IRF 2018: The Re­birth of Re­tail Malls

Shopping Center News - - EVENT REPORT - – By Shop­ping Cen­tre News Bu­reau

Re­tail malls are con­tin­u­ously in­no­vat­ing and evolv­ing with the vary­ing de­mo­graph­ics and so­cio-eco­nomic com­pos­ite of con­sumers and the pace of change is clearly vis­i­ble from what con­sti­tuted the mall space in the pre­vi­ous decades to what is cur­rently ex­ist­ing...

ANAROCK re­leased a re­tail re­port ti­tled ‘Re­birth of Re­tail Malls: New, Im­proved and Re­vi­tal­ized’ at the In­dia Re­tail Fo­rum (IRF) 2018 on Septem­ber 5 & 6, 2018 at Ho­tel Re­nais­sance in Mum­bai. The re­port high­lighted the co­ex­is­tence of both e-com­merce and brick-and-mor­tar stores on par­al­lel grounds, giv­ing an edge to e-com­merce re­tail though in Tier II & III cities. The re­port stated that phys­i­cal re­tail needs to un­dergo con­tin­u­ous and cre­ative changes to main­tain its growth pace.

“Nearly 100 mil­lion peo­ple out of In­dia’s 300-400 mil­lion-strong mid­dle class cur­rently live in Tier II &III cities. This in­di­cates that a sig­nif­i­cant por­tion of In­dian re­tail­ers’ tar­get clien­tele lives in the non-metro cities. In cities such as Jaipur and Su­rat, house­hold in­comes are ex­pected to cross `800 bil­lion and 26 other cities will cross `400 bil­lion by 2020. Con­sid­er­ing the ris­ing pur­chas­ing power and the con­sump­tion pat­tern in these cities, the slow de­ploy­ment of phys­i­cal or­gan­ised re­tail there is wor­ri­some,” said Anuj Ke­jri­wal, MD & CEO – ANAROCK Re­tail.

Re­tail malls are con­tin­u­ously in­no­vat­ing and evolv­ing with the vary­ing de­mo­graph­ics and so­cio-eco­nomic com­pos­ite of con­sumers. The pace of change is clearly vis­i­ble from what con­sti­tuted the mall space in the pre­vi­ous decades to what is cur­rently ex­ist­ing. Malls in the past were just shop­ping hubs with a clus­ter of few branded stores cou­pled with few restau­rants and cafes tucked into one cor­ner of the mall, but now, they have turned into places where shop­ping is more than a mere trans­ac­tion, it is ac­com­pa­nied by ap­peal­ing shop­ping en­vi­ron­ment with aug­mented cus­tomer ex­pe­ri­ence. To boost foot­falls in malls, re­tail­ers are rein­vent­ing the ex­pe­ri­en­tial side of shop­ping by in­te­grat­ing the mer­chan­dis­ing with mo­bile-friendly mar­ket­ing con­cepts. Thus, malls are not mere shop­ping desti­na­tions any­more. To­day’s top-per­form­ing malls are mixed-use busi­nesses that in­cor­po­rate so­cial en­ter­tain­ment op­tions, pro­vide unique ap­peal along with cer­tain depth in shop­ping ex­pe­ri­ence and lie in prime desti­na­tions that are eas­ily ac­ces­si­ble by both pub­lic and pri­vate trans­port. Ad­di­tion­ally, the abil­ity to an­tic­i­pate the chang­ing con­sumer needs and adapt ac­cord­ingly makes malls suc­cess­ful to­day. Some of the most in­no­va­tive ex­ist­ing mall devel­op­ments world-wide of­fer over-the-top fea­tures such as in­door ski-hills, wa­ter parks, theme parks, science cen­tres, zoos, and shoot­ing ranges among oth­ers.

The re­port warned that the lack of phys­i­cal out­lets is al­low­ing e-com­merce to flour­ish in these towns and cities. This main com­peti­tor to phys­i­cal re­tail is grow­ing rapidly and is ex­pected to cross US$ 100 bil­lion of value by 2020. The ma­jor share of on­line shop­pers in In­dia in­cludes Mil­len­ni­als (Gen Y) aged 18-35 who cur­rently ac­count for 34 per­cent of the pop­u­la­tion. The high pur­chas­ing power of this on­line shop­ping pop­u­la­tion is in­suf­fi­ciently tapped in these cities due to the lack of good qual­ity phys­i­cal re­tail spa­ces. The re­port em­pha­sizes on the fact that re­tail­ers have sev­eral ad­van­tages in Tier II & III cities over Tier I coun­ter­parts: Lo­ca­tion charges 30-40 per­cent lower than in met­ros. Rental val­ues in the range of `40-80/ sq.ft. in prime lo­ca­tions as against `150 -250/sq.ft. in equiv­a­lent metro lo­ca­tions. Op­er­at­ing costs 30-50 per­cent lower than in met­ros. While re­tail sales den­sity in smaller cities will be lower than in met­ros, adop­tion of in­no­va­tive mod­els and di­verse prod­uct mixes as­sures re­tail­ers not only of sur­vival in Tier II & III cities but also of steady growth. On a larger scale, the re­port con­firms that the Great In­dian Mall Story is alive and grow­ing rapidly. As much as 91 per­cent of re­tail sales in the coun­try are driven by brick-and mor­tar stores in In­dia.

Phy­gi­tal Re­tail in Malls DLF Shop­ping malls the coun­try’s big­gest and largest phys­i­cal mar­ket place also an­nounced the launch of In­dia’s ͤrst ever re­tail Phy­gi­tal ap­pli­ca­tion ‘Luk­out’ at the event. With the launch of Luk­out, DLF Shop­ping Malls will en­ter a new realm of digi­ti­sa­tion, thereby strengthen its foothold in new cut­ting-edge tech­nolo­gies and re­tail so­lu­tions. This will em­power DLF’s vi­sion to re-en­gi­neer the very deͤ­ni­tion of ‘New Re­tail’ ex­pe­ri­ence, di­min­ish­ing the bound­aries be­tween on­line and off­line re­tail world. The Luk­out app is a one-stop-so­lu­tion that of­fers highly per­son­alised prox­im­ity based en­gag­ing con­tent in terms of lat­est looks, lat­est trends, real time lo­ca­tion based of­fers while pro­vid­ing con­ve­niences like one touch park­ing pay­ment, one touch valet, one touch concierge along with hav­ing its own so­cial net­work for mil­lions of con­sumers.

For Re­tail­ers, the app pro­vides a disruptive plat­form to en­able chan­nel-based con­sumer tar­get­ing and fur­ther al­low brands to host their vir­tual stores fronts on Luk­out to en­hance dis­cov­er­abil­ity & de­vice prox­im­ity cam­paigns to tar­get con­sumers via big-data pow­ered an­a­lyt­ics dash­boards.

Pushpa Bec­tor, EVP and

Head, DLF Shop­ping Malls said, “At DLF Shop­ping Malls we are con­stantly in­no­vat­ing to meet and ex­ceed the ex­pec­ta­tions of the evolved con­sumer. We have pi­o­neered and em­barked upon our ‘New Re­tail’ jour­ney based on the premise of our Phy­gi­tal strat­egy, spear­headed by our en­deav­ors of col­lab­o­rat­ing with strate­gic part­ners. This ini­tia­tive will be in­stru­men­tal in cre­at­ing new bench­marks for In­dian re­tail in­dus­try while of­fer­ing un­prece­dented ex­pe­ri­ence for our con­sumers.”

“We are tar­get­ing one mil­lion down­loads for the app in the ͤrst year, which will pos­i­tively im­pact our foot­falls and sales. In the next three years, we hope to dig­i­tally ac­quire 3.8 mil­lion con­sumers on the Luk­out app,” added Bec­tor.

The two-day event also wit­nessed a one-on-one ses­sion with Kishore Biyani, Founder and Chief Ex­ec­u­tive Of­fi­cer, Fu­ture

Group, the doyen of mod­ern In­dian re­tail who an­nounced, ‘Fu­ture Group set­ting a tar­get to be a tril­lion dol­lar com­pany by 2047 driven by tech­nol­ogy that would cap­ture con­sumer be­hav­ior and data.’

“Tech­nol­ogy re­duces space, time and in­creases cus­tomer in­ter­ac­tion. Since we now know the buy­ing be­hav­ior of the con­sumer, our fac­to­ries will plan their pro­duc­tion based on the data. Fu­ture Group is cur­rently open­ing two small stores a day, which will in­crease it to three small stores a day and then to ͤve small stores a day by next year. This will help us un­der­stand the as­sort­ment that we should keep and the pro­duc­tion that should be un­der­taken,” Biyani said.

Stat­ing that re­tail was Fu­ture Group’s re­li­gion, con­sumer the God and stores the tem­ple, Biyani said, “In­dia is a het­ero­ge­neous mar­ket and un­less you get your hands dirty, you will never un­der­stand it. As part of en­gag­ing the cus­tomers, the group would also ex­plore movies,” he said.

Com­ment­ing on the re­tail po­ten­tial in the coun­try, Biyani, said that as In­dia’s over­all econ­omy rises to $5 tril­lion by 2030, it will trig­ger the con­sump­tion econ­omy to $2 tril­lion and the per capita con­sump­tion of $2,000 will be a turn­ing point.

Can­didly ad­mit­ting about be­ing ig­no­rant in their early days and also to be­ing lucky in get­ting away with it, Biyani said, “I want to build into the big­gest con­sumer busi­ness that the coun­try has ever seen in less than 10 years with our own dis­tri­bu­tion.”

IRF 2018

In­dia Re­tail Fo­rum (IRF) 2018, pre­sented by MAPIC and pow­ered by Fu­ture Group, the premier knowl­edge and net­work­ing plat­form for In­dia’s re­tail in­dus­try, cel­e­brated its 15th edi­tion on Septem­ber 5&6, 2018 at Ho­tel Re­nais­sance, Mum­bai. IRF has evolved over the last 15 years into In­dia’s most ro­bust and in­flu­en­tial plat­form for Re­tail busi­ness, with the ar­dent sup­port of the in­dus­try. Suresh Prabhu, Hon’ble Union Min­is­ter of Com­merce & In­dus­try and Civil Avi­a­tion, Gov­ern­ment of In­dia was the chief guest for the event. In­dia Re­tail Fo­rum is the top choice of the who’s who of the re­tail in­dus­try.

Key de­ci­sion mak­ers and ex­hibitors rep­re­sent­ing In­dian and in­ter­na­tional brands were in­stru­men­tal in mak­ing IRF 2018, a grand suc­cess. The event was or­gan­ised by REED Ex­hi­bi­tions.

This year, IRF in­tro­duced three par­al­lel con­fer­ence tracks viz Re­tail Roulette (Trends –Strat­egy-Brand Build­ing Prof­itabil­ity-Ex­pan­sion ), Re­tail Real Es­tate Track pow­ered by ANAROCK (The foot­fall Game) and The Tech Leap (In­dia Om­nichan­nel Fo­rumRe­tail Han­gar Tech­nol­ogy/ Om­nichan­nel/ Dig­i­tal).

RE­TAIL MALLS ARE CON­TIN­U­OUSLY IN­NO­VAT­ING AND EVOLV­ING WITH THE VARY­ING DE­MO­GRAPH­ICS AND SO­CIO-ECO­NOMIC COM­POS­ITE OF CON­SUMERS. THE PACE OF CHANGE IS CLEARLY VIS­I­BLE FROM WHAT CON­STI­TUTED THE MALL SPACE IN THE PRE­VI­OUS DECADES TO WHAT IS CUR­RENTLY EX­IST­ING.

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