‘SETTING UP A CHAIN OF MALLS -

PAN INDIA’

Standing ‘mall’
Industry analysis
"India will be tomorrow what China is today."
 
There are 420 million people under the age of 25 in
India, 22 million people who join the ranks of the
middle classes every year and 67 million who
have an average annual income of 25,000, the
same as in Milan.
India’s middle class population is greater than the
total population of the USA.
These figures alone explain that India has the
highest consumer potential in the
immediate future.  
Industry analysis
 As the contemporary retail sector in India is
reflected in sprawling shopping centers,
multiplex- malls and huge complexes offer
shopping, entertainment and food all under one
roof, the concept of shopping has altered in
terms of format and consumer buying behavior,
ushering in a revolution in shopping in India.
 The trends that are driving the growth of the
retail sector in India are
 Low share of organized retailing
 Increase in disposable income and customer
aspiration
 Increase in expenditure for luxury items
The Vision
Vision: To provide our customer a superior
shopping and entertainment experience.

Our offerings are:

 Shopping arcade
 Gaming arcade
 Eateries and Coffee bars
 Movie Theatres
Strategy - SOSTAC

Situation:

Initially, most malls were

set-up in Metros which has
led to a congestion of
space also leading to this a
level of saturation in the
market. .
The congestion in realty structures in Tier I/ Metros has forced the
governments and many investment companies to seek out for
alternative smaller cities leading to a demand for Tier II and III cities.

Some of these Tier II and Tier III cities are very close to the metros in
proximity.

The proximity ensures that these cities are getting rich in Jobs as
well as disposable incomes.
Strategy - SOSTAC

Situation:
 This is causing the overall spread of malls in India to change, If
development plans till 2007 is studied it shows the projection
of 220 shopping malls, with 139 malls in metros and the
remaining 81 in the Tier II cities.
Strategy - SOSTAC
 Opportunity :
 The situation has led to these Tier II and Tier III cities to
be rich in opportunity for retailing and the entertainment
industry.
Strategy - SOSTAC
 Strategy:

 The objective is to provide the customer a superior experience and

ensure profitability of business.

 There is a need to increase the reach of the network of malls to

ensure profitability on scales. We need to grow to 100 malls within
5 years.

 Most of the malls will be set up in the Tier II and Tier III cities to
take advantage of these relatively young markets.
Strategy - SOSTAC
 Tactics:

 We first set up malls in the following Cities

by 2009:
 Ahmadabad, Agra, Alwar, Amritsar, Bhiwadi, Bhopal, Bhubaneshwar,
Coimbatore, Faridabad, Greater Noida, Greater Bangalore, Delhi,
Panjim , Ghaziabad, Indore, Jaipur, Jalandhar, Jamshedpur, Kochi,
Kanpur, Ludhiana, Mangalore, Mysore, Manesar, Mohali, Nagpur,
Nashik, Panipat, Rudrapur, Sonepat, Thiruvananthapuram, Raipur,
Darjiling, Visakhapatnam.

 There would be a total of 20 malls.

 Take the company public to get capital to further expand, in this

phase of expansion the focus will be more of specialty formats from
detailed customer study.
Strategy - SOSTAC
 Action :
 Research needs to be done on the cities
shortlisted (state of mart, state of state
and state of mind).
 We need to acquire land, after the need
gap analysis, where these malls will be
built.
 There need to be contracts made with
builders for building malls.
 The space needs to be rented out to
retailers.
Strategy - SOSTAC
 Control:
 Organizational structure and the flow of
reporting will be an important control tool.
 The nature of the business and its
geographical spread demands
Geographical Business Units.
Four Zones
The Organizational
Structure
Corporate Services
Operations
Business Service Unit
Paving The Way Ahead
 The HO is based in Delhi.
 As the organization will grow, more job
roles and responsibilities will be defined.
 The service Unit would be a separate
function that looks into the property
management.
Submitted by Siddar:
Darshika Rathore (7)
Siddharth Ravindran (26)