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DLF_Zaki Ahmed Khisal

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Changing Organized Retail Sector

Changing Organized Retail Sector

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    DLF_Zaki Ahmed Khisal DLF_Zaki Ahmed Khisal Presentation Transcript

    • Changing Organized Retail Sector Under Supervision of: Mr. Manish Seth (AGM, DLF Limited) Presented By: Zaki Ahmed Khisal 11-MBA-69
    • Company Profile • DLF Limited or DLF (Delhi Land and Finance) is the India's biggest real estate developer based in New Delhi, India. • DLF Limited, is India's largest real estate company in terms of revenues, earnings ,market capitalization and developable area. It has a 66-year track record of sustained growth, customer satisfaction and innovation. • DLF Business: HousesRetails Offices Golf Course
    • Overview • This study was conducted on behalf of DLF Ltd. for the upcoming mall “The Mall of India” which is going to be launched on July 2013 in Sector 18, Noida. • The purpose of the research was to study the past, present and future of the organized retail. • The process consisted building a questionnaire and surveying 5 Malls in West Delhi and Gurgaon, in which the responses were collected via personal interactions and interviews. • Then the responses were critically analyzed to study the organized retail in present scenario and the satisfaction level of tenants regarding various factors.
    • Objectives • Retail Survey in organized Retail sector/Shopping Malls. • Business Buying Behavior of retail outlets in shopping malls. • Importance of food & entertainment in retail mix • Satisfaction level of the tenants in the existing malls • Brand mix in categories • Footfall analysis • Sales per sq ft • Area of outlets
    • Research Design • Research Methodology: Survey in the Shopping Malls through structured Questionnaire • Universe: Organized retail sector in Delhi, NCR is the universe of the study. • Sample Unit: Retail Outlet • Sample Size: 200 • Sampling Procedure: Stratified Sampling • Data Collection Tool: – Primary Data – Questionnaire – Secondary Data – Internet • Data Collection Methodology: Structured Questionnaire, Personal Interview and Observation
    • Malls Surveyed Malls surveyed for Retail mix analysis: • Pacific Mall, Tagore Garden • Moments, Kirti Nagar • Sahara Mall, Gurgaon • MGF Metropolitan Gurgaon • Ambience Mall, Gurgaon Other malls visited for observation…  Select City Walk, Saket  The Great India Place, Noida  MGF City Square Rajouri Garden  TDI Mall, Rajouri Garden  DT City Center, Gurgaon
    • Outcome and Result
    • Pacific Mall • With over 130 national and international brands to choose from, Pacific is the new landmark of India's shopping capital.
    • Retail Overview - Pacific Retailer Average Footfall (Week days) Average Footfall (Weekends) Area of the outlet (sq ft) Average Sales/day (Rupees) Average Sales/sq ft (Rupees) Next 400 650 12,000 4,00,000 33.33 Nokia 70 150 800 45,000 56.25 Peter England 55 120 1,300 40,000 30.77 Catwalk 35 60 1,000 50,000 50 Woodland 20-25 45 – 50 2,000 40,000 20 Denizen from Levi's 50 – 60 120 1,200 45,000 37.5 World Of Titan 25 60 1,000 10,000 10 Timing Footfalls Weekdays 20,000 Weekends 30,000
    • Retail Mix 30% 13% 7%4%4% 5% 6% 3% 8% 20% Retail Mix of Pacific Mall Apparels Food & Beverage Jewellery Foot Wear Kids Wear & Toys Sports Wear Electronics & Cellphones Watches Health & Beauty Miscellaneous Category Number Apparels 32 Jewellery 8 Food & Beverage 14 Foot Wear 4 Kids Wear & Toys 4 Sports Wear 5 Electronics & Cell phones 6 Watches 3 Health & Beauty 9 Miscellaneous 22 Total 107
    • SWOT Analysis - Pacific STRENGTHS  Location: Well-connected both by public and private transport.  Security: Arms & Ammunition are not allowed.  Variety of Brands: Over 130 international and national brands to choose from.  Parking Space: The parking constitutes of basement and multi level car parking with a capacity of over 1600 vehicles.  Entertainment zone: Versus, 8 lane bowling alley along with diversified gaming equipments.  Availability of Party Space.  Interior decoration according to seasons and festivals. WEAKNESS  Lack behind in Mall Activities  No Zoning of categories  Skyrocketing prices of prime catchment’s areas  Poor positioning of mall  Extraneous sitting space outside mall. OPPORTUNITIES  Mall activities  Mall space utilisation for advertisement  Promotions from Mall management for better positioning in consumer’s mind.  More spending power of consumers in catchment area THREATS  No or less control over investors  Select City Walk, in South Delhi  Threat from online players  Disturbance in income strata of consumers.
    • Moments • A destination that fulfills all shopping , entertainment and eating out needs, the Mall spread across a sprawling 7,50,000 sq. feet.
    • Retail Overview - Moments Timing Footfalls Week days 15,000 Weekends 25,000
    • Retail Mix - Moments Category Number Apparels 7 Food & Beverage 8 Anchors 4 Foot Wear 4 Kids Wear & Toys 2 Sports Wear 2 Electronics 1 Miscellaneous 8 Total 36 19% 22% 11% 11% 6% 6% 3% 22% Retail Mix of Moments Mall Apparels Food & Beverage Anchors Foot Wear Kids Wear & Toys Sports Wear Electronics Miscellaneous
    • SWOT Analysis - Moments STRENGTHS  Location: Well-connected both by public and private transport.  More Mega Store: Biggest Hypermarket of Delhi  Parking Space: Multilevel parking facilities for accommodating over 800 cars  Food Lounge: Del 15  Entertainment zone: Games & sports, Haunted House WEAKNESS  No Centralized AC  No Cinema  No ATM Facility  Small in Size  Narrow product line  No Mall Activities & Events  Delayed Maintenance  No Zoning of categories  No or less control over investors  Low footfall OPPORTUNITIES  New Multiplex  Promotional Offers to attract customers  Focus on the local community which is the primary catchment.  Expansion of the product range THREATS  Other Malls in the same region  Changing fashion trends may shift consumer interest in the product range.
    • Rajouri Garden Malls USPs • Central Location in West Delhi • Well connected to other parts of the city through the metro which has a station here • High spending power of consumers Bottlenecks • Prominent high street specializing in apparels and jewellery • Malls have yet to establish their full presence in this market • Primary Catchment is not clearly defined
    • Ambience Mall • The mall has more than 300 premium retail shops and specialty stores along with a large 50,000 sq ft food court. • It has 76 escalators and elevators that make it easily accessible for the customers.
    • Retail Mix - Ambience 4% 44% 3% 11% 5% 6% 8% 5% 5% 4% 5% Retail Mix of Ambience Mall Anchors Apparels Sports Wear Food & Beverage Home Furnishing Entertainment & Services Foot Wear Electronics & Cellphones Watches Health & Beauty Miscellaneous Category Number Anchors 11 Apparels 107 Sports Wear 7 Food & Beverage 26 Home Furnishing & Accessories 12 Entertainment & Services 16 Foot Wear 19 Electronics & Cellphones 12 Watches 12 Health & Beauty 10 Miscellaneous 13 Total 245
    • SWOT Analysis - Ambience STRENGTHS  Variety of Brands: Over 300 national and international brands to choose from.  100 % leased  50,000 Sqft food court  Availability of Party Space.  Interior decoration according to seasons and festivals.  Parking facility with three basement levels, the mall also has more than 2500 car parking spaces.  7-screen PVR Cinemas multiplex and in 2009 Leela Kempinski made its opening WEAKNESS  Location: No Metro connectivity  Skyrocketing prices of prime catchment’s areas  Extraneous sitting space outside mall. OPPORTUNITIES  Mall activities  Mall space utilisation for advertisement  Upcoming Metro line  More spending power of consumers in catchment area THREATS  Select City Walk, in South Delhi  Threat from online players  Disturbance in income strata of consumers.
    • MGF Metropolitan • The MGF Metropolitan Mall is spaciously built in over 3,50,000 sq.ft of prime area in the heart of Gurgaon.
    • Retail Overview – MGF Metropolitan Retailer Average Footfall (Week days) Average Footfall (Weekends) Area of the outlet (In sq ft) Average Sales /day Average Sales/ Sq ft Reebok 75 – 80 170 – 180 1850 50,000 27.02 UCB 200 300 – 350 2000 35,000 17.5 Levi’s 165 - 180 400 – 450 1500 25,000 16.67 Marks & Spencer 100 – 110 160 - 200 1650 30,000 18.18 Carlton London 50 – 60 130 2000 50,000 25.00 Nike 50 – 60 100 2200 50,000 22.73 Shopper’s Stop 5000 8000 14000 1,50,000 10.71 Walk in M&B 50 – 60 150 – 200 1700 30,000 17.64 Week Days Weekends MGF Metropolitan 30,000 50,000-55,000
    • Retail Mix- MGF Metropolitan 36% 23% 10% 4% 4% 2% 2% 2% 17% Retail Mix of MGF Metropolitan Apparels Food & Beverage Footwear Jewellery Sports Wear Beauty & Skin Care Gifts Watches Miscellaneous Category Number Apparels 48 Food & Beverage 31 Footwear 13 Jewellery 6 Sports Wear 5 Beauty & Skin Care 3 Gifts 3 Watches 3 Miscellaneous 23 Total 136
    • SWOT Analysis- MGF Metropolitan STRENGTHS  Location: Well-connected both by public and private transport.  Shoppers Stop  Parking Space: Multilevel parking facilities for accommodating over 1000 cars  Food court and joints as well as a 7- screen multiplex WEAKNESS  Less Mall Activities & Events  Delayed Maintenance  No Zoning of categories  No or less control over investors  Low footfall OPPORTUNITIES  Expansion of the product range  Promotional Offers to attract customers  Focus on the local community which is the primary catchment. THREATS  Other Malls in the same region  Changing fashion trends may shift consumer interest in the product range.
    • Sahara Mall • The Sahara Mall was launched in March 2001 and has an built-up area of 3.94 lakh sq ft. It was envisioned as India’s first brand super mall. • It has Big Bazaar as its anchor store which focuses on profits through volumes and discounts. • The layout of the mall is unconventional and as such the visibility of some outlets as well as flow of customers suffers to some extent.
    • Retail Overview – Sahara Mall Retailer Average Footfall (Weekdays) Average Footfall (Weekends) Area of the outlet (In sq ft) Average Sales/day (In Rupees) Average Sales/sq ft (In Rupees) Punjabi Tadka 50 – 55 80 – 90 1500 13,500 9 Liberty 100 200 – 220 2500 32,500 13 Big Bazaar 6000 10000 56000 10,00,000 17.85 Pantaloons 600 2000 32000 5,00,000 15.62 Week days Weekends Sahara Mall 17680 24520
    • Retail Mix – Sahara Mall 25% 25% 9% 9% 4% 4% 4% 2% 1% 17% Retail Mix at Sahara Mall Apparel Food & Beverage Footwear Jewellery Beauty & Skin Care Gifts Home Décor & Appliances ATMs Multi-Product Miscellaneous Category Number Apparel 19 Food & Beverage 19 Footwear 7 Jewellery 7 Beauty & Skin Care 3 Gifts 3 Home Décor & Appliances 3 ATMs 2 Multi-Product 1 Miscellaneous 13 Total 77
    • SWOT Analysis – Sahara Mall STRENGTHS  Location: Well-connected both by public and private transport.  Big Bazar: Biggest Strength of this mall  Food Lounge: Del 15  PVR Cinemas WEAKNESS  Small in Size  Parking Space: Less parking space  Narrow product line  No Mall Activities & Events  Delayed Maintenance  No Zoning of categories  No or less control over investors  Low footfall OPPORTUNITIES  New Multiplex  Promotional Offers to attract customers  Focus on the local community which is the primary catchment.  Expansion of the product range THREATS  Ambience Mall, Gurgaon  Other Malls in the same region  Changing fashion trends may shift consumer interest in the product range.
    • Gurgaon Malls USPs • High Concentration • Size • Mall Culture • Established retail destinations Bottlenecks  New Malls in Delhi  Saturation Point  Low Conversion Rates  Brand Mix  Parking Problem  Infrastructural Constraints
    • “Importance of food and entertainment in retail.” 92% 8% Is Food and Entertainment Important in retail mix? Yes No Sample Size: 200 H0: Food and Entertainment is Important in retail mix H1: Food and Entertainment is not important in retail mix There is a significant role of Food and Entertainment in retail mix.
    • Tenants Research This result is based on the feedback provided by the tenants and the factors included are: • Promotional activities. • Services and facilities. • Relation with management. • Traffic counts on the stores. • Response and follow up on the compliant. 0 10 20 30 40 50 60 Promotional activity Services & Facilities Relatoinship with mnagement Traffic counts Response & follow up TENANTS MAJOR FACTORS Satisfaction Level of Tenants Satisfaction Level of…
    • Additional comments by tenants • Organize events and introduce promotional activities. • Improve security services. • Introduce more ladies brands. • Meeting with Management must be at least once in a month. • Maintenance charges are too high in respect to Facilities are low. • Events should not take place on Saturday & Sunday. • Rents of shop should be low.
    • Malls are flop because of.. 1 • BAD LOCATION 2 • BAD ARCHTECTURE 3 • NO MULTIPLEX 4 • POORLY DESIGNED FOOD COURT 5 • BAD SHOPPING MIX 6 • SCALE PROBLEM 7 • ANCHOR TENANT
    • Conclusion • Ample opportunities are present as 94% of the Indian retail is still unorganized. • Making the biggest malls with top class retailers is not the key to success • A cool and refreshing environment is required which makes the shoppers to forget all worries of the day • It should be the USP of the malls as the window shopper of today is the prospective customer of tomorrow. • Malls- with a bouquet of value propositions like value for time, value for quality, value for experience, value for money is boosting India in becoming a SHINING STAR of GLOBAL RETAIL.
    • Recommendations • Mall Of India must come with Proper Zoning • Put an end to the dictatorship of investors. • Retailer area should be given more attention. • Make promotional tools. • Position Mall itself as a BRAND • Proper Food & Entertainment in retail mix • Provide complete security solution to tenants • Define customer catchment appropriately.
    • References Websites: • WWW.WIKIPEDIA.COM • www.joneslanglasalle.co.in • http://www.gurgaonshoppingmalls.com/mgf-metropolitan-mall-gurgaon.php Research papers and Case Studies: • Cushman & Wakefield Research • Swar, B.N. (2008), ―Challenges and Opportunities of Organised Retailing in India‖, Journal of IMS Group, pp 53-60. • CII . Kearney, A.T. (2006), Retail in India . Getting Organized to Drive Growth, CII, New Delhi. Books: • Roy, K. (2008), ―Retail Malls in India: Ready to get a makeover‖, Marketing Mastermind, pp. 22-25. • Anand, T. (2008), ―Organised retailing in India: Need of the hour‖, Marketing Mastermind, pp. 28-30. • Call of the Mall, Paco Underhill • Why We Buy, Paco Underhill
    • Questions