The shopping mall is an emerging and lucrative business in India. However, the business demands the right strategic planning with financial and marketing planning. Here in this article, we intend to explore the steps to follow to start a shopping mall business.
Nowadays, the shopping mall is not a business only for metropolitan cities. This big retail business venture is fast becoming successful in Tier 2, Tier 3 cities, and small towns as well. If you have a good location with sufficient capital to invest, you can think of opening a shopping mall. However, there are a lot of other factors that you must consider before starting this business.
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Is Shopping Mall Business Profitable in India?
Shopping malls are getting tremendous popularity these days. And definitely, there are several reasons behind it. According to retail industry experts, the demand for the mall will increase in the coming years. And we can expect significant growth in the shopping mall business throughout the country.
Generally, shopping malls offer a comfortable and luxurious shopping experience. Additionally, a mall offers a lot of activities and means of entertainment. Apart from the shopping, it offers movies, a games plaza, a banquet hall, a food court, and enormous events throughout the year.
As a result, shopping malls are becoming popular hangout destinations for city residents.
License & Permission Requirements for Shopping Mall
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 the local Land & Land Reforms Department.
Additionally, you will need to get 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 from local competent authorities.
Cost of Starting A Shopping Mall In India
There are various types of costs when you are building a mall or shopping center. The entire process starts with market research and ends with marketing and maintenance. The start-up investment will also depend on the size and location of the shopping mall. Here we put some of the basic input costs to open a shopping mall.
- First of all, you must do some market surveys or market research. It helps in making an informed decision. Therefore, it makes the project profitable and eliminates the possibility of failure.
- Finding the location and acquiring the land. You must be prepared to invest a considerable amount of investment. The right location is extremely critical for the success of a shopping mall business.
- 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 design formats. And you have to create those formats for permission from the authority. It includes the site map, elevation, structural design, electrical design, overview, etc.
- After getting the plan, the 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 material costs, labor charges, and consulting costs.
- Additionally, you must prepare the interior of the mall. It includes a 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 are required for marketing and promotion.
- For running the mall, you will need to employ employees. According to the size of the mall, this cost varies.
- And finally, You must have the capital for expenses like maintenance, utility bills, etc. Because in initiating a shopping mall business you must have working capital for the first 6 months.
Create a Shopping Mall Business 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 market research very first. Identify the demand and what better shopping experience you can offer to the audience. Additionally, what type of consumers you will attract to the mall must be taken into consideration.
Another important factor in deciding the size of the mall and different means of entertainment 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 a skilled and experienced architectural team.
Have a carefully crafted marketing plan. It is essential for the success of the shopping mall business. You must start the promotion when the construction is going on. Additionally, start talking to big companies and brands. So that they can have enough time to make the decisions.
There is no doubt, that the number of shopping malls in India is surely going to increase in the coming future. If you have the area and a passion for a commercial real estate business, the shopping mall business is just perfect for you.