Multiplexes are driving the shopping mall revolution

It’s the classical chicken and the egg situation. Do consumers go to see a movie and end up buying stuff at the cinemamultiplex or is the mall a destination in itself, with the cineplex merely being one of the options?

Pramod Arora

They are integral to the success of malls

CINEMA multiplexes are a perfect example of convergence of retail and entertainment across the mall and high-street organised shopping formats. Multiplexes are now proving themselves to be an integral part of a successful shopping mall/center. Symbolic of footfall generator, multiplexes offer an ideal opportunity for shopping-center developers to attract boutique & anchor retailers to their development. Not so long ago, the first cinema multiplex of South East Asia came up in Singapore in 1992 redefining shopping with a confluence of leisure. Today 4 Fs (fun, food, films & fashion) have become a pertinent and a potent mixture to attract discerning consumers who want their needs to be met under one single roof. The young Indian consumer is no longer satisfied by purely spending on basic products and services. They want to spend more on lifestyle products and quality services, which would satisfy their self-esteem, social and self-actualisation needs. Leisure needs are currently manifesting themselves in the desire for a shopping experience, watching movies in multiplexes, lounging, eating out, travel etc. The winning formula ideally should be a true representation of footfall generator & monetiser. Percentages & strike rates may differ (footfalls to transaction) but footfall still is imperative for transaction to happen. As a CII-KPMG study found out in 2005, the presence of a multiplex increases footfalls by a whopping 40-50%%. The key element for the success of a mall/shopping center is its ability to drive footfalls consistently. Every shopping center developers recognises this. No wonder, shopping center/mall developers all over the country prefer multiplexes to occupy their top floors as anchor tenants who would ensure footfalls. The traffic flow & layout of the shopping center/mall is so defined as to ensure that the patrons reach the cinema after experiencing & exploring the retail, food and leisure facilities, thus ensuring success. The potency of the formula can be noticed by the young crowd hanging out in these malls/shopping centers as a everyday habit. The bond is so strong that it represents third space in the life of these youngsters (first being their home, second being their place of work/school/college). Promotional activities like events, contests, star visits, premiers and customer loyalty programmes organised by the mall management and the retail tenants also help such shopping centers/malls to attract higher footfalls. Finally nothing succeeds like success. The author is CEO & president, PVR

Pradeep Jain

Cineplex and retail boom mutually dependent

IT goes without saying that multiplexes have indeed given a new meaning to the age-old concept of shopping in modern India. But to say that the entire retail boom is being driven by multiplexes would be too strong a statement to be made. In my opinion, the multiplex and the retail boom in the Indian context have been mutually dependent. From a mall-developer’s point of view, what is most critical is to ensure the right tenant mix. It’s important that the footfalls and the eyeballs actually get converted to transactions in the shops. Cinema has always been a crowd puller, being one the cheapest avenues of entertainment. However, in case of some malls in the national capital region (NCR), which initially showed an over-dependence on cineplexes, conversions have been as low as 35-40% of footfalls. There aren’t many instances where people go out with the intention of watching a movie and end up making major purchases. On the contrary, the last couple of years have witnessed the evolution of serious and planned shopping in India. Families plan their trip to a mall well in advance. The choice of the mall is based on their budget and requirements. Then, the comforts that a particular mall offers are an important criterion as far as making this choice is concerned. Of late, parking is emerging as an important concern, and malls which do not have ample parking facilities, will eventually lose out. Anchor tenants play an important role in generating an immediate recall for a mall and are one of the most important incentives that a consumer is looking for. The tenant mix should be worked out, keeping the anchor tenant’s positioning in mind. Families, which go out for shopping together, also look out for unwinding options in the mall. There has to be a kids’ zone. Good food joints are also important. It needs to be understood that in the changing socio-economic scenario, the Indian consumer is in a fairly comfortable position to afford all of this at the same time. Disposable incomes are on an all-time high and affordability is not a barrier. The only concern is: value for money. In this context, while cinema does act as an added incentive to shoppers, it cannot be the sole driving force of the retail boom.

The author is chairman, Parsvnath Developers