Shopping malls are not going anywhere
With the advent of e-commerce in India, shopping converged into mobile devices in the form of websites and apps, where one could buy everything, from groceries and apparel to electronics. For a while, it appeared that couch-potato shopping was a real threat to physical retail and shopping malls. That has not happened. In fact, shopping malls are witnessing a visible resurgence in India. A clear measure of this is that private equity (PE) players invested more than $700 million into Indian retail in Q1-Q3 2017 itself - around 90% of the investments that came in during the past two years (2015 and 2016).
Shopping malls in India have come a long way, from less than five malls in 2001-02 to more than 500 in 2017.
As it was, a few badly-conceived and executed malls did fail, showing that there is a need for developing multichannel retailing rather than relying on the traditional methods.
Considering that fundamental growth drivers of retail remain intact, global investors and shopping mall developers remain bullish. The notable indicators of a fairly bright future for Indian shopping malls include:
100% FDI in single-brand retail and marketing of food products, relaxation of sourcing norms for multi-brand retailers and the revised Model Shop and Establishment Act (that allows shops to remain open 24x7) are major growth drivers for the sector.
A significant portion of India’s population are now travelling for business or leisure and now have an exposure to various brands, having visited the fanciest malls across the globe.
HOLISTIC SHOPPING EXPERIENCE
Shopping is no longer restricted to the mere process of buying products - Indians are now looking at a holistic shopping experience where they can spend time with friends and family.