Organised retailing in India witnessed a gross turnover of USD 320 billion in 2006. Although this figure is low compared with other developed economies, industry experts expected the growth rate of this sector at 35% until 2010. At present, about 100 malls are operational at India with a total area of 19 million sq ft. As per the estimates, about 3003 additional malls were constructed across the country by 2010. According to the Jones Lang LaSalle Retailer Sentiment Survey 2006, 95% of the respondents expect their gross turnover and expansion all over. About 70% of those who have expansion plans said they prefer malls over high streets for their expansion, indicating the rising demand for malls as the preferred destination of organised retail in India. Moreover, about 65% of those who preferred malls over high streets also said that mall management is expected to become the factor for a mall’s success in the future. However, a sense of concern was expressed over the following challenges to the Indian retail market: lack of quality locations shortage of trained staff rising rental values mall management. The first three concerns can be classified as external factors, whereas mall management is internal. External factors are common to all players in the Indian retail industry, whereas mall management is specific to individual malls. We anticipate that the success of Indian malls will not only be achieved by housing the biggest and the best mix of retailers, but also by setting up new standards and procedures in mall management that will provide a platform to differentiate its products and services from competitors. In the current market scenario, both consumers and retailers have limited choice in terms of mall shopping experience. As organised retail grows, we expect the market to be more competitive by providing more choices to consumers and retailers. At this point, developers will have to work harder to create a differentiation for their product. We believe consumers and retailers will be attracted to malls that are professionally managed, making effective mall management a critical factor behind the success of a mall. The internal factor: effective mall management as a growing phenomenon in the Indian retail industry today. The prime objective of landlords as well as of investors is to attract shoppers and persuade them to purchase goods and services. This will in turn boost retailers’ turnover and benefit their bottom line. Efficient mall management can help landlords achieve this goal. What is Mall Management?
Globally, mall management broadly includes: positioning a mall zoning – formulating the right tenant mix and its placement in a mall promotions and marketing facility management – infrastructure, traffic and ambience management, finance management.
It broadly includes infrastructure, ambience and traffic management.
A. Infrastructure Management – Infrastructure management refers to the management of facilities provided to the tenants within the mall. This includes provision of adequate power supply , safety issues in case of emergency and miscellaneous issues related to signage, water supply, sanitation, etc. as shown in Figure, these form an integral part of mall management as they are the basic amenities that any tenant would look for in a mall. Infrastructure management also includes risk management issues such as essential safety measure asset liability and environmental audits as well as emergency and evacuation training.
B. Ambience– The overall shopping experience provided for consumers becomes an important factor for the success of any mall. Ambience management includes management of parks, fountains and overall look of the mall. A mall is not just a place for shopping but is also a place where people spend their leisure time. In favourable, lush green landscaping with seating facilities and the presence of food and beverage inside or outside the...
Revised second edition by C.R. Kothari
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