Mall Culturea

 Mall Culturea

A prime location makes a lot of difference to the brand. Having taken up a retail franchise of a brand, the next step forward for the franchisee is to look for an appropriate location. Mall Culturea High streets or shopping malls are considered to be the best locations to have an outlet of a franchised brand.

However, there is an increase in opening of large numbers of retail franchised outlets in the malls. As per the facts, there will be a total of 90 million sq.ft of retail space available in India from 600 malls by 2010. Mall Culturea According to Anand Dutta, Head Retail, Pune, Jones Lang LaSalle Meghraj, “The process of taking up an outlet in a mall or in a high street is almost the same for the company owned outlet, franchised outlets or a stand alone. Mall Culturea In case of malls, the mall developers decide retail and brand mix in his mall. So, it is up to him to decide whether he wants any particular brand to have an outlet in a mall or not. He always tries to specify in the agreement through a letter that the franchised outlet taken on rent in mall is particularly for a specific brand.”

The franchisee is advised to maintain good understanding with the franchisor before signing a franchise agreement. Mall Culturea In case, the franchise agreement gets terminated or the brand does not perform well for one reason or the other, then franchisee has to take the permission from the mall developer to start selling some new brand from the same store in the mall.

Clarifying the above Dutta explains, “If such a situation arises then there are two options available to the franchisee. Mall Culturea One is to give back the possession of the store that he had taken on lease for some specific time period. Second, the franchisee can take up a franchise of another brand which is acceptable to the mall developer to sell that brand from that store.”

Since past few years there has been an increasing demand of taking up an outlet in malls by the franchisees. Higher conversion rates and decent amount of footfalls are some of the attributes to it. Mall Culturea  Also, Dutta informs, “The trend today is to go in for malls because malls provide security to the store operator in terms of convenience of shopping enjoyed by the consumers under one roof, malls serve as one stop shopping destination, convenience of parking, and the existence of food courts.”

Mall Culturea

When asked about the various categories of brands taking up space in a mall, Dutta informs, “Apparel, footwear and F&B are the prominent categories having franchised outlets in malls.”

Comparing the rentals

Dutta highlights, “The rentals in malls are quite comparative to rentals in high streets. But store operators do not mind paying some extra bucks for all the comfort, facilities and convenience that the malls provide. The facilities like common area, ambience, parking area, no tension of maintenance takes the mall rentals to the higher side.”

Minimum guarantee and revenue sharing models

The increase in the vacancy in malls is rising due to slowdown and high rentals. The increase in vacancy has further lead to correction in the mall rentals. Mall Culturea Correction is followed by renegotiation that incorporates minimum guarantee and revenue sharing models for the franchisees and retailers. Large numbers of mall developers are following these models to attract more and more retailers and franchisors to open their outlets in malls. It works for both the retailers and mall developers. Mall Culturea There is a huge amount of retail space lying vacant in malls. To utilise this space for better and to make some money out of it mall developers are offering revenue sharing and minimum guarantees to the retailers.

Gone are the days when people had to buy different things from different places. People would visit local Kirana stores for purchasing daily-required household materials, and go to some other local markets for buying clothes. Mall Culturea Shopping was never as convenient for people as it is now. The shopper gets the experience of one stop shop. From apparels to FMCG goods, the consumer gets leisure time visiting malls. Each store offers an individual a wide variety be it for choosing a stationery pen or a laptop. Mall Culturea One of the reasons for the existence of mall culture is globalization. Products and brands from various places, cultures and communities are under one roof.
We have a prospect of shopping unveiled before us. Mall Culturea The mall is also hybrid in another sense, it is a place for shopping and of social interaction. It is not uncommon to see the mall’s spaces transformed into spaces of youth culture, with youngsters meeting friends for an evening. A lot of space in the malls is occupied by food courts and entertainment zones where people of all age groups come to eat, drink, chill and relax. All this adds to the footfall in the malls. Mall Culturea Food courts in malls provide a wide range of options which represent the global village of food culture. One can choose from Chinese, Italian, Indian or Mexican the list is endless. Malls, have either cinemas, game space or spas for leisure and recreation. Mall Culturea In fact it can be argued that shopping is only one of the several purposes of a mall and leisure is central to its very structure, style and organization. Leisure shopping i.e. pleasure shopping for non essentials is an important aspect of the mall culture .A stroll through the mall which might lead to an actual purchase is about the pleasure of the stroll of spectacle and secure environment. The constant pipe of the music is part of the malls attempt to ensure that we see it as space of relaxation and leisure.

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