|Malls in Patna; A Vision|
At the outset, malls were thought to be the drivers of growth for the retail and entertainment sector in
In metro cities, shopping malls have received a good response comparatively. On the other hand, Tier II and Tier III cities like
Analysts say 80 percent of
• Selling mall space – Most malls that have been successful are the ones managed and maintained by the developers/owners. For instance, Oberoi Mall and Phoenix Mall in Mumbai have been successful models as they lease the space to brands and end up having the right blend of products and food joints for the customer. On the other hand, owners who sell the space, in parts to individuals further lease it ahead to any bidder offering them a high price. Therefore Mall developers in
• Catering to selected people – Some shopping malls don’t want to be everything to all people. A select target group will do leaving out the others to flock back to the age old kirana stores and nearby shopping complexes. In Patna "NICHE" shopping malls based on themes like wedding, jewellery etc. need to come up, rather than general shopping malls.
• Bad entry or Exit – Any location with poor infrastructure at the entry or surrounding area of the mall dissuades customers from visiting it. Just try to remember the horror of exiting the P&M mall in Patna from its parking.
• Disappointing growth in Tier II and III cities -The industrial development or progress on economic front is still around Tier I or metro cities,. The industry was expecting shift of wealth to Tier II and Tier III cities like
• Demand-supply mismatch – The future demand in the retail space was not anticipated correctly due to lack of proper planning and study. People with capital in hands and huge parcels of land started constructing malls in the hope that the booming economy will produce huge demand, but that did not happen in proportion to the supply provided.
So, now what can be the appropriate solution for Malls in
Few steps which can help make the malls a success in
• Rentals on revenue-share models
• Bringing logistics cost down
• Improving and investing in back-end supply chain infrastructure
• FDI in retail
• Keeping rentals low to beat the slowdown
• Business models based on leasing only
• Shifting industrial and service industry to Tier II and Tier III cities like Patna.
The future of malls can definitely improve if these solutions become effective. The business model of giving preference to high rentals will not work as malls are not just another piece of real estate but demands organized planning, brand selection and maintenance on the part of the owner/developers in