Malls lose sheen as e-commerce takes the center-stage
By Sujata Sachdeva
21 Nov 2014
The e-commerce wave in India is so strong that it has made had an impact on prominent malls in the country. While Ambience Mall Vasant Kunj, one of National Capital Region's largest mall saw footfalls at fall by about 15 percent in the last one year, other leading malls too are facing a similar fate. Most prominent malls in India have seen 3 percent-5 percent decline in footfalls in one year.
Mall owners are now trying various ways to attract shoppers. While some feels that the e-commerce frenzy has had a negative impact, others blame it to generally low consumer sentiment. The methods they are adopting to bring customers back to stores and keep the business running include revenue sharing with online orders delivered from shops, urging brands to tell online customers to take delivery from shops and launching e-commerce platforms of their own.
In fact, Ambience and Pacific malls in Delhi-National Capital Region plan to insert clauses in upcoming lease agreements with retailers that they must share revenues for any online transaction where the product delivery happens out of a store located in their malls. Infiniti Mall in Mumbai too is working on an online concept designed to bring customers to the mall. It plans to ask its retailers to provide around 10 percent discounts online with a condition that the consumers must come to the mall to take delivery of the products. Even Select Citywalk Mall in New Delhi has decided to launch an e-commerce venture where its tenants can sell products online.