The Next 30 – Tier 2 & Tier 3 cities – Catapulting the next growth centres for malls
Rising affluence and lower rents in small-town India fueling the next retail boom
– Smaller cities witnessing a new level of urban renewal and growing affluence – ‘Smart Cities’ tag, urban housing, infrastructure development – how is this translating to developers seeing the next opportunity?
– With Flipkart and Amazon gaining a big share of their revenues from Tier II-III cities, is online an alternative for shoppers because of dearth of quality mall spaces, and availability of top brands? How can developers create niche experiences in their Shopping Centres to draw shoppers to stores?
– Does it help that a local developer has a better pulse on the city? Would national developers get into Tier-II- II cities or would it continue to be a preserve of more niche developers focused on each city?
– What are the top propositions which make mall developments offer higher profitability in Tier 2/3 cites – lower rentals, experimentation with new leasing formats, less competition as a handful of malls in the entire city?
– What is the research that developers undertake to decide which cities to target building their malls into (CSO or Census estimates, population demographic, per capita purchasing power, smart-city recognition, airport connectivity, good availability of real-estate, catchment size)?
– What is the developers take on these cities, that research has indicated to be top potential markets for upcoming malls : Jaipur Ahmedabad Lucknow Nagpur Vadodara Chandigarh Thiruvananthapuram Indore Kochi Bhubaneswar Coimbatore Patna
– How have the investments worked out for Blackstone (Ahmedabad’s One mall, Elante mall, Chandigarh, Treasure Island Mall, Indore; Virtuous Retail (Surat, Mohali); Lulu Mall (Kochi)
We discuss what Retailers and Developers are doing to bring the next level of development in the growing markets of Tier-2 and Tier-3 centres.