about calicut - beyond squarefeet study: focus mall ... 6 kadavu resort pradeep a.r. asst. manager...
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www.beyondsquarefeet.com 3www.beyondsquarefeet.com
Calicut International Airport (Karipur) is located 23 km from the city
Kozhikode railway station about 16 kms. from the city.
Well connected by road and Kerala State Road Transport corporation.
City: Calicut, third largest city in Kerala. Appx. 400 kms from capital
Thiruvananthapuram.
The city spans across an area of 28.48 km2.
Population: 436,556 (2001 Census)
Sex Ratio: 1055 females :1000 male. Literacy Rates: 92.24%
About Calicut
Location in Calicut for proposed concept
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Focus MallBig Bazaar
Most shopping options are situated on
Mavoor Road.
Banana Chips
Cherootty Road
Infrastructure & Facilities in Calicut
5
Hotels Hospitals Banks Educational
InstitutionsPlaces of
Worship
Prominent Hotels
including•Taj
Residency•Fortune
Hotel•Hotel Hyson
Heritage
Prominent Hospitals including•Malabar
Institute of Medical
Sciences & other
speciality hospitals
Prominent Hotels Banks
•Bank of India
•CanaraBank
•Union Bank of India
Schools & Colleges
along with the
country’s most
prestigious Institutes
•NIT•IIM
Several Temples,
Churches & Mosques that are major tourist
destinations
Cinemas
CinemasIncluding
•Blue Diamond
•Regal•Davison•Crown
20 38 24 32 - 12
Key Tourist Attractions
6
Kappad Beach Pazhassi Raja Museum Thusharagiri Waterfalls
Tali Temple Kadalundi Bird Sanctuary Beypore Port
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Competition Intelligence*
Existing Malls in Calicut
Focus Mall - 1.65 lakh sq. ft. GLA
Marina Mall
Space Mall (commercial + retail) – 1.3 lakh sq. ft.
Blue Diamond Mega Mall – 1.25 lakh sq. ft.
Dreams, The Mall/ Satra galleria – 1 lakh sq. ft.
The grand high street Mall – 75,000 sq. ft.
Leader Mall
Coupon Mall
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* Source: Popular Blogs
Competition Intelligence*
Case Study: Focus Mall
Area: 1.65 Lakh sq. ft. GLA across 6 floors
Parking: 300 car parks (2 floors)
Footfalls: Over 10,000 nos. /day
Avg. Rentals: Rs. 45/- (On GLA)
CAM: Rs. 17/-
Prominent Brands
Anchors: Max, Focus Hypermarket.
Vanilla:
F & B: Pizza Corner, Wimpey’s, Baskin Robins etc.
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* Source: Focus Website
8
The Research Team
Susil S. DUNGARWAL
Mr. Sundara Rajan Ms. Shaheen Baig
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15 member ground Research Team
Approach
Research Findings (15/12/10)
Analysis (13/12/10)
Data Collation (08/12/10)
Data Collection (22/11/10)
Approval from GG (10/10/10)
Questionnaire development (05/10/10)
GG Appoints BSAPL (17/11/10)
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Background of the Study
Gokulam group intends to build a mixed-use complex in Calicut.
The location of the project is ideal for setting up a multi usecommercial/retail building. The client is open on the concept & would deriveat the format/mix, based on this research.
Gokulam group wished to understand the market potential of the propertygiven the rapid changes taking place in Calicut.
This report outlines the findings of the Study.
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Objectives of the Study
To find out the feasibility/ acceptability of such a Mall
To assess the potential for such a property in terms of the felt need of thetarget audience / market.
To map the potential competition in the target area.
To determine the different price points at which the respondents are willingto shift.
To understand the ideal mix of shopping, offices, banquets and hotel.
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Research Methodology
Overall Approach:
Face-to-face interviews with the customers using a structured questionnaire.
Face-to-face interviews with the retailers using a structured questionnaire.
Face-to-face interviews with the corporate using a structured questionnaire.
Mystery buyer approach with Real Estate Agents
Mapping of all major commercial office spaces in 1 km radius of the location in
Calicut
Target Respondents:
Consumers Corporate Retail Hotel Agent
Those who belong to SEC A1, A2, B1, B2
Covering IT, financial services, Banking, Insurance etc
Covering apparel, shoes, food, jewellery categories
Banquet in charge/ Decision Maker
Agents who deal in commercial properties
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Sample Size Distribution
Type of Respondents Achieved Sample Size
Consumers 250
Retailers 25
Corporate 11
Real Estate Agents 5
Hotels 8
Total 299
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Respondent List - Retailers
SrNo.
Retailer Name
Respondent Name Designation
13G Mobile World Aneesh Manager
2PM Sales & Service Valsalam Manager
3 Wrangler Arun Manager
4 KG Mart Babu Owner
5Nokia Priority Sunil Kumar Owner
6 White Salt Saleemka Manager
7 Live-in Safeed Manager
8 Levi Manoj Manager
9 Bata India Sumesh Manager
10 Hi Lite Akhilesh Manager
11K. D. Hardware Smith Manager
12 Basics Manoj Manager
SrNo.
Retailer Name
Respondent Name Designation
13 Thomas Cook Dhanesh Manager
14 Galaxy Alavi In charge
15 Lifestyle Irshad Manager
16 CADD CentreLeethuPrabhakar Manager
17 UAE Exchange Riju
Asst. Branch Head
18 Park Avenue Sumith Manager
19 Reebok Denny Manager
20 Silky Boutique Fahad Manager
21 Woodland Biju Manager
22 CollorPlus Shiju Manager
23 Reebok Shop Denny Manager
24 Titan Eye Mahesh Manager
25Woodland Footwear Biju Manager
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Respondent List - Hotel
Sr No Hotel Name Respondent Name Designation
1 Kovilakom Residense Rajesh Admin Manager
2 Gateway Hotel Rajiv Banquet In charge
3 Malabar Palace Suji Radhakrishnan Manager-Operations
4 Hyson Heritage Rajesh
5 Westway P. Bijoy Manager
6 Kadavu Resort Pradeep A.R. Asst. Manager
7 Hotel Maharani Sukumaran N. Manager
8 Malabar Gate Hotel Prakash Nair Manager
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Shopping Places Generally visited
S.M. Street is the most visited shopping place….More than half the respondents
generally visit S. M. Street
ConsumersBase: 250, Values in %
55
2422 21
129 8 8
0
10
20
30
40
50
60
S.M.Street Big Bazar Focus Mall Cherootty Road
More Koyencco Palayam Nadakkavu
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9278
12 3 6 1 5 1 12
50
31
64 1 4 1 1
1
45
56
19
1026
721
6
24
1
8
4
30
6
26
15
19
Focus Mall Big Bazar Grand Highstreet
Dreams The Mall
Marina mall Blue Diamond mall
Orbit Mall Space Mall Leader Mall
Aided Spontaneous TOM Visited
Awareness about the Shopping Malls
Consumers in Calicut display higher awareness for Focus Mall and Big Bazaar as
compared to other malls. Awareness about Marina mall, Orbit mall and Leader mall is
good, but they are not visited much.
ConsumersBase: 250, Values in %
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8578
12 126 5
0
10
20
30
40
50
60
70
80
90
Focus Mall Big Bazaar Grand High Street
Leader Mall Marina Mall
Orbit Mall
Malls visited so far..
Respondents visit Focus mall more than any other mall by a huge margin.
ConsumersBase: 250, Values in %
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Frequency of Visit to the Malls
Respondents in Calicut regularly visit malls with half of them visiting once a
month and 20% visiting once a fortnight.
Consumers
Once a week11%
Once a fortnight
21%
Once a month51%
Once in 2-3 months
15%
Once in 6 months
2%
Base: 250, Values in %www.beyondsquarefeet.com 22
83% consumers visit Malls at least once a
month.
Time spent at the Mall
More than half the respondents visit spend 30-60 min in malls.
Also 1/3rd respondents spend close to 2 hours.
Consumers
15- 30 min10%
30-60 min52%
1-2 hrs20%
2-3 hrs10%
3-4 hrs8%
Base: 250, Values in %www.beyondsquarefeet.com 23
On average, the
customer spends
over 2 hrs at a
Mall– we need to
find ways to
monetize it.
Most Preferred Shopping Mall
Focus mall is clearly the most preferred mall in Calicut
ConsumersBase: 250, Values in %
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Reasons for Preferring a Shopping Mall
ConsumersBase: 126, Values in %
BIG BAZAAR FOCUS MALL
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Respondents want
quality products
available at one place.
The main focus is on
the layout of the Mall
and the range of
products available.
Product Categories visited in most preferred Mall
Focus Mall Big Bazaar
Base 118 126
Apparel 75 48
Shoes/Foot wear 20 14
Fancy Items/ Impulse 14 11
Jewellery /Ornaments 9 10
Bag & Luggage 7 8
Grocery items 5 14
Food items/Eatables 5 14
Consumers
Product
category
Name of
Mall
Clothes (Apparel) is the most visited category. Clearly shows
that more focus should be on apparel category.
Values in %www.beyondsquarefeet.com 26
Product Categories preferred to buy
Consumers
Focus Mall Big Bazaar
Base 118 126
Apparel 57 37
Shoes/Foot wear 14 8
Fancy Items/Impulse 12 6
Jewellery /Ornaments 7 9
Food items/Eatables 6 14
Grocery items 3 10
Bag & Luggage 3 5
Perfume 3 5
Kitchen items/Crockery 2 6
Product
category
Name of
Mall
A wide range of apparel should be made available to people
who’ll visit the mall as respondents spend mostly on
Clothes.
Values in %www.beyondsquarefeet.com 27
Liked aspects about Most Preferred Mall
Layout of the mall, Wide range and the convenience of getting everything
at one place are liked by respondents.
Consumers
Focus Mall Big Bazaar
Base 118 126
Quality/ Branded Product 18 18
Wide choice 13 14
Everything at one place 12 10
Well Designed 9 17
Well Organised 9 6
High Standard maintained 8 9
Centralised A.c. 8 4
Good Looking 6 6
Escalotor Systems 6 2
Low Price 5 8
Convenient 5 4
Ambience 5 2
Liked
Aspects
Name of
Mall
Values in %www.beyondsquarefeet.com 28
Disliked aspects about Most Preferred Mall
Nothing much apart from high price and insufficient
parking space.
Consumers
Focus Mall Big Bazaar
Base 118 126
High price 20 17
Nothing 16 23
Insufficient Parking 14 12
Congested elevator/space 14 14
Arrangement Is Not Good 9 17
No Stairs 8 1
Disliked Aspects
Name of Mall
Values in %www.beyondsquarefeet.com 29
Mode of Travel to the Malls
Respondents use personal transport to travel to the Malls….
ConsumersBase: 250, Values in %
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Product Purchases Vs. Places of Visits
Respondents visit Calicut for Eating out, Grocery purchase, Footwear and home
furnishing purchase.
Consumers
Eating out
Apparel purchase
Grocery purchase
Home furnishing
purchase
Accessories purchase
Footwear purchase
Durables purchase
Top 3 places of Visit (values in %)
Big Bazaar, 24 Focus Mall, 18 SM Street, 11
Base: 250, Values in %www.beyondsquarefeet.com 31
Base
Shopping 202
Go to Clubs 179
Watch movies 151
Watch plays 2
Go gaming 2
16 18 21 35 6 2
At least once a week Once in a fortnight Once in 3-4 weeks
Once a month Once in 2-3 months Less often
Activities Done in Last one Month
Respondents from Calicut go for shopping, movies and Clubs for entertainment
Consumers
30 15 27 20 6 2
Frequency of Activity (In %)
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Watching a Movie
Respondents tend to watch movies both in Multiplex as well as Local
theatre.
ConsumersBase: 250, Values in %
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Respondent Profile who go for Shopping once a month/once in 3-4 weeks
Almost half of the respondents (who go for shopping once a month or
once in 3-4 weeks) belong to the age group 36 – 50 years.
These respondents belong to both SEC A and SEC B.
Base: 114
Age wise Break up
Gender wise Break up
Base – 114, all fig in %, Base represents no. of respondents who go for shopping once a month or once in 3-4 weeks
Consumers34
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Respondent Profile who go for a Movie once a month/once in 2-3 months
Almost half of the respondents (who go for shopping once a month or
once in 3-4 weeks) belong to the age group 36 – 50 years.
These respondents belong to SEC A1 /A2.
Base: 110
Age wise Break up
Gender wise Break up
Base – 110, all fig in %, Base represents no. of respondents who go for movies once a month or once in 2-3 months Consumers 35
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Concept Likeability- Shopping Mall
Will visit more often
12% will definitely visit such Shopping Mall!!….not an encouraging
sign though 43% will visit the mall and 41% showed interest in the
idea.
ConsumersBase: 250, Values in %
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Products /Items/ Entertainment options would like to Buy/ Experience
71
20
15
13
9
7
7
6
6
5
4
4
4
Apparels
Shoes/Footwear
Theatre
Jewellery /Diamond
accesories
Fancy Items
Kitchenware
grocery items
Swimming Pool
Electronic Gadgets
Furniture
Food court
Baggage
Apparel is the most wanted item the respondents would like to buy/ purchase.
ConsumersBase: 250, Values in %
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Expectations from such Shopping Mall
35
19
15
14
10
8
7
6
6
5
5
4
4
3
2
2
Should have everything under one roof
Should have good quality products
Should have reasonable prices of the products
Should have products with lot of variety
Should have a theatre
Should have plenty of shops
Nothing specific
Should have attractive showrooms
Should have provision of bar in the restaurant
Should be easily accessible
Should have gym, library & a hospital
It can have a retail mix & hospital
Should have good food variety
Should have good parking area
Should be spacious
Area should be neat & clean
Respondents feel that they
should get everything under
one roof….along with good
quality & reasonable rates…
ConsumersBase: 250, Values in %
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Things missing in Calicut
ConsumersBase: 250, Values in %
0 50 100 150 200
Nothing
Entertainment
Department Store
Hypermarket
Beauty parlour
Theatre Should be There
Beverage's Availability
Fish Market
Book Store
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Amenities provided by Developer & Arranged by Self
Amenities / FacilitiesBase: 25
Provided by Developer(in %)
Arranged by self(in %)
24*7 Security / Help Desk 64 0
Intercom 32 0
Garden 60 8
Space outside Façade 40 0
Lifts 72 0
Cargo Lifts 52 4
Escalators / Elevators 56 4
Cellar & Surface Parking for staff 56 4
Parking for guest 68 4
Restaurant / Canteen / Cafeteria 60 0
Centralized A/c 60 12
24 Hrs water facility 84 8
Power back up 56 20
Fire extinguisher 64 16
Emergency exit 52 8
Base: 25, Values in %www.beyondsquarefeet.com 41Retailers
Satisfaction with Current Location & Premises
4
4
88
92
8
4
Location
Premises
Not at all Satisfactory Dissatisfaction
Neither satisfied nor dissatisfied Satisfied
Very Satisfied
Base: 25, Values in %www.beyondsquarefeet.com 42Retailers
Concept Acceptability
Attractive location
Yes (64%)
No (36%)
Beneficial for
business
Yes (33%)
No (67%)
Planning to open another outlet
Yes (8%)
No (88%)
Yes12%
No88%
Interested in getting space in the prosed
property
Though retailers find the location attractive they are
reluctant to open their outlet at the proposed location.
Base: 25, Values in %www.beyondsquarefeet.com 43Retailers
Expected rent for retail outlet in the proposed property
Expected rent (In Rs per sq ft per month)
In nos.
Average price expected as rent
Rs 62 sq ft per month
30 4.00%
40 8.00%
45 4.00%
50 36.00%
60 16.00%
70 4.00%
75 4.00%
80 12.00%
100 8.00%
125 4.00%
More than half of the corporate expect the rent in the proposed property to be Rs 60 per sq ft per month.
Base: 25, Values in %www.beyondsquarefeet.com
44Retailers
Current scenario: built up area of office
Built-up area of current office (in sq ft) In nos.
Average built-up area of office 2027 sq ft
500 2
800 1
1000 1
2000 3
2500 1
3000 2
5000 1
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Current scenario: Corporate offices working since…
No of years , current offices are operating In nos.
Average no of years 9 years
1 1
3 1
4 2
8 1
10 1
12 3
15 2
Base: 11, Values in nos.www.beyondsquarefeet.com 47corporate
Current scenario: Level of satisfaction
Level of satisfactionSatisfaction with current office location
Satisfaction with current premises
Very much satisfied 0 0
Satisfied 9 7
Neither satisfied nor dissatisfied 2 2
Dissatisfied 0 2
Not at all satisfied 0 0
Corporate are satisfied with their current office location and premise.
Base: 11, Values in nos.www.beyondsquarefeet.com 48corporate
Expected rent for office in the proposed property
Expected rent (In Rs per sq ft per month) In nos.
Average price expected as rent Rs 64 sq ft per month
60 6
62 1
70 3
75 1
More than half of the corporate expect the rent in the proposed property to be Rs 60
per sq ft per month.
Base: 11, Values in nos.www.beyondsquarefeet.com 49corporate
Proposed property: Advantages Vs. Apprehensions
Advantages of the proposed property Apprehensions in the proposed property
It is a town area (7)
Attractive location (3)
Good area for corporate (3)
Central location (1)
Good views from the road (1)
Parking (6)
No issues (5)
Base: 11, Values in nos.www.beyondsquarefeet.com 50corporate
Proposed property: Expected facilities
Expected facilities in the proposed property In nos.
Proper parking facility 9
Good layout 1
Office setup 1
Uninterrupted water supply 1
Proper parking facility is the single most important expectation of corporate from the
proposed property.
Base: 11, Values in nos.www.beyondsquarefeet.com 51corporate
Key findings: Consumer
S M street, Focus Mall and Big Bazaar are the most visited places for shopping.
83% of Calicut shoppers visit a Mall at least once in a month.
Consumers tend to spend leisure time of over 2 hours (avg.) on a visit to a Mall.
Respondents want quality products available at one place. The main focus is on
the layout of the mall and the range of products available.
Clothes (Apparel) is the most visited category.
High price followed by insufficient parking space are major concerns of
consumers.
Majority of the respondents use personal transport to travel to the malls.
55% of the respondents intend to visit the shopping mall in the proposed location.
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Key findings: Corporate – Current scenario
On an average, corporate respondents are operating in current offices since 10 years having average built-up area of– 2027 sq ft
50% of the corporate own their office whereas rest 50% have it on rent.
Corporate are satisfied with their current office location, having only one major concern of parking facilities.
Corporate expect the rent to in the range between Rs 60 – 75 sq ft per month. Average rent expected is Rs 65 per sq ft per month.
Corporate appreciate the location of the proposed project and expect builders office, restaurant and hotels to come primarily in the proposed mall.
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Key findings: Retail segment – Current scenario
80% of retail outlets are on rental basis with sizes varying from 200 –
2500 sq ft. (average size of outlet - 945 sq ft.)
Most of the retail outlets have opened within a span of 1 – 4 years having
an average footfall of 315 /day per retail outlet.
Average rent expected by the retailers in the proposed premises - Rs 62
per sq ft per month.
64% of the retailers found the proposed location attractive for shopping
as it is location in the town area.
Retailers expect apparel and footwear outlets to come primarily in the
proposed mall.
Proper parking facility is the single most important expectation by
retailers.
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Key findings: Hotel segment
The current area of banquet halls in Calicut vary from 500 to 3500 sq ft. with an average size of 1850 sq ft.
Hotels charge from Rs 250 to 500 per person for banquet halls. (Avg. rate charged Rs 372/person)
Hoteliers expect the rent to in the range between Rs 60 – 125 sq ft per month. Average rent expected is Rs 95 per sq ft per month.
Hoteliers (7 out of 8) find the proposed location attractive because of its central location.
The most prominent expectation by most hoteliers are proper parking facilities.
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Key findings: Agents
Agents in Calicut deal majorly (4 out of 5) in shop space and office space.
4 out of 5 agents found the proposed location attractive for commercial complex and showed interested in dealing in this property as they found it beneficial for their business.
Agents expect the rent to be in the range between Rs 50 – 100 sq ft per month. Average rent expected is Rs 75 per sq ft per month.
Agents expect mobile phone, apparel and footwear retail outlets to come primarily in the proposed mall.
Proper parking facility is the single most important expectation by agents.
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Way Forward
To conceptualize a Mall/mix-use complex keeping in mind the key findings
of the research.
The Mall has to connect to the age segment of the consumers.
To have a tenant mix which will compete with the existing preferred Malls.
Infrastructure and services of the Mall to exceed customer expectations.
Create a one-stop-shop.
Challenge: The well travelled customer.
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Action Plan
Hotels and corporate do not see any business opportunity in the banquet
hall concept.
Extensive promotions required for the success of the mall.
Shopping mall with multiplex will be preferred by the consumers as Calicut
presently does not have a shopping mall with multiplex.
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