The unique cinematic experience will include cutting edge cinema dynamics, ultra-luxury seating, wider screens as well as digital stereo sound. It is also in the process of developing a spectacular gaming zone, perfect for families with kids of various ages. An indoor amusement arena is also being designed, which promises to transport visitors to a completely new world. Apart from this, the mall promises national and international brands as anchor and vanilla stores, good food and beverage outlets along with events, activities involving community engagements.
Parking Sensors: Parking sensors are also being installed in the parking to monitor traffic levels and to help reduce time taken to enter and exit. As it collects and filters more data, the system gets smarter.
It will be installed on every floor. Customer Engagement Using Technology: A mall is a place where shoppers come by primarily for experience and with constantly evolving technology, this experience is only getting better and more refined; concepts like these have sprung out of our imaginations into tangible experiences.
Taking this further, the mall can also have large digital signage that addresses shoppers and then displays their shopping profile for the benefit of the salesperson who can attend to them personally. Customer Centricity — Crown Mall aims to focus more on the customer-centricity by the following ideas: — Train people in customer service — Create awareness in your organisation — Make customer satisfaction a priority — Reward employees deliver high customer satisfaction — Sharing customer success on platforms.
The biggest contribution of a food court is to keep consumers engaged and makes them stay longer in the mall. Consumers spend almost 20 percent more in malls with good food courts. Food courts are very productive for malls, Guests love fast convenient food. And no matter how they buy it, food is a critically important part of social experience malls rely on to attract customers throughout the year.
The three major key attractions of Express Avenue are as follows: — Shopping: The shopping section consists of stationery, toys, games, gifts, electronics, home and lifestyle. The simplicity of the mall design and the convenience of location makes it the most preferred shopping destination in Chennai. Funcity has been a trusted partner for Express Avenue since To strengthen the entertainment mix further, we have introduced a new concept brand Craash across 12, sq.
We have been watching the shift in the consumption pattern very closely more skewed towards Food and Entertainment and hence we have chosen to strengthen our FEC offerings. Food court has been recently upgraded to redefine the consumer experience.
Momos are some of the popular brands in the food court which have helped to get and retain footfalls in the mall. The year so far has been very good and promising for the brand. The mall performance has been quite steady in the last cycle and the credit of this growth goes to our anchor tenants, who have shown tremendous growth both in terms of footfall and revenue.
As far as the success rate of the mall is concerned, major bands have posted double digits growth. Big Bazaar has posted 11 percent y-o-y growth, whereas Trends has posted 10 percent growth. MAX witnessed a growth of 8 percent whereas the cinema and FEC recorded the highest occupancy of 68 percent. Miniso launched its first store in Andhra Pradesh at Felicity Mall recently. The unique retail concept of the store was the star attraction of the mall as it received an overwhelming response from visitors.
What services do you offer patrons and why? Hospitality plays a major role in customer satisfaction, particularly in Tier II city operations where people are emotionally more connected with malls.
We have ensured that customers are greeted at the entry of the mall by security and parking attendants. There are escalators, lift boys at all floors to accommodate rural segment customers. Do you plan to bring more renowned entertainment brands to your mall? High Volt from Hyderabad is the game zone operator for the mall. One cycle of new game introduction has been done recently and the entire gaming zone was reorganized by investing Rs 40 lakh for better customer experience.
We have added lots of new attractions in the ground floor area. We are planning to introduce VR zone in future. There is a 5-screen multiplex with modern technology, which promises an exciting experience for the viewers.
Our food court is managed by an experienced operator from Bangalore. We have introduced a few changes in our food menu and have also made changes in the pricing and quantity of food on the menu. As a result, the business has grown by 12 percent Y-O-Y and new offerings are placed in from time to time. From the technological perspective, we have worked on the mall parking.
We have introduced a Parking Software, which is also useful in mall promotions and in sending notifications to a customer as soon as he steps into the mall. All digital platforms are actively used and updated from time to time, giving an update of all mall happenings and promotions. Junction Mall performance in the last cycle has been very progressive. Starting from the occupancy to footfall, food court sale to parking, in all nodes there is a growth over to past years.
Occupancy has reached Food court sales have increased by 35 percent and parking grew by 9 percent. The success of any mall is directly reflected by the performance of its brands — anchors and vanilla — as well as the food court. Major anchors have an average growth of 20 to 25 percent Y-o-Y whereas major vanilla stores have recorded growth of near 20 to 35 percent Y-o-Y. The food court has a record growth of 35 percent Y-o-Y, which is highest percent growth since the mall was launched.
We have introduced new brands like Lenskart and FirstCry. We are getting more footfalls because of their customer base on their digital platforms. Among new services, we have introduced many new facilities for moms and babies as well as handicapped people including baby feeding, baby care rooms, baby diaper changing stations, low height washroom for kids, handicapped toilet, additional first aid points etc.
This will be a next level system which will be like the database of all mall systems including parking, footfall, zoning area reporting etc. We give a percentage of retail space to homegrown brands to fi ll gaps in retail mix and to keep local touch. We have a self-operated gaming zone. Also, we are in a plan of executing another game zone having all physical set of games where no electronic gadgets will be used.
We are in a phase of renovating the food court to give a specific identity to our food court — Food Junction. We are even working on expanding the area as well. Last financial year closed at a growth of 35 percent Y-o-Y. We also have a plan to add local ready-to-eat cart formats as well. Initially, we are concentrating on the safety and security of the visitors.
We have replaced our old systems and introduced an entire new set of online systems. The mall is a commercial project on a plot of 4 acres acquired as a freehold land in and the construction was initiated in June There will be retail shops.
This means relying on self-finance or funding. The tenants, at the same time, have the options of buying and operating the store in the mall, leasing from the developer or leasing from the investor. A wish list of tenants is worked on by the mall management. At the same time, tenants may approach the mall as well. The practice is to offer a month lease with an option of another 33 months more. Since , due to a stamp duty relaxation, five-year lease with the option of an additional five years plus five years is also being offered by mall developers.
The major source of revenue for a mall is the rent paid and the maintenance charges paid by the tenants. Some revenue is also generated through space selling inside the mall, sponsored promotions and use of billboards on the facade by the tenants. The rent lease agreement between the mall and the tenants are of two types. Almost all malls use both depending on the tenant. The straight lease model or the rental model : The entire store is given at a fixed rate decided between a tenant and mall developer.
This is currently around INR — per sq ft on carpet area in India depending on the location. An annual escalation clause of approximately 5—10 per cent or 15 per cent every three years is worked into the lease.
The terms are renegotiated usually when the lease is renewed Singh, The Revenue sharing Model : The mall developer charges some fixed rent for the store and also shares part of the profit of the over-the-counter sales in the store.
Often, the mall commands a minimum guaranteed figure or a percentage of sales, which ever is higher. The malls in prime location do give a better advantage to a mall developer because he has a better earning potential with this model.
The profit share is usually 10—12 per cent. Space Selling is the second best option for revenue. The rates also vary based on location and visibility of the hoarding.
Mall promotions are these days almost as familiar a sight in shopping centres as the tenants themselves.
Malls sometimes hold themed events especially during festivals, which not only provide footfall and boost retailers' sales, but also provide a platform for opportunities in commercialisation. These events attract consumer durable companies, automobile companies, bringing in a lot of noncore revenue because it helps them promote the product among the relevant customers and built up a database of prospective customers.
The brands are attracted to malls with a high footfall and their target demographic. Retail Merchandising Units or kiosks are also a more permanent revenue stream. The promotional events include fashion shows, display of important cricket matches, football finals or the F1 grand prix. Often, these events are sponsored by the tenants of the mall who want to increase footfall. The mall's operational expenses are mostly for the maintenance of common areas.
The trading space in a mall is usually around 50 per cent of the total area not including parking. This area is taken care of by the individual stores. But the space that forms the common area comes under the mall. The mall management has to take care of the proper functioning of equipments like lifts, elevators, air conditioners, lighting, etc LLC, They also take care of the maintenance of the parking area, the rest rooms and other common areas.
In addition to these activities, the safety and security of customers and tenants is also their responsibility. They also undertake frequent mall promotional activities and provide an overall pleasant ambience to shoppers. A typical income and expenditure statement of a medium-sized mall approximately , sq ft for a month is given in Table 2. These are incomes and expenditures that are subject to seasonal and occasional events. Taxes form another major expense for a mall.
The taxes paid by a mall are three times that of a residential property and as much as four and a half times if it touches a major road or artery Adukia, The break-even achieved by malls can vary depending on the source of financing used and the potential of the catchment area.
The malls that sell out stores to investors usually break-even before the mall is constructed. In the total lease model, break even based on working capital is usually achieved as soon as the mall is operational while return on investment will take a minimum of three to five years.
Because organised retail is in its nascent stage and mall management is mostly learning through trial and error, the industry as a whole is going through some growing pains. The major issues are as follows:. Inadequate planning of the format and location is a major problem.
The lack of attention to zoning issues is another aspect which is mostly ignored or given poor thought. When it comes to picking an exact site within a city, it requires knowledge of local traffic flows, the most desirable side of the street and the urban development patterns. This decision is usually rushed and made without the right knowledge. Growth of retailing and malls has not been kept up by infrastructure growth and basic amenities like parking space in the mall design.
One of the most important aspects for the success of a mall is the tenant mix. But because many malls are being created as real estate ventures, this model has the inbuilt disadvantage of not having proper control over the tenant mix. This leads to empty looking malls even after the grand opening and leads to future problems that could affect the popularity and thereby long-term viability of the mall Prayag, One of the major reasons that leads to disagreement between the mall and the tenants is the hiking of rentals and maintenance charges.
The high real estate prices, charges for electricity, etc the mall incurs is passed on to the tenant in the form of rent or maintenance charges. The retailers, in turn, feel that they are paying unreasonable rentals, making their business less profitable and their ability to sustain in the long term poor. With more and more malls dotting the urban landscape, it is now becoming essential to study consumer behaviour and differentiate the offerings.
Shoppers are spending a lot of time and not money at malls. People visit cafes, spend the whole day there and pass their time in that cafes. The malls are always crowded but most of the people come for window shopping and not actual shopping.
When some mall developers indiscriminately promise footfall and conversions without adequate investigation or study and this does not materialise, then the relationship between the retailer and the mall management sours Mitra, ; Prayag, Some suggestions for effective mall development and improving the chances for success of a mall are:. Access by the public transport system, good roads for service and customers, and provision for taxi and auto stands is essential for the proper function of a mall.
Basic infrastructure like electricity and water supply has to be adequate to support mall development. Malls will then not have to run their own diesel-powered generators.
Nor will they have to dig wells to suck up ground water. In addition to costs of the mall, it also causes environmental concerns like air pollution and depletion of the water table. For the well-heeled buyer shopping is no longer a chore; it has become a fun activity.
Developers must, therefore, create an ambience that makes it delightful for customers to spend time at the mall. Ease and convenience have also become top priorities, therefore adequate parking and easy access is essential. Today people who buy at malls are no longer looking for the cheapest product; they are ready to spend money on premium brands.
It is very important that developers woo the right mix of tenants and brands to their mall Prayag, Most of the malls offer the same mix of shopping, food and films. As the number of malls increases, proper positioning of the mall and offering a unique value proposition will become important.
Developers will have to choose a tenant mix that fits in with the positioning of the mall instead of accepting the first retailer that offers to lease space at their mall Singh, , Prayag, Space selling at a mall is a low-risk strategy. On the other hand, if space is leased the mall will have better control over the tenant mix and hence over the fate of the mall Singh, As the supply of retail space increases, developers may have to revise their rentals downward.
Rentals calibrated to the revenue that the retailer is able to generate at the mall will motivate both parties to cooperate for each others development. Transparency in the calculation of the maintenance charges could also ensure better relationship between the mall management and the tenants. If developers and retailers join hands at the planning stage onwards, then there is a strong possibility that the mall concerned will be a success Singh, A healthy relationship between the mall management and the tenants, customer services and prompt action by the mall management to instill a sense of security are also mandatory for a mall's success.
Deep Dive Into Cryptocurrency. ET Markets Conclave — Cryptocurrency. Reshape Tomorrow Tomorrow is different. Let's reshape it today. Corning Gorilla Glass TougherTogether. ET India Inc. ET Engage. ET Secure IT. Tax How to file ITR. Tax Saving. ITR Forms. Income Tax Refund. Tax Exemption Limit. Income Tax Slabs. Insure Life Insurance. Health Insurance. Motor Insurance. Other Risk Covers. Personal Finance News. Mutual Funds.
0コメント