Shopping malls are hang outs, but Indians avoid mall shopping

As many as seven out of 10 Indians with disposal income, a whopping 72 per cent, go to shopping malls at least twice a month but don’t buy the monthly food & grocery, apparels or consumer durables over there. Nearly half, 47 per cent, of those who avoid shopping at malls point poor quality of goods as number one reason, while 38 per cent blame poor customer & after sale response of the retailer in case the product is defective and 15 per cent can’t stand to the long and unnecessary queue. Among the mall shoppers, 75 per cent only buy the grocery, apparel comes next at 48 per cent and only 22 per cent of mall shoppers buy consumer durables over there.

Majority of those who don’t shop in the malls have tried shopping over there at least twice and then switched back to the local kirana and other traditional brand stores. No one is ready to believe, 94 per cent say, that shopping malls in the city are destination shopping for them. Eight out of ten, 82 per cent don’t have healthy shopping experience with the malls.

These are the findings of the survey conducted by Track2Realty, the real estate market tracker. The survey was conducted in ten cities among the working professionals with majority of them having double income. 55 per cent of the respondents were male and 45 were female. The survey was conducted in Delhi-NCR, Mumbai, Kolkata, Chennai, Ahmedabad, Indore, Bangalore, Jaipur, Patna and Nagpur. A sample size of 2000 was taken for the study and the respondents were carefully selected amongst SEC A & B, between 24-40 years of age group with cushioned job or business and who were otherwise spending well.

Face-to-face interviews were conducted where a set of structured questionnaire was given to them. 58 per cent of the respondents were male and 42 per cent female with nearly half of them being a working couple. The process was an attempt to understand the buying behavior of the Indians, and their attitude towards shopping malls. The survey also took into account certain psychographic parameters to judge the TG.

Nine out of 10, 88 per cent, Indians who go to shopping malls either just hang out with friends at café corner, food court or it is for the purpose of watching a movie. The survey has come as a bad news for the real estate and retail in India who are expecting to scale up the business with more FDI expected in the sector. More importantly, it is an eye opener for the realtors and the retailers who seemed to have failed to understand the psychograph and buying pattern of the Indians.

No wonder, while they innovate in various ways to attract the footfall, it hardly translates into business. For instance, while the malls are repleting with fancy architecture and USPs like boulevard, promenades and events, nearly seven out of 10, 68 per cent of the shoppers are more comfortable at a shopping mall where they don’t have a difficult time finding a parking space or a subway to go to the mall across the street.

More than eight out of ten, 84 per cent reject buying top end luxury items at a mall. They would rather prefer a destination shopping where they don’t have to rub shoulders with the commoners. 72 per cent of the Indians have so poor experience with the mall shopping that they don’t think more FDI in retail will make any significant change in the way malls are functioning today.

More than seven out of 10, 74 per cent Indians suggest the developer should focus more on the basic amenities like parking, dedicated children’s space and better customer care than making huge investments on glass facades, loud music and neon lights. 67 per cent of the mall traffic fails to differentiate between various malls in the same catchment area. More than six out of 10, 63 per cent say the government should define a clear policy to make mall visit a pleasure.  They suggest the authorities must not allow more than 2-3 malls in the same catchment area.

More than eight out of 10, 82 per cent who otherwise spend time outdoors with the family, avoid shopping malls on weekends and holidays. Nearly all the mall visitors, 92 per cent, are pretty dissatisfied with the multi level security check where there is a security check at the mall entry and repetitive checking at every retailer. Overburdened roads in front of the mall with a signboard suggesting “work in progress” is what turns 77 per cent of Indians.

What is all the more surprising is the fact that mall shopping, predominantly seen as a metro phenomenon, has more takers in cities beyond the four metros and other tier-I cities like Bangalore. More people are into mall shopping in tier-II cities like Patna with 47 per cent, Nagpur with 41 per cent and Indore with 37 per cent.

The question is that what are the wish list of mall visitors to lure this otherwise spend thrift into buyers. 90 per cent say they would like to see variety of products and a variety of brands must be available in each product category that provides a large number of options for the consumers. 77 per cent want spa fitness and wellness centers, dining experience, hotels, convenience centers, office centers. The sky high expectations of majority, as many as 58 per cent are to fuse living working and leisure activities.

Additionally the survey also noted that the Indians across the country see malls as a hang out zone and hence their expectations with the malls are more on those lines than retail shopping destination. More than xix out of 10, 64 percent want to have space for a marriage party or a big birthday bash inside a shopping mall. Weddings, family get-togethers, birthdays, Xmas parties, or other such social dos in malls is what they think will drive them to the mall. But one thing is for sure. The Indian consumer won’t be lured by sheer glitz. Even those wearing it look for value for money. Clearly, Indian consumers do spend, provided there is a value proposition that the mall offers.