Mr. Shubhranshu
Pani, JLL India
With the liberalisation of
the FDI policy, evolving consumer preferences and entry of global retail brands
in India, mall developers are busy adapting their retail developments to the
changing requirements and trends. Indeed, one of the most imperative transformations
is the increasing focus on planning and optimisation of retail spaces so as to
extract their highest potential.
Due to growing income
levels and the inexorable rise of Gen Y, Indian consumers have become more
discerning than never before. To meet the demands of this trend, mall
developers are now using a structured approach for developments by doing their
research to understand consumer requirements right from the planning stage of
their malls. In this way, they are able to optimise their mall layouts and
designs, incorporating critical conveniences and features.
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| Shubhranshu Pani, JLL India |
Evolution As An Imperative..
Indian mall developers
have understood the importance of offering the right combination of retail
categories, entertainment and F&B. Therefore, we are now seeing the
creative utilisation of unused mall spaces and even parking space to
incorporate newer retail categories to attract consumers and drive additional
revenue.
Intelligent and superior
mall design is a vital element for healthy circulation and providing good
frontage and accessibility to all stores. Today, the priority is to enhance the
per-square-foot productivity of the mall while simultaneously providing value
to consumers. In order to increase the all-important ‘dwell time’ of shoppers,
vacant spaces are now being reinvented into seating arrangements, kiosks,
vending machines, ATMs, interactive information points and activities for
children.
India’s increasing
integration into the Global Village has ushered in a whole new slew of
international brands. This, coupled with increased FDI inflows, has
necessitated the optimization of space utilisation in malls so as to
acclimatize them to international standards, store formats and norms.
Developers of existing
mall developments must continually assess existing mall spaces with a view to
making them more compatible with the requirements of international brands in
terms of sizes and formats. Also, it is important for malls focused on superior
performance to accommodate the upcoming global brands regardless of space
availability.
Change and adaptation is
the mantra for success today, be in terms of optimising space, design oriented
changes, advertising and promotion, casual leasing or implementation of softer
features such as change in the location of stores.
On-ground Improvements..
In the existing mall
developments in the country, the major steps being taken to improve space
utilization and maximise returns are:
· Elimination
of alleys or narrow passages that
some malls with inherently poor design produced. By merging such non-performing
spaces with existing stores, better circulation is generated and secondary
spines that create dead spaces are eliminated.
· Providing
frontage and good accessibility to
almost all stores in the mall, either by merging stores or by interchanging the
categories within them.
· Relocating
stores and right-sizing
stores of existing brands: Changing the positioning of anchor
stores to improve circulation or reducing the size of existing brands to bring
in first-time brands.
· Introducing
novel categories and brands in spaces that were not
utilised properly earlier, thereby generating footfalls in those micro-areas.
· Utilising
parking space and other ancillary spaces for
advertisements, publicity and promotional events.
· Enhancing
advertising opportunities and thereby driving
additional income through floor graphics, standees, plasma screens and similar
media
· Casual
Leasing..
Leasing of kiosks, vacant space or carts to
children’s play area, tattoo stations, foot spas, etc.
India being a fast-paced market, developers
are now designing their malls in a manner that allows a certain degree of
flexibility and dynamism. In this way, they can introduce newer attractions
from time to time. Mall developers now regularly track the performance of brands
in terms of sales per square foot so as to assess whether the brands are
utilising their space optimally. It has been evident in the industry that many
brands are reducing their store sizes in order to maximise per square foot
productivity.
The Impact Of Online Retail..
The rapidly evolving phenomenon of online
retailing has had very perceptible ramifications on physical offline retailing.
Due to increasing online shopping, it has become imperative for shopping mall
developments to attract consumers by offering a superlative experience and
conveniences. Introduction of newer concepts and retail formats positively
impacts the footfalls for a shopping mall.
Today, customers are using multiple channel
and information sources to make their desired purchases. They will continue to
use the most convenient channel. There are regional differences in the adoption
of technology; however, mobile commerce and social media commerce are game
changers. Mobile commerce is a powerful tool in the hands of consumer that
allows them to match prices and even purchase online while being in the store.
Likewise, social media platforms such as Facebook and Twitter are increasingly
influencing consumer decisions.
The message herein is that that the future
has to be geared to provide more than retailing to the customer. Consumers
expect retail venues to be the destination in their own right, with interesting
ambience, the latest brands and a host of activities of leisure, F&B and
social activities other than shopping. These will be the key differentiators
for malls going forward.
If I were to identify three key points on
how retail spaces will need to evolve, they would be.
1. Landlords must become
flexible in the design of the space, layout, materials, etc. and make their
retail spaces more vibrant by proving more leisure activity
2. Stores must evolve to
enable the consumer to use in-store technology to access a seamless online and
offline shopping experience. Newer technology like holograms, virtual
interactivity, socially networked shopping, 3Dexperience, etc. must find their
way into stores.
3. Providing experience
retailing will be the need of the hour, and landlords must go the extra mile to
bring a unique experience and emotional connect with customers and society at
large. If a mall is to be a place for physical visits, it has to create a firm
social connection via interactive means that compel consumer to physically be a
part of the process.
Further, the marketplace needs
amplification in availability quality mall spaces. Brands do not prefer malls
with sub-optimal design and low footfalls. In this respect, there is a need to
optimise spaces in non-performing shopping malls by reengineering them in terms
of design and tenant mix.
The importance of connectivity has also
taken on a whole new context and meaning. While the retail industry has always
been aware of the need for adequate connectivity and parking, the increasing
inconvenience of overall urban commuting has itself become a red signal. Public
transport will now become a key driver, and malls that are accessible by public
transport will have an edge over other shopping centres.
Retail Asset Management and a structured
research play an important role in improving space utilisation in a shopping
mall. Resetting retail spaces according to the requirement of various
stakeholders is a vital and never-ending requirement that calls for both
structural and operational modifications on a constant basis.
About the
author.
Mr. Shubhranshu
Pani is Regional Director (Retail Services) at JLL India
For
media contact
Arun
Chitnis
Head
– Corporate Communications & Media Relations
JLL
India
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6, Amar Avinash Corporate Plaza
Bund Garden Road,
Pune 411001.
Tel: (020) 30930441 Fax: (020) 40196101
Mob: +91 9657129999
Bund Garden Road,
Pune 411001.
Tel: (020) 30930441 Fax: (020) 40196101
Mob: +91 9657129999
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