Typical PhD Thesis Layout

Note: Should have an odd number of chapters, between 5 and 9. Abstract 1. Introduction Set the scene and problem statement. Introduce structure of thesis, state contributions (3-5). 2. Background Demonstrate wider appreciation (context). Provide motivation. The problem statement and the motivation state how you want the PhD to be judged - as engineering, scientific method, theory, philosophy, &c. 3. Related Work Survey and critical assessment. Relation to own work. 4-6. Analysis, design, implementation and interpretation of results 7. Critical assessment of own work State hypothesis, and demonstrate precision, thoroughness, contribution, and comparison with closest rival. 8. Further Work 9. Summary Conclusions Restate contribution Appendix Bibliography

EMERGING TRENDS OF RETAILING IN INDIA WITH SPECIFIC REFERNCE TO JABLAPUR REGION CONTENTS 1) ABSTRACT 2) INTRODUCTION OF RETAILING 2.1 CONCEPT OF RETAILING 2.2 TYPES OF RETAILING 2.3 AREAS OF RETAILING 3) RETAILING IN INDIA 4) TRENDS OF RETAILING IN INDIA 5) TRENDS OF RETAILING IN MADHYA PRADESH 6) TRENDS OF RETAILING IN JABALPUR 7) ANALYTICAL STUDY OF TREND 8) ASSESSMENTS AND REPORTS 9) SUMMARY AND CONCLUSION APPENDIX BIBILOGRAPHY

INTRODUCTION The term retail comes from the French word retailer which refers to cutting off, clip and divide in terms of tailoring (1365). It first was recorded as a noun with the meaning of asale in small quantities in 1433 (French). The term Retailing refers to any activity that involves asale to an individual customer. 2 RETAIL PRICING Themostpopulartechniqueemployedbytheretailersisthe costplus pricing.Thisinvolvesaddingamarkupamounttotheretailerscost. Anotheroneischargingtheamountsuggestedbythemanufacturerandusuallyprintedbytheman ufacturerontheproduct.ThisiscalledRetailPricing Mostofthetimes,thepricesarefixedanddisplayedonsignsandlabelsotherwisetherewillbeprice discrimination. Retailersmayalsoresorttosaleswhenoverstocked,or needtoraisecashtorenewstocks. 11 PURPOSE OF THE STUDY Modern retailing is fiercely competitive &innovatively oriented. It is populated by an ever-going variety of institutions & constantly buffeted by a highlyfluid environment. The purpose of this study is to describe some of the more significant competitive developmentsthat have made retailing so volatile & toillustrate how some of these developments haveaffected the marketing channels in whichretailers participate. 12 SOME RECENT HAPPENINGS IN RETAILSECTOR Sunil Mittals Bharti signed a pact with Wal-Mart.

One of Asias top retailers and the worlds largest inthe health and beauty segment- AS Watson Ltd. partof Hutchison Whampoa has zeroed in on Dubai-basedLandmark for an Indian entry. Reliances Mukesh Ambani also has set investment of Rs. 25000-crore in retail sector. Birla also has a plan of investing Rs. 15000-crore inretailing. Trent, the Tata groups retail venture, is negotiatingwith international biggies for a tie-up in itshypermarket format. 13 C ONTD Star Bazaar India which is currently present only in Ahmadabad has booked 15 lakh sq foot of spaceacross the country, mostly with real estate developerDLF. The Tatas are separately using another groupcompany to talk with Woolworth for entering thegrocery segment. Tata sons has a tie-up with Australia-based Woolworth under the Infiniti brandfor setting up a chain of retail consumer electronicsstores. New York-based high-end fashion retailer Saks Fifth Avenue has tied up with DLF Properties to set upshop mall in New Delhi. 14 THE INDIAN STORY 10 th largest economy in the worldbased on GDP. Real estate sector is growing at 30% per annum& is one of the largest employer. Residential market is 80% of the total real estatemarket. India is ranked the 5 th largest retail destinationacross the globe. Globalization of Indian economy. The total retail stock in India at the end-1Q09stands at 34.8 million sq ft (3.2 million sq m). 15

INDIAN RETAIL SCENARIO Total private consumptionexpenditure in India-375 billion USD. Retail sale 205 billion USD (55%). Organised retail-8 billion USD (4%). Retailing 35% of GDP. Outlet estimates over 12 million. Formats only 4% larger than 500 sq ft. Second largest employer after Agriculture. 16 EMERGING RETAIL TRENDS: o Discounters will steal a march over the foodretailers o Preponderanceofwebdrivensourcing o HighuseofW-LANinstore Mobile POS terminals. Mobile information Kiosks. Better store space management. o Aislecheckouts o HighuseofadvancedcommunicationstechnologylikeAT M ,FrameRelaybyretailers 17 FUTURE CONCERNS 68 million square feet of mall space is expected to beavailable by end of 2007, which might lead to over-capacity of malls Lack of differentiation among the malls that arecoming up. One option may be to look atspecialization.

Poor inventory turns and stock availability measures- retailers clearly need to augment their operations. Operations of retailers and suppliers are notintegrated. Efficient replenishment practicespracticed in the Indian auto and auto-componentindustry can be leveraged to implement efficientsupply chain management techniques. 20 CONTD Supplier maturity, in terms of adherence todelivery schedules and delivering the quantityordered, is an issue Sales tax laws - lead to retailers having state-level procurement and storage leads to Indianretailers having higher inventories. VAT hashelped alleviate this a bit. Increased adoption of IT and shrinkagemanagement will be a critical area. Supply chain and customer relations followed bymerchandising, facilities management andvendor development are areas which havesignificant gaps and proactive training is a keyimperative for overcoming these. 21 CONCLUSION The Retail Industry in India has come out as one of the most dynamic and fast paced industries withseveral players entering the market. But all of them have not yet tasted success because of the heavy initial investments that are required tobreak even with other companies and compete withthem. The India Retail Industry is gradually inching its waytowards becoming the next boom industry. Favourable government policies and continuedgrowth will mean that the future belongs to the mostaggressive players. 22

Cover Story MALLING OF INDIA Introspection before the take-off By G D Singh Over the last couple of years, reams have been dedicated to comparing notes on the sostyled "malling of India", and rightly so, as projects yielding nearly 40.9 million square feet of quality retail space by end-2006 were announced in a flurry and a good part did come up, impacting consumers' lifestyles in a big, big way. But now, after the engine of growth has got warmed up, the brakes suddenly seem to have been applied. A recent study by global retail and real-estate consultant Chesterton & Meghraj suggests that only 77 of the 277 or more malls expected to be opened by 2006 are genuinely in construction stage. At this rate, only half the planned space would be available by 2006, just enough to accommodate the expansion plans of some of the country's major department store and exclusive brand chains. The debate now is, therefore, to shift from finding ways and means of managing a situation of over-supply of mall retail space to that of space shortage. That may be the ground reality, and that may not be the final truth as well. Many of the malls that have already come up or had been conceived or planned are stereotypes. Considering the level of investment involved in mall-making, it is imperative that serious planning go into the conceptualisation of the mall - in its designing and its whole orientation. Malling is a serious business and developers seem to have realised this, albeit after the initial hit. This lull, then, may just be a brief period of introspection, planning and re-orientation before the storm sets in. We might soon see brand new concepts in specialty malls emerging to tap the vast market potential to the full. IMAGES Research focuses on presenting the retail and mall development scenario across India's major centres through this mid-term appraisal, painting the picture as it is, as it unfolds. The shopping-centre boom has started nearly a decade after the first signs of its evolution showed up in the 1990s, in the form of Spencer Plaza in Chennai. While previously it was the large organised retailers, with their glitzy shops and direct consumer interface, that had been in the limelight as a key factor driving the growth of organised retail in the country, now it is the malls, which numbered at a paltry three until as recently as year 2000. With high novelty value, malls are almost becoming a status symbol for Indian consumers, and in the process generating substantial excitement and curiosity among them. There is an increased demand for high-quality retail space from a varied segment of large-format retail chains and brands, which includes food and apparel chains, consumer durable companies and multiplex operators, among others. Malls have attracted many real-estate developers and corporate houses across all large and mid-size cities. Market potential The pace of development is gigantic and organised retailing in the country has shot past the Rs 200-billion mark (USD 4.5 billion) and thats just about two per cent of the total

retail sector in India, a sector that is growing at the rate of 8.5 per cent per annum. It means there is a whole Rs 9,800 billion (about USD 225 billion) worth of retail market waiting to be tapped by the organised sector. More so, according to Anuj Puri, CEO, Chesterton & Meghraj, The organised market is expected to grow 15-fold by the year 2010, pushing up its share to 20 per cent of the total retail market. Growth of organised retail naturally has a deep bearing upon the prospects of the countrys economy as a whole. On the global plane, profits in retailing have been rising and the sector is currently generating about 18 per cent shareholder returns, which means it is even outperforming sectors like banking and insurance. In India too, retail sales form a significant component of the countrys GDP and the industry is the largest employment generator after agriculture (nearly 7 per cent of the countrys workforce), though the share still remains far below its true potential. Luckily, however, current retail developments suggest that the share is likely to increase over the next few years. With over Rs 17 billion worth of retail businesses getting into the organised fold each year, the industry is expected to recruit about 250,000 people directly and almost 8-10 times that number in related supply-chain areas over the next few years. Also, organised retail is a large employer of women, people requiring part-time employment, the youth, and people with limited educational qualifications. The development of malls would therefore increase consumers income through more employment opportunities and help lower prices, as well as increase consumer spend and tax collections. Scale advantage and superior operations would allow modern largeformat stores (hypermarkets, for instance) to be 35-40 per cent cheaper than the traditional formats, and this would in turn fuel consumer spends. Studies done in the specific field indicate that there is potential to improve productivity in the sector by 250 per cent. Sophistication of formats Over the last three years, the original pioneering formats (supermarkets, department stores) have seen continued growth and an increase in sophistication. Each of these has seen the pioneers establish multi-geographic presence and stabilise operations, often also beginning to demonstrate success in managing multi-formats. Some of these players (e.g., RPG Retail, Pantaloon Retail, Shoppers Stop) have breached the USD 50-million mark and continue to grow rapidly. Alongside, the growth of the newer innovative lifestyleoriented retail outlets is also remarkable. These include new formats in fast food/catering (the likes of Caf Coffee Day, McDonalds, Bombay House), specialty apparel (Will Sports, Provogue Lounge, Planet Fashion), convenience stores (In & Out), and jewellery and furniture (Tanishq, Intergold, Gautier, Living Room), all of which reflect the emerging maturity and spending power of the Indian consumer. A recent development is a slew of sophisticated pharma retail chains like Medicine Shoppe, Pills & Powder and Trust, which have revolutionised the way health and beauty products are sold. Trust is a chain of air-conditioned pharma chains that keeps complete track of each of its customers and also provides doorstep delivery, but always insists on authentic medical prescription before disposing, a novel way of promoting best retail

practices. As this concept catches on, Indian consumers will be relieved of the agony of standing on the pavement to collect their medical purchases. In addition, we find that leading retailers such as RPG Group (Giant) and Pantaloon (Big Bazaar and Central) have completed successful pilots with the big box hypermarket format and are in rapid expansion mode. Dubai-based Landmark Group, which thus far had been content with its smaller LifeStyle department stores, is also on to the hypermarket bandwagon. Growth of modern shopping centres Traditionally, shopping centres are peculiar to the high-street markets. Each part of the city, whether it is close to the central business district (CBD), prime residential locations, or suburban developments, has its own high street. The typical tenant mix here includes a convenience store, sweet shop, dry-cleaner, tailor, beauty parlour and other assorted services, with an average outlet size ranging from 150 square feet to 800 square feet. Community centres comprise the second level of prominent shopping centres, and are also developed by the local government. These are plazas with eating outlets, a few apparel stores, some provision for parking, and occasionally a cineplex. The total built-up area ranges between 10,000 square feet and 60,000 square feet. Some such centres in Delhi (e.g., Saket and Vasant Vihar) have received a facelift over the past few years. In any case, the previous three years have witnessed radical changes in the development of shopping centres. Indian real-estate developers picked up models from the West, changed them to suit the Indian context, and skipped a number of stages to arrive at home-grown prototypes. Based on tenant mix, two major formats of development have evolved in Indias organised shopping-centre landscape: malls and family entertainment centres (FECs). On the basis of variations in space planning and scale, a third segment of hybrid centres is also emerging. Malls Notwithstanding the epithet, in characteristics, these centres differ from counterparts in the West as indigenous factors such as availability of physical space, population densities, city planning and socio-economic parameters have driven the Indian market to evolve its own definition of a mall, at least to an extent. For example, while typically a mall in the United States is 400,000 square feet to one million square feet in size, an Indian version can be anywhere between 80,000 square feet and 500,000 square feet. Although the primary purpose of a mall is to cater to the retail requirements of its clientele, entertainment-related components are occasionally thrown in to provide a complete shopping-and-entertainment experience. Family entertainment centres These usually have a large entertainment component (multiplex, bowling alleys and other games, etc.), a number of eating outlets, and a small percentage of space devoted to retail. The primary purpose of an FEC is to cater to the entertainment requirement of customers and some retail activity is thrown in to add vibrancy to the environment and cash in on

the footfalls. Fun Republic at Andheri (Mumbai), measuring 100,000 square feet, has a four-screen multiplex as the anchor tenant and over half a dozen food-and-beverage (F&B) outlets. The retail component includes a shoe store, a perfume shop, a jewellery outlet, an optician and a music store. Overall, the development has only 30 per cent of its space dedicated to retail. Hybrid centres New mall developments including The Forum (350,000-square-foot built-up area) in Bangalore and Nirmal Lifestyle (500,000 square feet) in Mumbai can be classified as perfect examples of hybrid centres, where the project is a combination of large anchor tenants with the remaining retail space sprinkled around a large open plaza. At Forum there is a large entertainment component, a 9-screen cineplex, and a whole lot of indoor entertainment, amusement park and, of course, eating joints. The mall-designing as well as consumer circulation within the mall are all fine-tuned to allow retailers maximum exposure. Stages of evolution One unique feature of Indian retailing is that different markets are at different stages of growth. Therefore, tracking closely the stages in growth and evolution of organised retailing itself can best make a roundup of the various stages of development of Indias malls. 1. Evolution: This stage is marked by the development of the countrys first malls Spencer Plaza in Chennai, Crossroads in Mumbai and Ansal Plaza in Delhi that together account for a total built-up space of approximately 650,000 square feet. Lifestyle retailing finds prominence in these malls. In the case of Spencer Plaza, the space is outright leased off to tenants/retailers with little control for the mall management. 2. Acceleration: Beginning 2001, shopping-centre development picked up in a big way, especially after the market was witness to the success of the first few malls. Enthusiastic developers announced mall projects in every conceivable format, at every available location. Retail development was suddenly seen as the next real money-spinner, especially in comparison to residential or office developments. Changing consumerexpenditure patterns and the growth in the number of organised retail chains further fuelled this boom. Large realtors and corporate houses came in to cash upon the potential. By end-2003 there were 25-odd malls operational in the country, though they were all limited to the six major (A Grade) cities, and the total space came to about 5 million square feet. If ongoing project announcements are to be considered, the total mall space in just the seven major cities (NCR and suburbs, Mumbai and suburbs, Pune, Chennai, Kolkata, Bangalore and the twin cities of Hyderabad-Secunderabad) will touch 40.9 million square feet by year 2006. These centres account for more than 61 per cent of the total number of mall projects announced. In the initial acceleration phase, most developers were able to sell 50-70 per cent mall space prior to, and also during, the construction phase and generate the requisite funds. We have a fine example in the Garuda Mall in Bangalore, a joint project between the city development authority (BDA) and realtor company Euromer Garuda Resorts, wherein the

management claims to have sold off the entire space even before the completion of construction work. While these may be exceptional cases of good planning, the location of the project also plays a considerable role in the successful selling of space. In the same city there are other completed projects that are having a tough time getting brands and retailers take up space. Since most of the developers are joining the bandwagon sans the required planning, a lot many projects lack clear positioning, proper space planning, adequate infrastructure, parking, and an understanding of the basic principles of mall management. Understandably, there are apprehensions about the success rates. 3. Saturation: The third stage in mall development, of saturation, is still a thing of the distant future. Even if we find that domestic retailers have exhausted their appetite for space expansion within malls, there is always the scope for allowing foreign direct investment (FDI) to come in and explore the market further. But, saturation already? This is what it looks like to most market watchers. It can be debated whether certain pockets in the Indian market are moving towards a stage of saturation, marked by an oversupply of mall space and low absorption rates. To illustrate, Gurgaon on the outskirts of the national capital Delhi and with a population of 1.8 million, is expecting some 4 million square feet of retail space by 2006, and so, would appear to be headed towards a stage of saturation in mall space. But is that so? Not really. Going by the recent Chesterton & Meghraj study findings, over 72 per cent of space in the 20 malls coming up this year has already been leased to anchor and smaller vanilla retailers. For malls that will be operational in 2005, 48 per cent of the available space has already been booked, while in the malls completing in 2006, 32 per cent of the area has been pre-leased by the anchors. However, as Anuj Puri rues, When we go out shopping for retail space in malls for our clients, there is just not enough good property available. As per the study, the actual availability of mall space in the next two years will be 9.5 million square feet. Going by the plans of key Indian anchor retailers like Pantaloons, Shoppers Stop, Westside, Piramyd, LifeStyle, Ebony and Globus, and also the multiplex operators, the total available space is less than the requirement of just these key retailers, the study states. This also puts to rest the notion that slackness in demand for retail space within malls is because we have only a handful of brands and anchor tenants available in the country, and that growth rate is therefore faster than the demand generation from the retailers end. If that was the case, we would not have witnessed the advent of the next-generation malls, among these Inorbit and Nirmal Lifestyle in Mumbai, and the proposed Unitech Great India Place and Expo Mart in Noida, and the 1.4 million-square-foot Mantri Group project in Bangalore all gearing up to provide a one-stop feel in a world-class ambience. The problem arguably lies in faulty planning and management of malls. Kishore Biyani of Pantaloon Retail feels the pullback is on account of retailers turning cautious, mainly because of the anxiety about high footfalls that fail to generate equally high selling. He

says, Retailers want to see if the big investments in malls make business sense before they invest. Wither saturation? Throwing to the winds all conjectures of saturation in mall space is a recent announcement by Delhi-based construction company, DLF Universal, of setting up 18 malls in different parts of the country in the next two years. An investment of Rs 1,000 crore has been earmarked for the same. Success of its ongoing projects in the NCR has prompted the company to look up places in Kolkata, Mumbai, Bangalore Ludhiana, Chandigarh and Jalandhar. Five of the proposed malls will be in Delhi (Saket, Shalimar Bagh, Mayur Vihar, Greater Kailash and Vasant Kunj) and there will be one super-mall (one-million-plus square feet with multiplex, food courts and restaurants) each in Gurgaon, Noida, Mumbai and Punjab. We see tremendous potential in retail and we could have as many as 50 malls in the country in the next five years, proclaims Pia Singh, director, DLF Universal. She is convinced that malls are the future destination for family outings in the country. Fact of the matter is that if mall space cannot sell, it is because mall developers have not been able to get their act together on account of a variety of technical reasons. With organised retailing constituting only 2 per cent of the total retail market, there is room for much more. Mall positioning has to be right, and specialty malls form a ripe consideration. Try the specialty route Differentiation is a key word for success in any business. Malls can differentiate with respect to retail/service mix, ambiance, design, target consumer segment, and anything else that can be imagined. Thus, we can sooner expect to have jewellery malls like Gold Souk, auto malls (a concept Images Retail highlighted in early 2003), electronic appliances malls, malls exclusively for women and kids, seconds or factory outlet malls, furniture malls, wedding malls, and the like. In order to survive, malls will need to cater to specific segments, says Rohit Gera, director-operations of Pune-based Gera Developments, which has re-branded its 25,000square-foot mall as Fashion Zone. The mall will only cater to the needs of female customers. The complete transition may take another year or so, Gera says. Similarly, there is the Prestige Group-promoted Forum Retail Park in Bangalore, which will house only factory-outlet stores across brands and products. A specialised mall will connect to the customer predominantly through the value proposition, says Suresh Singaravelu, chief executive, The Forum. The group is also conceptualising a gender unneutral mall, called Eva, targeted at women of all age groups. Singaravelu is of the view that specialty malls also score over general content malls in terms of catchments area: The catchments for general malls will be just about five kilometres, whereas for speciality malls it will be well beyond 10 kilometres. The Senior Auto Mall in Gurgaon aims to be a one-stop mall for automobiles and anything related to it, including loans and insurance. Senior Builders is also developing a 300,000-square-foot Senior Circuit City, a mall catering only to electrical consumer

durables. These malls dont just save time for the consumer, with various brands positioned under one roof; they will also reinforce competition, which will finally benefit the consumer, says Vijay Dixit, CMD, Senior Builders. However, conceptualising a specialty mall calls for intensive as well as extensive market research. Specialty malls will thrive provided they take into consideration parameters like consumer preferences, behavioural patterns, consumers level of exposure to media, and lifestyles, says Manoj Motta, head, retail and leisure property services, Knight Frank India. Specialty malls are expected to usher in more organised environments by clearly demarcating product and service offerings, and making shopping a more pleasant experience for the consumer. Finally, just as fashion tends to move in a circle, specialty malls will create exclusive shopping zones similar to the traditional markets like Zaveri Bazaar in Mumbai or Parrys in Chennai. Mall developers will thus have to redefine their objectives and reposition themselves to a select audience. With competition building up, they may have to reposition themselves as specialty malls, local malls, regional malls, discount malls, or destination malls. When the larger cities are exhausted, there is ample scope for further development in the smaller cities, towns, and even in rural areas! Goldmines all the way Even as retailers and realtors vie for a slice of the metro cake, tobacco major ITC has soft-launched its first rural mallan extension of its e-Choupal. Spread across 5 acres of land at Sehore in Madhya Pradesh, reports suggest that the mall is already registering about 700-800 footfalls on weekdays and 1,000 on weekends, with conversion levels of 35 per cent. ITC has plans to set up 50 such malls over the next 12 months, at an investment of Rs 2 to Rs 4 crore for each. The ITC mall sells everything that a rural consumer may ask for at the price points of their choice saris, kurta-pyjamas, shirts in the range of Rs 99-Rs 500, footwear, groceries, electronic durables (TVs, microwaves), cosmetics and other accessories, along with farm requirements like seeds, fertilisers, pumps, generators and even tractors, motorcycles and scooters. We have tied up with Bharat Petroleum Corporation Ltd (BPCL) for a fuel pump, and there will also be a cafeteria, a privately operated primary healthcare facility, and banking facilities, informs S Sivakumar, CEO of ITCs international business division. 4. Consolidation: Most mature markets have gone through this stage of mall development. In the United States, up to one-third of the nations 1,200-plus malls are already obsolete. Following a decade of consolidation, the 10 largest mall real-estate investment trusts now control 47 per cent of all malls, which includes almost all of the 200 high-performing ones. Supply of retail space Mall development in India is passing through a decisive stage. We have mentioned the 40.9 million square feet of total space coming up in the seven major cities by 2006. Add to it the expected supply in B Grade cities like Jaipur, Ahmedabad, Lucknow, Nagpur,

Indore, Ludhiana, Nashik, Agra, Thiruvananthapuram, Kochi and Mangalore, and the total would well exceed 50 million square feet. At the same time, we find that project implementation has slowed down, possibly due to introspection by developers, trying to figure out more sustainable models to proceed with. The ultimate outcome, whether there will be a further boost to malling activity or a gradual slowdown, will actually depend on the performance of some of the innovative mall concepts likely to make a debut within the next one year. As per the announced projects, distribution of mall space among the major seven centres between 2003 and 2006 shows that Mumbai remains the dominant supplier till 2004. The National Capital Region, however, is all set to take over the leadership with a total mall space of 16.7 million square feet by 2006. Chennai, which introduced the mall as well as organised retail concept in India, is gradually losing its share in the overall pie as no substantial projects have been announced thus far. Mall activity has picked up in Kolkata, which is to add 2.5 million square feet over the next two-three years. Pune and the twin cities of Hyderabad-Secunderabad will be adding substantial mall space this year, though their share in the overall proceeds will get slightly reduced by 2006, mainly on account of several mega mall projects coming up in Bangalore and Delhi-NCR. Delhi-NCR and the suburbs Of the total space developed in the National Capital Region and its surroundings, Gurgaon and Noida will account for more than half of the new developments. The next two years will see the localisation of malls, with all prominent city localities likely to have at least one major mall development. However, the suburban markets continue to flourish and incremental supply of approximately 1.8 million square feet by mid-2005 in Gurgaon alone signifies a doubling in market size for retail as compared to end-2003 status. In percentage terms, it is Noida that will see exponential growth with the mall market quadrupling in size from an installed organised format of about 0.75 million square feet to over 4 million square feet, come mid-2006. Developments in Noida include a huge amusement park spread across 140 acres, a project being promoted by Unitech Ltd. The experimentation with specialty malls, including an auto mall and a mall dedicated to gold and jewellery retailing, is also to get tested in the NCR. Suburban Gurgaon and Delhi proper are neck-to-neck, having about 25 projects each in the pipeline. Three of the mega mall projects announced are based on the periphery, mainly on account of paucity of space required for their implementation. DLF Universal is behind one of the projects being implemented in Noida. Its upcoming mall at Delhis Vasant Kunj locality, being constructed over an area of 900,000 square feet, will have an 11-screen multiplex, food courts and restaurants, besides the shopping spaces where customers can look forward to finding fashion brands like Gucci and Cartier, which have thus far been confined within five-star hotels. Besides entertainment, there will also be a spa centre in the mall and space for parking 3,000 cars across two levels. The company has recently announced three new malls in Gurgaon, and one of these is claimed to be among the largest in the world. On the investment side, according to Sanjay Verma, joint managing director, Cushman & Wakefield (India), If one were to extrapolate the supply until end of 2006, then one is

looking at net investment (including land and built-up area) to the tune of approximately Rs 3,300 crore, provided land in suburbs are priced at market rates. It is widely expected that F&B and leisure offerings would continue to grow exponentially and account for as much as 25-35 per cent of all space uptake in the next 34 years. With a large proportion of the incremental growth in retail coming via the mall model, it is expected that organised retail malls would account for approximately 30-35 per cent (by retail space) of the total market share by the end of the decade, for NCR as a whole, says Sanjay Verma. Some of the recent auctions by Delhi Development Authority (DDA) in places like Shahadra CBD, Rajouri garden, Saket district centre and Vasant Kunj have created an alternate supply pipeline of over approximately 3 million square feet, going into 2006end. A certain and evident trend for the NCR is the shrink in catchments in times to come, leading to emergence of regional and neighbourhood malls. The destination malls of yesteryears are going to be pass with a new breed of destination malls taking shape in NCR, says a Cushman & Wakefield study. Mumbai & suburbs Mumbai will have the second highest quantum of mall space in the country by 2006, close to 10.5 million square feet. Most of the suburbs south of Andheri have been refurbishments of existing industrial property, with a few new developments in-between. Quite a few entertainment-related redevelopments are also taking place in the Lower Parel area, while upcoming space in most of the northern and eastern suburbs are greenfield developments. The Tardeo-Lower Parel area accounts for about a fifth of the total supply. Chennai The metropolis of Chennai has the distinction of launching Indias first shopping mall, Spencer Plaza, in 1999. The development is a housing-cum-commercial complex. Since then, however, the city has remained cool to new projects, with just two new additions in the form of a multiplex-anchored centre, Abhrami Mall, and the Ishpani shopping complex. Chennai has the potential to absorb a large amount of retail developments, though announced projects will only fetch a total of 1.22 million square feet of mall space by 2006. Kolkata From about 580,000 square feet of mall space in end-2004, Kolkata is poised to add about 2.5 million-square-foot quality retail space over the next two-three years. Forum and City Centre are the two operational malls, with other developments like Gariahat Mall, Fort Knox and South City Mall nearing completion. A few expected announcements might give a further boost to the malling scenario in the city. Some of

these include: The Homeland (Merlin group), Forum-2 (Saraf Builders), City Centre-2 (Bengal Ambuja), Mani Square, Time Square, Lake Market Mall and one more likely announcement by the Tai Industries group. Bangalore The next two years will see Bangalore crossing the four-million-square-foot mark in the modern shopping-centre segment. Currently the city has one operational mall in the form of The Forum, besides another semi-shopping centre, the 100,000-square-foot Leela Galleria. But with the scheduled completion of ongoing projects by 2006, Bangalore seems ready to lead the organised retail segment in South India. In the overall A Grade city pie, the share of Bangalore will increase from less than two per cent in 2003 to 10 per cent by 2006. Hyderabad-Secunderabad Over the last few years, the capital city of Andhra Pradesh has emerged as a leading centre for information technology-enabled services (ITES) and business process outsourcing (BPO) in India, and this has ushered in a neo-consumer segment associated with the job. Thus far the city had just two operational malls, with roughly 345,000 square feet of built-up space, but the surging demand for quality retail environment has seen several new projects materialising within a short time. From about 910,000 square feet of mall space this year-end, the city is likely to add on another 1.5 million square feet over the next two years. Pune Pune is well on the route to grabbing the maximum attention from mall developers in India over the next few years. Out of the total mall space being developed in the B Grade cities, Pune alone accounts over 40 per cent. This is not surprising, considering the city has the presence of a large number of organised retailers as well as a high number of SEC-A households. A growing IT/ITES sector and the proximity to Mumbai have also helped. The city already has an estimated mall-space supply of approximately 475,000 square feet, which is likely to increase to 995,000 square feet by the end of the current year and another 1.7 million square feet over the next two years. Tenant mix and positioning Typically, in most Indian malls, around 30 per cent of the space is dedicated to the apparel sector and 12 to 20 per cent goes to F&B. The key anchors in malls are department stores, supermarkets, hypermarkets and multiplexes. Over the last two years, prominent department-store chains and supermarkets have generated a substantial demand, occupying over three million square feet of space across the country (by end2003).

Currently, most operational malls are riding on the first-mover advantage and have no clear positioning. Since there are a handful of organised retailers, almost all of the malls have more or less the same set of retailers taking up space. Therefore, if one were to limit the discussion to organised/chain store retailers only, most Indian malls would look and feel the same. However, there are a fewsuch as the Sahara Mall in Gurgaonthat have tried to position themselves to the mid-market segment by bringing in stores like Big Bazaar and traditional Indian F&B outlets like Haldirams. Just as most high-street markets have a clear positioning and a tenant mix complementing it, similarly, once the mall market gets saturated, it will become pertinent for malls to have a clear positioning. This is especially relevant for malls located within a distance of 2-4 kilometres. For example, Sarojini Nagar Market in Delhi has a clear positioning as a value for money centre. Similarly, Hyderabads new address for shopping malls will be Banjara Hills, where six malls are proposed to come up within a distance of two kilometres. In Gurgaon, most of the malls are clustered on the Mehrauli-Gurgaon road, which is one of the primary connecting links to Delhi city. Mall as a retail entertainment destination The multiplex segment is making fast headway as the anchor tenant. As an indication of the growing popularity of multiplexes as tenants in malls, consider this over 42 per cent of proposed and operational malls in Delhi have a multiplex. In a country with arguably one of the largest film industries in the world and limited entertainment options, multiplexes are positioned to exploit the latent entertainment business potential extremely well. Delhi is leading the sector, with over 43 multiplexes to be added to the market by 2005. Specialty malls A few announced malls are differentiating themselves on account of tenant mix. Although such specialty malls are yet to be developed, these have generated substantial interest from retailers and consumers. External recognition Over the last few years, a number of consumer goods companies have created key account management- (KAM)-type roles within their sales organisations to deal with leading retailers, thereby enabling better prices, promotions and service to these players. State governments are beginning to wake up to the potential that modern retail offers towards revenue generation, consumer satisfaction and tourism promotion, besides positively influencing the agricultural value chain by reducing wastage. Some of the state governments, notably of West Bengal and Andhra Pradesh, are proactively reaching out to retailers and helping them establish presence in their states. The potential that the sector offers has received the attention of leading Indian corporate houses and investors, and a number of venture-capital funds are evaluating investment in retail. Key imperatives Listed below are some of the basic challenges that the industry must overcome over the next few years, as it tries to achieve scale and profitability. These include:

 Developers need to invest heavily on market-feasibility studies before jumping on to the mall bandwagon Getting the operations, designing and positioning right Enabling ramp-up through organisation and funding Keeping pace with global evolution Retailers need to fine-tune to achieve true scale within specific locations If and when the industry is opened up for FDI, Indian mall developers and retailers will not only have to get their basic act together, but will also have to match the international standards, especially in value-based retailing, operational efficiency, category expansion and technology and innovation. Conclusion India has been rated as the fifth most attractive emerging market for retail. Over the next five years, the market as also the course of mall development is certain to evolve significantly as brands from cross-sections realise the true worth of setting up shop within malls, which do away with many a problems associated with standalones. Jewellery, for instance, is a segment that will enter the malls in a big way in the near future, for the simple reason that India is one of the largest markets for fashion jewellery in the world at nearly Rs 70,000 crore per annum. Nations that have enjoyed the greatest economic and social progress have been those with a strong and organised retail sector and India cannot remain outside the league for long. Top

Top retail companies in India

A Aditya Birla Retail Ltd. Arcies Ltd. Arvind Ltd B Balaji Distilleries Ltd. Bannari Amman Sugars Ltd. Bata India Ltd. Bharat Petroleum Corporation Ltd. Bombay Swadeshi Stores Ltd. Brandhouse Retails Ltd C Crossword Bookstores Limited D Damas Goldfields Jewellery Pvt. Ltd. E Ebony Retail Holdings Ltd. F Fabindia G Garden Silk Mills Limited Gini Silk Mills Ltd Givo Ltd. Globus Corporation Ltd GR Thanga Maligai Guardian Lifecare Ltd. H Heritage Foods (India) Ltd. I ITC Ltd LRBD K K. Raheja Corp. Kalanjali Arts and Crafts Kirtilal Kalidas & Co Koutons Retail India Ltd. L Levi Strauss & Company Lifestyle M Manipal Cure and Care Pvt Ltd. McDonald's India N Nalli NEXT Retail India Ltd.

Nirula's P Pantaloon Retail (India) Ltd Piramyd Retail Ltd. Provogue (India) Ltd. R RayBan Sun Optics India Ltd Raymond Ltd Reliance Fresh Reliance Petroleum Ltd. Reliance World S Sankalp Retail Value Stores Pvt. Ltd. Shopper'S Stop Ltd Siyaram Silk Mills Ltd Spencer's Retail Store One Retail India Ltd Subhiksha T TCS Textile Pvt. Ltd. (The Chennai Silks) Titan Industries Ltd. Trent Ltd. U Unilever India Exports Ltd. V Vishal Retail Ltd Vivek Ltd. W Wadhawan Food Retail Pvt Ltd. WITCO (India) Ltd. Z Zodiac Clothing Co. Ltd.