Now look at the situation from our perspective. All those hyped up 
reports from consulting firms talking about how footfalls would convert into purchases simply have turned out to be balderdash, what with a massive number of people visiting retail malls simply for the ‘experience’ of it, rather than to purchase anything. An analyst on Pantaloon’s panel himself confirmed to us, “Yes, there are high footfalls in malls; but actual shopping does not take place.”
Worse, with more & more competition, costs are expected to increase prohibitively, eating away customers & margin figures. Think about it. Biyani’s company’s manpower
costs have risen by a whopping 118% to reach a gargantuan Rs.1.5 billion for the same 9-month period mentioned previously. And now, according to the most damning statistical research by Wharton analysts, because of over-crowding of too many players in this business, a soul stopping 70% of the malls will horribly fail the test of time. KSA Technopak is more lenient in its report which mentions that while about 600 malls will be built by 2010, 50% of those will make losses! Even a report by Jones Lang LaSalle Meghraj Research projects that 90% of Indian malls fall below international standards. And the report states that, “many will fail the test of time as more choice becomes available for the Indian consumer, who will become increasingly discerning...”
For Complete IIPM Article, Click on IIPM Article
Source: IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
IIPM, Business College Ranking India BBA Institute India, IIPM IIPM - Nikhil Khade Online Welcome to 4Ps Business and Marketing The IIPM Think Tank IIPM New Delhi India Professor Arindam Chaudhuri, Renowned Management Guru & Economist IIPM Info Planning and Entrepreneurship Programme, IIPM New Delhi, India Business And Economy IIPM Placements New Delhi, India IIPM Business Management Institute India
.
reports from consulting firms talking about how footfalls would convert into purchases simply have turned out to be balderdash, what with a massive number of people visiting retail malls simply for the ‘experience’ of it, rather than to purchase anything. An analyst on Pantaloon’s panel himself confirmed to us, “Yes, there are high footfalls in malls; but actual shopping does not take place.”Worse, with more & more competition, costs are expected to increase prohibitively, eating away customers & margin figures. Think about it. Biyani’s company’s manpower
costs have risen by a whopping 118% to reach a gargantuan Rs.1.5 billion for the same 9-month period mentioned previously. And now, according to the most damning statistical research by Wharton analysts, because of over-crowding of too many players in this business, a soul stopping 70% of the malls will horribly fail the test of time. KSA Technopak is more lenient in its report which mentions that while about 600 malls will be built by 2010, 50% of those will make losses! Even a report by Jones Lang LaSalle Meghraj Research projects that 90% of Indian malls fall below international standards. And the report states that, “many will fail the test of time as more choice becomes available for the Indian consumer, who will become increasingly discerning...”For Complete IIPM Article, Click on IIPM Article
Source: IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
IIPM, Business College Ranking India BBA Institute India, IIPM IIPM - Nikhil Khade Online Welcome to 4Ps Business and Marketing The IIPM Think Tank IIPM New Delhi India Professor Arindam Chaudhuri, Renowned Management Guru & Economist IIPM Info Planning and Entrepreneurship Programme, IIPM New Delhi, India Business And Economy IIPM Placements New Delhi, India IIPM Business Management Institute India
.
