Mega Mall Mania

With shopping malls, IT parks and premium hotels springing up everywhere, Kerala is fast becoming a popular space for commercial built-ups. The mega mall culture in Kerala has revolutionised the shopping experience in God’s own country

     The commercial real estate sector in Kerala is poised for a steady growth with many companies setting up offices in Kochi and Trivandrum. With the growth of Infopark and Technopark, IT companies have set up their development centers in Kerala and a mall fever has gripped the state. 

What attracts the builders and brands to Kerala? “Kochi is the perfect test market for products of any description, given that the purchasing power, population density and physical quality of life is the highest in India,” explains Mathews Jose, managing partner, M&L Realty.  According to Shibu Philips, business head, Lulu mall, “the steady inflow of ‘gulf money’ and the devaluation of Indian rupee means the spending power of Keralites is increasing. Most Malayalis today are exposed to the umpteen international and national brands, which has encouraged builders and brands to venture into Kerala market.”

Opportunities aplenty
Malls are more than just shopping destinations. They have been designed for shopping and recreation for the entire family. Its a great place for social get together – to eat, meet and mingle and a one-stop entertainment destination with multiplexes and gaming centres. Huge revenue from business, plenty of job opportunities, unique shopping experience, influence of non-resident Indians (NRI) and changing lifestyles have all contributed to the booming mall culture. “The fall in savings ratio from 38% in 2008 to 29% now, has also contributed to the mall culture. The generation today is more for spending than saving, which is good for the malls,” says Alex Babu, managing director, Hedge Equities. 

Scores of malls

Malls today are evolving according to customer’s needs and developers are following the new trend of building the most gigantic malls. Shibu explains why. “Large sized malls ensure that customers don’t feel pushed around as the mall can accommodate large footfalls at all times.” With a largely favourable economic climate, the retail real estate is on an upswing with the increasing number of mega mall launches happening, including the recently-opened Lulu mall at Kochi. 

A properly zoned mall can truly become a landmark in the city, as is the case with Lulu mall, which is spread at a little over 2.5 million square feet, housing an eclectic mix of top international retail brands, food courts, coffee shops, etc. It also has 22,000 square feet of entertainment zones, including a 5,000 square feet Ice rink, said to be the first of its kind in South India.

The FDI factor
The retail sector in India is witnessing rapid changes and one of the key factors is the aggressive expansion of international retailers into the country. With the Government announcing foreign direct investment (FDI) upto 51 per cent in multi-brand retail, many global brands have firmed up plans of setting foot in the Indian retail market. “International brands like Ikea, Starbucks, Zara, Forever 21, H & M, etc., entering the Indian market is very encouraging for the retail development in the country and customers will be spoilt for choices,” says Shibu. 

Malls are the best form of organised retail for they are silently revolutionising the shopping concept in Kerala. With numerous mega malls being planned and finalised by retail groups in Kochi alone, mall culture is here to stay.

- Sherene Joseph