1. SURAT IS a rapidly growing metropolis, AND
ASPIRATIONAL CONSUMERS ARE TRANSFORMING THE RETAIL
SECTOR HERE. A CASE STUDY ON VIRTUOUS RETAIL’S FLAGSHIP
CENTER-vr surat, BY RETAILER, AND ITS IMPLICATIONS FOR
THE BROADER SECTOR.
Acommunity‘connect’
Cover Focus VR Surat - A Case Study
Bird’s–eye view
>> Surat is a rapidly growing city, but
the retail sector is largely dominated
by mom and pop stores
>> VR Surat effectively leverages
culture and community to encourage
shopping
>>Virtuous Retail has upcoming
developments in six of the nine
leading metros across the country
>>Zara has entered Gujarat via VR
Surat
Photos:MukundaDe

2. 4 RETAILER january 2014 january 2014 RETAILER 5
www.indianretailer.com
M
all developers are
no longer creating
retail centres aimed
solely at serving
shopping and entertainment
needs. Instead, the emphasis
is on projects that appeal to
customers‘changing lifestyle, and
these community centres have
become the ‘third place’, where
shoppers can work, play and also
have a replete experience with
their families and friends.
These malls are creating a
‘buzz’ across the country with a
range of global and local brands
that they have introduced to their
clientele.
Organised retail currently
accounts for about seven per cent
of the $ 500 billion annual sales
in this sector. However, several
research reports highlight that
annual sales in this sector would
reach $ 1.3 trillion by ‘20.
It is no surprise that Anupam
Yog, Director – Marketing,
Virtuous Retail, is excited about
these developments, and shared
his views on the forthcoming
boom in modern trade at a recent
meeting with investors.
As pointed out by Yog,
Surat is often regarded as the
commercial capital of Gujarat,
with the auto, textile, diamond,
and petrochemical industry
in close vicinity, and a rapid
expansion in the customer base
in the premium and high-end
segments.
However, the irony is that the
retail landscape in this city is
largely dominated by mom and
pop stores, and a large number
of shoppers have no choice but to
go to Mumbai to complete their
lifestyle-related purchases.
Virtuous Retail, India’s only
institutionally-owned developer
and operator of shopping
centres, recognised this largely
untapped opportunity, and VR
Surat launched operations six
months ago. In addition, this
group has eight centres under
construction in six cities, as part
of its strategy to be in the top
nine cities across the country.
Importantly, Virtuous Retail
views community members
as its partners rather than
customers, in its growth plans.
Yog pointed out that while
their centre in Surat has been
operational only for a short
period, but the response from
consumers, businesses and the
broader community has been
overwhelming.
“We have changed the retail
sector in this state, and are
setting numerous benchmarks,
in terms of operational
parameters and customer
service initiatives,” said Yog.
Who is housed here
A modern retail ‘culture’ at
this centre has sought to be
built with an optimum mix of
leading global and domestic
brands, as well as regional
brands entering modern trade
for the first time. As part of
that strategy, tenants at this
centre spread across six lakh
sq ft include Zara, Shoppers
Stop, M&S, Westside, Inox,
Omega, Tommy Hilfiger, MAC
and Swarovski.
Yog highlighted that
regional brands at their centre
include Coffee Culture, Jade
Blue and Nosh, a clothing
and accessories brand, help
them attract a wider range
of shoppers, including ‘first
timers’ to modern trade.
The rentals at this centre
match those of ‘mature’ retail
markets like Bangalore, which
are broadly in the range of Rs
60 - 250 per sq ft per month.
A special experience
VR Surat has curated a ‘feel
good’ factor throughout the year,
especially during festivals. And,
recent campaigns like ‘Dilwaali
Diwali’ along with ‘Glam Garba’
saw a strong response, with Yog
pointing out to “thousands of
entries received” for shoppers
participating in these events,
which required a minimum
purchase of Rs 5,000.
According to Yog, their
initiatives have helped the
broader retail sector in the city
to benefit from the ‘NRI shopping
The growth of organised retail
in the country has caught
global attention. What factors
made Virtuous Retail make an
entry here?
No doubt, a number of malls have
been set up across the country,
but India is one of the biggest
consumer markets in the world
with a large youth population. I
do believe there is considerable
scope for malls to be set up
across the country, at a time
when consumers are demanding
better quality products.
The regulatory environment
continues to improve and we
believe that the top nine Indian
cities provide a compelling
‘platform’ for organised retail.
Why did you set up your first
centre in Surat?
Surat is India’s richest city on a
per capita income basis with six
million residents, besides being
the commercial capital of Gujarat.
The broader south Gujarat region
is heavily industrialised, and a
vibrant and cosmopolitan region.
It was a natural choice as we
looked at various leading Indian
cities, and saw an opportunity to
set up an international standard
development that would address
the ‘huge gap’ in the local
Virtuous Retail recently
commenced operations in
Surat, and has upcoming
developments across
the country. In a candid
conversation, Anupam
Yog, Director – Marketing,
Virtuous Retail, shared
his strategy to exceed
customer expectations,
with a range of heritage-
inspired, community-
oriented shopping and
lifestyle centres.
season’ which takes place in
winter, and traditionally limited
to Mumbai and New Delhi.
Apart from that, a range
of global QSR chains like
McDonald’s, Pizza Hut and
Subway, along with regional
F&B outlets such as Dosa Plaza
and Kailash Parbat have helped
to ensure steady footfalls at this
centre.
“We are positioned as the
‘destination’ of choice for the
entire family throughout the year,
with planned events, festivals and
campaigns,” added Yog.
ExpanDING ITS REACH
Virtuous Retail has expanded its reach
to six of the top nine cities across the
country with 10 million sq ft of retail
real estate in key city centre locations
under development.
As part of that strategy, Virtuous
Retail’s Pune centre will be operational
in the last quarter of 2014, and two
more flagship centres, VR Bangalore
and VR Chennai will be launched in the
spring of ‘15 and fall of ‘16, respectively.
“We want to leverage the long-term
‘consumption story’ in the country,”
summed up Yog.
The ‘success’ of VR Surat is attributed to its
active asset management approach and
differentiated brand strategy
Cover Focus VR Surat - A Case Study
exclusiveINTERVIEW
“We have a pan
India portfolio”
market. Apart from that, consumers’
tastes are evolved, with shopping
habits closer to Mumbai, Dubai and
Singapore, and this was a good cue
for us.
Surat is a historic port city and a
catalyst for globalisation in India,
as well as an important role in
international trade. It seems fitting
that we begin our journey in the sub-
continent from here!
How does VR Surat differentiate
itself from peers?
We offer community-oriented lifestyle
centres which take into account local
preferences and culture, and this is
also reflected in our infrastructure
design and layout. We also provide an
opportunity for our tenants to reach
a very targeted set of consumers,
and this is done via a judicious mix
of global and domestic brands along
with select regional offerings, all
positioned at the premium segment.
In addition, we have a strong
emphasis on building a service
brand and strive for hospitality level
benchmarks while delivering an
‘experiential’ shopping environment
to consumers.
Mixed-use malls are slowly
gaining in popularity. Are they
viable in the long-term?
Mixed-use developments are common
overseas and in urban India, too, one
is witnessing a similar trend. Our
developments in Pune, Bangalore,
Chennai and Mumbai are also mixed-
use projects and such projects are
important as cities manage growing
urbanisation. We believe that this is a
trend ‘here to stay’.
What are your expansion plans?
We have eight projects in six of the top
nine cities, and are actively looking
for acquisition opportunities in Delhi,
Ahmedabad and Hyderabad. Our
immediate focus is to consolidate
our position as India’s largest retail
real estate owner by operationalising
our centers in Pune, Bangalore and
Chennai, over the next 2-3 years.