With Indian retail market growing at a very fast pace, the East is catching up with rapidly spreading mall culture. Here we share an interview with Man Mohan Bagree, Vice President – South City Mall which has become the modern landmark for the youth, retailers and consumers of Kolkata, to know more about the brand’s plans for the Eastern market.
By East India Retail Staff Bureau | March 14, 2023 | 1800 Hours
Encouragingly, India has had a boom in attracting international companies over the past few years; it is now one of the largest global destinations for retail. The industry growth is riding on several factors, including rising disposable incomes, exposure of Gen Z to international brands, and ease of doing business. The markets after 2021 has been an eye-opening time for the Indian retail sector. The industry saw a decline of 8.5% in FY 2021, but it recovered in 2022 contribution from traditional retail. However, the COVID-19 disruptions led to a rapid increase in e-commerce and digital adoption. Now, brands across segments are concentrating on increased online presence and direct sales as customers continue to shop online. In 2023, tier II and III cities dominance are likely to continue. Looking at the way Indian retail industry is moving, 2023 will be the year to watch.
When South City was planned, it was a very challenging project for the retail industry in India. It was launched in January 2008 at the heart of the city and at that time it was one of the largest malls of the country. South City practically introduced the culture of organised shopping in East and till date it competes with some of the biggest malls in India. Thus, it actually set the benchmark to other developers who later entered the mall market in this zone. The journey so far has really been exciting, challenging. They created the country’s first anchor driven mall where brands like largest Shopper’s Stop, Pantaloons, Spencer’s Hypermarket, Food Court, the largest Entertainment Zone spread over an area of 1 million sq. ft. are all present, and to maintain the image they have created and evolved with time making it a favourite destination for all in the city and the travellers coming there as well.
It is excellent that with the entry of the international brands, the consumers are aspiring for more and it is pushing the retail industry in a positive direction, acting as a bridge to national brands. South City introduced Kolkata to some of the international brands like Marks & Spencer’s, Body Shop and such for the first time.
South City Mall has gone through a number of changes over the years, and more recently, it has become the home for high street fashion labels like Guess, Levis, Collective and Adidas Originals. The mall even offers medium to upscale fine dining, from trusted brands to trendy hotspots like the newly-opened Italian restaurant Veneto and Iranian Parsi cafe SodaBottleOpenerWala (Veneto, SodaBottleOpenerWala and Riyasat have an exclusive presence in the mall and nowhere else in the city). Hop from the vibrant Lord of the Drinks or the relaxed lounge BARishh to the newly-opened party place Warehouse Cafe or to Scrapyard – the only microbrewery in the mall. It’s no wonder that the South City Mall is winning in terms of popularity with countless food options!
With globalisation the change had to come and with Kolkata being the gateway to the retail of Eastern India, South City provided the right space to retailers who wanted to enter this market and take it to the next level. Today it attracts all kinds of consumers and from diverse age groups who find this place appropriate as a shopping destination for them.
South City is a public mall open to all categories of retailers and they do not try to differentiate themselves with status like ‘entry-level’ or ‘luxury mall’ as we feel that a mall has to be for mass by default, irrespective of whether a consumer or a retailer belongs to an entry level or is a high-end buyer. They maintain the same level of hospitality for all which makes them different from other mall developers.
South City tries to maintain that ‘hospitality for consumers’ approach which plays the biggest role to surpass customer expectations. They want to establish the fact that even if anybody does not shop it is a destination for them and their family where they may spend quality time. It ensures that all their retailers get equal exposure and when it comes to providing customers the best retail ambience in the East Zone, they do not compromise at any cost. At South City, they cater to each segment, whether it a daily groceries purchase, an air ticket purchase or a purchase for a big family function, one will get every item under a single roof.
East no doubt has great potential and is a growing market which is still untapped in many ways. It will gradually grow within a year and half and new retailers are already coming here because they have understood that there is huge scope for development here unlike in cities in other regions, which have become saturated. In fact, some of the chains have already closed down their shops in places like Bangalore, Mumbai etc.
First, for retailers, there is definitely a huge potential here and they should explore the opportunities and employ the right strategy here. They try to influence the customers with lot of promotions, making them aware and updated on the options available, and this triggers impulse buying. Secondly, in the case of developers, they should have the right mix of brands and ambience that are needed for the particular zone they want to cater to.
According to Mr. Bagree, Tier II and Tier II cities are far better options to explore compared to metros, both for developers and retailers. They are also trying to promote it in international retail forums by putting forward the view that customers over there should be upgraded and catered to through entry level brands and national brands and having an organised retail atmosphere with MBO’s or EBO’s. Cities like Jamshedpur, Ranchi, Patna, Bhubaneswar and Guwahati have great potential and development should have the right mix there.
South City is still in developing stage and lot of clarity is required, though he feels that the international brands would go for joint-ventures with Indian retailers and will not be 100% open because the policies till date are not well defined. But yes, the entry of foreign brands will complement the Indian retail scenario. New brands mean healthier competition, which is always welcome, as today the customers are all informed buyers and know where to go for their shopping.
