IRF 2018: The Rebirth of Retail Malls
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.”
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.