Retail Real estate is booming as a result of conducive Government policies like increase in FDI and growing purchasing power of the average Indian. The objective of any retail space is to attain profit. Every year various means are devised to combat online competition and allure consumers to brick-and-mortar structure. Today focus is not just to provide great variety of retail outlets but to enhance the experience. With this aim as baseline, many attempts are being made to deliver the same. These attempts have become synonymous with trends that are driving the retail real estate today.
It has become absolutely necessary to merge online experience with offline shopping experience. In fact, the need for better offline experience is greater than ever. Malls and retailers will have to adapt to new technology like mall based apps, e-boutique and digital showrooms to lead the way.
It has also been observed that the redefinition and reinvention of retail spaces in India to suit the needs of the younger generation is a phenomenon being witnessed in major retail markets across the globe.
The Brick-and-Mortar Will Rule:
Due to urbanization, population shift is an evident trend. The movement of population from Tier III to Tier I and Tier II cities will support the retail structure. The malls remain a fascination for this population and malls will keep luring this population over coming years.
With the retail sector working towards enhancing the overall shopping experience, dining and entertainment, has become an important inclusion and part of this trend. Demand for varied entertainment experience like movies, mini theme parks like a snow world or bowling alleys will increase exponentially. Hence novel means of entertainment will be welcomed by retail spaces.
Human connection creates the best relation between consumer and the brands. The activities that engage the consumers entering the mall is going to be a huge draw. The malls will focus on more engaging activities in-order to develop direct connect with consumers. Though the trend already exists, it will further bloom this year with more innovation and excitement to attract the crowds.
It is estimated that only 10 per cent of the organized retail spaces are doing well in India. In order to increase this number, a thorough study about catchment, objective and demographic needs to be done. Basis the study a restructuring of the mall would work well towards increasing footfalls and sales. This is the way forward for successful retail spaces as well. One cannot rest on past laurels in this fast paced environment.