The evolving consumer spending patterns and increasing disposable income levels are lending support to MMR’s growing retail market, which now sits at Rs 1.05 crore. The industry offers big opportunities to retailers in three different categories- apparel, entertainment and food & beverages.
Mumbai’s competitive retail environment has prompted developers to re-strategize and transform mall developments by undertaking new initiatives. Retailers are experimenting with different brands having high recall value in varying segments like food & beverages (F&B), apparel and entertainment to re-size the retail spaces inside the mall.
According to a report by Knight Frank, “The modern retail potential is to surge from current 13.5% to 50% by 2036. Fashion, entertainment and food & beverage are three retail segments that will fuel the retail boom.” Malls like Inobrbit, makes conscious effort to place the fashion retail outlets across footwear, accessories and apparels on the ground floor to attract the shoppers.
Factors driving Mumbai’s retail growth
According to Vivek Kaul, Head Retail Services, CBRE South Asia Pvt. Ltd, “As Mumbai is a melting pot, there are two primary factors responsible for the retail surge here – changing buyer behaviour and cultural diversity."
The change in the need, attitude and behaviour of the buyer clubbed with rise in income levels, education and global exposure have evolved the shopping habits of Indian middle class.
Furthermore, the cultural diversity of Mumbai, including people not only within India but also from abroad is pushing its retail growth. The retail landscape of the city is growing well to accommodate the increasing needs of both national and international consumers. In addition to this, online shopping has become the buzz among consumers, considering the paucity of time and travel constraints.
New malls in the city
Cities are exhausting and peripheries are expanding. Due to dearth of land availability within the city, Mumbai will witness construction of only two new malls in Bandra-Kurla Complex (BKC). Other developments are planned in the peripheral suburbs of Navi Mumbai, Kalyan, Thane and Vasai. The commercial developments in the city will also include some retail components, shares Kaul.
Mumbai’s daily needs (supermarket) potential is pegged at INR 588 bn and F&B category market potential is INR 70 bn. The island city has the highest potential for modern retail penetration in the apparel category. Andheri and Borivali zones together have the highest annual modern retail penetration of INR 178 bn.
Creating demand through F&B and entertainment hubs
Food and beverage
F&B has evolved as a lucrative segment that has increased the footfall of the malls. With an intent to earn high revenues, malls are leasing out prime spaces on the ground floor to F&B brands. They are increasing the range of cuisines offered in different formats including casual dining, fine dining and quick service restaurants. Sports bars, bakeries and cafes have started occupying more space in the malls these days.
Entertainment hubs like bowling areas, golf simulators, and multiplexes act as a major pull. Malls are creating more space for entertainment areas both indoor and outdoor. An edutainment theme park opened in R city mall, Ghatkopar is an example of innovation in the entertainment segment done by the developers.
E-tailing is the new trend
As bricks and mortar stores have limited visibility, another innovative strategy adopted by the retailers is e-tailing. With popularity and success of online shopping, retailers are making use of technological advances and upgrades for customer retention to keep their business alive. However, both retailers and mall owners know that it is difficult to challenge the e-commerce players. Thus, mall developers have started focussing on community based events like food festivals, car sales events, indoor games and discount deals as they ensure heavy footfall from the youth.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. 99acres does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.