Modern Shopping Malls Case Study

The evolution of modern retail formats in India from the days of the primitive weekly markets or village fairs gradually changed the face of retailing from an entertainment orientation to a more conscious profession of delivering consistent quality shopping Experience. Retailing appeared in the Indian Horizon in the 70’s when shops like Raymonds, Nalli’s and Bata set up their exclusive stress and /or franchisees. The early 80’s witnessed the emergence of “Akbar ally’s” in Mumbai and “spencers” in Chennai. These stores later evolved into multi-chain outlets and were the first to establish the concept of organized retail in India. From the post Liberalization era of the 1990s,the modern formats started gaining mind share and market share from
With only 6% of the retail sector under the organized segment during2010 (sathyanarayanan, 2012), (Subiksha: The saga of the rise and fall of india’s Sam Indian Journal of Marketing42(4),16-23.)the country has potential for unprecedented growth and development in the organized retail category that is expected to grow at aCAGR of 23% over the next five years (Mullick, 2013).(source:The success of shopping malls lies of mall developers – Astudy,Indian Journal of Marketing,43(6),40-46).The forecasts are encouraging ,with an attractive annual expansion rate, which is well supported by 300 million middle-class population growing at rate of 2% annually(Singh&Bose,2011)( source: 2011,feb25,FACTBOX- Key facts on india’s retail sector,Ed(A.Aravindam),www.reuters.com2100/2/25.)..Over million affluent customers with more than Rs.215,000 households income in addition to a 75 million well off population earning betweenRs.45,000 to Rs.2,15,000 in India is giving tremendous impetus to the overall growth of the retail sector(Marketing White book,2006).(source:Marketing white book,New Delhi: Business world).According to the Indian economic survey 2010-11, the GDP growth rate pegged at 8.6% and Per capita income is growing at 17% are continually heartening investors to consider India has an attractive retail market(BIG Strategic Management Consultants,2012).(Source:consultants2012january,HighlightsofIndianretail
The largest form of organized retail today is shopping malls, which lend an ideal shopping experience with an amalgamation of product, Service, and entertainment, all under a common roof. There are 2100 shopping malls in India in 2013 and is expected to 1500 by 2015(ASSOCHAM) (Source: ASSOCHAM report(2012,October),”FDI in Retail – Advantage farmers”Pulished by food$AgriBusiness StrategicAdvisory & Research(FASAR) team- Yes Bank in Association with ASSOCHAM.)on the back of major retail developments even in II and III tier cities in India. Around 60% of existing malls are in the six big metro cities – Mumbai, Delhi, Chennai, and Kolkata, Bangalore, and Hyderabad. These tier I cities have strong infrasture, populations with higher disposable incomes, affluent urban youth population and for commercial development, and are the engine of India’s exploring economy. They represent only 6% of the population, but contribute 14% to India’s GDP. They are the centers of business, finance, politics, and the emerging industries such as pharmaceuticals, textiles and automotive that has put India on the global