Dubai Malls vs Indian Malls: Comparative Study

Dubai has evolved as a developed retailer’s market is the closest to the Indian market in terms of the profile of resident population since 60 per cent of the resident population in Dubai is from the sub continent region. There are several striking parallels between the retail sectors of India and Dubai. For one, the retail sector of Dubai was predominantly led by Indian traders - an association that goes back to several centuries. The evolution of Dubai's retail sector as a truly world-class shopping destination was swift and phenomenal, and in this growth, shopping malls have played a key role. According to many experts, Indian malls are also walking on the footsteps of these malls but stills their lye’s many differences in the standards achieved by Dubai Malls and Indian Malls:

• Location
  Location is the most critical parameter that affects the top line and bottom line of any retail store. The malls in Dubai, which now double as tourist attractions are mostly destination locations. Each mall location has an ease of access and ample parking facility. The concept of neighborhood and catchment is not of paramount criterion because most of the resident population in Dubai travels by cars. Unlike Indian malls, malls in Dubai like Ibn Battuta, Dubai mall and Mall of Emirates are clearly destination malls and the criteria of immediate catchment population does not exist. Moreover these malls have multiple entertainment sources like waterfalls, gigantic aquariums and indoor ice ski resort which attract people from even hundred miles away. Thus they can have malls located at distant places and yet manage to attract massive number of footfalls.

• Tenant Mix
  Malls in Dubai have a definite plan and strategy in selecting the tenants mix. Further there is a clear strategy in placement of the tenant within a mall. The occupiers could be segregated by type into high-end boutique or jewelry store, fashion, supermarkets, electronics, entertainment etc. Compared to India where ad-hoc strategy still prevails, retailers prefer ground floors and only as a fall back strategy agree to consider the clusters, which will be complementary to their trade.

• Floor Allocation
  Most malls in Dubai have strategically planned floor allocation and were stringent in the choice of retailers. Every mall in Dubai has an estate office that managed the retail mix and management of the mall post establishment. In majority of the malls, a detailed questionnaire is required to be filled in by a prospective occupier before an offer could be made to them by the estate office. The questionnaire enquired about the product category, brand strategy and brand positioning, which assists the estate office to offer space at defined terms (Indian Reality Snapshots, 2006).
  

• Car Parking’s
  Retail areas in Dubai provide covered car parking of at least 1 car park for every 400 sq. ft space and an additional open car park for every 500 sq. ft. where available. In India, Initially most developers provided one car park space for every 1000 sq. ft. of built up area (Indian Reality Snapshots, 2006). Developers are now coming to terms with the modified parking requirements of the retailers. Developers in India are now learning that adequate parking is a critical component of the shopping experience.
  

• Access into Malls
  Most of the malls in Dubai are located close to the Expressway or major roads like Sheikh Zayed road. All of them have more than one access into the mall. In India, development of malls has followed the herd mentality. Any plot, which is available to the developer and is close to existing markets, is converted into a mall. Access to a mall is not being given due importance in India. Only a handful of the many malls like Select city walk in Delhi can boast of clear access, which is almost a prerequisite for developing a mall in Dubai.
  

• Floor to Floor Space
  Retailers use the volume of space available to them as a medium of interaction with the end-consumer. Most retailers like spaces with floor to floor heights of 16 feet. However the Indian developers have been used to constructing space of standard heights of 12 feet. In Dubai, we found all retail properties had adequate floor to ceiling heights ranging from 16 feet to 24 feet in the city center. This gives the retail space a sense of spaciousness. Column spaces in Dubai have 8 meter grid or more, enabling the retailer to use the area leased optimally, unlike the space available for retail in India (Indian Reality Snapshots, 2006).
  

• Loading Factor
  Mall developers in India have been traditionally charging 25% - 30% as a loading factor on usable area; in some of the malls this loading percentage has gone up to 50% also. An interesting phenomenon seen in the malls of Dubai was that all the leftover space is measured and billed on the usable area basis only, thus bringing in greater transparency (Indian Reality Snapshots, 2006).
  

• Anchor Stores
  Anchor retailers are strategically placed within the mall so that in the process of reaching out to the anchors, they are capable to attract customers on their own and the smaller retailers get foot traffic passing in front of their outlets. In the Indian scenario, unfortunately the developers do not pay particular attention to circulation space. Most of the malls India have narrow corridors and walkways with misplaced anchor space within the malls.
  

• Events and Promotions
  Mall promotions and activities are a regular activity in Dubai malls. Malls carried promotions involving all retailers on an independent basis. There are promotions like the Dubai shopping festival and Dubai Summer Surprise, which are collective effort of all the major mall developments in Dubai. Apart from this there are activities in each mall on a store level with frequent schemes and shows and offers. Some malls have surprise lottery prizes which provided excitement to the shoppers and some have their own loyalty program. Among the existing Indian malls, malls like Select City Walk host a number of events on a regular basis but still the India mall developers have many things to learn from Dubai malls.