CB Report on Mall Culture-Anubhav Mishra

8/10/2019 CB Report on Mall Culture-Anubhav Mishra

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A Comprehensive Study on the ‘Emerging Mall Culture in INDIA’as Against the Existing Retail Chain System

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MALL CULTURE

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Executive Summary

It has been noticed so far, that the retailers, with their glitzy shops and direct consumer interface havebeen in the limelight as a key factor driving the growth of organized retail in the country. However, malldevelopment has been driven primarily by the real estate developers who have started looking at retailingas seriously as corporate and residential sectors. The boom has been fueled by the attractive returnsobtained by the mall developers over the last couple of years.

With high novelty value, the malls are almost becoming a status symbol for the communities, generating asubstantial excitement and curiosity amongst the consumers. With increased customer acceptance oforganized retailing, there has been an increasing demand for high quality space from large format retailers,the food and apparel chains and the multiplex operators. Mall development has attracted many real estatedevelopers across all large and mid-size cities.

Now, this study investigated Indian consumers’ motivati ons and intentions, especially the youthgeneration, to patronize contemporary retail formats, such as shopping malls. The study attempts toexplain Indian consumers’ shopping attitudes and subjective norms in addition to motivations on theintentions to patronize malls in India. This study provides useful insights into mall shopping behavior ofIndian consumers. Mall managers and retailers in India will benefit from knowledge of Indian consumers’clusters. Theoretical contributions include an understanding of the multidimensionality of the cultural-selfconstruct and the antecedents of Indian mall shoppers’ patronage intentions. Results of this study provide

a deeper understanding of the reasons Indian consumers go shopping, and specifically why they patronizemalls. Findings from this research provide important insight for retailers’ strategic marketing activities

directed at different consumer groups. It is posited that effective marketing communication for differentconsumer groups could be improved by better understanding the cultural- orientation, mindsets, andshopping motives of Indian consumers.



Table of Contents

Introduction Concept of Malls SWOT Analysis Problem Statement Purpose Objective Research Methodology Analysis & Findings Limitations Recommendations



Introduction

“A shopping mall (or simply mall), shopping center, or shopping arcade is a building or set of buildingsthat contain stores, and has interconnecting walkways enabling visitors to easily walk from store tostore. The walkways may or may not be enclosed.”

A shopping mall is typically, a shopping complex connected by walkways. It provides shopping as well asentertainment options to the target consumers. It generally, contains one anchor store, which consumestwenty five percent of its retail space. In addition a mall contains specialty stores for clothes, accessories,home needs, books, as well as food court, multiplexes and entertainment zones.A Shopping Mall or Shopping Center is a building or Set of buildings that contain retail units, withinterconnecting Walkways enabling visitors to easily walk from unit to unit.Mall is generally used to refer to a large Shopping area usually composed of a single building whichcontains multiple shops. Usually anchored by one or more departmental stores surrounded by a parkinglot. Therefore mall can refer to a place where a collection of shops all adjoins a pedestrian area that allowsshoppers to walk without interference from vehicle traffic.

In most of the world the term shopping center is used in North America and large extent in Asia it iscalled as Shopping Mall.

Malls in Ireland are pronounced as ‘Maills’, are typically very small shopping centers placed in the centerof town.

Shopping centers in the United Kingdom can be referred to as shopping centers, shopping precincts or just precincts.

Concept of MallsThe concept of Retail as entertainment came to India with the advent of malls. Mall fever has touchedevery facet of Indian society. Whatever is the income stratum of consumers, malls make no distinction inproffering most-revered national and global brands. Shopping Mall refers to a set of homogenous andheterogeneous shops adjoining a pedestrian, or an exclusive pedestrian street, that make it easygoing forshopper to walk from store to store without interference from vehicular traffic. Malls are incorporatedwith a whole bank of lifts and escalators for smooth transit of shoppers. Malls are located in proximity tourban outskirts, and ranges from 60,000 sq ft to 70,000 sq ft and above. The future of organized retailing islargely in the hands of mall where the shoppers get quality, quantity, inspirational appeal, recreationfacilities and ambience. Under one roof, the flashy malls promises just about everything under the sun,from foreign gizmos to the very desi, virtually an airbus full of national and international brands, to say theleast. Malls offer a plethora of attractions-high profile shopping, impulse eating establishment, a glitzy andglamorous environment... to discerning shoppers of more refined tastes, who are more concerned withquality and fashion and less concerned with budgets. Mall reveals six factors namely comfort diversity,luxury, mall essence, entertainment, and convenience which are a source of cynosure.



In India, malls have transformed shopping from a need driven activity to a leisure time entertainment. Thequality mall space which was just one million square feet in 2002 has accomplished new milestones of 40million square feet and 60 million square feet in 2007 and 2008 respectively. There is a paradigm shift inthe mall scenario, from just 3 malls in the year 2000; the country witnessed 220 malls in the year 2006.Exhibiting signs of further enlargement India is likely to have more than 600 in 2010 and 715 malls in 2015,with an estimated cumulative retail space of 100 million sq. ft. Shopping malls in India are reckoned to

worth Rs. 38,447 crore by the year ending 2010. Real estate corporations like DLF and Unitech are comingforth with the plans catering the ever-escalating demand of shopping malls. In the next four to five yearsRs 65,000 is budgeted to be invested in retail real estate development. In most of traditional Indian malls,around 30 percent of space is allocated to apparel retailers while 12-20 percent space is dedicated to Foodand Beverages. Indian malls vary between 35,000 sq ft to 10, 00,000 sq. ft. while U.S. version is between4,00,000 sq ft to one million sq ft. . The largest malls in Indian metropolitan cities enjoy 25,000 footfalls perday which hikes to an average of 40,000 on weekends. Due to radical revival of shopping and consumerismshopping mall syndrome has hit India in all earnest. Even though the malls are mushrooming from metrosand mini metros to tier III cities, the spread of malls is highly concentrated in India. North Zone is having

the peak attractiveness with 39 percent while South, East, and West Zone respectively holds 18 percent, 10percent, 33 percent of total malls pie. Creating artificial product scarcity, cheap imitation, and takingcustomer for granted are the talks of yesteryears, thanks to the mall culture. Further, shopping mall is theparadise where various shopping motives like peer group association, impulse shopping, hedonic, statusconsciousness, market mavens, economic motive, utilitarian motive etc. can be fulfilled in one shot.

THE 4 A’s OF MALLS (different parameters for development of mall)

In August 2005, a group of marketing theorists like Philip Kotler, Jagdish Sheth, Venkat Ramaswamy,

Nirmalya Kumar and Jerry Wind gathered at Bentley College in Massachusetts, US to discuss the future ofmarketing. Some of them felt that Kotler’s marketing mix is in trouble since it is not built around the

customer and therefore an alternative framework called the 4 A’s is suggested that is far more consumer -centric. The degree of success depends on how close to 100% a company is able to achieve on each of the4 A’s.

A simple formula is used to evaluate the overall marketing program. That is on the basis of these 4 A’s and

is known as the ‘market value coverage’ .

Market Value Coverage = Acceptability*Affordability*Accessibility*Awareness

Since the malls are booming, We have consi dered the 4 A’s of malls. Here we are discussing how the mallshave addressed these A’s. We have also mentioned why the malls are acceptable, affordable andaccessible to the consumers. Furthermore, they are aware of these malls mainly because of the variety ofpromotions done at malls to attract people. It is because the malls are acceptable, affordable, accessible,and the mall mangers create proper awareness, more and more malls are coming up and hence the mallsare booming. But we have to wait, for the future in order to see how many of these malls will actuallysurvive in this face of fierce competition.



• ACCEPTABILITY

Most Indian consumers have started preferring malls to other traditional formats of shopping. It is becauseof this preference amongst the Indian consumers regarding malls; we can say that they are graduallyaccepting the concept of malls. Following are the reasons for the preference and thus the acceptance ofmalls in India:

Convenience: The Indian consumers search for convenience and shopping in a world-class ambience. Peoplefind that they have less time than before because of a number of factors that include the increasing numberof nuclear families, working women, greater work pressure and increased commuting time. Hence they arelooking for convenience, especially when it comes to shopping so that they don’t have to run all over the cityto complete their shopping. Thus they prefer shopping at malls since they provide the customers with thedifferent variety of products under one roof and hence prove to be convenient for them.

Ambience: Indian consumer prefers the infrastructure at malls. It gives them an internationalshopping experience. Moreover for the SECA+ and SECA customers the ambience in mall is veryimportant. They do not like to shop at places where the noise levels are excessively high, or a placewhich is not well maintained.

Entertainment: Families seek worthwhile entertainment combined with shopping, food, andoptions like theatres, bowling alleys and gaming zones. The members of the family find what theyneed, in one mall, which offers provisions for entertainment, like multiplexes, culinary delights atfood courts that serve both Indian and international cuisine. The needs of the entire family can bemet at 1 place. The children can amuse themselves with games; the wife with the householdshopping and then can also dine there.

Product availability, quality, display and customer services: The customers also pay attention tofactors like product availability, quality, and display and customer services. All the possible productsfrom clothes to groceries etc. are made available at malls. Moreover, they are of superior quality.Consumers now have a wider rage of choices, as liberalization of the market for consumer goodshas bought many well-known international brands to India and there has been markedimprovement in the quality of local manufacturing.

‘Self-service’ format : This format of shopping has brought about great changes in customerbehavior, leading to a higher propensity to purchase, when people are allowed touch and feel the

products without unnecessary interference from sales attendants.

Thus we can say that the malls are acceptable because they look into customer value. Valuefrom the point of view of customers is the experience that he gets while shopping at the mall. Theybasically look for experience shopping that is “Shoppertainment” The malls effectively look intomaking the experience of the customer a memorable one by the fact that they give so muchimportance to ambience, entertainment, quality and display of goods etc.

• AFFORDABILITY

As mentioned earlier, the malls cater to the food, retail and entertainment related requirements of theconsumer. Under each of these categories there are various options available to the customer. He can visit



the outlet that best suits his requirement and is also within his budget. For example in case of food, thereare many food outlets in the food court. Depending upon his budget he can either choose to go to anexpensive Chinese restaurant or just have simple fast food. Similar is the case of retail. The customer caneither go to a designer boutique or any other retail outlet to buy clothes depending upon his budget.

Thus the variety of outlets that offer a wide range of prices present in a mall caters to the affordabilityfactor of its target audience.

Thus, malls are affordable because they try to address the consumer costs by providing variety of outletsthat offer a wide range of prices to the customer. The customer can buy from whichever outlet best suitshis budget.

• ACCESSIBILITY

Since the malls are being preferred and accepted by people, more and more malls are being developed. Infact statistics say that India is all set to have over 230 malls, and quality retail real estate space of over 40million sq.ft. of quality retail real estate space by 2006. This shows that the malls are coming up almostthroughout the country and hence the accessibility of such malls will become even easier. In fact inGurgaon, that is called the “city of malls”, has malls in almost each and every stree t. A mall before comingup has to do the analysis of the location it plans to set up in. Location analysis has to be done keeping inmind the customer’s “accessibility”. See Location Analysis.

Again malls are accessible since they look into consumer convenience. Convenience factor depends uponthe location. To make the malls easily accessible to their target customers, malls are ensuring that they doproper location analysis for the same.

• AWARENESS

There is awareness of the malls amongst the consumers, which can be ascertained by the fact that themalls are being tremendously accepted as mentioned earlier. Basically the new malls entering the markettry to create awareness about their mall in the market by way of promotions. Moreover even the existingmalls try to increase the footfalls in their malls by way of promotions.



SWOT Analysis

Sl.No.

STRENGTH WEAKNESS

1 Skyscrapers with perfect blend of shopping,eating and entertainment, in short“shoppertainment”.

Mall developers are enacting as mallmanagers Retail not accredited as anindustry in India Complicated taxationsystem.

2 Developed in contemporary style, these flashymalls promises just about everything under thesun, from foreign gizmos to the very desibrands.

Lack of adequate infrastructure includingsupply chain, parking facilities.

3 Attractive destinations for civic and officialmeetings, hang out, reducing stress.

Unavailability and skyrocketingprices of prime catchment‘s areas .

4 Procure goods directly from factories andfarmers in case of lifestyle and food/beveragesrespectively.

Poor positioning and zoning of malls.

5 Bouquet of value propositions like value fortime, value for quality, value for experience,value for money.

Shortage of qualified human personnel inthe area of facility management, creativefirms, and design houses.

6 High quality shopping environment quality

assortment at variant shopping format.

Lack of differentiated offerings i.e. same

mix of shopping, foods and films.

Sl.No.

OPPORTUNITIES THREATS

1 Tier II and Tier III cities are still untapped. Non availability of adequate finance.2 Growing urbanization and increase in

purchasing power of consumers.Undeveloped supply chain.

3 Outsourcing from other developed retailmarket.

Vigorous competition from unorganizedretailers Keeping up brand loyalty.

4 Progressive growth of apparitional consumerclass.

Disturbance in income strata of consumersgreatly influence malls growth.

5 Believing more in spending than savings, asmost of the population is youth (with medianage 24 and 35 percent of population below 14years).

Threat from online players, (even thoughinternet penetration is low in India.



1. Problem StatementThe new retail/mall culture in India is growing at a phenomenal pace. While shopping malls have beenextensively researched, most of these studies have been conducted in the U.S, Europe and Asia-Pacificregions Minimal research has examined store-choice criteria, shopping motivations, or patronageintentions for grocery stores for Indian consumers; no research has addressed their intentions to patronizemalls. This paucity in the consumer behavior literature is attributed to the fact that shopping malls are anewer concept in India, as opposed to other regions of the world. The lack of existing research aboutIndian consumers’ mall -patronage intentions and antecedents —consumers’ motivations, attitudes, andsubjective norms —supports the need for this study.

PurposeThis research examines Indian consumers in relation to cultural-self, shopping motivations, and mall-patronage intentions. With India identified as one of the most attractive destinations for retaildevelopment, it is surprising that such minimal research exists regarding consumer shopping behavior inIndia. Thus, it is vital to understand consumers’ mall -patronage intentions and their antecedents, includingmotivations and attitudes, in India.

ObjectiveTo know-

1. The purpose of shopping in malls2. The frequency of the visits to the malls3. Expenditure pattern in a single visit4. Seeking recommendations from the consumers’ part for further up gradations in the mall services



MethodologyFor the research study we targeted a focus group of college students. From the focus group study, data

were collected via mailing questionnaire. Data from the filed-up questionnaires have been initiallyassessed putting them through the pie-chart model. Since the focus group we studied upon was between

the age group of 18-26, the responses were pretty contemporary. The number of respondents participatedin the survey were approximately 30.

The methods we adopted in this survey were Descriptive Research method and Exploratory Researchmethod where from we could gather the information on a descriptive and understandable level. We couldfind the sentiments, attitude and motivational facto rs that influence the consumers’ going for shopping in

a mall.

Analysis & Findings

Gender

Male 16 59%

Female 11 41%

Age( in years)

15-20 0 0%

21-2924

89%30-39 0 0%

40-49 1 4%



50 and above 0 0%

Local Area of Residence

gurgaon

sector 53 gurgaon

nashikChandigarh

bhiwani,haryana

Panipat

Derawal nagar

East delhi

geetanjali enclave

Guragaon

iilm insitute

Vadodaragujarat

Gurgaon

Ghaziabad

iilm hostel

Coimbatore

Monthly Income Level

Below 10,000 15 56%10,000- 25,000 5 19%

25,000-50,000 3 11%

50,000 and above 4 15%

1) Where do you normally shop at most?



Retail outlets 4 15%

Departmental stores 2 7%

Malls 21 78%

Others 0 0%

2) Do you like doing shopping at mall?

Yes 25 93%

No 1 4%

3) How you as a consumer feel about the concept of Mall Culture?(rate on thescale of 5 as most acceptable)

1 3 11%

2 0 0%



3 4 15%

4 11 41%

5 9 33%

4) How often do you shop at a mall?

Once a week 4 15%

Once a fortnight 5 19%

Once a month 10 37%

Once in 2-3 months 7 26%

Once in 6 months 1 4%

5) What do you usually go to a Mall for? (Tick more if you like)

To Shop 15 56%

Food and Entertainment (like movies, eating etc.) 18 67%

To hang out 14 52%

To window- shop 9 33%

Other Reason 2 7%

6) What product categories do you/ would you purchase at a Mall? (Tick more ifyou like)

Apparels 23 85%

Cosmetics 6 22%

Footwear 19 70%

Accessories 14 52%

Electronics 10 37%

Food & Groceries 13 48%



Music 5 19%

Books and Magazines 5 19%

Medical and Health Products 0 0%

Household Items 8 30%

Others 4 15%

7) On an average how much do you spend at each visit to a mall?

Less than Rs 500 1 4%

Between Rs 500- Rs 1000 5 19%

Rs 1000- Rs 2000 11 41%

Rs 2000- Rs 5000 7 26%

Rs 5000 and above 3 11%

8) Do promotions attract you to shop at Malls?

Yes 21 78%

No 6 22%

9) Would you go to a mall if it would charge an entry-fee?



Yes 11 41%

No 16 59%

10) What are the services that you would like to avail of in a mall? (Tick more ifyou like)

Baby Sitter and Wheelchairs 1 4%

Locker Rooms 15 56%

ATM 22 81%

Information Desk and PCO Facility 8 30%

Porter (one who carries luggage and related objects) 5 19%

Parking facility 18 67%

Any other 2 7%

11) Would you recommend people to shop at malls? (Yes or No with a reason)

no..they are crowded

Yes because of offers

YES

yes due to different brands

yes,availability of collection

yes as it is all under one single roof

no because they charge more than other

yes,it has a wide range of varities

yes you get most of the brands under one roof.

yes

Yes because its easy to access all kinda of brand in malls rather than going to single single outlet

yes because there u can get lots of stuff at one place

Yes because you can find everything in the same place

yes. its a nice place to shop for

clothes

YES

yes because you have many other things to do instead of shopping...



Yes upto some extend

Yes

Yes, because we get many product under one roof

12) Any recommendations for the Malls in any concern?

noCleanliness is a concern

Nothing

No

Water stalls at every corner of mall

improving the hygiene factor

sitting areas must be increased

ban children for certain hours

No, thanks !!

Number of daily responses

Limitations The present study was conducted in Delhi NCR region; however data was extended to various other region

of India to get better results and dimensions from different prospective.

The respondents unwillingness towards the research was problem for conducting this study.

The market is dynamic in nature so the results from this study are only being utilised for short span of time.

The data collected for some demographic parameters is only of last few years. This limited the research asthe analysis would have being in more detail if the data was available for more years.



RecommendationsWe would like to conclude our project, by giving the following recommendations.

Recommendations to Mall Managers:

• Most people visit malls on monthly basis or even from time gaps ranging between 2-6 months. It may even

be beyond than that in some cases. So in order to attract people to malls on regular basis, malls should

organise promotions and events regularly say on weekly basis. They can also come up with frequent offers

for the customers that would attract people to come at malls.



• Most of the people like shopping at a mall because of reasons like variety offered, ambience, convenience,

quality and the decent crowds at malls. Thus, mall managers should ensure that their mall looks into each of

these factors effectively. Whereas there are a few people who do not like shopping at a mall since they feel

that the malls are either too expensive, or are located at far away places or they are too crowded. In order to

induce such people to visit malls, mall managers should do proper location analysis. They should ensure that

their mall is centrally located so that it can attract most of its target audience. As far as the affordabilityfactor is concerned, they should try and inform the people that their mall does not only have expensive

outlets but also other outlets that would cater to their budgets. They may also come up with schemes, offers

and discounts that would be beneficial to the customers.

• Since majority of the respondents go to the mall for retail followed by people who go for food and

entertainment, a mall manager has to ensure that he gives more importance to retail than to food &

entertainment. Though around 10-20% has to be occupied by food and entertainment since they serve as

add-ons but the malls managers should not forget the importance of retail in a mall. Thus, around 70-75%

space should be allocated to retail.

• Most of the people purchase apparels at malls, followed by people who purchase footwear and accessories.

The mall manger has to ensure that besides apparel outlets, there are enough outlets for footwear and

accessories too so that the customer has enough variety to choose from. Moreover, product categories like

cosmetics; books; food and groceries; music; electronics; toys should not be ignored since people do visit

malls for purchase of such product categories too.

• Since not many people are willing to spend a huge amount at malls, mall managers should induce people to

spend more by offering discounts, by providing them with attractive offers like free items on purchases etc.

• Since a majority of the people said that promotions do attract them to shop at malls, all the malls should

definitely undertake promotional activities from time to time.

• Malls should not charge an entry-fee since a majority of the people would not visit malls if it would do so.

• More than a majority of the people said that they would like a mall to provide them with a printed mall map;

an information desk and adequate parking facility. Thus, mall managers should definitely provide these

facilities. Moreover, other facilities like babysitter; wheelchair; PCO’s can also be provided by the mall

managers to attract people.

CB Report on Mall Culture-Anubhav Mishra

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