Question

Discuss five most important feasibility study factors that make a shopping centre so successful.

Answer 1

The important feasibility study factors include

1) Mall positioning – This is the primary feasibility study factor after surveying the area households of the location of the shopping mall. A detailed study of demographics, income levels, psychographics and competition in the area is done to finalize the shopping mall location

2) Zoning – In retailing, customers are broadly classified into an impulse and focused buyers. Impulse buyers are window shoppers and focused buyers are actual buyers. Zoning is an important feasibility study factor to attract both the customers to the shopping mall to formulate the appropriate tenant mix to increase the preference of the shopping mall and the frequency of visits to the shopping mall

3) Marketing and promotion – This feasibility study factor aims to study the local consumer requirements and understand the challenges of regional or local competitors by organizing celebrity visits, cultural celebrations, food festivals, music shows, game shows, talk shows etc Based on the understanding of the local consumer requirements, various marketing strategies are framed by the shopping mall management

4) Facility Management – The integration of process, people, place and technology (facility management) is an important feasibility study aspect that ensures shopping mall management to design specialized services like security, movie zones, game zones, parking, housekeeping, fire detection, power management, logistics, design of the shopping mall, electromechanical services, water management, infrastructure management etc

5) Finance management – This factor is concerned with asset management, financing, acquisitions, maintenance and administration to ensure a positive cash flow and at the same time covers the process of managing risk ensuring proper operations through optimal allocation of resources