A

LIVE PROJECT
ON
EMERGING PATTERN OF PURCHES IN BIG MALLS
LIKE GREAT INDIA PALACE AND AMBIENCE

SUBMITTED TO : SUBMITTED BY :
DR.DOLLY PHILIPS RAJDEEPADHIKARY
PGDM (2 ND YEAR)
 The Great India Place
Mega Shopping Mall Amusement and Entertainment Zone Location - Map

India has never seen anything like this. A world-class integrated

destination with multiple theme park, cinemas, shops and
restaurants! The Great India Place is a retail and entertainment
complex as part of Entertainment City, an international standard
amusement park.
Apart from a shopping mall - to be called the " The Great India Place ", there will
be water-cum-amusement park as part of the project, Noida is all set to emerge as
the entertainment hotspot of the country in 2007. and also dubbed as the
Entertainment City
This integrated mix-use destination also convinces with its prime location
near Sector 18, right at the entrance of Noida. Spanning 1,500,000 sqft, this
will be the largest retail development in India.

Features
The Great India Place, Noida
Designed by Callison Inc. the interior theme is "shopper tainment",
which integrates shopping and entertainment in the same premises. Shops
of all possible product and service categories.
  6-screen multiplex cinema
 Multiple theme park
 Indoor entertainment area

Family Fashion Zones

An elite family fashion zone for men, women and children will entrust the
customers the enhanced pleasure and convenience of shopping.
Wedding Bazaar and HomeTown
Unique precinct for the special occasion. A dedicated 80,000 sft zone for
transforming your dream into reality and your home into paradise!
Jewels from Hazoorilal, R C Jellewers, Cygnus, Taraash, Wardrobe from
Dulhan Libas, Sita Bridal, Study by Janak and Renowned Fashion Designers
will be there at a one stop destination for those who look for perfection.

Food court
An Exclusive 180,000 sqft of Food and Entertainment zone would surely
enhance Great India Place's flavour. With a 6-screen Multiplex Cinema for
film buffs and a multi-cuisine Food Court for culinary adventurers.
FEW BRANDED SHOPS LIKE
PANTALOONS SHOPPERSTOP BOSSONI LIFESTYLE

D&ASHOES CTCPLAZA LEE COOPER BGS

TANA BANA HALLMARK TITAN GOVANI

PIZZA
HUT
GLOBUS
BARISTA
&OTHER
Largest Shopping Malls in India
With emerging growth of shopping malls, India got a new face of shopping. The
consumers are introduced to worldwide brands. International brands are playing a
big role in India. International brands are available in a clothes, cosmetics, home
furnishing, food, hairstyle, shoes, etc.

The second largest mall is the Great Indian Place, which has all luxury brands with
them. Here, 80,000 sq ft is specially designed for wedding bazaar, and 180,000 sq
ft. is dedicated for food and entertainment zone. 

Ambience mall, Gurgaon

Ambience Mall, is an apogee of lifestyle distinction, it offers not only

unprecedented scale in terms of its size but also an experience of
unparalleled retail mix combined with the entertainment and leisure
attractions that has changed the concept of shopping mall experience.

The international brands that you see in the mall are exclusive, to name a
few NEXT, Hush Puppies, Debenhams and others present a different
experience. Ambi Mall covers 1 KM area on 3 different floors, this makes it 3
KM area shopping mall. The specialty of the stores in Ambience mall is the
huge space. Almost all the stores within this mall are huge in total covered
area with great interiors.
Ambience Visitors: You are not the only one Salman,Katrina,
Akshay,Aishwarya, Deepika the big celebrati have visited here.

Ambience Mall management spends approx 25 lacks per month in

maintenance of security apparatus that includes CCTV cameras, Vapour
Tracer, non-linear junction devices, bomb blankets, fire blankets,
dog squad and 300 trained security personnel.

Opening and closing time: 10:00 am - 11:00 pm

Major Ambience Mall attractions: Debnhams & Reliance TimeOut
Location: National Highway 8, NH8 (Delhi - Jaipur road)
Parking facility: Parking area is in basement, open parking also available
Number of stores: 200 till last count on all floors combined, rest still
opening
Accessibility: 76 escalators and elevators

Above this are the famous brand which we find in this mall.

Easy to refer list shops, showrooms, Department stors, Major shops and
Anchor stores. Inclouding apparel – designer, men, women, Kids and
Children, suits and sarees, salwar kameez, Lahangas. books, Gift and music
video, cosmetics, Electronic stors, foot ware – shoes, and so number of
things you will get eissly there.
CHANGING THE CUSTOMER BEHVIOUR
For the Indian Retail Industry, these are exciting times. An economic
recession or two notwithstanding, the Indian retail industry has been
growing at a fast clip. The current size of the overall retail market in India is
estimated to be about USD 400 billion ( Rs 18,00,000 crores), and the
industry has been clocking healthy two digit growth rates over the last
many years. Currently, the Indian retail market is the fifth largest in the
world, and is one of the fastest growing among the emerging markets
category.
While the present scenario is exciting, the future seems to be still brighter. It is expected that
retail will contribute about 23% of the overall GDP within the next three
years, and the market size estimates vary between USD 750 billion (Rs
35,00,000 crores) to a mind boggling USD 1.25 trillion (Rs 55,00,000
crores), depending upon which analyst you want to believe. While these
figures are understandably mind boggling, these numbers are hiding a
curious story which needs to be told To put things in proper perspective, I
would again present a set of figures about the biggest retailer in the world,
Wal Mart. In fact, calling Wal Mart a ‘retailer’ would be a huge
understatement – many people believe it is an industry in itself. Why? Here
is why – Wal Mart 2009 turnover was an estimated USD 400 billion dollars
(approx), almost equal in size to the the WHOLE of Indian retail Industry.
Another fact – The number of employees in Wal Mart stores is around 1.3
million (13 lakhs), about the size of the Indian Army!

INDIAN RETAIL SECTOR

Like many other industries in India, the Indian retail sector is also
dominated by the unorganized sector. Almost every road that you take in
any Indian city or town, you will find a “general store” or a modest “kirana
shop” after every hundred steps or so! Retail is a big employer in India –
though the estimated numbers vary from 3 million (30 lakhs) to somewhat
unbelievable 60 million ( 6 crores) retailers! This makes it the biggest in the
world, if the sheer number of retailers is taken into account And it is in
these huge numbers that the Indian unorganized retail industry finds its
protection. The government is of the view that the entry of organized retail,
especially the FDI led variety, will threaten these numbers. The powerful
traders unions across the country have also been persistent against the
entry of organized retailers and FDI into the sector. A couple of years back,
I saw a hoarding in Kanpur, UP which depicted this argument in a
particularly gory manner – “Malls” were shown as a huge demon, gobbling
up small “traders”, and blood dripping down its face! I am sure this had the
desired effect on anybody who happened to notice the hoarding!
Organized Retailers Still Insignificant Players
The organized sector, identified as malls/multiplexes/supermarkets is still at
a nascent stage, and is unlikely to prove a threat to the unorganized sector
for many, many years to come. The retail segment itself is growing so fast
that it will absorb any fresh additions to the supermarkets very easily, and
the unorganized sector will still continue to grow. Even currently, the
organized segment constitutes a very modest 7-8% of the overall retail
market. This alone proves that there is a long way to go for organized retail,
before it can even present itself as an alternative to small traders

Besides there are a number of reasons which clearly vouch for the fact that
India will continue to be dominated by small retailers for a long time to
come. Such as –
1)Even the biggest of domestic players in organized retail lack the muscle
and resources to cater to significant proportion of Indian population. It takes
a lot of time and money for an organized retailer to show decent profits in
Indian situations, and the weaker ones will continue to fall by the wayside –
remember Shubhiksha.

2)The bulk of future growth in retail will come from rural population, which is
a segment that organized retailers will not be able to cover for a number of
reasons – poor infrastructure, operational difficulties, remoteness of
markets and the sheer size of the Indian market.

3)Peculiarities of the Indian customers, which make it a very ‘unpredictable’

lot. Even for a large section of able and affluent buyers, malls are mostly for
‘hanging out’ and family outings – purchasing is still done at the friendly
neighborhood kirana store. And however much marketing gurus like to tout
the “changing mindset” and the “increased purchasing power” of the Indian
customer – the truth is – she still feels that supermarkets/malls are
expensive.

4)The biggest draw for organized retail all over the world has been an
innovative format – called the discount stores. These stores sell grocery
items at hugely discounted prices, for the simple reason that high margins
make such a move possible. In India, the margins are already wafer thin,
even at the retailers level. Therefore, supermarkets will find it very hard to
attract customers on the price front – unless they are ready to bear huge
losses for a long,long time.

5)Despite of what the media and business leaders want us to believe, the
average Indian customer has very limited purchasing capacity. Even the
affluent buyers are not profligate spenders – we Indians love to extract
maximum ‘value for money’. Purchasing at the local kiranawalla gives us
valuable opportunity to bargain!

6)Most important of all, the smaller retailers, shopkeepers and kiranawallas

are learning very fast, and are willing to provide exceptional customer
service at no extra cost. For example, my residence is about the same
distance from the nearest supermarket, and the nearest kirana store. I have
to make a phone call to the kirana shop, and the delivery boy will reach my
place within 10 minutes, even if I order goods worth Rs 50. On the other
hand, the supermarket “undertakes to home deliver all purchases above Rs
2000 within 24 hours of purchase, within two kilometers!”
 FUTURE TRENDS OF RETAIL IN INDIA

Indian retail sector is highly fragmented as compared to the developed as

well as the other developing countries. This shows a great potential for the
organized retail industry to prosper in India, as the market for the final
consumption in India is very large. Retail trade is largely in the hands of
private independent owners and distributor’s structure for fast moving
consumer goods consisting of multiple layers such as carrying and
forwarding agents, distributors, stockiest, wholesalers and retailers. Thus,
the growth potential for the organized retailer is enormous. In the next 2-3
years, India will finally see operations of a number of very serious
international players- net withstanding the current restrictions on FDI in
retail.

The Indian retail sector is ready to take on challenges from global retail
players such as Wal-mart and Carrefour because unlike them, they have a
better understanding of the Indian consumer’s psyche. Ultimately, a
successful retailer is one who understands his customer. The Indian
customer is looking for an emotional connection, a sense of belonging.
Hence, to be successful any retail outlet has to be localized. The customer
should feel that it is a part of his culture, his perceived values, and does not
try to impose alien values or concepts on him. Indian customer is not keen
to buy something just because it is sold by an international company.

PRESENT SCENARIO

Retailing in India is witness to the boom in terms of modern retailing

formats, shopping malls etc. the future of retailing for any product across
the country will definitely be in malls where the consumer can get variety,
quality and ambience.

However, in spite of this continuous debate to be or not to be, recently

Government has allowed up to 51 percent FDI in single brand retailing by
foreign companies like Reebok and Louis Vuiton. As of now, single brand
retailers operate through the franchisee route and there is a strong view
that FDI in this segment would not displace jobs or impact the local
industry but help create employment.

Even today the government is undecided about the level FDI in retail, but a
number of foreign players, including the Wal-mart stores, Inc., have
announced their intention to enter India in a big way. At present Wal-mart
is operating through its subsidiary in Bangalore, which was functioning as a
liaison office till last year. Now it is in the process of setting up offices in
New Delhi and Mumbai.

RETAILING IN THE 21ST CENTURY

Retailing in the new millennium stands as an exciting, complex and critical

sector of business in most developed as well as emerging economies. Today,
the retailing industry is being buffeted by a number of forces
simultaneously, e.g., increasing competition within and across retailing
formats, the growth of online retailing, the advent of “Radio Frequency
Identification (RFID) technology, the explosion in customer-level data
availability, the global expansion of major retail chains like WAL-MART
 and METRO Group and so on. Making sense of it all is not easy but of vital
importance to retailing practitioners, analysis and policymakers.

RETAIL IN INDIA - THE FUTURE

According to a study the size of the Indian Retail market is currently

estimated at    Rs.704 crores, which accounts for a meager 3% of the total
retail market. As the market becomes more and more organized the Indian
retail industry will gain greater worth. The Retail sector in the small towns
and cities will increase by 50% to 60% pertaining to easy and inexpensive
availability of land and demand among consumers.

Growth in India Real estate sector is also complementing the Retail sector
and thus it becomes a strong feature for the future trend. Over a period of
next 4 years there will be a retail space demand of 40 million sq. ft.
However with growing real estate sector space constraint will not be there
to meet this demand. The growth in the retail sector is also caused by the
development of retail specific properties like malls and multiplexes.

According to a report, from the year 2003 to 2008 the retail sales are
growing at a rate of 8.3% per annum. With this the organized retail which
currently has only 3% of the total market share will acquire 15%-20% of the
market share by the year 2010.

Factors that are playing a role in fuelling the bright future of the Indian
Retail are as follows:

 The income of an average Indian is increasing and thus there is a

proportional increase in the purchasing power.
 The infrastructure is improving greatly in all regions is benefiting the
market.
 Indian economy and its policies are also becoming more and more
liberal making way for a wide range of companies to enter Indian market.
 Indian population has learnt to become a good consumer and all
national and international brands are benefiting with this new awareness.
 Another great factor is the internet revolution, which is allowing
foreign brands to understand Indian consumers and influence them
before entering the market. Due to the reach of media in the remotest of
the markets, consumers are now aware of the global products and it helps
brands to build themselves faster in a new region
However despite these factors contributing to the growth of Indian retail
Industry, there are a few challenges that the industry faces which need to be
dealt with in order to realize the complete scope of growth in Indian
market.

Foreign direct investment is not allowed in retail sector, which can be a

concern for many brands. But Franchise agreements circumvent this
problem. Along with this regulation, local laws, and real estate purchase
restrictions bring up challenges. Other than this lack of integrated supply
chain, management, and lack of trained workforce and flux of the market in
terms of price and product choice also need to be eliminated.

The Indian Retail Street is set to glow brighter with India recapturing its
position as the most attractive destination for global retailers, despite the
global slump. According to the Global Retail Development Index (GRDI)
released by US-based global management consulting firm, A T Kearney,
India has emerged as best country amongst 30 emerging markets. This
reinforces the fact that trade with India is a golden opportunity to be
capitalized upon. Interestingly, Russia clinched the second position, while
China settled for the third spot. The report also stated that India has
become the most attractive destination for retail investment for the fourth
time in five years.

Currently India has one of the largest numbers of retail outlets in the world.
According to a report by images Retail estimates the number of operational
malls will grow more than two-fold, i.e., it will cross 412, with 205 million
square feet getting covered by 2010. Nearly 715 malls will be added by 2015,
with major retail developments in tier-II and tier-III cities fuelling further
growth.
Many global retailers have given thumps up to trade with India.
The future ahead Industry experts see the rise of the rural sector in the
coming years. Currently, rural market comprises nearly half of the domestic
retail market of India, i.e., US$ 300 billion. The per capital income of the
rural India has reportedly grown by 50 percent over the last 10 years,
mainly because of the rising commodity prices and better productivity.
According to E&Y India, basic infrastructure, generation of employment
guarantee schemes, better information services and access to funding are
ushering in good times for the rural households.

• As per the new market research report by RNCOS, organized retail market
is expected to reach US$ 50 billion by 2011

• The boom in the retail market will fuel the growth of the logistic market. It
is estimated the market will reach around US$20 billion by 2011.

• Retailing of mobile handset and accessories is estimated to reach close to

US$990 million by 2010.

• Rural market is estimated to lead the Indian retail industry landscape in

the future.

• Shopping malls are expected to increase at a CAGR of more than 18.9 per
cent from 2007 to 2015.

INDIAN RETAIL LANDSCAPE

Raising income and increase consumerism are fueling retail growth.

Year

$ billion retail growth

1998

201

2000
204

2002

238

2004

278

2006*

321

2008*

368

2010*

421

*Estimates

Sources: Retail in India-A CII-AT Kearney report

According to NCEAR forecasts, the number of ‘rich’ households (the target

market for modern retail stores) is expected to more than double from 57
million in 2004 to 107 million by 2012. The proportion of India’s
population, that is less than 25 years of age stands at more than 50 percent
currently while more than 80 percent of the population is below the age of
45 years. This ‘young population’ segment is driving the changes in
consumption habits and spending patterns. An increasing proportion of the
young population is joining the work force, and adding to overall spending,
which should bode well for the growth of modern retail formats in India.
Growing urbanization (malls are likely to be concentrated in urban areas) is
also fuelling modern retail format growth. It is expected that India’s urban
population will grow from 21 percent of the overall population in 2002 to
32 percent by 2012

CHANGE ACCELERATORS

The following factors will be significant in driving growth in the retail

sector:

Consumer factors

Supply side factors

Consumer factors

¨      Increase in income

¨      Working women

¨      Changes in lifestyle demand for ‘global’ trend

Supply side factors

¨      Growing importance of retailing in political and economic agenda.

¨      Real estate reforms to be undertaken in the next 24 months.

¨      Major restructuring of the manufacturing sector easing product supply

constraints for efficient retailing.

¨      Reduction in import duties- offering more global sourcing options.

COMPETITION FOR FUTURE MARKET LEADER

India’s organized retail, although less than Rs 45,000 crore in size, already
boasts of several players different formats and categories. The big players
are Future Group (Big Bazzar and Pantaloon) of Kishore Biyani, Tata Group
(it runs departmental stores under Westsite, a books and music chain called
Landmark, hypermarket star India bazaar, and a customer durables Chain
christened Crima, in a tie up with UK’s Woolworths),Sanjiv Goneka,s RPG
Group (Food World and Spencer’s), and Dubai-based Micky Jagtiani’s Land
mark group (life style). That apart, there are several smaller players,
including Subhiksha, Trinetra, and Nilgiri’s. Most recently, the Kumar
Mangalam Birla-led AV Birla Group has announced plans of entering retail.

 CONCLUSION
The retail sector has played a phenomenal role throughout the world in
increasing productivity of consumer goods and services. It is also the
second largest industry in US in terms of numbers of employees and
establishments. There is no denying the fact that most of the developed
economies are very much relying on their retail sector as a locomotive of
growth. The Retail Industry in India has come forth as one of the most
dynamic and fast paced industries with several players entering the market.
But all of them have not yet tasted success because of the heavy initial
investments that are required to break even with other companies and
compete with them. The India Retail Industry is gradually inching its way
towards becoming the next boom industry. Favorable government policies
and continued growth will mean that the future belongs to the most
aggressive players. The future is now.