Factors responsible for success of malls in India
Location
The location of the mall is of foremost importance as it is directly related to the catchment of the mall. Catchment refers to the type of customers and their purchasing power. Therefore, better location implies better catchment.
Catchment further helps in filtering the brands that would perform in that location. Overall, identifying the right location with respect to the target audience and their spending habits are the precursors to the success of the mall.
Innovative Design
India has surpassed the nascent stage of retailing. Now, the customers not only look for quality brands and adequate facilities and services under one roof but also wish to experience state-of-the-art design and architecture. Therefore, a mall should be architecturally uniform, well-designed and developed for commercial use, and well-integrated with different types and sizes of stores to tailor the needs of the given catchment area.
Strong Catchment
Catchment analysis is utmost essential in the success of a retail hub. It not only helps in identifying the potential customer base in any geographical area but also aids in deciding an ideal location. However, catchment analysis for a mall is subject to various geo-demographic factors such as occupation, native language, the educational standard which aids in understanding customer preferences, buying potential, purchase intentions and the likelihood of buying the group of products.
On the whole, catchment study provides an idea about the number of customers anticipated to visit the store and the product that would witness demand.
Appropriate Tenant Mix
An appropriate tenant mix and the location of the mall play a crucial role in determining the success of the mall. Therefore, which brands to rope in requires adequate research of market trends and catchment’s behavior. By definition, tenant mix is the combination of heterogeneous and homogeneous retail agglomerations that embolden better relationship between customers and retail activities.
Parking
Shopping centres’ earn their significant share of turnover from parking. Thus, the size of their parking area has a direct bearing on the store-types and sales.
A shopping centre should provide sufficient parking space to lure customers. Lack of parking on holidays or weekends, particularly for car owners may turn off customers and drive them to competitors. Besides comfort, ample parking space ensures and reduces traffic improving the overall brand image of the mall.
Conclusively, the right strategy and adequate market research are essential for the success of a mall in India.
With huge diversity, the above factors should be thoroughly evaluated to ensure higher Return on Investment.