Changing Organized Retail Sector

Under Supervision of:Mr. Manish Seth(AGM, DLF Limited)

Presented By:Zaki Ahmed Khisal11-MBA-69

Company Profile

• DLF Limited or DLF (Delhi Land and Finance) is the India's biggest real estate developer based in New Delhi, India.

• DLF Limited, is India's largest real estate company in terms of revenues, earnings ,market capitalization and developable area. It has a 66-year track record of sustained growth, customer satisfaction and innovation.

• DLF Business:

Houses Retails

Offices Golf Course

Overview

• This study was conducted on behalf of DLF Ltd. for the upcoming mall “The Mall of India” which is going to be launched on July 2013 in Sector 18, Noida.

• The purpose of the research was to study the past, present and future of the organized retail.

• The process consisted building a questionnaire and surveying 5 Malls in West Delhi and Gurgaon, in which the responses were collected via personal interactions and interviews.

• Then the responses were critically analyzed to study the organized retail in present scenario and the satisfaction level of tenants regarding various factors.

Objectives

• Retail Survey in organized Retail sector/Shopping Malls.

• Business Buying Behavior of retail outlets in shopping malls.

• Importance of food & entertainment in retail mix • Satisfaction level of the tenants in the existing malls • Brand mix in categories • Footfall analysis • Sales per sq ft • Area of outlets

Research Design

• Research Methodology: Survey in the Shopping Malls through structured Questionnaire

• Universe: Organized retail sector in Delhi, NCR is the universe of the study.

• Sample Unit: Retail Outlet• Sample Size: 200• Sampling Procedure: Stratified Sampling• Data Collection Tool:

– Primary Data – Questionnaire– Secondary Data – Internet

• Data Collection Methodology: Structured Questionnaire, Personal Interview and Observation

Malls Surveyed

Malls surveyed for Retail mix analysis:

• Pacific Mall, Tagore Garden

• Moments, Kirti Nagar• Sahara Mall, Gurgaon• MGF Metropolitan

Gurgaon• Ambience Mall, Gurgaon

Other malls visited for observation…

Select City Walk, Saket The Great India Place,

Noida MGF City Square Rajouri

Garden TDI Mall, Rajouri Garden DT City Center, Gurgaon

Outcome and Result

Pacific Mall

• With over 130 national and international brands to choose from, Pacific is the new landmark of India's shopping capital.

Retail Overview - Pacific

RetailerAverage Footfall (Week days)

Average Footfall (Weekends)

Area of the outlet (sq ft)

Average

Sales/day

(Rupees)

Average

Sales/sq ft

(Rupees)

Next 400 650 12,000 4,00,000 33.33

Nokia 70 150 800 45,000 56.25

Peter England

55 120 1,30040,000 30.77

Catwalk 35 60 1,000 50,000 50

Woodland 20-25 45 – 50 2,000 40,000 20

Denizen from Levi's

50 – 60 120 1,20045,000 37.5

World Of Titan

25 60 1,00010,000 10

Timing Footfalls

Weekdays 20,000

Weekends 30,000

Retail Mix

30%

13%

7%4%4%5%

6%

3%

8%

21%

Retail Mix of Pacific Mall

ApparelsFood & BeverageJewelleryFoot WearKids Wear & ToysSports WearElectronics & CellphonesWatchesHealth & BeautyMiscellaneous

Category Number

Apparels 32

Jewellery 8

Food & Beverage 14

Foot Wear 4

Kids Wear & Toys 4

Sports Wear 5

Electronics & Cell

phones 6

Watches 3

Health & Beauty 9

Miscellaneous 22

Total 107

SWOT Analysis - PacificSTRENGTHS

Location: Well-connected both by public and private transport.

Security: Arms & Ammunition are not allowed.

Variety of Brands: Over 130 international and national brands to choose from.

Parking Space: The parking constitutes of basement and multi level car parking with a capacity of over 1600 vehicles.

Entertainment zone: Versus, 8 lane bowling alley along with diversified gaming equipments.

Availability of Party Space. Interior decoration according to seasons and

festivals.

WEAKNESS Lack behind in Mall Activities No Zoning of categories Skyrocketing prices of prime catchment’s

areas Poor positioning of mall Extraneous sitting space outside mall.

OPPORTUNITIES Mall activities Mall space utilisation for advertisement Promotions from Mall management for better

positioning in consumer’s mind. More spending power of consumers in

catchment area

THREATS No or less control over investors Select City Walk, in South Delhi Threat from online players Disturbance in income strata of consumers.

Moments

• A destination that fulfills all shopping , entertainment and eating out needs, the Mall spread across a sprawling 7,50,000 sq. feet.

Retail Overview - Moments

Timing Footfalls

Week days 15,000

Weekends 25,000

Retail Mix - Moments

Category Number

Apparels 7

Food & Beverage 8

Anchors 4

Foot Wear 4

Kids Wear & Toys 2

Sports Wear 2

Electronics 1

Miscellaneous 8

Total 36

19%

22%

11%11%

6%

6%

3%

22%

Retail Mix of Moments Mall

ApparelsFood & BeverageAnchorsFoot WearKids Wear & ToysSports WearElectronicsMiscellaneous

SWOT Analysis - Moments

STRENGTHS Location: Well-connected both by

public and private transport. More Mega Store: Biggest

Hypermarket of Delhi Parking Space: Multilevel parking

facilities for accommodating over 800 cars

Food Lounge: Del 15 Entertainment zone: Games & sports,

Haunted House

WEAKNESS No Centralized AC No Cinema No ATM Facility Small in Size Narrow product line No Mall Activities & Events Delayed Maintenance No Zoning of categories No or less control over investors Low footfall

OPPORTUNITIES New Multiplex Promotional Offers to attract customers Focus on the local community which is

the primary catchment. Expansion of the product range

THREATS Other Malls in the same region Changing fashion trends may shift

consumer interest in the product range.

Rajouri Garden Malls

USPs• Central Location in West Delhi• Well connected to other parts of the city through the metro which has

a station here• High spending power of consumers

Bottlenecks• Prominent high street specializing in apparels and jewellery• Malls have yet to establish their full presence in this market• Primary Catchment is not clearly defined

Ambience Mall

• The mall has more than 300 premium retail shops and specialty stores along with a large 50,000 sq ft food court.

• It has 76 escalators and elevators that make it easily accessible for the customers.

Retail Mix - Ambience

4%

44%

3%11%

5%

7%

8%

5%

5%4%

5%

Retail Mix of Ambience Mall

AnchorsApparelsSports WearFood & BeverageHome FurnishingEntertainment & ServicesFoot WearElectronics & CellphonesWatchesHealth & BeautyMiscellaneous

Category Number

Anchors 11

Apparels 107

Sports Wear 7

Food & Beverage 26

Home Furnishing &

Accessories 12

Entertainment & Services 16

Foot Wear 19

Electronics & Cellphones 12

Watches 12

Health & Beauty 10

Miscellaneous 13

Total 245

SWOT Analysis - Ambience

STRENGTHS Variety of Brands: Over 300 national and

international brands to choose from. 100 % leased 50,000 Sqft food court Availability of Party Space. Interior decoration according to seasons

and festivals. Parking facility with three basement levels, the

mall also has more than 2500 car parking spaces.

7-screen PVR Cinemas multiplex and in 2009 Leela Kempinski made its opening

WEAKNESS Location: No Metro connectivity Skyrocketing prices of prime catchment’s

areas Extraneous sitting space outside mall.

OPPORTUNITIES Mall activities Mall space utilisation for advertisement Upcoming Metro line More spending power of consumers in

catchment area

THREATS Select City Walk, in South Delhi Threat from online players Disturbance in income strata of consumers.

MGF Metropolitan

• The MGF Metropolitan Mall is spaciously built in over 3,50,000 sq.ft of prime area in the heart of Gurgaon.

Retail Overview – MGF Metropolitan

Retailer

Average

Footfall

(Week days)

Average

Footfall

(Weekends)

Area of the

outlet

(In sq ft)

Average

Sales /day

Average

Sales/ Sq ft

Reebok 75 – 80 170 – 180 1850 50,000 27.02

UCB 200 300 – 350 2000 35,000 17.5

Levi’s 165 - 180 400 – 450 1500 25,000 16.67

Marks & Spencer 100 – 110 160 - 200 1650 30,000 18.18

Carlton London 50 – 60 130 2000 50,000 25.00

Nike 50 – 60 100 2200 50,000 22.73

Shopper’s Stop 5000 8000 14000 1,50,000 10.71

Walk in M&B 50 – 60 150 – 200 1700 30,000 17.64

Week Days Weekends

MGF Metropolitan

30,000 50,000-55,000

Retail Mix- MGF Metropolitan

36%

23%

10%

4%

4%

2%2%2%

17%

Retail Mix of MGF Metropolitan

ApparelsFood & BeverageFootwearJewellerySports WearBeauty & Skin CareGiftsWatchesMiscellaneous

Category Number

Apparels 48

Food & Beverage 31

Footwear 13

Jewellery 6

Sports Wear 5

Beauty & Skin Care 3

Gifts 3

Watches 3

Miscellaneous 23

Total 136

SWOT Analysis- MGF Metropolitan

STRENGTHS Location: Well-connected both by

public and private transport. Shoppers Stop Parking Space: Multilevel parking

facilities for accommodating over 1000 cars

Food court and joints as well as a 7-

screen multiplex

WEAKNESS Less Mall Activities & Events Delayed Maintenance No Zoning of categories No or less control over investors Low footfall

OPPORTUNITIES Expansion of the product range Promotional Offers to attract

customers Focus on the local community which is

the primary catchment.

THREATS Other Malls in the same region Changing fashion trends may shift

consumer interest in the product range.

Sahara Mall

• The Sahara Mall was launched in March 2001 and has an built-up area of 3.94 lakh sq ft. It was envisioned as India’s first brand super mall.

• It has Big Bazaar as its anchor store which focuses on profits through volumes and discounts.

• The layout of the mall is unconventional and as such the visibility of some outlets as well as flow of customers suffers to some extent.

Retail Overview – Sahara Mall

Retailer

Average

Footfall

(Weekdays)

Average

Footfall

(Weekends)

Area of the

outlet

(In sq ft)

Average

Sales/day

(In Rupees)

Average

Sales/sq ft

(In Rupees)

Punjabi

Tadka50 – 55 80 – 90 1500 13,500 9

Liberty 100 200 – 220 2500 32,500 13

Big Bazaar 6000 10000 56000 10,00,000 17.85

Pantaloons 600 2000 32000 5,00,000 15.62

Week days Weekends

Sahara Mall 17680 24520

Retail Mix – Sahara Mall

25%

25%

9%

9%

4%

4%

4%

3%1%

17%

Retail Mix at Sahara Mall

ApparelFood & BeverageFootwearJewelleryBeauty & Skin CareGiftsHome Décor & AppliancesATMsMulti-ProductMiscellaneous

Category Number

Apparel 19

Food & Beverage 19

Footwear 7

Jewellery 7

Beauty & Skin Care 3

Gifts 3

Home Décor &

Appliances 3

ATMs 2

Multi-Product 1

Miscellaneous 13

Total 77

SWOT Analysis – Sahara Mall

STRENGTHS Location: Well-connected both

by public and private transport. Big Bazar: Biggest Strength of

this mall Food Lounge: Del 15 PVR Cinemas

WEAKNESS Small in Size Parking Space: Less parking

space Narrow product line No Mall Activities & Events Delayed Maintenance No Zoning of categories No or less control over investors Low footfall

OPPORTUNITIES New Multiplex Promotional Offers to attract

customers Focus on the local community

which is the primary catchment. Expansion of the product range

THREATS Ambience Mall, Gurgaon Other Malls in the same region Changing fashion trends may

shift consumer interest in the product range.

Gurgaon Malls

USPs• High Concentration• Size• Mall Culture• Established retail destinations

Bottlenecks New Malls in Delhi Saturation Point Low Conversion Rates Brand Mix Parking Problem Infrastructural Constraints

“Importance of food and entertainment in retail.”

92%

8%

Is Food and Entertainment Important in retail mix?

YesNo

Sample Size: 200

H0: Food and Entertainment is Important in retail mixH1: Food and Entertainment is not important in retail mix

There is a significant role of Food and Entertainment in retail mix.

Tenants Research

This result is based on the feedback provided by the tenants and the factors included are:

• Promotional activities. • Services and facilities. • Relation with management. • Traffic counts on the stores. • Response and follow up on the compliant.

Promotional activity

Services & Facilities

Relatoinship with

mnagement

Traffic counts Response & follow up

0

10

20

30

40

50

60Satisfaction Level of Tenants

Satisfaction Level of Tenants

MAJOR FACTORS

TEN

ANTS

Additional comments by tenants

• Organize events and introduce promotional activities.

• Improve security services.• Introduce more ladies brands.• Meeting with Management must be at least once

in a month. • Maintenance charges are too high in respect to

Facilities are low. • Events should not take place on Saturday &

Sunday.• Rents of shop should be low.

Malls are flop because of..

1 • BAD LOCATION

2 • BAD ARCHTECTURE

3 •NO MULTIPLEX

4 •POORLY DESIGNED FOOD COURT

5 •BAD SHOPPING MIX

6 •SCALE PROBLEM

7 •ANCHOR TENANT

Conclusion

• Ample opportunities are present as 94% of the Indian retail is still unorganized.

• Making the biggest malls with top class retailers is not the key to success

• A cool and refreshing environment is required which makes the shoppers to forget all worries of the day

• It should be the USP of the malls as the window shopper of today is the prospective customer of tomorrow.

• Malls- with a bouquet of value propositions like value for time, value for quality, value for experience, value for money is boosting India in becoming a SHINING STAR of GLOBAL RETAIL.

Recommendations

• Mall Of India must come with Proper Zoning• Put an end to the dictatorship of investors.• Retailer area should be given more attention.• Make promotional tools.• Position Mall itself as a BRAND• Proper Food & Entertainment in retail mix• Provide complete security solution to tenants• Define customer catchment appropriately.

References

Websites:• WWW.WIKIPEDIA.COM• www.joneslanglasalle.co.in• http://www.gurgaonshoppingmalls.com/mgf-metropolitan-mall-gurgaon.php

Research papers and Case Studies:• Cushman & Wakefield Research• Swar, B.N. (2008), ―Challenges and Opportunities of Organised Retailing in India‖, Journal

of IMS Group, pp 53-60.• CII . Kearney, A.T. (2006), Retail in India . Getting Organized to Drive Growth, CII, New

Delhi.

Books:• Roy, K. (2008), ―Retail Malls in India: Ready to get a makeover‖, Marketing Mastermind,

pp. 22-25.• Anand, T. (2008), ―Organised retailing in India: Need of the hour‖, Marketing

Mastermind, pp. 28-30.• Call of the Mall, Paco Underhill• Why We Buy, Paco Underhill

Questions