Saturday, June 23, 2007

Most malls in India not successful

The retail boom in constantly in the news, always with more and more new players entering the field, but could it be more hype than reality. Malls seem to be multiplying on every corner, and while some malls do get large number of visitors, most malls are not successful ventures. According to real estate and retail analyst, Susil Dungarwal, of India's estimated 120 malls, only 10-12% of malls are actually successful.

The novelty factor is yet to wear off, and there still needs to a more of a variety of stores in the malls. Most malls are focused on the young, urban crowd who wants trendy things, but they are only a small amount of the population, with the bulk of consumers looking for more regular kind of products to buy. Other reasons are lack of proper design and tenant mix.

I have seen the chaos happening first hand with several malls in Bombay. PVR Cinema's exit at Nirmal Lifestyle Mall in Mullund is at its garbage dump. At Inorbit Mall in Malad, which was by far one of the best malls in India, all public space has been overtaken by vendors selling everything from cell phones to popcorn and thus the original design of the mall has been completely wasted.

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