Efficient Support Services Ensure Malls' Success

Support services have become a major part in a mall’s image, and play a vital role in attracting footfalls. In India, facilities such as parking, security and housekeeping have evolved over the years to provide world-class services to mall customers. 

Pankaj Renjhen

In fact, it can be said that support services are the backbone for any shopping mall. Moreover, with the growing popularity of e-tailing, a superlative experience and provision of outstanding facilities in malls have become even more important to give customers are reason to visit, shop and use malls as social destinations that go beyond just plain shopping.

The expectations and aspirations of the consumers have increased over the years. The differentiating factors for the shopping malls today have become offer of integrated value-added services and facilities. The ambit of key support services has also expanded to include more facilities and services. Services which were considered value-adds few years back are now basic requirements which any mall should provide.

These services include valet parking, pharmacies, clothes alteration and shoe repair, car wash, first aid, travel desks, rent-a-stroller facilities, baby feeding and changing rooms, privileged parking for women, wheelchair ramps and various forms of assistance for the differently-abled, digital mall directories, currency exchange, cab service on call, and concierge desks, among others.

India Vs. Global Standards

Almost all the Grade A malls in India provide excellent support services and facilities for their visitors. Nevertheless, despite the massive progress seen so far in Indian malls, we have still to see the arrival of genuinely international standards. In international malls, a variety of other support services such as lockers on rent, print and copy centres, tour buses, Metro ticket machines, coupon books, pet stations, prayer rooms, post boxes and security escort are provided to visitors. 

Some of these aspects are obviously dictated by the culture of a nation, while others have more to do with what other infrastructure and social facilities are available in a city.

For instance, The Dubai Mall offers superlative services and facilities to its visitors. It is a mall of truly international standards that caters especially to tourists from around the world. From personal shopping experience to tour buses and mobile charging stations to Metro ticket machines, it provides a genuinely bracing and superlatively convenient experience to shoppers and the tourists alike.

Not surprisingly, it is one of the most visited shopping and leisure destinations in the world, attracting over 92 million visitors in 2015 alone. It is also home to one of the world's largest aquariums and aquatic zoos, and other attractions that make it immensely popular.

The Role of Mall Management

Professional mall management is a critical component for the smooth functioning of a shopping mall, and we are seeing increasing adoption of such services by the mall developers. As the Indian retail real estate sector moves towards for greater sophistication and maturity, the demand for increasingly advanced and efficient mall management service providers will see a quantum forward leap.

In today’s dynamic market, it has now become imperative not only to manage shopping malls well but also keep the operational cost competitive for optimal net returns. Professional mall management ensures that all operational aspects of the shopping mall are taken care of in an integrated manner.

Support services are required in every region and each city as they attract the consumers to the mall, and mall management has become an integral factor that decides how successful a mall is. Today, consumers need a reason to come to malls over and above shopping. They expect a high quality of services, comfort and hassle-free shopping. 

An efficient customer interfacing strategy adds to the image of the mall and leads to repeated visits. Likewise, a clean and attractive ambiance, good infrastructure, efficient and sufficient parking facilities and frequent organization of events extends the stay of the consumers in the mall.

By Pankaj Renjhen, 

Managing Director - 

Retail Services, JLL India

E-commerce Boom May Spell a Doom for Malls in India

In the wake of unprecedented surge in e-commerce, shopping malls already under huge pressure due to large vacant spaces are expected to see a sharp decline in the footfalls, could be to the extent of 55.58 per cent, during the ongoing festive season this year, reveals an ASSOCHAM recent survey.

According to the survey, Delhi-NCR has recorded the highest decline in footfalls at city malls. As per the study, about 120-150 malls were launched in the past two years but close to 65-70% of the spaces in many of the malls still remain empty. Several malls, unable to attract the shops are even shutting down.

The major factors attributed to this situation are economic slowdown, online shopping, high interest rate and inflation of consumer good items, the steep drop in shoppers have hit the malls which are already suffering from large vacant spaces, said ASSOCHAM paper.

ASSOCHAM Research team interacted with about 720 leasing managers, representatives of malls’ management, strategist, marketers and supervisors in Delhi-NCR, Mumbai, Ahemdabad, Chennai, Kolkata, Hyderabad, Bangalore, Chandigarh and Dehradun. 

In the nine major cities, more than 59 percent of the total mall space remains vacant, with Delhi-NCR top the list with 68.5 percent, followed by Mumbai at 65 percent, Ahmedabad at 61 percent and Chennai at 60 percent. According to the survey, several developers have already started giving rent-free period of up to six months for big brands to lure retailers.

While some malls are operating at 40 percent occupancy, others struggle with less than 20 percent, mainly due to poor location, poor design and poor parking facilities, the survey found.

Both retailers and consultants seem convinced that the mall magic seems to have disappeared in a puff of smoke on the back of the economic slowdown, poor revenue model, low footfalls-to-sales conversion and lack of special purpose malls, adds the survey.

For some malls, even the design and construction quality is poor. The remaining malls lie somewhere in between good performing and bad performing malls– average performers, adds the survey.

A meager 8-10% of these shopping malls are running successfully in India and facing tough competition from online retailers such as Flipkart, Amazon, Jabong, Snapdeal, which hand-delivers goods to the front door for minimal cost.

The festival season this year has triggered a huge rise in online shopping and may cross the Rs. 55,000-crore mark, resulting in the halving of footfalls in malls in places like Delhi, Mumbai, Chennai, Ahmedabad etc. apex industry body ASSOCHAM.

The study reveals that there may be a five-fold increase in the revenue clocked in by the eCommerce websites in categories such as include mobile phones, electronics, designer furniture, home decorations, apparel, accessories, jewellery, footwear etc.

The most popular among the e-commerce websites - Snapdeal, Myntra, Flipkart, Amazon, Jabong etc have been doling out massive price cuts or discounts on purchase of popular brands of apparels, footwear, electronic goods, coinciding with the upcoming festive month.

The growing trend is being attributed to the fact that all reputed Indian and international brands have tied-up with these websites and are being offered to the consumers at a much lower price than their retail prices.