300 malls by ’06!, says agencyfaqs.
If that sounds like the sign of a healthy economy, read this – The majority in the market believe that most of the shopping malls are likely to suffer from huge losses and those without deep pockets might shut down in the long run. In India, on an average, on a busy weekday, a mall in a prime location attracts 10,000 to 15,000 foot falls which goes up by 75-100 per cent over the weekend. Compare this figure with China where a good mall gets 600,000 footfalls in a day! .
This is not surprising considering that malls are more about hanging-out than shopping. Everytime I speak with young people (interviews / focus groups) about their leisure time activities, mall hopping tops their list – ‘hanging around with friends’ – airconditioned comfort’ – ‘checking out’ – no mention of buying from start to finish. I had written about being Malled in Madras – my experience getting mauled in these huge shopping arcades.
In the 1980’s and early 90’s, computer training centres all over India were doing booming business. Part of the reason was of course the demand for computer training – but the more important sociological factor was that these centres provided a neutral and safe place for boy-girl meetings. Especially in small towns where such social interaction in public was taboo and unthinkable, these centres were ideal meeting grounds – and to top it all, the parents paid for it too… (literally and figuratively too, in some cases)
My sense is that in the 2000’s, shopping malls have taken over these computer centres – sure, coffee shops have sprung up, but can you imagine spending money every day on large cups of tasteless coffee (ok, I drink only filter coffee)?
The other thing is about choice – saturation is the sign of a mature / developed economy – are we even remotely headed there – my guess is not – I was at the My Dollar Store at Centre One in Vashi recently (strangely named for a shop which sells everything for Rs.99 – has the forex scene changed so much when I was not paying attention?) – and there were close to 26 variants of hair conditioner. Most of the ingredients were totally exotic and sounded good enough to eat – or atleast mix into the roti ka aata for additional nutrition and flavour. Peach, butter, honey, milk, apricot, aloe vera, grapes, strawberry, vitamin E, K and any randon alphabet – when faced with such a baffling array of choices, I turn to the familiar and tested (the non dollar store variety) – and I think of myself as a fairly ‘evolved’ consumer…
Is the market (literally) ready for so many more malls? I rate the probable conversion rate at these malls very low – think about how many households you know who window-shop at malls but actually purchase only from the local kirana shops and get their clothes stitched fom their regular tailor – this is the market reality that I have observed…
I check out the latest design from *** and ask my tailor to stitch it exactly like that… Wahan AC ke liye bhi charge karte hain – har cheez ka daam isi liye jyada hai (actual consumer speak)…