Mall Management: 5 Key Components of Mall Management

Mall management is defined as an overall operation and maintenance of the entire building
infrastructure, including the services and utilities, ensuring that they are used in a way that
are consistent with the purpose for which it was acquired.

Mall management encompasses operations, facilities management, security, accounts,

common area maintenance, marketing, leasing and all the other functions even remotely
related to a mall. The biggest problem in this industry is finding the right kind of tenants,
while leasing out space to tenants, it is important to keep in mind the image that you want to
create in the customer’s mind.

In the past, several malls were constructed without doing any feasibility study or rigorous
market research. Though initially they were successful in attracting people but soon went out
of competition because they failed to convert visitors into potential buyers. The simple reason
was ‘failure in understanding local needs’.

As somebody rightly said one should dance as per the audience liking, same is applicable in
mall management. It seems surprising, how mall developers can spend millions of rupees
without due diligence exercise on their feasibility. But the new generation mall developers
are well educated and experienced.

They are developing malls gradually but with proper research and consultation of the experts
concerned. Therefore, the market is gradually changing wherein more and more developers
are approaching property consulting firms to conduct feasibility and positioning studies for
their projects.

Components of Mall Management:

Mall management is a growing phenomenon in the Indian industry. The Indian retail market
is expected to continue its growth trajectory in coming years also. Mall management has been
identified as a critical factor for the success of malls and the retail industry across the world.

Broadly, mall management includes the following:

1. Positioning
2. Zoning
3. Promotions and Marketing
4. Facility Management
5. Financing

1. Positioning a Mall:
It refers to defining the category of services offered by a mall. Generally mall positioning is
determined after a detailed survey of households in the area where mall is going to be
located. This survey includes demographics, psychographics, income levels and competition
in the area. It also includes the location of the mall which is determined by the access,
visibility etc.

The primary objective of positioning is to create a distinguish image of a mall among

consumers. It forms the basis for differentiating a mall from its competitors. Positioning
assists in creating a distinctive image and ‘top of mind’ recall for the masses when they think
of a mall. For example, when a customer thinks of purchasing a handicam or digital cameras,
the Soni or Canon brands come to top of his mind.
Similarly when a person decides to buy a pair of contact lenses, name of ‘Renu’ brand comes
to his mind. This is a separate aspect that at the time of final purchase, he/she adheres to that
particular brand or not. Basically final buying decisions are influenced by both the brand
appeal and social status of the person.

The objectives of positioning a mall/product are:

1. To create sense of recognition

2. To promote loyalty
3. To enhance image
4. To enhance goodwill
5. To improve image of quality
6. To beat competitors
7. To attract customers
8. To maintain and attract good sales staff

Broadly, malls can be positioned in two different ways.

a. On the basis of offerings

b. On the basis of anchors

The detailed description about both the forms is discussed as below:

(a) On the basis of offerings:
As the very name suggests, these malls are positioned primarily on the basis of its offerings
which should be reflected throughout its retail mix.

Offerings further can be classified under several notions such as:

(i) Luxury:
Under this type of positioning, a mall is positioned, advertised and marketed as ‘Luxury
Malls’ where selections of tenants is exclusively done under the luxury class of their vertical.
Local and small players though financially sound are discarded under this particular form of
positioning. For example, Sony, Lenovo, Apple fall under the luxury segment within the
consumer electronics vertical. Similarly, Monte Carlo, Raymond, Peter England, Levi’s are
luxury within the apparels verticals.

(ii) Value for Money:

Value for money style positioning conveys the message to public that their malls are neither
expensive nor economical. They offer value for money. This offering is not depicted by one
or more outlet but entire mall would represent the same ‘value for money’ image.

(iii) Economy:
Under this style of positioning, mall owners convey the message that their mall is for those
people who are money-conscious and looking for affordable goods and services. Economy
class malls usually are full of customers especially on weekends. Impulse buying is more in
case of economy malls because first time or occasional visitors are more attracted towards
cheap range goods.

(b) On the basis of anchors:

Under this type of positioning, malls are positioned on the basis of anchors, mall developers
decide to have.

These are classified as under:

(i) Entertainment based:
The main theme of such mall is to offer entertainment and all possible means of enjoyment.
Entertainment is offered in the form of movie theaters, swanky rides, waterfalls, gaming
zones, scary houses, ice-rings, buzzy jumping, Kids play stations, Racing Cars, Video
Games, interactive Kiosks, and so on.

(ii) Hypermarket/Value Driven:

One of the most common and widely apparent features of a successful mall is the presence of
hypermarket. The primary reason for having hypermarket in a mall is to increase footfalls and
conversion rate. History reveals that few malls which initially had no or very less occupancy
rate, became consumers’ first choice after the presence of hypermarkets. In short, under this
type of positioning, malls are positioned on the basis of hypermarket or value driven concept.

(iii) Specialty Based:

Under this concept of positioning, malls are positioned according to the specialty stores in the
mall. Specialty stores imply the message that most of the stores specialize in one particular
segment of the vertical such as consumer electronics, jewellery stores, book stores, home
furniture stores, and so on. This type of positioned malls conveys the message that they offer
all the national and international brands under that category.

Note:
The positioned malls usually keep their offerings same for the entire life span of the mall.
Though new stores, new brands can come and go but offered concept remains the same.
Therefore, utmost care must be taken while setting up the mall and deciding about the
positioning. Positioning is an irreversible decision and repositioning.

2. Zoning:
In the world of retailing, customers can be broadly divided into two categories namely
focused buyers and impulse buyers. Focused buyers are those buyers who know what their
requirements are and how to fulfill them. Therefore, they go to mall with the intention of
buying and carry proper money.

If everything remains same and things are as per their requirements, taste, and budget, they
do not waste time and buy the things. In case, they find things costly or opposite of their
expectations, usually they leave the mall and come back. While on the other hand, impulse
buyers are those buyers who visit the mall with no intention of buying but if something,
appeals them, they buy otherwise indulge into window shopping. Both types of customers are
important for a retail store.

But question is how retailers should entertain them and increase revenues. Zoning is the
solution of this problem that allows retailers help attract both types of consumers. Zoning is a
mall space allocation exercises under which mall developers basically formulate right tenant
mix to attract both types of customers especially the impulse buyers.

Zoning refers to the division of mall space into various zones for the placement of various
retailers. A mall is dependent on the success of its tenants, which translates to the financial
feasibility of the tenant in the mall. Creating the right tenant mix not only helps in attracting
and retaining shoppers by offering them multiple choices and satisfying multiple needs, but
also facilitates the smooth movement of shoppers within the mall, avoiding unnecessary
clusters and bottlenecks.

In the era of competition, zoning (sectors) exercise, if done properly helps in building a
separate image in the minds of the visitors. This also helps influence shoppers’ mall
preference and frequency of visits, which is critical considering the robust upcoming supply
of malls.
Advantages of Zoning:

(i) Allows the smooth movement of shoppers in the mall, avoiding clusters and bottlenecks.
(ii) Creates a distinct image in the minds of the customers.
(iii) Assists in formulating the right tenant mix and the placement of these tenants within the
mall.
(iv) Helps in the selection of right anchor tenant.
(v) Helps retailers attract both types of consumers, especially the impulse buyers.

The Great India Place Mall (GIP) is one of the biggest malls of North India, located in Noida,
National Capital Region of Delhi. The GIP is a contemporary, vivid retail arcade for absolute
shopping ecstasy. Planned with a dream palace theme, it has a unique ambience where
shoppers cannot resist indulging and discovering a superlative experience of shopping.

The retail environment with its prime location near Sector 18, right at the entrance of Noida,
is spread over I million sq ft. It offers its shoppers an unmatched shopping cum entertainment
environment with a gamut of retail stores, well- heeled food joints and a multiplex, all under
one roof The retail environment includes six anchor stores encompassing departmental stores
like – Lifestyle, Globus, Shopper’s Stop, Pantaloon, a hypermarket – Big Bazaar and a home-
style store – Home Town.

Though after GIP, several other malls have come in the nearby locality, yet The Great India
Place Mall continues to command the highest foot traffic, continuing to be one of the most
successful malls in the city in terms of annual revenues. It is also widely believed that one of
the driving factors behind the success of this mall is its zoning and superior tenant mix
compared to competition.

3. Promotions and Marketing:

Promotional events that help promote brands are an essential part of mall management. Some
of the most effective promotional models include celebrity visits, food festivals and talk
shows, which increase footfalls and, as a result, increased revenues. Organizing cultural,
national, and religious celebrations have also proved useful. Considering, mall developers can
plan out marketing strategies for individual malls in order that match the requirements of
local consumers and addressing the challenges of local or regional competitors.

Malls are also indulged in promotional activities and events. Considering the local rituals,
preferences and latest trend, each mall prepares a Marketing Calendar.

The common examples of promotions and events organized in India involve:

(i) Fashion Shows

(ii) Exhibitions
(iii) Book Fairs
(iv) Travel Fairs
(v) Musical Contests
(vi) Auditions
(vii) Talk Shows
(viii) Sidewalk Sales

Besides this, each mall celebrates various national and international days which are famous
among common youth. Public holidays, long weekends, religious holidays, educational
breaks, are also considered while preparing a Marketing Calendar.

Advantages of Promotions and Events:

(i) Optimum utilization of mall space
(ii) To create new source of avenues for mall retailers
(iii) To attract new customers
(iv) To beat competition

Ansal Plaza, a part of HUDCO Place built on 35 acres of land, is a shopping complex situated
near South Extension, one of the posh markets in New Delhi. The Plaza complex competes
with the best commercial estates in the world in its architectural splendor, aesthetic details
and shopping experience. It provides comfort and variety to the customers. One of the finest
malls in India today, has made shopping much more enjoyable than before.

It offers a climate-controlled environment that removes the fatigue usually associated with
shopping. Careful employment of modern technology has created well-lighted, spacious and
customer-friendly shopping spaces. Complete with an amphitheater, a shopping complex,
twin level parking and best of the brands under one roof, it offers a complete family
experience.

4. Facility Management:
It refers to the integration of people, place, process and technology in a building. Facility
management companies provide specialized services to malls ranging from parking, security,
to housekeeping and cash management. Facility Management handle electro mechanical
services like and suppression and fire detection, access control, power management, water
management plumbing, Supply Chain, Marketing Research, Logistics and Design etc.

In addition to this they also offer business services like help desk management, guest
relations, and meeting room management. Few of facility management companies also
provide soft services like pest control, cleaning, and physical and security surveillance,
concierge services, and administration services. There are few other expert functions that
facility management companies are also taking up. These include conducting research for
malls to find out their requirements regarding issues such as;

(a) Site location problem

(b) What kind of mall to set up?
(c) Determining the customer patterns
(d) Segmenting, Targeting, and Positioning (STP)

Under facility management various activities are classified as follows:

(i) Infrastructure Management:

It refers to the overall supervision and administration of various facilities provided to tenants,
risk management measures such as adopting essential safety measures, conducting asset
liability and environmental audits as well as imparting emergency and evacuation training.

Under infrastructure management following facilities are offered:

(i) Air conditioning,

(ii) Provision of adequate power supply,
(iii) Safety issues related of signage,
(iv) Issues related to signage, water supply, sanitation, etc
(v) Water supplying and sanitation

All the above mentioned facilities provided to the tenants within the mall, form an integral
part of mall management as these are considered the basic amenities that nay tenant would
look for in a mall.
(ii) Ambience Management:
This aspect refers to the management of the overall aesthetics and appearance of a mall.

Under ambience management, following provisions/facilities are made:

(i) Management of parks
(ii) Management of fountains,
(iii) Taking care of staircases
(iv) Overall look of lifts and escalators
(v) Music and overall look of the mall.

(iii) Traffic Management:

Traffic management basically includes managing foot traffic into the mall and parking areas.
Foot traffic management involves crowd management inside the operational area of a mall.
The flow of people is related to the design of the mall and the spatial distribution of its
tenants. Under traffic management, facilities are offered to malls pertain to the effective
managing of crowds, both within the premises and in the parking zone.

Until very recently, most Indian developers thought that mall management is merely another
name for facilities management. The realization that these two concepts are different and that
professional mall management has immense bearing on the long-term viability and success of
a mall is gradually being accepted.

The significance of traffic management is increasing rapidly and demanded by one and all
because of the simple reason that the flow of people is related to the design of the mall and
the spatial distribution of its tenants.

For example, take a case of star-shaped mall which though attractive but will have a
crowding in the centre of the mall, as everyone has to pass through the central area while
moving from one side to the other. Circular malls on the other hand, may not face such
problem of clogging as they usually tend to have better pedestrian flow and less congestion.
Therefore, utmost precaution must be taken care of while planning about the design of the
mall.

These are:
(i) Managing foot traffic
(ii) Parking management
(iii) Better pedestrian flow
(iv) Event management in and outside the malls

5. Finance Management:
Financial Management is concerned with the acquisition, financing, and management of
assets with some overall goal in mind. Financial Management entails planning for the future
for a person or a business enterprise to ensure a positive cash flow. It includes the
administration and maintenance of financial assets. Besides, financial management covers the
process of identifying and managing risk.

Under finance management function, facilities management companies cover the

following activities:

(i) Accounting system to track the debt and invoices,

(ii) Cash receipts and collection of income
(iii) Organizing resources to deliver an efficient and effective annual audit.