The Moodie BLOG in India: Part 5 – Mall mania

by Martin Moodie |
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Martin Moodie

Martin Moodie is the Founder & Chairman of The Moodie Report.

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The mall and hypermarket signs are everywhere – MGF Mega City, Spencer’s, Grand Mall, The Metropolitan, City Centre. Within a few minutes walk of my hotel in Gurgaon just outside Delhi, there’s a frenzy of retail activity.‘Mall mania’ has hit India and wherever you look there are huge advertising signs promoting the latest opening or brand launch. “The malls are being used to launch brands in a big, big way here,” notes Alpha Future Chief Operating Officer Dimantha Kinigama.And there’s no doubt who they’re targeting – the young. “The young generation (20-35) have high disposable income and whereas the older generation used to save it for a rainy day, these consumers do not,” says Dimantha. 

Rainy days are plentiful during monsoon season in Delhi but nothing can keep the locals out of the malls – even if window shopping rather than buying is still the norm for many and penetration rates often remain well short of expectations. Inside, the likes of Shoppers’ Stop and Pantaloon Retail (partners in duty free with The Nuance Group and Alpha Airports Group, respectively, in India) provide sophisticated and wide-ranging retail offers. 

The local market retail scene is changing fast (the emergence of retail chains is a major and controversial dynamic here that occupies regular coverage in the newspapers – but ‘organised retail’ still only claims about 5% of the market) amid the rampant consumerism that has Delhi – and much of metropolitan India – in its grip.

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As the pictures show, some of these malls are grandly ambitious. But, as in so many cases in this sprawling metropolis, the contrasts abound. Outside the malls the footways (not the retailers’ property and therefore not their concern) have turned to mud after the heavy monsoon rains. Old beggars carrying beautiful little children in their arms clamour for your attention. A giant bullock rests indolently and unfazed in the middle of the street while cars roar by.

Inside the malls it’s a different type of frenzy. Within The Metropolitan, a high-quality western-style mall, trendy youngsters, families and couples sup their coffee at Barista, the Starbucks-type concept that is taking the country by storm. panasonic.JPG

A giant Panasonic flat screen shows the latest animated feature film for children, while nearby Nokia’s new model cell phone is promoted. Mark’s & Spencer, American Express, Samsung, Porsche and Johnnie Walker signs abound.

The Indians have taken to heart the old Mark Twain adage, “You pays your money, you takes your choice.” Neither is in short supply here anymore.

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