Indian Shopping Centres?
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pointers Zurijeta / Shutterstock.com What’s missing in By Amit Bagaria Indian shopping centres? Square, Asipac had provided 11.6 It is not just about fashion and footwear…Why are we not willing to work per cent, and I find that barring one, all retailers in these categories harder to bring the wide tenancy mix and infrastructure facilities that truly are doing very well. Realising the world-class shopping centres provide to the communities they serve? need for adequate space for these categories from the latest research study, the upcoming Neomall in You may bring a new Bangalore, Asipac only leased 44.4 South Bangalore looks to provide international apparel brand in your per cent space to retailers in this the required 18.5 per cent space to mall, but this is only adding to the category – perhaps the lowest ratio various home and CDIT formats. already overcrowded apparel and in the country. At the 4,75,000 Our study shows that F&B needs fashion category. square feet Mall of Travancore in 14.8 per cent space – show me one According to early findings of Trivandrum, only 41.9 per cent area recently opened shopping centre t least five new an ongoing retail consumption is provided for apparel & fashion, that has provided close to this shopping centres have opened across study being done by Asipac, only thus bringing this mall even closer number. At Mantri Square, Asipac AIndia in the last three months. Yet, 25.8 per cent of modern retail to the actual consumer expenditure had provided 12.5 per cent space apart from the noisy roller coaster space is required for the broad patterns. for F&B outlets, which are all doing at Infiniti-2, Malad West (Mumbai), I apparel and fashion category, On the other hand, while well; a similar percentage of F&B don’t see much difference between including eyewear, footwear and the home & CDIT categories put will be seen at Neomall as well as these 2011 centres and those that accessories – yet, more than 60 together require 18.7 per cent at Sobha Global Mall in Bangalore. opened in 2003-2004. This shows per cent of space in Indian malls space, less than one-third of Even at Mall of Travancore, almost that the Indian shopping centre continues to be dedicated to this this is actually provided to these 14 per cent space will be dedicated industry has not evolved much. category. At Mantri Square mall in important categories – at Mantri to the F&B category. 42 > Shopping Centre News > DECEMBER-JANUARY 2012 What about entertainment? per cent of the total space in the Apart from the almost mandatory MOST SHOPPING CENTRES IN INDIA ARE apparel & fashion category is multiplex and a forced family occupied by Indian wear, which is entertainment centre, what are PROVIDING LESS THAN 2 ECS PER 1000 SQ FT AS the best performing standalone Indian shopping centres doing AGAINST THE GROWING NEED OF 4.78 ECS PER category in the entire mall. on this front? The research study 1000 SQ FT (OR ABOUT 2,866 CAR PARKING SPOTS) At Brookefields Plaza in shows that this category needs 13.4 Coimbatore, Lifestyle is averaging a per cent space. At Mantri Square, OF RETAIL BUILT-UP AREA – AND THE DEVELOPERS turnover of `36 crores per annum we provided 12.3 per cent and COMPLAIN ABOUT RETAILERS PAYING LOW from a 38,000 square feet store; while the entire category is witnessing REVENUE SHARE RENTS. IT IS LIKE GIVING YOUR Indian wear department store RmKV fantastic numbers. At Neomall, is doing 3.5 times the sales from only more than 15 per cent of the area COOK AT HOME 12 EGGS AND ASKING HIM/HER TO 20 per cent larger space. This has is being dedicated to leisure and SERVE FLUFFY OMELETTES TO 50 GUESTS! prompted Bangalore-based Prestige Constructions to get RmKV as one that his mall will succeed if he of the anchors at their upcoming brings in big international brands. Forum Vijaya Mall at Vadapalani, Another phenomenon that the Chennai. At Mall of Travancore in study confirms is that almost 26 Trivandrum, 28.6 per cent of the total per cent of total expenditure on area dedicated for apparel & fashion apparel & fashion (by both genders, is reserved for Indian wear. including footwear & accessories) To me, it does not look like in urban India is on Indian wear. things are going to get any better But how much space is dedicated soon – in fact, I believe that the to Indian wear in Indian shopping scenario will get even worse, as centres? many developers are now bringing At Mantri Square, several value in so-called “expert” mall planners brands were brought to occupy from abroad – as if they have a 31.2 per cent of the total space better understanding of India. dedicated to the apparel & fashion How can they understand how category, yet we were criticised our multi-ethnic, multi-religion, for “downgrading” the malls’s multi-language society co-exists image. The reality is – most of and functions? When will we give these “value” retailers are doing up our phoren fixation and start far better than their counterparts respecting our own culture? who sell at higher prices. Same is The problem (of not being able More than 60 per cent of space in Indian malls continues to be dedicated to apparel & fashion category the story with Indian wear – 12.9 to understand the Indian consumer) entertainment facilities, including some attractions that will be seen for the first time in India. At Mall of Travancore, 12.7 per cent space is being assigned for leisure & entertainment. Coming back to the apparel and fashion category, the study shows that 73.5 per cent of expenditure on this category in urban India is by people who are value conscious – in other words, they cannot afford brands/retailers of the likes of The Collective, Zara, Debenhams, Mango, Nine West, Promod, Esprit, Ed Hardy, Diesel and Energie. Yet, I can site new and upcoming centres in Bangalore as examples that have dedicated a large percentage of space to such high-end brands. One of these upcoming malls has one of the most traditional and value conscious area of the city as its primary catchment. Yet the promoter thinks Proposed Outdoor Entertainment Layout for Neomall, Bangalore. DECEMBER-JANUARY 2012 > Shopping Centre News > 43 pointers four or more bank branches, thus ensuring that people from neighbouring communities visit the centre regularly and generating “extra” footfalls. In the tenancy mix, services are given a high amount of importance in South Africa. There are several salons, travel agencies, car rental agencies, dentists, optometrists, other medical service providers, florists, photo studios, mail/courier services, internet cafes, wedding planners, telecom company relationship centres, business centres, engravers, locksmiths, laundry, pram & wheelchair hire, amongst other consumer conveniences. So it is not just about fashion and footwear. The case is not different in good shopping centres in USA, UK, Thailand or Philippines. Developers/owners of shopping centres in most of the mature markets have realised, a long time ago, that shopping centres must try and provide as many “needs” of the consumers as possible, and is not just prevalent in our industry. not just cater to their discretionary One of the TV advertisements show shopping needs. Big B trying to tell a CISF security When we copy from abroad, why guard to buy an insurance policy. do we only copy foreign shopping Do none of the people involved centres on a selective basis? Why with conceptualising and approving do we only want to believe that, by the ad realise that Indian security just getting 10-12 foreign apparel, guards are not paid enough to be footwear or cosmetics brands, our able to afford insurance? Or that shopping centres will also become CISF already has several welfare “world class”? funds and schemes at subsidised Why are we not willing to work rates for its personnel. harder to bring the wide tenancy Why have people stopped mix that truly world-class shopping thinking? Why have they stopped centres provide to the communities paying attention to what’s around they serve? them? Is this what economic The 2.9 million square feet boom has brought to our country? King of Prussia mall in suburban Unrealistic dreams – it seems like Philadelphia (USA) has 13,400 the whole of India is functioning car parking spots. The 4.2 million like a Bollywood movie, with life feet each, and 18 mini anchors of 14 bank branches. More than square feet Mall of America (USA’s revolving around dream sequences 20,000 to 40,000 square feet each. 20 per cent of the space in this largest mall) has 12,500 parking of our own creation. But it also has two multiplexes with shopping centre is dedicated to spots. The 1.94 million square feet total 20 screens, 35 F&B outlets, a F&B. The 80+ health & beauty Canal Walk shopping centre in International examples 6300 seater minor league stadium, clinics, education/tution centres, Cape Town (South Africa) has 9300 The 3.3 million square feet a 61,600 sq ft exposition centre, a bank branches and F&B outlets parking bays. The V&A Waterfront Eastwood Mall complex in 64-room Marriott Fairfield Inn Hotel are mostly local brands/ retailers, in the same city has 6200 bays for Youngstown, Ohio (USA), has 230+ and a Salt Water Aquarium. even though many of the apparel/ a retail built-up area of 856,000 stores, of which seven are anchor Central Plaza Chaengwattana fashion brands are international square feet.