Its raining malls in Bangalore, isn't it? 25 operational malls, 15 under construction, another handful planned.
If you thought the city has enough of these, think again. Bangalore continues to be one of the most sought after markets for mall developers.
"The mall segment here is crowded. But not relevantly crowded. There is a dearth of quality malls," says Vishal Mirchandani, CEO-retail & commercial, Brigade Enterprises.
Anand Sundaram, CEO, Pioneer Property Zone, says the issue is not lack of demand from customers, "it is rather the lack of supply of good malls on the supply front."
Consider this. There may be 3 malls in your vicinity. But it is mostly one particular mall that you tend to frequent with your family, and spend as good as half a day. The other two are simply for convenience sake -- maybe a quick meal at the QSR, or for a quick bargain at one of the outlets.
So what is it that defines a "quality" mall?
"Design is the chief constituent of a quality mall," says Aditya Sikri, CEO, propcare mall management and commercial leasing, adding that apart from the design element, "a mall needs to have a lifestyle centre. It needs to have a grocery, dry-cleaner, recharge shop, entertainment, funzone, activities for kids. Basically everything a family visiting the mall would require," says Sikri.
Most existing malls in Bangalore lack the basic design element, feel experts.
"Malls need to be easy to navigate for consumers. From any point a consumer needs to get a 360 degree view of the brands and outlets present in the mall," says Mirchandani.
Secondly, the mall infrastructure, apart from providing a swanky ambience, should be able to withstand the load of cars, especially during weekends and public holidays.
The third key element contributing to the success of malls is the "feel-good" factor for customers. Industry veterans say apart from regular discounts and offers, customer centric activities go a long way in building and retaining customer loyalty. For example summer camps for kids, painting exhibitions, events like super mom, Earth Day, etc that not just bring out the best amongst visiting customers, but also facilitate close interactions between customers and the mall staff are crucial determinants of success.
"How many malls are really doing all this today," asks a CEO of a leading mall in the city. This CEO goes on to explain that most malls in Bangalore neither have a suitable design element, nor sufficient car parking facilities, nor any customer centric activities. "And neither do they have a good mix of brands. Malls should ideally have a tenant mix that is positioned as affordable luxury. Which means outlets like supermarkets and departmental stores, luxury brands, premium brands."
Mall experts point out that despite the number of malls, there still exists potential to construct "relevant malls." Specially in areas like North Bangalore, Kanakapura Road, Whitefield, Mysore Road.
Orion Mall has plans of opening up two more in Bangalore. "Our second one called Orion East will be located in Banaswadi. We are looking at a third one in the city," says Mirchandani.
Likewise, Mantri plans to come up with two more large format malls in the city, one in South Bangalore, and one in South Central, says Sikri.
Experts also state that it is a myth to think that malls cannot co-exist within a few kilometre radius. "In the US, malls are successful despite being located within a kilometre space. The fact is one has to be smart in their functioning and positioning," says Sundaram. For instance, if there are two malls located within a kilometre radius, then they can differentiate themselves in terms of positioning.
"There is no harm in one focussing on fashion and one on entertainment and FMCG," he says.
Ecommerce a threat to Malls?
According to market analysts, IAMAI (internet and Mobile Association of India) ecommerce industry last year clocked a 33% growth to reach Rs 63,967 crore. Retail experts feel that ecommerce and brick and mortar retail will grow simultaneously. Mirchandani feels that though the internet challenge is there, it helps malls to constantly keep reinvesting themselves. "Shopping in India is a recreation. It is seen as an important pass time during weekends," says Mirchandani.
Top 10 malls in Bangalore
Orion mall
Garuda Rockline Mall
Esteem Mall
Mantri Mall
1MG Mall
Garuda Mall
Forum
UB City
Market CIty
In Orbit
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}