The Indian Retail Renaissance

Our recent experiences:

The year 2008 was a year for corrections. The retail industry felt the sharp impact of the economic slowdown resulting in a cash crunch. As a natural reaction, the companies started correcting their expansion plans, which were actually set in frenzy without much thought thereby leading to high cost structures. Interestingly, the earlier phenomenal growth of organized retail sector and its downturn were both inextricably linked to the real estate sector. The background of the real estate sector was very similar wherein no real homework on the consumers and the retail potential was done before starting to build large scale shopping centres. Sadly, even the commitment to ensure long term success was missing. Instead, the sale model was to ensure a quick return among many.

But even as the great shopping experience in India hit a few road blocks, it is being seen by us as a blessing in disguise by way of sound preparation for the long-awaited renaissance in retail in which only the strong and focussed players will continue to survive and grow. The new government at the centre has also instilled new faith for both the retailer and the developer, providing the indication that the sector is through with the initial round of corrections. A sound beginning to herald Retail’s Renaissance would be the rationalisation and opening of FDI inflow in this crucial sector.

Alpha’s contribution to this Renaissance:
While the recent times have seen innumerable shopping centre projects across the country being put on hold or being scrapped totally, we believe in continuing to focus on the real requirements of customers. We have always worked collaboratively with the retailers be it at the time when the growth in retail was at its peak or when the sector is recovering from a correction mode. It is this approach that has resulted in a high level of interest from national as well as international brands for our soon to be launched City Centre development, AlphaOne in Amritsar at a time when the overall demand for retail space is at an all time low.

A comprehensive research was conducted by us not just of the existing and potential retail and related real estate in the city, but more so of the catchment areas. The consumers, their demographics and aspirations were the key ingredients of the research. We incorporated the findings of this extensive research in the planning of the City Centre development in Amritsar resulting in a strong foundation for our project.

The technical aspects comprising of both civil and the services plans are all designed in consultation with the retailers while keeping the requirements of end-customers in mind. Advanced and planned facilities for parking, all-round accessibility and strategic zoning are fundamental to our retail mix as are choices in price points, customer relationship management; interesting marketing schemes and promotions, customer research and focus group discussions. For us, the customer is always at the heart of everything that we plan or do!

Further, we have identified mall management as a critical factor for the success of malls, because ultimately both the retailer and the developer will benefit from marketing promotions, which will result in increasing footfalls. And we all agree that a customer friendly mall will make the customers want to come back time and again to relish the experience. It is only with a dedicated and experienced mall management company that this can be ensured. To this effect, we have set up a designated and professional mall management company that will service all our City Centre projects.

Our first retail development entailing 2 million sq. ft., AlphaOne in Amritsar will bring about the much needed revitalization of the retail sector by offering the best of national and international brands to the people of Amritsar and surrounding areas while retaining the best of the local Amritsari spirit.  As a result of AlphaOne’s architecture, planning, facilities, location and most of all, the retail and entertainment mix that will offer continuous luxury and delight in shopping and entertainment options, this landmark development has received the honour of ‘Highly Commended Certification’ and ‘Seal of Distinction’ in the category of Mixed-Use Development at the 2009 edition of the Cityscape Asia Real Estate Awards held in Singapore in May 2009.