Vest Woodland
Bigger, Brighter And Better
Suddenly there is no stopping luxury brands, hotels, retail formats from entering Tier 2 and Tier 3 cities in what may be bigger and better avatars than even in the metros, finds
Namrata Kohli
If you thought ‘mall’ is Greek and Latin to someone in smaller cities and towns you surely need a reality check. Smaller city folk are not being treated to some lowbrow ‘country cousin’ version of your metro malls — instead, they are witnessing much better and bigger developments. Businessmen have smelt the appetite of locals and are crowding into Tier 2 and Tier 3 cities to encash upon the firstmover advantage and grab vast plots at reasonable rates (as against the metros, which suffer from both paucity of land and high real estate costs).
The head of operations of a big retail chain shares his perspective saying that smaller cities is the way to go for big brands now. Citing an instance, the industry insider says that when Globus had opened its store at a place like Varanasi, no one was sure what would happen, but today, the store has outperformed its Mumbai counterpart. Even the Crossword store in Visakhapatnam and other small cities in south India are doing great – so much so that a second outlet has been opened there.
Retailers, realtors, hoteliers are now seen heading to smaller cities which conventionally were not on the organized business’s radar. Take a look at the 6 lakh sq ft Alpha One mall at Amritsar and anyone would agree that it has a good mix of international, national and regional brands available anywhere. The brands include Shoppers Stop, HyperCity, Fun Cinemas, Orama, Reliance Trends, Standard Max and Lifestyle Max as well as United Colors of Benetton, Tommy Hilfiger, Levi’s, Provogue, Wrangler, Adidas, Nike, Reebok, Puma, Blackberry, Zodiac, U.S. Polo, Flying Machine, Planet Fashion, F2O, Peter England, Mufti, Hidesign, Biba, Arrow, Kap Kids, Catmoss, Emerge, Lakshita, Woodland, Magnet, VIP, Just Lucky’s, Nu West, Café Coffee Day, Mothercare, Rockport, Himalaya, VDOT, Fuel-Stop, Metro, The Body Shop, Beverly Hills Polo Club, Guess, among others.
Even luxury hotels have zeroed in on Tier 3 cities. Just imagine, one of the most sought after spas in the country, Ananda, chose Amritsar to open its only branch at a 5-star luxury hotel, Ista, which is owned and managed by hospitality chain IHHR. According to Ashwin Handa, general manager of Ista, “Ista is Amritsar’s only 5-star luxury hotel and we decided on Amritsar as the city has a huge tourist influx and offers great potential.”
The same logic holds true for mall developers and according to Pickles Sodhi of Alpha G Corp, “Punjabis like to shop and they like to spend money and enjoy a good life. My investment in Amritsar was more of a gut instinct based on the facts, of course, that Amritsar is a huge religious draw — there is enormous tourist influx and many NRIs frequent this religious destination. The paucity of a decent mall spelt opportunity. Next, we plan to target Chandigarh, Jalandhar and Ludhiana. And after that we are readying a 7 lakh sq ft mall at Ahmedabad.” He adds that they have tried to retain the local flavour by introducing Amritsari bazaar, which will retail Amritsari crafts, phulkari, etc, and encourage shopping of local goods in sanitized environment.
Fun Cinemas’ Atul Goel feels that small cities are hugely receptive to new ideas. Fun Cinemas already has multiplexes at Chandigarh, Lucknow, Ahmedabad and Coimbatore. “We are entering Amritsar with a multiplex which will have the first gold class in Punjab. Priced within Rs 500 per cover, this 35-seater will provide endless cold drinks and popcorn to patrons.” Goel adds that they are trying to tap the aspirational living value of people and showing them a taste of good life, “once they taste it and learn to enjoy it, they will ask for more and this way they will grow with us”.
North India’s first hypermarket Hypercity Retail (India) Ltd has opened in Amritsar in Alpha One mall. B S Nagesh, vice-chairman, explains: “In this vast floorplate of 1.4 lakh sq ft, a shopper gets everything from the freshest malta to jeans worth Rs 199 to LCD TVs. Besides, there is a feature called Daily diamonds, which is meant for today’s women who can pick up their favourite piece of jewellery at price points of Rs 2,000 to Rs 10,000, while shopping for daily groceries. We are here to create lasting value and we are giving ourselves three years to break even.”
But when retail strikes smaller towns do they replicate their city formats or customize to the local tastes? Govind Shrikhande, CEO of Shoppers’ Stop says that the stores have similar merchandise albeit with some changes. “We are stocking pagdi (turbans) and jutti (shoes), as these are important part of the basket of a shopper in Punjab. Besides, our thrust will be on stocking more casuals than formal wear since Amritsar is not home to many corporates yet, unlike Delhi or Mumbai. Also, we would include brighter shades and focus more of traditional wear.”
However, what does not keep pace with these striking private developments is the poor public infrastructure. There is glaring contrast between public utilities and private developments and this is evident as soon as you step out of Alpha One mall and are greeted with poor infrastructure. Says S K Sayal, director & CEO of Alpha G: Corp: “While making this mall we were faced with infrastructural bottlenecks like lack of electrification, storm water drainage system, sewerage system — there is no master plan for these cities. But the authorities are slowly but surely realizing that infrastructure has to be built and we would say that one thing is leading to another. The authorities have built a flyover near the mall and the second one is already being planned near the Golden Temple.”
These private parties, of course with vested interest, are also doing good in both creating pockets of entertainment for small cities that lack them, and also bettering the services and utilities in their city of operation.
Courtesy:- Times Property dt:- 03-April-2010
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About the Author
hi i am sapna.i am working in bhardwaj buildtech pvt.ltd. comany.
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