Call of the mall

CALL OF THE MALL Meaning of Mall 2. A large, often enclosed shopping complex containing various stores, businesses, and restaurants usually accessible by common passageways. 4. A street lined with shops and closed to vehicles. 3. A shady public walk or promenade. South China Mall Location: Dongguan, China Year Opened: 2005 Gross Leasable Area: 7. 1 million square feet Golden Resources Shopping Mall Beijing, China Year Opened: 2004 Gross Leasable Area: 6 million square feet SM Mall of Asia Location: Pasay City, Philippines Year Opened: 2006 Gross Leasable Area: 4. 2 million square fee West Edmonton Mall Location: Edmonton, Alberta, Canada Year Opened: 1981 Gross Leasable Area: 3. 8 million square fee King of Prussia Mall Location: Philadelphia, Pennsylvania, USA Year Opened: 1962 Gross Leasable Area: 2. 8 million square feet Berjaya Times Square Location: Kuala Lumpur, Malaysia Year Opened: 2005 Gross Leasable Area: 3. 4 million square feet Mall ManagementA Growing Phenomenon in Indian Retail Industry Executive Summary §The Indian retail market is expected to continue its growth trajectory into 2010. §Mall management has been identified as a critical factor for the success of malls and the retail industry across the world. §Mall management broadly includes mall positioning, zoning, tenant mix, promotions/ marketing and facility/finance management. §Currently, the Indian retail market lacks designated mall management firms. Large real estate developers and retail chains either have their own mall management arms operating as subsidiaries or have contractual agreements with international property consultants. Cont… §Till recently, mall management was limited to facility management by a majority of developers in India, leading to gaps in mall management practices. §Given the high future supply of malls and increasing competitiveness within What is Mall Management? §Globally, mall management broadly includes: positioning a mall §zoning — formulating the right tenant mix and its §placement in a mall §promotions and marketing §facility management — infrastructure, traffic and ambience management The Single Purpose of Retail Property Development = Value Creation! To Start the Value Creation Process you need 3 things: 1 A Good Location 3 A Good Location 4 A Good Positioning a Mall Positioning a mall refers to defining the category of services offered based on demographics, psychographics, income levels, competition in neighboring areas and extensive market research of the catchment. For example, if the market research indicates that the average number of households living in a particular area belongs to the upper middle class, An example of this practice can be seen in the upcoming malls Select City Walk in Saket DLF’s Emporio in Vasant Kunj. Positioning also refers to the location of the shopping mall. A good location defined in terms of factors like ease of access via roads, good visibility, etc. is considered as one of the prime prerequisites for a mall. Although other activities such as trade/tenant mix can be revisited or redefined, the location remains fixed, making it an imperative Zoning — Formulating the Right Tenant Mix and Its Placement in a Mall Tenant mix refers to the combination of retail shops occupying space in a mall. A right tenant mix would form an assemblage that produces optimum sales, rents, service to the community and financiability of the shopping mall venture. Zoning refers to the division of mall FORUM MALL Forum Mall The Forum Mall is designed in a ‘ dog bone’ fashion, an anchor tenant at each end and vanilla retailers in the middle. Landmark and Westside are the anchor tenants of this mall, and the food court is positioned on the top floor to attract consumers vertically up. Forum Mall was built in 2003 and was the first mall in Bangalore City. Since then, six new malls have been constructed in the city and yet the Forum Mall continues Promotions and Marketing Promotional activities and events in a mall form an integral part of mall management. Activities like food festivals, handicraft exhibitions and celebrity visits increase foot traffic and in turn sales volumes. Organizing cultural events has time and again proved vital in attracting consumers to a mall. Such activities may also act as a differentiator for a mall. Developers can work on drafting marketing strategies for individual malls to meet the needs of the local consumer base and the challenges of local, and in ANSAL PLAZA Promotion and Marketing at Ansal Plaza Regular promotional activities at Ansal Plaza, including cultural events have ensured a steady foot traffic in the mall since its inception in 1999. The mall also has an amphitheatre dedicated to these promotional activities. This has been one of the driving factors behind the success of the mall, despite having a less optimal mall design and tenant mix compared with some recent Facility Management Facility management refers to the integration of people, place, process and technology in a building. 5Vanilla retailers refer to single-brand shops. It also means optimal utilization of resources to meet organizational needs. It broadly includes infrastructure, ambience and traffic management. Infrastructure Management — Infrastructure management refers to the management of facilities provided to the tenants within the mall. This includes provision of adequate power supply, safety issues in case of emergency and miscellaneous issues related to signage, water supply, sanitation, etc. Make sure that every bit of the mall has enough Infrastructure Management Infrastructure management refers to the management of facilities provided to the tenants within the mall. This includes provision of adequate power supply, safety issues in case of emergency and miscellaneous issues related to signage, water supply, sanitation, etc. Infrastructure management also includes risk management issues such as essential safety measure asset liability and Traffic Management Traffic management includes managing foot traffic into the mall and parking facilities. Foot traffic management involves crowd management inside the operational area of a mall. The flow of people is related to the design of the mall and the spatial A shopping mall underground parking Ambience Management The overall shopping experience provided for consumers becomes an important factor for the success of any mall. Ambience management includes management of parks, fountains and overall look of the mall. “ In favorable, lush green landscaping with seating facilities and the presence of food and beverage inside or outside the mall can increase foot INORBIT MALL Mumbai is an example of a successful mall led by good facility management Inorbit Mall in Mumbai by K Raheja Corp is a good example of facility management in a mall. It has two anchor stores placed at the two corners of the mall. There are three entry points, one each from the two anchor stores and another entry directly to the mall atrium. With three entry points, traffic management within the mall is better organized. CONT… The mall also provides ample parking space and superior infrastructure management. The Inorbit Mall commands higher rental values of INR 175 per sq ft per month compared with other malls in the north-western suburbs of Mumbai with average rental values of INR 135 per sq ft per month in 4Q06, indicating it’s success story. The low vacancy rates at Inorbit Mall Finance Management Professional financial management of a mall as a business venture is a must. Mall management also covers financial management, which involves monitoring and controlling of various issues such as: §cash receipts and collection of income including rentals, service charges, car park receipts, electricity and other utility income §developing accounting systems to track the ageing of debts, payment delay patterns, bad debts Indian Scenario for Mall Management The partial foreign direct investment (FDI) relaxation in 2006 allowed 51% ownership in joint ventures by single-brand companies in the retail market. This triggered high international single brand retailer interest in the Indian retail market. Additionally, large Indian conglomerates such as Reliance Industries and Aditya Birla Group are commencing their foray into retailing across CONT… Currently, there are very few designated mall management companies in India. However, big retail chains such as Future Group and some large developers have set up their own mall management divisions that operate as their subsidiary companies. Some developers such as DLF have also recently entered into contractual arrangements with In India, retail is an emerging market having immense potential in terms of opportunities. FINALLY. . Questions ??? THANK YOU!! PPresented By: Preeti & savneet