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A Study of the That Influence Customer Preference for Shopping Malls over

Local Markets by Dr.Mahboob ali khan Phd

Article excerpt

Shopping malls are the most happening places these days where people spend

their weekends to relax and shop. With the changing tastes and preferences of

customers, shopping malls extend a global impact across metros, cities and

towns. In this scenario, it is necessary to understand the preferences of youth,

and the factors that govern them to visit shopping malls. The study was

conducted on Hyderabad youth and the analysis revealed that shopping malls

with their modern culture and environment have become a convenient hangout

for the youth.

Introduction

Shopping malls are gaining importance as places of recreation, apart from the

experience of shopping, for many in metros and cities. They have become

onestop solution for various needs of the customers-from entertainment to

buying daily groceries. Though they are considered expensive, the recent

competition among retailers has lowered the prices of all products, thus making

it easier for the common man to shop as well. Shopping malls have become

vibrant and attractive places where people end up buying things at random

(Roy, 2011). This kind of shopping has become part and parcel for many due to

their busy schedules and ease of buying everything under one roof.

The retail sector in India is growing at a phenomenal pace. According to the

Global Retail Development Index 2012, India ranks 5th among the top 30

emerging markets for retail. A recent announcement by the Indian government

regarding Foreign Direct Investment (FDI) in retail, allowing 100% FDI in

single brand retail and 51% FDI in multi-brands retail, has created positive

sentiments in the retail sector. The Indian retail industry has grown at a CAGR

of 14.6% for the period FY 07-12(p). The said growth can be attributed to the

growing Indian economy, increase in Private Final Consumption Expenditure

(PFCE) and the change in the consumption pattern of the Indian populace. The

changing consumption pattern, in turn, primarily remains driven by higher

standard of living, growing middle-class population, greater proportion of

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working women, increase in penetration levels of organized retail, etc. (Credit

Analysis and Research Limited, 2012).

According to Wikipedia, a shopping mall is one or more buildings forming a

complex of shops representing merchandisers, with interconnecting walkways

enabling visitors to easily walk from unit to unit, along with a parking area-a

modern, indoor version of the traditional marketplace

(http://en.wikipedia.org/wiki/Shopping_mall). Shopping malls are usually built

in an area of 80,000 to 350,000 sq. ft., and consist of around 200 shops in India,

and more than 200 in many parts of the world. With the advent of players like

Future Group, Pantaloons, Lifestyle, Crossword, etc., the organized retail is

creating a new image for itself. The organized retail sector has been expanding

at a faster pace since 2002 with the establishment of many malls even in two-

tier cities. There are around 450 shopping malls in India now, and the number is

expected to reach 1,000 by 2020. Though at a nascent stage, the mushrooming

of shopping malls shows their increasing importance in India. Against this

backdrop, this study was conducted to understand why people prefer to visit

shopping malls.

Review of Literature

The concept of 'retail as entertainment' came to India with the advent of

shopping malls. The shopping mall culture has touched every facet of the Indian

society. Malls make no distinction in proffering the most-revered national and

global brands, irrespective of the income strata of the consumers. Malls have a

whole bank of lifts and escalators for smooth transit of shoppers. The future of

organized retailing is largely in the hands of shopping malls where the shoppers

get quality, quantity, aspirational appeal, recreation facilities and ambience. A

shopping mall reveals six factors: comfort, diversity, luxury, mall essence,

entertainment and convenience .