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The Detail of Retail!!

 

The Detail of Retail!!

 

 

Spending My Day with a Client this Wednesday…We hopped 12 Malls in Quick Succession…….And got some Learning’s. Thought of sharing with you…….Not that you would not know…..But Still listening from some one else helps us in believing a bit more in the same.

 

 

Revelations

pearlinoyster

 

  • Weekend is Good, But Weekday sales are not Bad either.

 

  • Some Kiosks (Counters in the aisle) make more money in the Mall, than your neighborhood’s best retailer.

 

  • Some Kiosks pay more rent than some of the Shops on Second Floor in the same mall.

 

  • After School….We used to go to Home, Have lunch and Rush for Tuition. Now you would find Teenagers in their School Dresses in Food Courts, Restaurants & Movies.

 

  • Few Years Back….When DLF Emporio (The Super Luxury Mall with Brands like LV, Cartier, Tarun Tahilani and Ilk) Opened, It was questioned. “Is it Required”.  Now, the mood is……One is not enough, We want more.

 

 

 

Future

futureahead

 

  • Customisation is the key or you would be thrown out. Ed Hardy….is Popular for it’s Skull Designed and embellished T-shirts …But in India……rarely people want to adorn that Rockstar look and moreover wearing Clothes with assumedly unholy/Scary Symbols is a taboo…..If not for the wearer, atleast for the parent. And hence I saw that it’s Select City Walk Mall Store and Ambience Mall, Vasant Kunj Store was closed too.

 

  • If as a retailer you think, you can buy routine Stuff from outside and sell it at a higher price inside a Mall….You couldn’t be more mistaken, The Customer is more intelligent than you are.

 

  • Birthday parties are happening in every Mall on every day, at every restaurant.

 

  • Return Gifts are getting Flashier and more innovative.

 

  • Everybody is evolving with a Premium Version of their Models. Yo China, now has a Yo China Café, PVR(Rs 325) now has a Directors Cut(Rs 950). Niche Market, But Highly Paying Market.

 

  • Kuch Chale na Chale……Food will Reign Supreme in India. On a Wednesday afternoon…..we could find most of the Food Courts full. I wonder what would have been the scenario a day before…..2nd October, which was a National holiday.

 

  • Routine is out, Innovation is In.

 

 

 

 

 

New Customers

findingthenewcustomer

 

  • 5 Years back….. Affluent Housewife were the Biggest Spenders….Today, her Teen daughter is fast catching up.

daughtermothershopping

 

  • Teen Guys as earlier are the same albeit in a different way…..They Spend on Gadgets, Girls, Games, Garments, Grooming in similar order. The 5G.

 

 

 

Entertainment

bowling

 

  • People are dying for entertainment. They want options. Sadly…We don’t have many. The only one we have in huge Supply is Movies. The Indian Customer is no longer interested in Amusement Park as it is in outdoors and hence is always open to the Extreme Heat, Rains and the Chilly Winters. Hence, people are shifting towards Indoor Sports……Such as Ice Skating, Bowling, Gaming Zones, Sports Bars. There is where the future lies 

 

Concerns

  • The only Stores we found Empty were the Book Stores. Now, if those Customers have shifted to Online Purchases or Online Versions…Then Good…Otherwise, it is not a Good Indicator. Apart from spending time on “”FaceBook””     We need to “”Face A Book”” Too

faceabook-thisweekendfaceabookafteryoufacebook

 

 

On the Whole…..We Indian Shoppers have started dictating Terms to the Retailers/Restaurants/Family Entertainment Centres/Cinemas and Malls. And they better Listen or Loose us.

 

Would be great if you would share your Observations and Views too on the same.

 

 All Images have been Sourced from Google.com

 

meslide 

 

 

 

Next Blog: All About M-All

 

 

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15 Comments

  1. Sir you rock…especially your observations…first the bull market prediction / observation and now with this. Just one point I would like to mention here…

    • After School….We used to go to Home, Have lunch and Rush for Tuition. Now you would find Teenagers in their School Dresses in Food Courts, Restaurants & Movies.

    I have personally seen this and I do not like it at all.. People have taken this as a fashion especially kids / students but I think its a mistake of their parents and not kids actually. They should not be allowed to do things the way they are doing. Yes entertainment is good but discipline is required (which I dont see these days). I have seen many school kids / college students spending as many as Rs. 500 avg daily on entertainment (food, movies, gadgets blah blah…) This has reduced importance of money  in their mind as they get it easily as and when they want from their parents which is not a good sign. And I feel that parents should keep control on the way their kids spends money and make them realize the importance of it.. Yes it might be a good sign for a retailer but not for the society in my opinion.

  2. Thank you for the feedback Gurpreet…. From an Indian that hasn’t been back in a few years, its definitely nice to get the inside scoop.

    The first line was what shocked me “We hopped 12 Malls in Quick Succession

    Didn’t realize there were so many malls in Delhi and that too in quick succession…. How much shopping do people need to do 🙂

    In regards to the Book Stores, I still enjoy physically turning the page of a book, magazine or newspaper….feel like I’ve accomplished something.  Reading it on the iPad/nook doesn’t quite give that satisfaction.  Notice the same in US, that you walk into the bookstore and everyone is crowded around the NOOK display…sucks I agree, but its a part of reality we have to deal with!

    Curious how much into name brands the shoppers are into…and whether they are willing to pay for knockoffs or are they buying the real thing?  When I go to Delhi, I truly enjoy the shopping experience at Janpat, and would not even consider going to big mall to purchase things.  Pretty much thrive on the art of negotiation, immersing myself with the local crowds but at the end of the day…. no matter how hard I try gonna stand out like a sore thumb!

    I like the idea of sports bars in Delhi, Are there alot of nice upper scale pool halls there – curious minds would like to know!

    Gurpreets 5G’s are classic and definitely memorable!  Appreciate it…
    Gadgets, Girls, Games, Garments, Grooming

    Best,

    Indy

  3. I remember my parents going to a kirane wala every week..now their kirane wala is Big Bazaar in a mall..things have really shaped up well for the retail in general…awesome write up !! really liked the comment 5G for guys…very true indeed 🙂

  4. Dhaval Bhai…… Thanks for appreciating the article. Indeed a movement has come in Stock markets and observations did work out….. but the BULL RUN COFFEE is yet to start. Ref:You can Sense the Aroma of Coffee when it is being Brewed……

    We are going through a very Big Cultural change…some for Good Some for Bad. The change in Kids Spending habits and the attitude of Parents towards them is a big concern…and this goona worsen and not improve.

    Even if a Parent tries to put a leash……The peer pressure forces them to loosen it….as they fear that by restricting their kid would get inferiority complex and may be that he may loosen the grip on this fast moving world. 

    I believe…it;s not by force but by letting them know the Value of Money…..that could put a break on this irrational spending.
    Every one has his ups and downs. And it’s quite comfortable to upgrade during good phases….But these very children may go crazy when they would have to downgrade their lifestyle due to parents problems or their own not so good running in the Job or Business Market.

  5. Dear Indy Bhai…… First of all…need to thank you for the wonderful Blog/Business opportunity you shared with Rodinhoods. The Power of a Premium .in Read it on the phone..and somehow missed replying to it.

    Firstly…You need to visit India Soon and I promise your chest would swell wider with pride.

    Secondly….. 12 is the ones that we visited…… The number in DELHI NCR(Delhi,Gurgaon, NOIDA,Ghaziabad, Faridabad) is not less than 50. And new ones being added every 6 months. Next one being DLF’s Mall of India. which is 2 million sq ft of Gross Leasable Area.

    There is no Dearth of Shoppers in India….and my study says that we have a market of 4 times the current size in 10  years. And I have not included the tier 3 cities…which Developers/Retailers would start exploring in next 3 years.

    I am a regular Book Reader…. and agree that the sense of satisfaction one gets reading from a book is unmatchable while reading it on Kindle or an iPad. But guess….Im still belong to old School of thought 🙁

    The trends are changing. A Brand is what people are looking forward to and not the actual stuff. Yes….been observing lately that eCommerce has gained an edge in selling reasonably priced good products.
    Otherwise too… all the Big Players like Lifestyle(Code), Shoppers Stop(Stop), Pantaloons(many Many) have launched their Private Labels and do manage to make good sales as  they sell at reasonable price (Own Product/No Advertising and Marketing Costs). But otherwise ..Now it’s a pure Brand Play in Metros as well as in Smaller Towns.

    Need to mention a Case. When i approached Vishal Mega Mart to open a store in a Small Town in Punjab…as it would fit their Pocket friendly Consumer profile. They Refused. He replied that in Punjab…if some one wears a Brand ONCE, then he does not climb down and only goes higher and higher.
    Sports Bars are becoming a Big thing…and that’s why I mentioned them in my Blog. Rather Underdoggs a Sports Bar in Ambience Mall in Vasant kunj has just opened a Bigger One in Ambience Mall, Gurgaon. and it is touted to be Asia’s Biggest Sports Bar. So we are talking BIG. And they would have all…X Boxes, to Pool tables, to 20 more games.

    5G is what the Marketers need to note and this would become more relevant with each passing day.

    Thanks Again. And if there’s any query unanswered…Then please feel free to raise it again.

  6. Ashish…. that is it….. The Buying Preferences are changing. Also…..going to a Large Format Store like SPar, big Bazaar, More…ensures that you not only get you what you have remembered and listed but also the new products which you never knew existed. this also lets you experiment with different options and you realise that you were living in the past by buying the same stuff from your Kirana wala repeatedly for past many years. But would also like to add…that there is a growing market for  Kirana wala and Large Format Store Alike.  My everyone prosper!!
    Wether it’s due to 5G or anything else 🙂

  7. Absolutely Detailed!!

    Tikku Ji ni Waadi!!!
    Tikku Da Dhaaba!!
    Or the GurMart!

    Let’s wait for the 5G to come we would know what’s COOKING!!

    Who else to detail on the Property markets in such Detail than our very own Guru Ji, Fantastic!!

  8. Awesome post Gurpreet!! Keep up the good work.

    I have also noticed many new malls empty. If you go to those malls on Sohna Road, Gurgaon, then leave aside foot-fall, you will find that the shops are  not leased / vacant. What do you think is the reason for demand-supply mismatch in these malls? 

  9. Amazing Details.

    The one question that i am eager to put is ‘If retailers actually making profit’ ? Rents and Electricity are at peak in Tier 1 and Metro cities. Looking at the positive side of retail what we actually neglect is ‘Rent’ which is very high in India compared to other countries. How many retailers are actually making profit ? My research say’s hardly few. Also growth of E-retail is another challenge. Less crowd in book stores i will actually relate to growth of Flipkart. 

    However FDI in Retail will be a big boom to Indian retailers.

  10. Aditya…. This is a million Dollar Question. Thankfully…with some years in Retail……had been able to deipher the formula to an extent.

    Some Retailers do make Profit and Some don’t. 

    Those who make profit and those who don’t either shut down or keep bearing the losses in hope that either someday they would eb able to get the right mix, or just because they can pump in more money and stay afloat till some other bigger chain buys them to get inorganic growth.

    Indeed Rent has become the biggest Cost….But the retailers have adjusted to it by increasing the MRP of the product and launching some other brands with better positioning and higher margins to make up the gap.

    And yes, The Consumer is Willing to Pay!! As I mentioned in my log about niche Markets. They are picking very well and in some cases Laddo Sasta bech ke Kaju barfi mehngi bech rahe hai. And that’s where the money comes from.

    Today a Retail Chain is well aware that 40% of the stores that open will shut down due to some reason. and hence maintain that average and are prepared for it from the start. Guess, we will see some more evolution in retail industry with each passing year….before a trend can be set for India.

    Yes, Book Retail is already hit and so is Music Retail. eCommerce would surely keep growing in all spheres, But it will not hit retail directly albeit is some sectors. This is because….. MARKET IS GETTING EXPANDED with each passing day.

  11. Thanks Abhishek  for reading and appreciating the work.

    There have been many malls in entire country (Even Abroad) that have no footfalls, vacant shops, negligible maintenance.

    In India, These are the malls that were announced in 2002-2005 when the market was really surging and the huge potential in retail and Malls was visible to all.

    In the flurry to catch on the wave, many small developers, EVEN Big Ones, announced projects and started working on them. And by the time they were ready in 2008/09…..The market had some negative sentiments floating due to Global Weakening.

    So, they died before they were born.

    Now, The factors. In today and for many years, if the mall has to succeed, it has to have the following:–

    • 1 Large Format Store                                      Shoopers Stop, lifestyle, Pantaloons
    • 1 Hyper Market                                                                Big bazaar, Spar, Le Marche, More, Easyday
    • 1 Cinema Operator                                         PVR, DT Cinemas, Inox, CInemax, Waves
    • Food Court                                                         Like in Pacific, Delhi, In Orbit and Infinity Mumbai, South Point in Kolkota.
    • 1 Family Entertainment centre                  FunCity, Versus, Jammin,Hangout
    • Vanilla Stores                                                    Allen Solly, Liliput, Titan Watches, Metro Shoes, Levis’s,  Denizen, Wills Lifestyle, Archies, Samsung Store,  
    • Total Area                                                           Atleast 1 Million sq ft in Metros

    Since You have asked particularly about Sohna Road….. here is Mall by mall detail of why each of them is not doing well.

     Raheja Mall                       No Cinema, Less than 3 lac Sq ft., No Food Court, No Large Format Store

    ILD Centre                           Basically an office Complex, with 2 floors dedicated to Retail. Offlate Bikaner Wala, Donimo’s KFC and Vaango have opened their outlets here and a three fold rise in footfalls is reported.

    Omaxe Celebration Mall              Slated to be a Wedding Mall…. However didn’t work that way.  Just has a Cinema and 1 Banquet. Hard Times Ahead.

    Omaxe Mall                                       Just has SRS Cinema and some Saloons and nothing else to Sustain itself              

    Omaxe City Centre Mall               Only Mall which inspires some hope as recently they have an Easy Day, Mc Donalds and a Haldiram’s opened in their premises. Still The Mall Size, The Aisle Width, Shop Sizes, Visitor Flow pattern is flawed…So not TOO much hope.

    Also, I would like to mention that Shoppers Stop had opened in 60,000 Sq ft space in SpazeiTech park and now Big Bazaar would be opening next month in a 40000 sq ft area in Spaze Edge.  This road would be one of the Prime Areas of Gurgaon in next 6 months. Sadly…..Not enough Good Retail Properties.

     

    Abhishek , I hope justice has been done to your query J

  12. Man!!! I am truly impressed by your insights…. 

    And I totally vouch for your insights. As my office is also in a mall in Vaishali, Ghaziabad, I have witnessed that Vishal Megamart, Movie Hall, and food court – these three have more footfall than all the other showrooms combined …. thanks again 🙂

  13. Darshan Bhai…… I Don’t know ki what this means….

    Tikku Ji ni Waadi!!!
    Tikku Da Dhaaba!!”

    ….But I hope jo bola….Accha hi bola hoga…… Thanks :-))))

  14. Thanks Rahul Dev!!

  15. Thanks Neil Jee for your feedback.

    I do agree with your feedback that half of the retail ventures close down within 1-3 years. But one cannot blame the Indian Retail Trade for it. Most of the Times it is the Business model which is wrong or the expectations of these brands are so high,…which not met early makes them bleed and eventually close down.

    Reliance played wrong from day one with formats like Reliance Jewels, Reliance Wellness, Reliance Super, Reliance Fresh, Reliance Digital, Reliance Timeout.

    Reliance Wellness Died before it’s first Cry and Reliance Jewels is struggling to stay open.

    As mentioned in my blog…..That Books and Music are the biggest sufferers of the eCommerce era. Already Odessey has gone down and so will Reliance time out.

    So, I think solely blaming the Retail is not right….it’s the business Model and the vision which is wrong of these retailers.

    Most of them…created huge Store Numbers , just to sell it to a Foreign Partner at a Huge premium…which eventually has shown some signs only now.

    I believe that still it’s not the right time to open the Bubbly……may be time to keep in the refrigerator.

    eCommerce will not really  harm offline Retail in a big way as mostly it is creating a market of it’s own and also taking a pie of the growing market.

    The End Mantra is……Perform or Perish. If The retailer thinks that the Customers are Fools and you can sell them anything, then very soon…..these very customers will laugh at you when you down the shutters.

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