Shopping mall is an emerging and lucrative business in India. However, the business demands a right strategic planning with financial and marketing planning. Here in this article, we intend to explore, how to start shopping mall business in India.
Nowadays, the shopping mall is not a business only for metropolitan cities. Even this business is very much successful in Tier 2, Tier 3 cities and small towns. If you have a good location with sufficient space, you can build a shopping mall. However, there are a lot of other factors that you must consider.
Why Shopping Malls Are Getting Popularity In India
Shopping malls are getting tremendous popularity these days. And definitely, there are several reasons behind it. According to the retail industry experts, the demand for the mall will more increase in coming 5 years. And we can expect a significant growth in the shopping mall business throughout the country.
Generally, shopping malls offer a comfortable and luxury shopping experience. A mall is not built for every tom, dick and harry. A mall generally, attracts a specific class of audience.
Additionally, a mall offers a lot of activities and means of entertainments. Apart from the shopping, it offers movies, games plaza, banquet hall, food court and enormous events throughout the year. Therefore, a mall is a perfect hangout destination for the city residents.
License & Permission For The Shopping Mall Business
A shopping mall is a large scale business. And it demands a lot of licensing and permissions from the different authorities. However, it can vary from state to state.
First of all, you must check the status of the land. If the land is suitable for the mall or not. If not, then you will need to convert the status of the land. You can contact local Land & Land Reforms Department.
Additionally, you will need to get the permission from the local Municipal Authority. And also, you need to get the sanctioned plan.
Additionally, check the permissions for alcohol or tobacco selling, electricity, banquet hall, etc.
Cost Of Building A Shopping Mall In India
There are various types of costs when you are building a mall or shopping centre. The entire process starts with the market research and ends with marketing and maintenance. Additionally, it also depends on the location and size of the mall. However, here we put some of the basic input costs.
- First of all, you must do some market survey or market research. It helps in taking an informed decision. Therefore, it makes the project profitable and eliminates the possibilities of failure.
- Finding the location and acquiring the land. Generally, it costs huge. However, you must select a location that is perfect for a shopping mall.
- After that, you will need to create an architectural drawing and design including the estimate. And definitely, this costs a lump sum amount. In the designing part, there are several designing formats. And you have to create those formats for the permission from the authority. It includes the site map, elevation, structural design, electrical design, overview etc.
- After getting the plan, next part is sanctioning the project from the corporation or Municipal authority. And here, you will need to pay the fees.
- Next is the construction cost. It includes the material cost, labor charge and consulting cost.
- Additionally, you must prepare the interior of the mall. It includes ceiling, flooring, toilets, doors, windows, lighting, air conditioning etc.
- Furthermore, there are some costs for the exterior facilities. Here the list includes pavements, security room, parking space, landscaping etc.
- After building the complete infrastructure, there are costs that required for marketing and promotion.
- For running the mall, you will need to employ the employees. According to the size of the mall, this cost varies.
- And finally, You must have the capital for the expenses like maintenance, utility bills etc. Because, in initiating a shopping mall business you must have working capital for first 6 months.
Shopping Mall Busines Plan
A business plan is the most crucial part of starting this business. And each and every decision makes a huge difference in the success of the business. It is advisable to talk to a small business expert before entering the business.
As we said earlier, you must do a market research before. After that only, you can identify the legitimate opportunity (if is there). Identify the demand and what better shopping experience you can offer to the audience. Additionally, what class of consumers you will attract for the mall.
Another important factor is deciding the size of the mall and different means of entertainments other than shopping. What extra you can offer to your consumers. Identify the USP of the mall.
Construction and the interior floor plan hugely matters in the popularity of the mall. So try to offer the best infrastructure. Hire skilled and experienced architectural team.
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Have a marketing plan. It is essential. You must start the promotion when the construction is going on. Additionally, start talking to the big companies and brands. So that they can have enough time to take the decisions.
Finally, starting and maintaining a shopping mall is a lucrative opportunity for any individual. If you have the area and a passion for a commercial real estate business, shopping mall business is just perfect for you.