past Experience 93% 93 Others 57% 57 Table 6.10 Figure 6.10: Bases of Choosing a Shopping Mall Figure 6.10 portrays that majority of respondents 93% choose a shopping mall on the basis of their past experience, 82% choose on the account of recommendations of family/friends, 68% on the basis of advertisements and the rest 57% fall under category of others which includes information from search engines. 64. 64. 5. Reasons for visiting shopping malls Category Percentage No. of people Shopping 83% 83 Entertainment/Leisure 61% 61 Facilities 26% 26 Eating 58% 58 Environment/ambience 43% 43 Table 6.11 Figure 6.11: Reasons of respondents for visiting shopping malls Figure 6.11 depicts that 83% respondents visit shopping malls with the main purpose of shopping, 61% visit malls for entertainment, 58% respondents for eating and 43% respondents were motivated by the environment and ambience that malls offer. 6. Intentions for purchase 65. 65. Table 6.12 Figure 6.12: Purchasing Intentions of Respondents at Shopping Mall Figure 6.12 represents that 71% of the respondents go to the malls with an intension for shopping as their regular activity, whereas 67% of them visit malls with neccesity as an Category Percentage No. of people Shop as a regular activity 71% 71 Special Occasions 63% 63 Recommendation of Others 44% 44 Necessity 67% 67 66. 66. intension for purchase, 63% due to special occasions and 44 respondents on the recommendations of others. 67. 67. 7. Amount spent per visit Category Percentage No. of people Below `500 28% 28 `500 - `1000 31% 31 `1001 - `2000 26% 26 Above `2000 15% 15 Total 100% 100 Table 6.13 Figure 6.13: Spending Behaviour of Respondents Figure 6.13 says that 31% of the respondents who visit shopping malls spend between `500-`1000, whereas less number of respondents spend more than `2000. 68. 68. 8. Items shopped in malls Category Percentage No. Of people Food & Beverage 53% 53 Clothing/Accessories/Shoes 81% 81 Toys 17% 17 Computer/Electronics/Software 22% 22 Book/DVD/CD 19% 19 Others 7% 7 Table 6.14 Figure 6.14: Types of Items Purchased by Respondents in Malls Figure.6.14 explains that masses go for buying clothes/accessories/shoes (81%), 53% respondents purchase food and beverages. Respondents visiting malls usually eat at food courts which serve them with different cuisines. It was also found that 22% respondents were fond of buying computers/electronics. 69. 69. CONSUMER SATISFACTION RELATED TO SHOPPING IN MALLS 9. Factors that motivate respondents to shop in malls against traditional shops Category Percentage No. of people Global Brands available 56% 56 One roof arrangements 96% 96 Wide Range of Products 87% 87 Ambience & Quality 63% 63 Overall fun filled experience 48% 48 Table 6.15 Figure 6.15: Factors that motivates respondents to choose shopping malls against traditional shops Figure 6.15 shows that majority of the respondents (96%) are motivated by one roof arrangements feature of shopping malls and along with this the availability of wide range facilities (87%). The view about good ambience and quality also increases the footfalls of customers. 10. Mall retailers offer competitive prices 70. 70. Category Percentage No. of people Yes 21% 21 No 46% 46 Can’t say 33% 33 Total 100% 100 Table 6.16 Figure 6.16 Perception of Respondents regarding the Price Offered by Mall Retailers. Figure 6.16 represents the perception of people about the prices that are offered by mall retailers. It shows that about 46% people think that the prices offered by them aren’t competitive and 21% people think that they are, whereas 33% are unable to provide the answer for the same. 71. 71. 11. Satisfaction level of respondents with their shopping experience in malls Category Percentage No. of people Very satisfied 21% 21 Satisfied 38% 38 Neither satisfied nor satisfied 20% 20 Dissatisfied 13% 13 Very dissatisfied 8% 8 Total 100% 100 Table 6.17 Figure 6.17: Level of satisfaction with respect to shopping experience at malls. From the above figure it can be said that 21% people were very satisfied, 38% people were satisfied and very few people (8%) who were very dissatisfied with their shopping experience at the malls. 72. 72. 12. Overall Shopping Mall Experience in Comparison to other retail outlets Category Percentage No. Of people Much better 61% 61 Almost similar 19% 19 Worse 8% 8 Can’t say 12% 12 Total 100% 100 Table 6.18 Figure 6.18: Overall Shopping Mall Experience in Comparison to Other Retail Outlets Figure 6.18 portrays that more than 50% of the masses had a much better experience at the malls as compared to the other retail outlets. 73. 73. 13. Promotional tools adopted by mall retailers to motivate shopping in malls Category Percentage no. of people Coupons/Discounts 32% 32 Membership Cards 26% 26 Premium(Buy 1 Get 1 Free) 20% 20 Lucky Draws/contests 12% 12 Others 10% 10 Total 100% 100 Table 6.19 Figure 6.19: Promotional Tools Adopted by Mall Retailers to Motivate Shopping in Malls Figure 6.19 depicts that 32% of the people are motivated by coupons/discounts as a promotional tool adopted by mall retailers, 26% are prompted by the membership cards. Whereas premiums, lucky draws are also the promotional tools which help the mall retailers to attract customers. 74. 74. 14. Mode of payments while shopping in malls Category Percentage No. Of people Credit Card/Debit Card 36% 36 Vouchers 21% 21 Cash 32% 32 Others 11% 11 Total 100% 100 Table 6.20 Figure 6.20: Respondent’s Mode of Payment while Shopping in Malls Figure 6.20 explains that 36% respondents use credit/debit cards while making payments at shopping malls, 32% makes payments through cash, 21% avail the benefit of vouchers and the remaining 11% fall under the category others which includes cheque as a mode of payment. 75. 75. 15. Problems faced while shopping in malls Category Percentage No. of people Difficulty in finding a specific product 21% 21 Problem of choice 26% 26 Expensive 5% 5 Inability to bargain 7% 7 Not acquainted to mall lifestyle 3% 3 No Problem `38% 38 Total 100% 100 Table 6.21 Figure 6.21: Problems Faced by Respondents While Shopping in Malls Figure 6.21 very evidently shows that the 38% respondents face no problem while shopping in malls, 26% have the problem of choice and 21% respondents face the problem of finding a specific product in a mall. Only 3% of the respondents were not acquainted to the mall life style. 76. 76. OVERALL FACTORS INFLUENCING SHOPPING IN MALLS 16. Infrastructure quality Infrastructure quality Percentage No. of people Not at all important 9% 9 Some importance 14% 14 Indifferent 11% 11 Important 58% 58 Extremely important 8% 8 Total 100% 100 Table 6.22 Figure 6.22: Infrastructure Quality From the above figure 6.22 it can be stated that infrastructure is one of the important factor while shopping in malls .58% of respondents considered it as an important factor whereas according to 9% holds this opinion , that it is not at all important factor. 17. One roof arrangements 77. 77. One roof arrangements Percentage No. of people Not at all important 6% 6 Some importance 21% 21 Indifferent 12% 12 Important 46% 46 Extremely important 15% 15 Total 100% 100 Table 6.23 Figure 6.23: One Roof Arrangements The above figure shows that there are about 46% people who go for shopping in malls for the reason of one roof arrangements, 15% were of opinion that it is an extremely important factor whereas 6% of the respondents stated that it is an insignificant factor. 18. Quality of a product Quality of a product Percentage No. of people Not at all important 0% 0 78. 78. Some importance 14% 14 Indifferent 0% 0 Important 27% 27 Extremely important 59% 59 Total 100% 100 Table 6.24 Figure 6.24: Quality of the Product Above figure explains that quality of product available at malls is one of the key factors which a customer keeps in his mind while shopping at malls. 59% of the people felt that it is an extremely important factor whereas not even a single individual stated it under the category of not at all important. 19. Good Price/Deal Good Price/Deal Percentage No. of people Not at all important 4% 4 Some importance 13% 13 79. 79. Indifferent 19% 19 Important 53% 53 Extremely important 11% 11 Total 100% 100 Table 6.25 Figure 6.25: Good Price/Deal Above figure 6.25 shows that the responses of the people about the good price/ deal at shopping malls. 53% people say that the prices charged or deals offered at malls are crucial factor. 11% people were of the opinion that good prices/deals are very important factor in order to attract more customers, whereas only a small fraction of respondents (4%) considered it to be least important feature. 80. 80. 20. Approachability Approachability Percentage No. of people Not at all important 6% 6 Some importance 11% 11 Indifferent 31% 31 Important 34% 34 Extremely important 18% 18 Total 100% 100 Table 6.26 Figure 6.26: Approachability Figure 6.26 portrays that 34% of the respondents considered this factor to be crucial and 11% of them take approachability factor to be the extremely important one. Thus according to them convenience is a matter of concern. But according to 31% of them are indifferent about the location of malls. Remaining 6% felt that it isn’t important at all. 21. Outlet of your choice 81. 81. Outlet of your choice Percentage No. of people Not at all important 8% 8 Some importance 17% 17 Indifferent 33% 33 Important 36% 36 Extremely important 6% 6 Total 100% 100 Table 6.27 Figure 6.27: Outlet of Your Choice Above figure 6.27 represents that 36% of the people considered availability of the outlet of their choice to be a vital factor. 33% are indifferent towards this factor i.e. availability of an outlet of their choice is not a very important or an unimportant factor. According to 8% respondents it is not at all important factor. 22. Credit facility Credit facility Percentage No. of people Not at all important 4% 4 82. 82. Some importance 41% 41 Indifferent 14% 14 Important 22% 22 Extremely important 19% 19 Total 100% 100 Table 6.28 Figure 6.28: Credit Facility Above figure 6.28 depicts that the credit facilities available at malls holds some importance in the mind of consumers. Though people adopt cash/debit cards or vouchers as the mode of payment. Shopping malls at large do not provide credit facilities to their customers. 23. Surroundings Surroundings Percentage No. of people Not at all important 0% 0 Some importance 21% 21

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