About Calicut

www.beyondsquarefeet.com 1 About Calicut

www.beyondsquarefeet.com 2 About Calicut

City: Calicut, third largest city in Kerala. Appx. 400 kms from capital

Thiruvananthapuram.

The city spans across an area of 28.48 km2.

Population: 436,556 (2001 Census)

Sex Ratio: 1055 females :1000 male. Literacy Rates: 92.24%

Calicut International Airport (Karipur) is located 23 km from the city

Kozhikode railway station about 16 kms. from the city.

Well connected by road and Kerala State Road Transport corporation.

www.beyondsquarefeet.com 3 Location in Calicut for proposed concept

Big Bazaar Focus Mall

Cherootty Road

Banana Chips

Most shopping options are situated on Mavoor Road.

www.beyondsquarefeet.com 4 Infrastructure & Facilities in Calicut

20 38 24 32 - 12

Hotels Hospitals Banks Educational Places of Cinemas Institutions Worship

Prominent Prominent Schools & Hotels Prominent Hospitals Colleges Several including Hotels Cinemas including along with Temples, •Taj Banks Including •Malabar the Churches & Residency •Bank of •Blue Institute of country’s Mosques •Fortune India Diamond Medical most that are Hotel •Canara •Regal Sciences & prestigious major •Hotel Bank •Davison other Institutes tourist Hyson •Union Bank •Crown speciality •NIT destinations Heritage of India hospitals •IIM

5 Key Tourist Attractions

Kappad Beach Pazhassi Raja Museum Thusharagiri Waterfalls

Tali Temple Kadalundi Bird Sanctuary Beypore Port

www.beyondsquarefeet.com 6 Competition Intelligence*

Existing Malls in Calicut

 Focus Mall - 1.65 lakh sq. ft. GLA

 Marina Mall

 Space Mall (commercial + retail) – 1.3 lakh sq. ft.

 Blue Diamond Mega Mall – 1.25 lakh sq. ft.

 Dreams, The Mall/ Satra galleria – 1 lakh sq. ft.

 The grand high street Mall – 75,000 sq. ft.

 Leader Mall

 Coupon Mall

* Source: Popular Blogs

www.beyondsquarefeet.com 7 Competition Intelligence*

Case Study: Focus Mall Area: 1.65 Lakh sq. ft. GLA across 6 floors Parking: 300 car parks (2 floors) Footfalls: Over 10,000 nos. /day Avg. Rentals: Rs. 45/- (On GLA) CAM: Rs. 17/- Prominent Brands Anchors: Max, Focus Hypermarket. Vanilla:

F & B: Pizza Corner, Wimpey’s, Baskin Robins etc. * Source: Focus Website

www.beyondsquarefeet.com 8 Research Report

www.beyondsquarefeet.com 9 The Research Team

Susil S. DUNGARWAL

Mr. Sundara Rajan Ms. Shaheen Baig

15 member ground Research Team

www.beyondsquarefeet.com 10 Approach

GG Appoints BSAPL (17/11/10)

Questionnaire development (05/10/10)

Approval from GG (10/10/10)

Data Collection (22/11/10)

Data Collation (08/12/10)

Analysis (13/12/10)

Research Findings (15/12/10)

www.beyondsquarefeet.com 11 Background of the Study

 Gokulam group intends to build a mixed-use complex in Calicut.

 The location of the project is ideal for setting up a multi use commercial/retail building. The client is open on the concept & would derive at the format/mix, based on this research.

 Gokulam group wished to understand the market potential of the property given the rapid changes taking place in Calicut.

This report outlines the findings of the Study.

www.beyondsquarefeet.com 12 Objectives of the Study

 To find out the feasibility/ acceptability of such a Mall

 To assess the potential for such a property in terms of the felt need of the target audience / market.

 To map the potential competition in the target area.

 To determine the different price points at which the respondents are willing to shift.

 To understand the ideal mix of shopping, offices, banquets and hotel.

www.beyondsquarefeet.com 13 Research Methodology

 Overall Approach:  Face-to-face interviews with the customers using a structured questionnaire.  Face-to-face interviews with the retailers using a structured questionnaire.  Face-to-face interviews with the corporate using a structured questionnaire.  Mystery buyer approach with Real Estate Agents  Mapping of all major commercial office spaces in 1 km radius of the location in Calicut

 Target Respondents:

Consumers Corporate Retail Hotel Agent

Those who belong Covering IT, financial Covering apparel, Banquet in charge/ Agents who deal in to SEC A1, A2, B1, B2 services, Banking, shoes, food, Decision Maker commercial Insurance etc jewellery categories properties

www.beyondsquarefeet.com 14 Sample Size Distribution

Type of Respondents Achieved Sample Size

Consumers 250

Retailers 25

Corporate 11

Real Estate Agents 5

Hotels 8

Total 299

www.beyondsquarefeet.com 15 Respondent List - Retailers

Sr Retailer Responden Sr Retailer Respondent No. Name t Name Designation No. Name Name Designation 3G Mobile 13 Thomas Cook Dhanesh Manager 1 World Aneesh Manager 14 Galaxy Alavi In charge PM Sales & 15 Lifestyle Irshad Manager 2 Service Valsalam Manager Leethu 3 Wrangler Arun Manager 16 CADD Centre Prabhakar Manager 4 KG Mart Babu Owner Asst. Nokia Branch 5 Priority Sunil Kumar Owner 17 UAE Exchange Riju Head 6 White Salt Saleemka Manager 18 Park Avenue Sumith Manager 7 Live-in Safeed Manager 19 Reebok Denny Manager 8 Levi Manoj Manager 20 Silky Boutique Fahad Manager 9 Bata India Sumesh Manager 21 Woodland Biju Manager 10 Hi Lite Akhilesh Manager 22 CollorPlus Shiju Manager K. D. 23 Reebok Shop Denny Manager 11 Hardware Smith Manager 24 Titan Eye Mahesh Manager 12 Basics Manoj Manager Woodland 25 Footwear Biju Manager

www.beyondsquarefeet.com 16 Respondent List - Hotel

Sr No Hotel Name Respondent Name Designation 1 Kovilakom Residense Rajesh Admin Manager 2 Gateway Hotel Rajiv Banquet In charge 3 Malabar Palace Suji Radhakrishnan Manager-Operations 4 Hyson Heritage Rajesh 5 Westway P. Bijoy Manager 6 Kadavu Resort Pradeep A.R. Asst. Manager 7 Hotel Maharani Sukumaran N. Manager 8 Malabar Gate Hotel Prakash Nair Manager

www.beyondsquarefeet.com 17 Detailed Analysis – Consumers

Consumers

www.beyondsquarefeet.com 18 Shopping Places Generally visited

60 55

30 24 22 21 20 12 9 10 8 8

0 S.M.Street Big Bazar Focus Mall Cherootty More Koyencco Palayam Nadakkavu Road

S.M. Street is the most visited shopping place….More than half the respondents generally visit S. M. Street

Base: 250, Values in % Consumers www.beyondsquarefeet.com 19 Awareness about the Shopping Malls

Aided Spontaneous TOM Visited 1 45

56 50 31

92 30 19 78 8 26 19 24 6 4 26 21 15 10 76 1 12 34 61 14 51 16 12 Focus Mall Big Bazar Grand Dreams The Marina mall Blue Diamond Orbit Mall Space Mall Leader Mall Highstreet Mall mall

Consumers in Calicut display higher awareness for Focus Mall and Big Bazaar as compared to other malls. Awareness about Marina mall, Orbit mall and Leader mall is good, but they are not visited much.

Base: 250, Values in % Consumers www.beyondsquarefeet.com 20 Malls visited so far..

90 85 78 80 70 60 50 40 30 20 12 12 10 6 5 0 Focus Mall Big Bazaar Grand High Leader Mall Marina Orbit Mall Street Mall

Respondents visit Focus mall more than any other mall by a huge margin.

Base: 250, Values in % Consumers www.beyondsquarefeet.com 21 Frequency of Visit to the Malls

Once in 6 months 2% Once a Once in 2-3 week months 11% 15% Once a fortnight 21% 83% consumers visit Malls at Once a month least once a 51% month.

Respondents in Calicut regularly visit malls with half of them visiting once a month and 20% visiting once a fortnight.

Base: 250, Values in % Consumers www.beyondsquarefeet.com 22 Time spent at the Mall

3-4 hrs 15- 30 8% min 2-3 hrs 10% 10%

On average, the customer spends 1-2 hrs over 2 hrs at a 20% Mall– we need to 30-60 min find ways to 52% monetize it.

More than half the respondents visit spend 30-60 min in malls. Also 1/3rd respondents spend close to 2 hours.

Base: 250, Values in % Consumers www.beyondsquarefeet.com 23 Most Preferred Shopping Mall

Focus mall is clearly the most preferred mall in Calicut

Base: 250, Values in % Consumers www.beyondsquarefeet.com 24 Reasons for Preferring a Shopping Mall

BIG BAZAAR FOCUS MALL

Respondents want quality products available at one place. The main focus is on the layout of the Mall and the range of products available.

Base: 126, Values in % Consumers www.beyondsquarefeet.com 25 Product Categories visited in most preferred Mall

Name of Mall Product Focus Mall Big Bazaar category Base 118 126 Apparel 75 48 Shoes/Foot wear 20 14 Fancy Items/ Impulse 14 11 Jewellery /Ornaments 9 10 Bag & Luggage 7 8 Grocery items 5 14 Food items/Eatables 5 14

Clothes (Apparel) is the most visited category. Clearly shows that more focus should be on apparel category.

Values in % Consumers www.beyondsquarefeet.com 26 Product Categories preferred to buy

Name of Product Mall Focus Mall Big Bazaar category

Base 118 126 Apparel 57 37 Shoes/Foot wear 14 8 Fancy Items/Impulse 12 6 Jewellery /Ornaments 7 9 Food items/Eatables 6 14 Grocery items 3 10 Bag & Luggage 3 5 Perfume 3 5 Kitchen items/Crockery 2 6

A wide range of apparel should be made available to people who’ll visit the mall as respondents spend mostly on Clothes.

Values in % Consumers www.beyondsquarefeet.com 27 Liked aspects about Most Preferred Mall

Name of Liked Mall Focus Mall Big Bazaar Aspects Base 118 126 Quality/ Branded Product 18 18 Wide choice 13 14 Everything at one place 12 10 Well Designed 9 17 Well Organised 9 6 High Standard maintained 8 9 Centralised A.c. 8 4 Good Looking 6 6 Escalotor Systems 6 2 Low Price 5 8 Convenient 5 4 Ambience 5 2

Layout of the mall, Wide range and the convenience of getting everything at one place are liked by respondents.

Values in % Consumers www.beyondsquarefeet.com 28 Disliked aspects about Most Preferred Mall

Name of Mall Focus Mall Big Bazaar Disliked Aspects

Base 118 126 High price 20 17

Nothing 16 23

Insufficient Parking 14 12

Congested elevator/space 14 14

Arrangement Is Not Good 9 17

No Stairs 8 1

Nothing much apart from high price and insufficient parking space.

Values in % Consumers www.beyondsquarefeet.com 29 Mode of Travel to the Malls

Respondents use personal transport to travel to the Malls….

Base: 250, Values in % Consumers www.beyondsquarefeet.com 30 Product Purchases Vs. Places of Visits

Top 3 places of Visit (values in %)

Eating out

Apparel purchase

Grocery purchase Big Bazaar, 24 Focus Mall, 18 SM Street, 11

Home furnishing purchase

Accessories purchase

Footwear purchase

Durables purchase

Respondents visit Calicut for Eating out, Grocery purchase, Footwear and home furnishing purchase.

Base: 250, Values in % Consumers www.beyondsquarefeet.com 31 Activities Done in Last one Month

Frequency of Activity (In %)

At least once a week Once in a fortnight Once in 3-4 weeks Base Once a month Once in 2-3 months Less often

Shopping 202 16 18 21 35 6 2

Go to Clubs 179 30 15 27 20 6 2

Watch movies 151

Watch plays 2

Go gaming 2

Respondents from Calicut go for shopping, movies and Clubs for entertainment

Consumers www.beyondsquarefeet.com 32 Watching a Movie

Respondents tend to watch movies both in Multiplex as well as Local theatre.

Base: 250, Values in % Consumers www.beyondsquarefeet.com 33 Respondent Profile who go for Shopping once a month/once in 3-4 weeks

Age wise Break up

Gender wise Break up

 Almost half of the respondents (who go for shopping once a month or once in 3-4 weeks) belong to the age group 36 – 50 years.  These respondents belong to both SEC A and SEC B.

Base – 114, all fig in %, Base represents no. of respondentswww.beyondsquarefeet.com who go for shopping once a Consumers Base: 114 month or once in 3-4 weeks 34 Respondent Profile who go for a Movie once a month/once in 2-3 months

Age wise Break up

Gender wise Break up

 Almost half of the respondents (who go for shopping once a month or once in 3-4 weeks) belong to the age group 36 – 50 years.  These respondents belong to SEC A1 /A2.

Base – 110, all fig in %, Base represents no. of respondentswww.beyondsquarefeet.com who go for movies once a Base: 110 month or once in 2-3 months Consumers 35 Concept Likeability- Shopping Mall

Will visit more often

 12% will definitely visit such Shopping Mall!!….not an encouraging sign though 43% will visit the mall and 41% showed interest in the idea.

Base: 250, Values in % Consumers www.beyondsquarefeet.com 36 Products /Items/ Entertainment options would like to Buy/ Experience

Apparels 71 Shoes/Footwear 20 Theatre 15 Jewellery /Diamond 13 accesories 9 Fancy Items 7 Kitchenware 7 grocery items 6 Swimming Pool 6 Electronic Gadgets 5 Furniture 4 Food court 4 Baggage 4

 Apparel is the most wanted item the respondents would like to buy/ purchase.

Base: 250, Values in % Consumers www.beyondsquarefeet.com 37 Expectations from such Shopping Mall

Should have everything under one roof 35 Should have good quality products 19 Should have reasonable prices of the products 15 Should have products with lot of variety 14 Should have a theatre 10 Should have plenty of shops 8 Nothing specific 7 Should have attractive showrooms 6 Should have provision of bar in the 6 restaurant  Respondents feel that they Should be easily accessible 5 should get everything under Should have gym, library & a hospital 5 one roof….along with good It can have a retail mix & hospital 4 quality & reasonable rates… Should have good food variety 4 Should have good parking area 3 Should be spacious 2 Area should be neat & clean 2

Base: 250, Values in % Consumers www.beyondsquarefeet.com 38 Things missing in Calicut

Book Store Fish Market Beverage's Availability Theatre Should be There Beauty parlour Hypermarket Department Store Entertainment Nothing

0 50 100 150 200

Base: 250, Values in % Consumers www.beyondsquarefeet.com 39 Detailed Analysis – Retailers

Retailers

www.beyondsquarefeet.com 40 Amenities provided by Developer & Arranged by Self

Amenities / Facilities Provided by Developer Arranged by self Base: 25 (in %) (in %)

24*7 Security / Help Desk 64 0 Intercom 32 0 Garden 60 8 Space outside Façade 40 0 Lifts 72 0 Cargo Lifts 52 4 Escalators / Elevators 56 4 Cellar & Surface Parking for staff 56 4 Parking for guest 68 4 Restaurant / Canteen / Cafeteria 60 0 Centralized A/c 60 12 24 Hrs water facility 84 8 Power back up 56 20 Fire extinguisher 64 16 Emergency exit 52 8

Base: 25, Values in % Retailers www.beyondsquarefeet.com 41 Satisfaction with Current Location & Premises

Not at all Satisfactory Dissatisfaction Neither satisfied nor dissatisfied Satisfied Very Satisfied

Premises 4 92 4

Location 4 88 8

Base: 25, Values in % Retailers www.beyondsquarefeet.com 42 Concept Acceptability

Interested in getting space in the prosed Planning Beneficial Attractive to open property for location another business outlet Yes 12% Yes Yes Yes (8%) (64%) (33%)

No No No No (36%) (67%) (88%) 88%

 Though retailers find the location attractive they are reluctant to open their outlet at the proposed location.

Base: 25, Values in % Retailers www.beyondsquarefeet.com 43 Expected rent for retail outlet in the proposed property

Expected rent In nos. (In Rs per sq ft per month) Average price expected as Rs 62 sq ft per month rent 30 4.00% 40 8.00% More than half of the 45 4.00% corporate expect the rent in the proposed 50 36.00% property to be Rs 60 60 16.00% per sq ft per month. 70 4.00% 75 4.00% 80 12.00% 100 8.00% 125 4.00%

Base: 25, Values in % Retailers www.beyondsquarefeet.com 44 Detailed Analysis CORPORATE SEGMENT

www.beyondsquarefeet.com 45 Current scenario: built up area of office

Built-up area of current office (in sq ft) In nos. Average built-up area of office 2027 sq ft 500 2 800 1 1000 1 2000 3 2500 1 3000 2 5000 1

corporate www.beyondsquarefeet.com 46 Current scenario: Corporate offices working since…

No of years , current offices are operating In nos. Average no of years 9 years 1 1 3 1 4 2 8 1 10 1 12 3 15 2

Base: 11, Values in nos. corporate www.beyondsquarefeet.com 47 Current scenario: Level of satisfaction

Satisfaction with Satisfaction with Level of satisfaction current office location current premises Very much satisfied 0 0 Satisfied 9 7 Neither satisfied nor dissatisfied 2 2 Dissatisfied 0 2 Not at all satisfied 0 0

Corporate are satisfied with their current office location and premise.

Base: 11, Values in nos. corporate www.beyondsquarefeet.com 48 Expected rent for office in the proposed property

Expected rent (In Rs per sq ft per month) In nos. Average price expected as rent Rs 64 sq ft per month 60 6 62 1 70 3 75 1

More than half of the corporate expect the rent in the proposed property to be Rs 60 per sq ft per month.

Base: 11, Values in nos. corporate www.beyondsquarefeet.com 49 Proposed property: Advantages Vs. Apprehensions

Advantages of the proposed property Apprehensions in the proposed property

It is a town area (7)

Attractive location (3) Parking (6)

Good area for corporate (3) No issues (5) Central location (1)

Good views from the road (1)

Base: 11, Values in nos. corporate www.beyondsquarefeet.com 50 Proposed property: Expected facilities

Expected facilities in the proposed property In nos. Proper parking facility 9 Good layout 1 Office setup 1 Uninterrupted water supply 1

Proper parking facility is the single most important expectation of corporate from the proposed property.

Base: 11, Values in nos. corporate www.beyondsquarefeet.com 51 Summary of Findings:

Consumers Corporate Retailers Hotels Agents

www.beyondsquarefeet.com 52 Key findings CONSUMER SEGMENT

www.beyondsquarefeet.com 53 Key findings: Consumer

 S M street, Focus Mall and Big Bazaar are the most visited places for shopping.

 83% of Calicut shoppers visit a Mall at least once in a month.

 Consumers tend to spend leisure time of over 2 hours (avg.) on a visit to a Mall.

 Respondents want quality products available at one place. The main focus is on the layout of the mall and the range of products available.

 Clothes (Apparel) is the most visited category.

 High price followed by insufficient parking space are major concerns of consumers.

 Majority of the respondents use personal transport to travel to the malls.

 55% of the respondents intend to visit the shopping mall in the proposed location.

www.beyondsquarefeet.com 54 Key findings CORPORATE SEGMENT

www.beyondsquarefeet.com 55 Key findings: Corporate – Current scenario

 On an average, corporate respondents are operating in current offices since 10 years having average built-up area of– 2027 sq ft

 50% of the corporate own their office whereas rest 50% have it on rent.

 Corporate are satisfied with their current office location, having only one major concern of parking facilities.

 Corporate expect the rent to in the range between Rs 60 – 75 sq ft per month. Average rent expected is Rs 65 per sq ft per month.

 Corporate appreciate the location of the proposed project and expect builders office, restaurant and hotels to come primarily in the proposed mall.

www.beyondsquarefeet.com 56 Key findings RETAIL SEGMENT

www.beyondsquarefeet.com 57 Key findings: Retail segment – Current scenario

 80% of retail outlets are on rental basis with sizes varying from 200 – 2500 sq ft. (average size of outlet - 945 sq ft.)  Most of the retail outlets have opened within a span of 1 – 4 years having an average footfall of 315 /day per retail outlet.  Average rent expected by the retailers in the proposed premises - Rs 62 per sq ft per month.  64% of the retailers found the proposed location attractive for shopping as it is location in the town area.  Retailers expect apparel and footwear outlets to come primarily in the proposed mall.  Proper parking facility is the single most important expectation by retailers.

www.beyondsquarefeet.com 58 Key findings HOTEL SEGMENT

www.beyondsquarefeet.com 59 Key findings: Hotel segment

 The current area of banquet halls in Calicut vary from 500 to 3500 sq ft. with an average size of 1850 sq ft.

 Hotels charge from Rs 250 to 500 per person for banquet halls. (Avg. rate charged Rs 372/person)

 Hoteliers expect the rent to in the range between Rs 60 – 125 sq ft per month. Average rent expected is Rs 95 per sq ft per month.

 Hoteliers (7 out of 8) find the proposed location attractive because of its central location.

 The most prominent expectation by most hoteliers are proper parking facilities.

www.beyondsquarefeet.com 60 Key findings AGENTS

www.beyondsquarefeet.com 61 Key findings: Agents

 Agents in Calicut deal majorly (4 out of 5) in shop space and office space.

 4 out of 5 agents found the proposed location attractive for commercial complex and showed interested in dealing in this property as they found it beneficial for their business.

 Agents expect the rent to be in the range between Rs 50 – 100 sq ft per month. Average rent expected is Rs 75 per sq ft per month.

 Agents expect mobile phone, apparel and footwear retail outlets to come primarily in the proposed mall.

 Proper parking facility is the single most important expectation by agents.

www.beyondsquarefeet.com 62 Way Forward

 To conceptualize a Mall/mix-use complex keeping in mind the key findings

of the research.

 The Mall has to connect to the age segment of the consumers.

 To have a tenant mix which will compete with the existing preferred Malls.

 Infrastructure and services of the Mall to exceed customer expectations.

 Create a one-stop-shop.

 Challenge: The well travelled customer.

www.beyondsquarefeet.com 63 Action Plan

 Hotels and corporate do not see any business opportunity in the banquet

hall concept.

 Extensive promotions required for the success of the mall.

 Shopping mall with multiplex will be preferred by the consumers as Calicut

presently does not have a shopping mall with multiplex.