Page 3 - Mall Management
P. 3
lity of life” is a buzzword with the Indian consumer today and the aspiration driven demand
for products and goods is on the rise. Even more striking is the shift in the Indian lifestyle, from
one that traditionally espoused austerity, moderation and a sense of responsibility to the family
to one of self-indulgence. Expenditure on non-food items is expected to rise in the near future
due to a rise in the per capita income. Globalization of the economy has exposed the Indian
consumer to a gamut of products and brands. A large number of Indians travel abroad on work
and experience the lifestyle, products and services available there. There has been an increase
in the disposable incomes with people. Average spending in india has increased to 11.5% and is
expected to increase at the rate of 8.5% p.a till 2015.The young and rich middle class is growing.
28%of India’s population lives in urban areas and this is estimated to be 40% of the total
population by 2020. (source: http://www.india-reports.com/Products).Till recently, mall
management was limited to facility management by a majority of developers in India, leading to
gaps in mall management practice. Given the high future supply of malls and increasing
competitiveness within the Indian retail market, developers have to correctly address these
gaps to ensure success.
2. Leading Gaps in Mall Management Practices in India -Empirical
2.1 Observation
There is concentration of malls in specific areas with nearly same brands available across all of
them. There are malls being developed in tier II and tier III cities, where the shoppers still have
not experienced the mall culture. India is experiencing a “mall explosion” with a few hundred
malls being developed simultaneously and due for completion around 2011. While it can be
assumed that the “hardware” for mall construction is available in India, there seems to be a
very grave shortage in the “software” of mall development, marketing and management
expertise. Here most of us learn mall management on-the-job. This is certainly not a very
satisfactory situation. A mall is an evolving phenomenon, it takes years of practical experience
before one can profess to have the requisite expertise in mall management to be able to keep
abreast of the needs and wants of shoppers and retailers.
for products and goods is on the rise. Even more striking is the shift in the Indian lifestyle, from
one that traditionally espoused austerity, moderation and a sense of responsibility to the family
to one of self-indulgence. Expenditure on non-food items is expected to rise in the near future
due to a rise in the per capita income. Globalization of the economy has exposed the Indian
consumer to a gamut of products and brands. A large number of Indians travel abroad on work
and experience the lifestyle, products and services available there. There has been an increase
in the disposable incomes with people. Average spending in india has increased to 11.5% and is
expected to increase at the rate of 8.5% p.a till 2015.The young and rich middle class is growing.
28%of India’s population lives in urban areas and this is estimated to be 40% of the total
population by 2020. (source: http://www.india-reports.com/Products).Till recently, mall
management was limited to facility management by a majority of developers in India, leading to
gaps in mall management practice. Given the high future supply of malls and increasing
competitiveness within the Indian retail market, developers have to correctly address these
gaps to ensure success.
2. Leading Gaps in Mall Management Practices in India -Empirical
2.1 Observation
There is concentration of malls in specific areas with nearly same brands available across all of
them. There are malls being developed in tier II and tier III cities, where the shoppers still have
not experienced the mall culture. India is experiencing a “mall explosion” with a few hundred
malls being developed simultaneously and due for completion around 2011. While it can be
assumed that the “hardware” for mall construction is available in India, there seems to be a
very grave shortage in the “software” of mall development, marketing and management
expertise. Here most of us learn mall management on-the-job. This is certainly not a very
satisfactory situation. A mall is an evolving phenomenon, it takes years of practical experience
before one can profess to have the requisite expertise in mall management to be able to keep
abreast of the needs and wants of shoppers and retailers.
