HOLIDAY SEASON MALL-CRAWL

Out of habit, for the past two decades or more, I have been doing my own understanding of the retail scenario by spending few hours a week sitting at coffee shops, walking the aisles, standing opposite popular stores, just to get a first-hand feel of the buzz and energy. For? me, this exercise is not only therapeutic, it also helps in gauging the energy levels of the mall traffic, the store assistants, cashiers and promoters of various brands.

I decided to do the same this holiday season by visiting an extremely popular mall.

In an age which is being characterized by very rapid urbanization, changing economic landscapes, an age where consumer preferences are rapidly changing and evolving, shopping malls continue to play an extremely vital role as vibrant hubs. These hubs not only cater to retail needs of consumers, but also act as destinations where friends and families spend interaction time with each other, indulging in more activities than just shopping.

The apprehensions that brick and mortar retail would have a serious setback post covid have all been laid to rest. This was clearly visible in the five hours I spent at this mall. For the last two plus decades, I have been closely involved in witnessing and experiencing all the highs and lows that come with malls and the world of brick-and-mortar retail.

Shopping malls are now a complex ecosystem in themselves. Yet the enduring allure of malls lies in their ability to provide more than just a place to shop. It is indeed fascinating to realize that the shopping mall business contributes significantly to economic growth of many metro cities, and the creation of employment opportunities in large numbers. In cities like ours which are major tourist destinations, reputed malls have become a must-visit destination.

Our region has relatively high purchasing power. Technology, education, access to loads of information, access to international trends and brands is driving powerful trends in consumption at the premium level for now. Income growth, media proliferation and access to easy credit has spurred the aspirations of younger customers who are also becoming more finicky and eco-conscious.

It is clearly visible that many brands that started as online-only brands have felt the need to pivot to an omni-channel or online-offline approach. Such brands have realized that to expand on scale, to have proper product and demonstration capability and visibility, to create the touch-and-feel, an offline presence becomes essential. Very pleased to see this trend growing.

The parking was almost full. People were all dressed up in their best, many in their festival attire while others were wearing cool, summery clothing. Restaurants, coffee shops, food courts were bustling with activity. The hypermarket was busy. Mid-range brand and apparel stores had good traction. Electronics stores were actively busy. Premium stores were quieter.

High net-worth individuals in this city travel a lot internationally. One keeps hearing from them that prices in Europe and elsewhere are far more competitive where high end brands are concerned. Also, when these individuals shop abroad and at better prices, they have a lot more to talk about in their social circles and gatherings. The high-end brand stores in this mall had more customers who looked like tourists than like local residents. If this anomaly needs to be corrected, brand agents and distributors would need to get back to the drawing board and re-think their pricing strategies. It would also help in bringing down the problem of the gray business.

To me it appears that the combination of online retail and organized brick and mortar are likely to grow at the expense of the unorganized retail or the souq stores. Over time, the unorganized retail and souq stores would start getting confined to certain categories of goods and products, and may have already started increasing their share of buying from gray. To stay competitive, small businesses may need to embrace technology, such as e-commerce platforms and digital marketing, to reach a wider audience. They can also focus on providing specialized or niche products and services that may not be available in larger retail establishments. Additionally, fostering a strong sense of community and offering personalized experiences could help small businesses thrive in an increasingly competitive retail landscape.

I get this feel that with the mall ecosystem in place, mall developers are vying to get the best retail partners in the malls to complete the experience. Since mall-crawling is now an almost half-a-day or more activity for families and tourists, its visible that those malls which are providing an all-round experience have better traction in cities like ours.

Brick-and-mortar may go through its lows like any other business. But in our part of the world, its here to stay. Landlords and retailers would need to be cautious to ensure that greed does not become the key reason for the format to lose out.