MALL MANAGEMENT

1. MALL MANAGEMENT GROUP MEMBERS : AshutoshAnand (01) SandeepBansal (04) Soumyadeep (05) Taru Gupta (15) Honey (28) Vatsal Parikh (30)

2. What is a MALL? • Mall is one of the basic configurations of the term “shopping centre”. It is the most common design mode for regional and super-regional centres which is often referred to as a ‘shopping mall’. • typically enclosed, climate-controlled and lighted, flanked on one or both sides by storefronts and entrances. • On-site parking, usually provided around the perimeter of the centre, may be surface or structured.

3. TYPES OF MALLS • Regional malls • Outlet malls • Seamless mall. Ex: CENTRAL • Vertical mall: Ex. TIMES SQUARE in Hong Kong. • Strip malls • Speciality malls. Ex. Ishanya mall, Eva Mall. • Discount malls

4. Speciality malls. Ishanya mall, Pune Vertical mall: TIMES SQUARE,Hong Kong

5. Discount malls • Brand Factory

6. In orbit Mall ,Malad

7. Luxury MallAtria Mall,Worli

8. Mall space availability • From the setting up of India’s first mall in 1999, there has been a steady migration of retail from the traditional to the organized format, the trend being more pronounced in the urban areas. • The total mall space across seven cities (NCR, Mumbai, Bangalore, Kolkatta, Hyderabad, Pune and Chennai) was spread over 40 million Sq.ft. in 2006- 2007. • Mall space is projected to increase to over 60 million Sq.ft. in 2007-2008.

9. Mall space availability • The number of malls in Delhi, Mumbai, Hyderabad and Punemay touch 250 by 2010. • The total number of malls is projected to increase to 600 by 2010-2011.

10. Aspects In Mall Management • Accessibility :The site should be easily accessible by automobile and within walking distance of some potential users • Visibility: A highly visible site along a major street with easy accessibility is ideal • Demographic Patterns: The mall should be located in an area which consists of the population that forms a large percentage of the target population • Site Capacity:The site should be large enough to provide a sufficient covered area, or the actual shopping area • Competition : The location of the mall should be such that it should neither face extreme competition, • Legal Matters: The chosen location must also satisfy legal considerations regarding fire regulations, licenses to operate, the area that can be built upon, etc.

11. Aspects in Mall Management Cont. • Utilities Availability.: To avoid extra costs, the presence of electrical, water, gas, sewer, and other services should be in place now • Tie-Breaker Criteria. factors: • Any acquisition costs. • Demolition costs of any existing facilities on the site. • Relocation costs of any existing business or residents currently on the site. • Any unusual site development costs that may occur, such as from a site with underground utilities and/or water. • The cost of providing sufficient utility service to the site. • Transportation : The location must also consider the availability of transportation facilities, especially public transport, to allow the customers to reach it easily.

12. Mall Developer/Management MALL MANAGEMENT- Consider Shopping malls as “Retail” Business. • Tenants • Anchor Tenant • Anchor Tenant • Specialty Retailers • Specialty Retailers • Multiplex • Multiplex • Food Court • Food Court • Entertainment • Entertainment Primary Consumer • End Consumers • Demographic Segmentation • Demographic Segmentation • Physiographic Segmentation • Physiographic Segmentation Secondary Consumer

13. STRATEGIC METHOD OF MALL MANAGEMENT

14. Planning of mall : meticulous Competition Scanning Retail Market Assessment Catchment Profiling Location / Site Analysis Planning Concept Development Financial Feasibility Planning & Design Let market forces determine the size, concept, positioning and tenant mix in the mall Implementation Leasing & Operations

15. Differentiate your mall • Like any other consumer facing business, clear positioning and differentiated value proposition is critical for success of a mall and its tenants • Various ways to differentiate: • Right Sizing • Positioning - Luxury, Premium, Mass, Discount etc. • Themes • Structure - Enclosed, Open or Hybrid • Tenants - unique / new / local successful formats - diversity

16. Bring Professional Mall Management • Hygiene Factors: • Public facilities such as bank ATMs, travel desks, foreign exchange counters and other such services • Cleanliness of restrooms • Security • However the role of mall management could be much more than maintenance: • Marketing & Promotion of the mall in collaboration with tenants • Monitoring tenants’ performance and bringing in new tenants by replacing poor performing ones • Provide business support to smaller tenants – recruitment, training & benchmarking services

17. Mall Pricing to move “more” towards Revenue Share Stage 1 REVENUE SHARE MODEL SALE MODEL Stage 3 • Shops sold to retailers/ investors • Short term investment • Lack of discipline, maintenance & control over trade and tenant mix, high vacancy rates • Base rent or %age of sales, whichever is higher • Business partnerships between retailer & developer • Incentive to build a better product • Result oriented events and promotions • Better equipped to face competition • Same risk profile but greatest returns Occupier Outflow : Monthly Minimum Guarantee Or a fixed % of sales, which ever is higher LEASE/ LICENSE MODEL • Revenue from Rents • Lesser Risks • Medium term investment (low-risk/medium returns) • Some Control over Mix & therefore the shopper • Some Ability/ Flexibility & Incentive to improve Stage 2 • Revenue share Model: • A common practice in developed markets • Few early adopters in India • As developers have more experience and learning on the business of their tenants, this practice would catch up

18. Innovative formats in Malls Specialty formats • Formats like ‘Wedding Malls’, which are unheard of in the far west are making their presence in the Indian market. These stores stock the complete range of wedding needs from apparel to jewellery. • Khadi & Village Industries Commission (KVIC) is set to roll out a string of swanky ‘Khadi Plazas’, which would showcase the handloom textiles in a new form. Over 7,000 existing outlets are to be beefed up to cater to the changing tastes of the young consumer. • A latest addition to the diverse formats are the ‘Village Malls’, with the fair price shops being revamped to cater to larger needs of the local populations. Gujarat Government has spearheaded this initiative with 512 “malls” launched and another 508 on the anvil.

19. Some other Trends…. • Malls as Marketing media: • The most important advantage being captive consumers with no distraction of traditional media while shopping at the mall • Malls as community centers: • An offering through creating a soul for the place and exploit the opportunity to accomplish several errands in one place • While people come to shop, they also come to gather at a place that offers greater meaning and experience • As more and more shopping malls start operating, the place will cease as a shopping place alone, rather would take on the role of a “third place” – a public gathering spot • This concept would be more relevant in smaller cities

20. FUTURE OF INDIAN MALLS • Virtual and 3D shopping malls • Theme based malls • Destination malls • Specialty Malls

21. CONCLUSION • To ensure that a mall attracts retailers and consumers, professional mall management is a necessity. The mall market is an extremely competitive one, having a high degree of internal and external competition, the latter being from established high-street locations across all cities. • To lure retailers and consumers to its mall, a developer has to ensure that their property follows the best practices in the market especially in terms of mall management.

22. Thank you