Companies

Wooing regional powerhouses

| Updated on: Jan 19, 2014
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Malls are roping in regional retailers to attract their dedicated customer base

Phoenix Marketcity, one of Chennai’s newest malls, not only houses big brands such as Lifestyle, Marks & Spencer, Pantaloons and Reliance Digital but also many regional high street brands such as RmKV, Poppat Jamals, Vivek’s, GRT (jewellery) and Malabar Gold besides restaurant chain Vasantha Bhavan.

“We wanted it this way. It’s a destination by itself,” says Vijay Choraria, Managing Director, Sharyans Resources Ltd, which promoted the property. “We did not want to rope in only high-end brands, as this could intimidate middle-class consumers. To maximise footfalls, having regional as well as national retailers is critical,” he adds.

The move makes sense. Regional retailers have a dedicated customer base, at times spanning generations. Having them in malls is bound to attract crowds and maximise footfalls that are converted into sales. However, many regional retailers, such as Tamil Nadu-based retail giant RmKV and Kerala’s Kalyan Silks, still maintain a strong presence on high streets. The numbers indicate why: both are estimated to have an average trading density of about Rs 1,450 per sq. ft. per month. In comparison, Shoppers Stop has a psfpm of Rs 653.

Bangalore-based consumer durables retailer Girias has an estimated average trading density of Rs 3,700 psfpm, much higher than most malls in India.

In Bangalore, regional retailers still prefer high streets to malls but malls themselves have become regional as city centres turn congested. “There has been a rise in neighbourhood, community and regional malls,” says Shrinivas Rao, CEO-Asia Pacific, Vestian Global. They include Mantri Square in Malleswaram, Phoenix Market City in Whitefield and Brigade Orion on Dr. Rajkumar Road.

Published on February 11, 2014

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