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Old September 27th, 2019, 12:49 PM   #9341
greatshankar
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Retailing | Why Ikea is tweaking its India strategy

After a little more than a decade, IKEA has probably understood one thing about India – it needs to be flexible to do business in a nation with 1.3-billion population.

Swedish retailer IKEA, known for its ready-to-assemble furniture, it is going to lease space in a shopping mall in Mumbai to open a store, the Economic Times reported on Monday. This is the first time IKEA will be opening such a store – in a leased space in a shopping mall. Also, this is going to be a smaller store, unlike the standard IKEA stores across the globe.

Typically, the size of an IKEA store is as big as five football grounds put together, or more than 300,000 square feet. Its only store in India is spread over 400,000 square feet in Hyderabad. The company has announced plans to open 25 outlets in India by 2025.
But, the small-format store concept is not unique to India. The company has been experimenting with smaller sized stores spread over just 5,000 square feet (Warsaw, Poland) since last year. The idea was to come close to the consumers in big metro cities like London and New York where real estate is extremely expensive, and finding retail space for a standard IKEA store is almost impossible.

The reasons why IKEA is tweaking the way it has been doing business since July 1943 include fast-spreading online commerce that has changed consumers’ habits and expectations, rapid urbanization resulting in people’s living spaces getting squeezed, especially in big metro cities, among others.

And, all these resulted in IKEA’s UK profits falling by around 40 percent last year. So, IKEA needs to react.

IKEA started investing in online pickup services, digital fulfilment centres, and started opening small-format stores. Even, it now has a model where consumers can walk in, use a computer to custom-design furniture according to their needs in a kiosk within these small-format stores, and IKEA will deliver those products to the customers.
IKEA started studying India as a market in June 2006, and it opened the first store in August 2018. It has studied the market, invested in it, and understood what may work and what may not. The first store is considered successful with footfalls of 4 million customers in the first year. But what next?

After a little more than a decade, IKEA has probably understood one thing about India – it needs to be flexible to do business in a nation with 1.3-billion population.
Besides, regulations differ in states across India. For example, IKEA has been struggling to figure out ways to open stores in Delhi, the national Capital, simply because the state regulations restrict the height of roofs for retail stores. Naturally, it will not be able to open its desired standard-sized store in Delhi. The solution for IKEA was to find places in Haryana and Uttar Pradesh, which are adjacent states to Delhi.
That’s not what it calls staying close to the consumers. The cost of commercial properties in Indian cities like Mumbai and Delhi are among the top cities globally. The lack of space is another factor.

Besides, it has been observing the success of online furniture retailers Urban Ladder, Pepperfry, Flipkart, and multichannel retailers like Fab India, Godrej, among others in the past 2-3 years.

To counter them, it needed to be present in top metro cities like Mumbai, Delhi, Bangalore, Chennai and Kolkata within a shortest possible timeframe. And, that’s possible if IKEA decides to go with the small-format retailing model. Online is a plus, because of the convenience factor.

In Mumbai, there was always a question of whether Ikea's target customer market would travel in congested traffic to Navi Mumbai to shop for furniture, and how often. Even while announcing its entry, news reports had said Ikea may experiment with smaller stores offering a digital shopping experience in Mumbai itself. But this is different. Here, it's reportedly taking up 1-lakh square feet space to set up a store. That may be small by Ikea's standards but is reasonably big by Mumbai's standards. While it may not be able to give them the full Ikea experience in a smaller store, it should get higher footfalls.
Earlier this year, IKEA also started online store in Mumbai before the physical store. According to a statement by the company, it wants to reach 100 million customers in three years through its multi-channel approach. And, in the past one year since it open the Hyderabad store, just 4 million people visited the retail outlet.
So, why is IKEA for a multi-channel strategy in India, bundled with small-format retailing? The answer is simple – it can’t wait.
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Old September 27th, 2019, 09:57 PM   #9342
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Malls and Warehousing: Chennai cracks the code

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Today, a city’s real estate success formula depends on quite a few other industries than just housing. Housing demand is a natural by-product of the success of businesses and industries that drive consumption and create jobs. Chennai’s strengths as an automobile hub has already earned it the tag of ‘the Detroit of the East’, but it has also emerged as one of the leading IT/ITeS destinations of the country.

Malls and Warehousing: Chennai cracks the code

Both these industries drive job growth, which in turn drives housing demand, but there are at least two other industries that share a deep symbiotic relationship with Chennai’s overall real estate viability – the organized retail and warehousing & logistics sectors.

Shopping Malls

Economic downturn or no economic downturn, Indians love to shop. Some consumer items like cosmetics (the fabled ‘lipstick effect’), fast fashion and electronics like smartphones are actually beating the current trends, with the growth figures in these industries still firmly in the green. Malls are the best places to shop for these – and to enjoy a few hours in clean, air-conditioned and visually appealing environs.

Contrary to doomsayers’ predictions when the Indian e-commerce boom began revving up in earnest, malls are still very much the pièce de résistance of the Indian retail industry. South India has not been left behind, with the main Southern cities displaying bracing growth of the organized retail sector.

As per ANAROCK research, the top 7 cities in India currently have 105 operational malls sprawling over 50 mn sq. ft area, of which Chennai has 10 malls spanning over 5.9 mn sq. ft. area. Organized retail activity in Chennai may not have caught up with Bangalore’s pace as yet, but it is picking up. In fact, at least 10 new malls covering over 5.45 mn sq. ft. area are slated to come up in Chennai by 2022-end.

Chennai Mall Trends: The prominent areas in Chennai that will see new supply of malls include OMR, Anna Nagar, Perambur, Saligramam and Navallur. Average monthly rentals in the city hover anywhere between Rs 70-150 per sq. ft. Mall vacancy levels in Chennai are more or less on par with Hyderabad at 14 percent, but higher than in Bengaluru (where mall vacancy currently clocks in at 10 percent.)

Unlike in some other major cities in India (MMR and Bengaluru come to mind) easy accessibility and connectivity drive footfalls in Chennai’s malls. The city’s top-performing malls essentially lie in prime locations and are easily accessible by both public and private transport.

In fact, their easy accessibility is one of the USPs for Chennai’s shopping malls and mall developers recognize this critical factor as integral to the success of their establishments. For instance, malls in and around Anna Nagar – which is well-connected via metro – such as Forum Vijaya Mall and VR Chennai are seeing excellent footfalls, with the average footfalls in Forum Vijaya Mall averaging at least 1,500 even on weekdays.

Chennai is a leisure-loving city, so the fact that mixed-use elements by way of entertainment options are de rigueur in the city’s malls is another important footfall driver.

South Chennai – the Shopping Hub: As is seen in most large cities, Chennai’s Southern precinct draws the aces when it comes to attracting the cream of real estate developments. Several malls are either already operational or coming up in South Chennai, which is largely inhabited by the city’s IT/ITeS professionals. At least three new malls are coming up in the OMR belt over the next three years while malls like Grand Square, Phoenix Marketcity, Palladium are already operational.

Warehousing & Logistics

Today, no city’s retail success story is complete without mentioning the support its shopping malls as well as e-commerce industry receive from warehousing and logistics. These are the lifeline for all retail growth anywhere in the world – without efficient storage and rapid movement of consumer goods, the retail sector cannot hope to thrive. Interestingly, the city’s warehousing and logistics sector predates its mall boom, for good reasons.

W & L Demand Drivers: Chennai has historically been one of India’s most prominent hubs for trade and commerce. This caused it to evolve into one of the key manufacturing hubs, particularly for automobiles. Besides having major connectivity via roadways, Chennai is also a very active port city. Warehousing and logistics have, therefore, always existed here in some form or the other.

The city’s eminently strong IT/ITeS sector drove its rapid evolution of tech-enabled warehousing solutions, and simultaneously its emergence as one of India’s most prominent e-commerce hubs. Today, there are several clusters including Sriperumbudur-Oragadam – located outside the city – that have, over the years, evolved into important warehousing and logistics hubs.

Once again, excellent connectivity is the key driver to this important industry’s success in Chennai. These clusters have easy accessibility via highways, ports, the airport and railway stations. Needless to say, Chennai’s thriving warehousing and logistics industry has also had a significant positive impact on the residential activity in areas in and around these clusters.

Investments Galore: Chennai’s strengths as a logistics and warehousing nexus has also been generating interest among investors due to the high volumes of exports and manufacturing services spread across the city. Investments in Chennai’s logistics and warehousing industry have seen a steep upturn since 2018. Since December 2018, the city drew private equity inflows of US$ 220 million in the logistics and warehousing sector alone.

In previous years, demand for warehousing in Chennai primarily came from the automobile sector. This changed in 2019, when demand came mainly from e-commerce, manufacturing, and food processing companies. As we speak, infrastructure upgrades like the proposed Chennai-Maduravoyal port and the accelerated completion of Outer Ring Road are driving up the stakes for Chennai’s warehousing and logistics sector.
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Old September 30th, 2019, 09:41 PM   #9343
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I saw new banner at Marg junction Karapakkam which stated one stop shopping destination coming soon. Seems they have resumed construction .
Riverside Mall
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Old October 1st, 2019, 12:02 AM   #9344
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Riverside Mall


IKEA or LULU?
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Old October 1st, 2019, 04:54 AM   #9345
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Hmm MARG name is missing
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Old October 1st, 2019, 04:58 AM   #9346
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IKEA or LULU?
Too small for both of them, unless they are coming up with a smaller version.
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Old October 1st, 2019, 05:07 AM   #9347
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IKEA or LULU?
“We have acquired an ongoing mall development In Bengaluru and will build our own in Chennai. Mall projects give us the best platform to keep expanding our India portfolio", Yousuf Ali, Chairman and Managing Director of Lulu Group told Gulf News.

https://www.ummid.com/news/2019/marc...-in-india.html

I think as quoted earlier in this group, LuLu is coming up in Koyambedu
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Old October 1st, 2019, 11:23 AM   #9348
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where in koyambedu exactly? and the report says the project ready by next year.. if so there should be a massive project near in koyambedu of this scale to confirm?
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Old October 9th, 2019, 04:03 AM   #9349
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Forest dept plans nature trail walkway at Vandalur zoo

In a bid to make the visit to Arignar Anna Zoological Park, Vandalur, exciting and to encourage youngsters to learn the nuances of biodiversity, the State Forest Department has planned to introduce a nature trail walkway inside the sprawling zoo spread over 600 hectares.

The zoo administration is also working on a one-day zoo stay package for those coming from far. According to the proposal, visitors can book accommodation for two people by paying an amount of Rs 2,000. For children below 12 years, Rs 500 will be collected extra. Though the facility has started appearing in the zoo website, the package is yet to go into full stream, sources said.

The zoo, which recently developed a butterfly park and a walk-through aviary, is working on improving its tree cover, after the canopy was lost due to the Cyclone Vardah, sources said.

“The objective of the nature trail is to educate the children on birdlife and biodiversity. The trail will have murals and sculptures depicting the wildlife and forestry. We are also planning to put display boards to engage those taking a walk through the trail,” Deputy Director Sudha Raman told DT Next.

According to sources, the works are under way and it will take a few months for the project to be completed. The trail will pass through the elephant and giraffe enclosure areas and lead to the circuit road of the zoo. There is lion safari, deer safari, walk through aviary available in the zoo and this new nature trail will give another option for the visitors to explore the wild ambience. The zoo sources added that the number of people watching the animal yard through online facility has increased.

Welcoming the concept, wildlife biologist A Kumaraguru demanded large afforestation project inside the zoo, which was ravaged by Cyclone Vardah in 2016.

Source : https://www.dtnext.in/News/City/2019...-Vandalur-.vpf
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Old October 9th, 2019, 03:18 PM   #9350
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Hmm MARG name is missing
Marg is not missing it is hiding its name after the bad publicity it went though mismanagement. I tried to reach them for a client of mine in Singapore who wants to open a large format stores in Chennai. I called them a week back but the women who picked up the phone thinks that she is the owner and expects only brands like Yves Saint Laurent, Jimmy Choo and Versace at the jinxtion ( spelling is pun intended ) for their mall and that that they will open only in March 2022. From what I have gathered from myt call to them is that their Mall is a half million in size ( about the size of Ampa Skywalk Mall). Major anchor store is Shopper's Stop and INOX. I just cut the call and called VR who went out of the way to accomodate my request in spite of the fact that they were sold out. Now that is VR professionalism !!!!!
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Old October 9th, 2019, 03:23 PM   #9351
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By the way VR mall is now the 4th largest Mall in India and the 2nd Largest Mall in South India after Lulu in Kochi. It is clearly bigger the The Phoenix mall in Velacherry which was one of the biggest mall in India until last year.
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Old October 9th, 2019, 06:47 PM   #9352
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Originally Posted by MyNation View Post
In a bid to make the visit to Arignar Anna Zoological Park, Vandalur, exciting and to encourage youngsters to learn the nuances of biodiversity, the State Forest Department has planned to introduce a nature trail walkway inside the sprawling zoo spread over 600 hectares.

The zoo administration is also working on a one-day zoo stay package for those coming from far. According to the proposal, visitors can book accommodation for two people by paying an amount of Rs 2,000. For children below 12 years, Rs 500 will be collected extra. Though the facility has started appearing in the zoo website, the package is yet to go into full stream, sources said.

The zoo, which recently developed a butterfly park and a walk-through aviary, is working on improving its tree cover, after the canopy was lost due to the Cyclone Vardah, sources said.

“The objective of the nature trail is to educate the children on birdlife and biodiversity. The trail will have murals and sculptures depicting the wildlife and forestry. We are also planning to put display boards to engage those taking a walk through the trail,” Deputy Director Sudha Raman told DT Next.

According to sources, the works are under way and it will take a few months for the project to be completed. The trail will pass through the elephant and giraffe enclosure areas and lead to the circuit road of the zoo. There is lion safari, deer safari, walk through aviary available in the zoo and this new nature trail will give another option for the visitors to explore the wild ambience. The zoo sources added that the number of people watching the animal yard through online facility has increased.

Welcoming the concept, wildlife biologist A Kumaraguru demanded large afforestation project inside the zoo, which was ravaged by Cyclone Vardah in 2016.

Source : https://www.dtnext.in/News/City/2019...-Vandalur-.vpf
It would be great if they can come up with a camping ground with barbecue pits.

I am not sure whether we have any camping ground in the vicinity of Chennai, in ECR or on GST.
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Old October 9th, 2019, 10:33 PM   #9353
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It would be great if they can come up with a camping ground with barbecue pits.



I am not sure whether we have any camping ground in the vicinity of Chennai, in ECR or on GST.


BBQ in Chennai ?! Does nt suit Chennai with its weather. If it’s inside a AC restaurant, it’s better
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