The term Retail describes businesses that sell good directly to individuals from a physical store / shop / location.
Multiple terminologies are used to refer to retail stores, which are as follows:
Mulgi (term in local dialect)
For any retail brand, its market can normally be divided into 3 parts:
Malls (with multiplexes)
High street stores
Malls are basically large complexes dedicated to shopping activity only, with 2-3 floors of retail stores with 1 or more anchor stores and balance being medium to small stores. These developments also accommodate multiple screens for cinema and offer a food court.
Retail complexes are also complexes dedicated to shopping activity only, with small to medium sized stores as occupants. Such complexes will not have a multiplex and may or may not have a food court. Smaller food outlets are available in such developments.
High street stores refer to preferred locations in a city wherein people flock to shop whenever they need to buy things. In such locations due to paucity of space neither a mall nor a retail complex can be developed. These locations are series of standalone buildings with only the ground and/or mezz / first floor being used for retail. All other floors would be used for office space requirements or other retail activities like restaurants etc. In some high street locations like T.Nagar, Chennai, multi-storey buildings are being used for retail, which is not found in Hyderabad.
To set up a retail store the following points should be kept in mind:
Location: This is critical and should complement the brand / product type that would be sold. Some brands might want to start with one flagship store and others might need multiple stores across all high-street locations to start with. It is important to evaluate if a particular location is a mall or high-street market.
Parking: This is the second most critical point. Normally in malls and retail complexes this is a lesser problem compared to high-street stores.
Size: This is the third most critical point and is linked to business viability and brand requirements.
Store height: Some brands are particular about the floor-to-floor height requirements. This point becomes critical for international brands.
Catchment: Evaluation of the catchment area is important to understand the business viability of a store. Some older stores might have a pan-city appeal but newer stores need to get this aspect correct.
Connectivity: Location should be well connected by public transport, metro, easy accessible by all forms of transport.
Branding space: Space being offered to display the main branding of the store is important.
Frontage: Better / longer frontage alongwith effective use of branding gives the store a better chance to compete.
Tenant profile: Is the tenant the brand directly or its franchise? Both models are acceptable models and their respective positives & negatives should be evaluated.
Competition analysis: This study will give a good idea about the potential of a particular market / location.
High-street developers need to keep all of the above points in mind plus need help in the following aspects:
Designing the floor plan and keeping flexibility of getting multiple stores, if required.
Efficiency planning of the floor plan
Pre-construction marketing to get feelers from prospective tenants about the location / prospective store
Retail market dynamics are constantly changing in our city. Both developers & retailers have to be mindful of these changes and act accordingly in the interest of the customers and eventually their own interests.
Written by CIRIL, February 5, 2015 | Comments Off on HOW DOES HYDERABAD'S RETAIL MARKET DYNAMICS WORK?