MALLS VS INTERNET "CONSUMERISM"-NEW STRATEGIES

The fast growing On-line business volumes world over seems to be rattling the traditional retailers as most consumer products are delivered to house holds at costs significantly less than that charged by the conventional merchandising system. One of the reasons attributed to this distortion is that items sold through the Internet are not often taxed, though this cannot explain fully such discrepancies. According to some projections, On-line retail business is estimated at $ 573 billion, not considered insignificant. Evolution of retail business from small "mom and pop" stores into huge Malls of today manifests the transformation of the society from a thrifty era into a high spending phase where consumers have unlimited opportunities to spend money whether own or borrowed on a multitude of choices that can enrich the quality of life. Lately many Malls built investing heavily to tap the growing consumer culture are finding that they are being threatened by the On-line business practices and to sustain them selves these modern retail outfits are trying to "invent" new ways to "retain and attract" more customers. Here is a commentary on this new phenomenon.   

"Just about every mall owner in America is looking for ways to compete with the Internet. R. J. Milligan, a real estate analyst for Raymond James, said that developers were slowly adding more service-oriented elements to malls — for instance, dividing a closed Sears anchor store into multiple cafes. But Glimcher is pushing the envelope even further than the standard model of restaurants and expanded food courts, he said, with tenants like Make Meaning (a membership store where people make crafts, cakes and other things) and Drybar (a salon with no scissors, just stylists with blow-dryers). "They've done a good job of getting the right tenants in there," Mr. Milligan said.Scottsdale shoppers can have their hair blown into beachy waves at Drybar, create picture frames at Make Meaning, try a tree pose at Blissful Yoga and grab a kale salad at True Food Kitchen before going to a movie, where they can have drinks and snacks delivered to their reserved seats. They can also take advantage of in-person-only opportunities at standard retailers, like the so-called booty cam at Industrie Denim, a jeans store, that lets women study their rear view. A Restoration Hardware scheduled to open soon will offer fresh flowers and cups of tea for sale. "We want to be a place that people go to frequently, more than one time a week," said Mr. Glimcher, so the emphasis is on classes and other hands-on experiences".

Whether Internet retailing is good or bad is another matter but still considering the on set of serious health related physical and mental down turn of populations in many wealthy countries due to sedentary life style, On-line buying is definitely a disadvantage as it is a temptation to get what one wants sitting at home with no chance of any significant physical activity. However On-line retailing is not amenable to many activities, especially those requiring personal care and attention and this is a factor that drives many Malls to change their lease profile to include more and more specialty food centers, personal care facilities, high end services, training centers for tailoring, food preparations and other skilled activities etc so that customers will have to visit them more and more often. With most Malls offering entertainment facilities and low end food courts there is already a trend emerging where more people come to Malls for this experience than for any purchase. If high end restaurants and shop outlets are given more importance, Mall attendance is bound to improve dramatically.

V.H.POTTY
http:f/vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

RAIL FOODS AT PETROL BUNKS? IRCTC'S NEW STRATEGY

It is a "startling" news of the New Year that the railway catering specialist IRCTC is mulling over extending its arm beyond the trains and the platforms of Indian Railways seeking greener pastures so that it can justify its existence. Railway Board, whether in its wisdom or recklessness, took over catering services in the trains from IRCTC purportedly on account of persistent complaints from the traveling public regarding indifferent quality of foods served by the latter in some of the prestigious trains. Whether this move has satisfied the passengers is a moot question as they have no option but to eat whatever is offered by whoever has the licenses to do it. But IRCTC with a large infrastructure and personnel with experience in catering is left with no choice but to seek to diversify its activities beyond the trains and the stations. The news of IRCTC planning to establish food outlets in petrol bunks, Malls and other public places is welcome in one way that it is utilizing its experience to justify its existence as a viable entity in the public sector. Here is the take on this new development. 

"After complaints related to poor quality food being served to passengers began pouring in, the Indian Railways (IR) took over from the Indian Railway Catering and Tourism Corporation Ltd (IRCTC) the job of arranging food on its long-distance trains. Unfazed by the move, the IRCTC, a Miniratna company in its bid to recover the losses it suffered, will now be trying its hand at opening food stalls, multi-cuisine cafeterias and food courts at petrol pumps and outside shopping malls in the city. To do so, IRCTC had hired professionals from the catering and hotel industry to check out whether the idea of serving food beyond railway stations and platforms is feasible or not. At present, the IRCTC is on the lookout for spaces for inaugurating food courts and cafeterias at different locations all across the city. "We have already signed a memorandum of understanding with Hindustan Petroleum for setting up our cafeterias at their petrol pumps. These outlets will be operational after April," said an IRCTC official, requesting anonymity. Sources added that the IRCTC is looking forward to similar tie-ups with other petroleum giants, such as Bharat Petroleum and Indian Oil, and have initiated talks for the same. Apart from petrol pumps, IRCTC is also exploring the option of starting food stalls outside multiplexes, shopping complexes and malls, and is keen on hiring contractors who can provide it with regional delicacies. Currently, IRCTC runs a food stall at BARC and at Loni in Pune district". 

One disturbing question about this decision is whether the bad publicity IRCTC gained in railway catering will strain its credibility as a standard operator vying with established food chains. The biggest problem that was troubling IRCTC was the rigid bureaucratic management style and government connections that hampered its style of functioning. However with less constraints in public catering area and no pressure of time IRCTC has the potential to perform better, though government controlled businesses invariably languish for many obvious reasons. One can only wish the organization better luck for its venture out side Indian trains and railway stations!

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com