RETAIL TRANSFORMATION OUTLET MALLS INDIAN HIGHWAYS ROAD INFRASTRUCTURE CONSUMER TRENDS CONVENIENCE VALUE-CONSCIOUS SHOPPING DESTINATIONS TRAVELERS ECONOMIC GROWTH SUPPLY CHAIN EFFICIENCY NATIONAL
INDIA
By By.Susil S. Dungarwal, Chief Mall Mechanic® of Beyond Squarefeet - August 11, 2023 | 858 5 minutes read
In a remarkable convergence of infrastructure and consumer trends, India's retail landscape is undergoing a transformative shift. The country's newfound emphasis on modern road networks, coupled with a burgeoning preference for private vehicle travel, is paving the way for a surge in Outlet Mall establishments along its highways. Drawing inspiration from successful models abroad, these roadside shopping havens are redefining convenience and value for the discerning Indian consumer. This article explores the symbiotic relationship between improved roadways and the burgeoning Outlet Mall phenomenon, shedding light on how this evolution is reshaping the retail journey for both local shoppers and travelers alike.
In the early 1900’s, when America started building roads, a new phenomenon of shopping started mushrooming the highways called “Outlet Malls”. Easily accessible roads played a significant role in the development and success of Outlet Malls. The accessibility and ease of travel provided by the road infrastructure in the United States have been instrumental in shaping the Outlet Mall industry.
Now, India is catching up with its new roads, thanks to the current government, we see a huge upsurge in National Highways & also National Expressways. With roads getting better, and more people taking the on to the roads, Highways have now become the new venues for setting up Outlet Malls. A study conducted by Beyond Squarefeet shows that till mid 1990’s only 20% of vehicles on these highways were private vehicles (Cars & Buses), with almost 80% vehicles being commercial vehicles (Lorries & Trucks). However, now in 2023, almost 60% of the vehicles on the highways are private vehicles (Cars & Buses), which clearly depicts that more and more people are now more comfortable to travel in cars, thanks to the excellent roads. Also the cars have now become far more affordable than in 1990’s. These both factors, cheaper cars & robust roads have given the required impetus for setting up Outlet Malls on the Highways.
Outlet Malls typically got situated in areas with high visibility and accessibility. Roads, especially major highways and interstates, offer convenient access to potential shoppers who are on the road with their families, apart from nearby cities and towns. Developers strategically chose locations near these road networks to ensure that the outlet mall could attract a wide customer base. Good roads enabled people to travel long distances relatively quickly.
Many Outlet Malls are strategically placed along well-traveled routes, making them accessible to tourists and travelers. People on road trips or business trips often seek places to shop and explore during their journeys. Roads make it easy for people to take day trips or short weekend getaways. Outlet Malls provide an attractive destination for these trips, as shoppers can spend a few hours or a day shopping for discounted brand-name products and then return home easily.
Outlet Malls often benefit from high visibility along major roads. Signage along highways and exits helps attract passing motorists' attention, prompting them to visit the outlet mall. This visibility is crucial in drawing both local and out-of-town shoppers. Outlet Malls have become popular destinations for group visits and bus tours. Roads accommodate the transportation of large groups of shoppers, such as tour buses, making it convenient for organized shopping excursions.
The efficiency of road transportation also benefits the outlet mall supply chain. Retailers can easily restock inventory from distribution centers and manufacturers, ensuring a continuous flow of products to meet consumer demand. The development of Outlet Malls often leads to increased economic activity in the surrounding area. The improved road infrastructure may attract further commercial development, including restaurants, hotels, and gas stations, generating employment opportunities and tax revenues.
So, whether we like it or not, Outlet Malls are going to catch up in India, with better and better roads & cars. Retailers will not be able to ignore this fact that Outlet Malls on Highways are the future & they will have to reach there, if they want to reach their customers. Internationally, all best brands are available in these Outlet Malls, and sooner or later, we will see a similar trend in India. One other key factor in the rise of Outlet Malls is that the Indian Consumer is Value Conscious. The Indian customer seeks better value for the money spent & Outlet Malls are the best bet for retailers to entice the customers to their brands.
So retailers, if you can see the future of better roads in India, you will understand this new trend of Outlet Malls in India. If you are not, where your customers is; they will find alternatives.
Susil S. Dungarwal, Chief Mall Mechanic® of Beyond Squarefeet He is a shopping Mall Specialist, is a home-grown Retail & Realty expert, with more than 35 years of experience in various formats of Retailing & Mall Development. Has over the 3 decades managed over 85 Malls, across 6 countries. His client lists include LULU group, DLF, Omaxe, Supertech, Tata Housing, Malabar group, DN homes, etc. He is also a visiting faculty at top Business schools, Author & bloggers. |
About Beyond Squarefeet Beyond Squarefeet is one of the leading Mall Advisory & Mall Management company that provides end-to-end solutions in development & management of malls. In its 13+ years journey, Beyond Squarefeet™ has evolved to become a distinguished "Shopping Mall Specialist” and has grown to a team of more than a 100 employees, consulting & managing over 50 Malls across India, Iran, Nepal, Nigeria, Oman & Qatar. Having been a Retailer & Mall developer both, the company has expertise in understanding the gaps, needs & requirements to develop successful Malls. Beyond Squarefeet is known for its expertise in turning challenging Mall projects into success. The company has been associated with Malls that were previously at various stages of development like the green field and even the brown field stage; across metros & tier II cities & towns. Beyond Squarefeet provides careful support & guidance on all aspects of Malls such as Feasibility, Conceptualisation (Architecture & Interiors), Branding & Marketing, Lease Management, Fit-out Management, Re-orientation, Management, among others. Their professional approach, along with passion to excel, has enabled the company to create a niche in the industry. The team has extensive "hands-on" experience in retail & mall development and manages more than 50 million sqft of mall space, both nationally & internationally. Over the last few years, Beyond Squarefeet™ has serviced many mall industry majors like the DLF Group, Omaxe Limited, LULU Group, Tata Housing, Malabar Group, Supertech Group, ABL Group, Logix Group, Alpine Group, Okaya Group, K10 Group, Chaudhary Group (Nepal), Prozone Group, PS Group, Sugal and Damani, Capital Malls, DN Homes, Sree Gokulam Hotels India Pvt. Ltd., Anantraj Developers, Grand Mart Group, Suryavardhan Estate, and many more.
Disclaimer : The views expressed in this article are those of the author's alone. The images used are for illustrative purposes only and do not imply any endorsement.