Bipin Gurnani, Whole Time Director & CEO, of Prozone Realty Ltd. speaks about the company’s growth strategy, upcoming projects and industry trends.
New Delhi: What sets Prozone malls apart is their distinct approach to shopping centre development, which includes a laser-sharp focus on tier 2 cities and a unique ‘horizontal mall’ design inspired by global retail trends.
Prozone Realty Ltd.’s malls feature two levels (G + 1) of retail space with an innovative racetrack layout, ensuring every store benefits from equal frontage along the perimeter
This design maximises visibility and access while centralising circulation for a smooth customer experience. Each store benefits from prime positioning with convenient service alleys, loading/unloading bays, and warehousing facilities to enhance retailer operations.
With ample vertical circulation via lifts and escalators thoughtful customer amenities designated seating areas, and specialised services for families, seniors, and individuals with disabilities, Prozone Malls are designed for shoppers’ comfort.
Wide walkways, high ceilings, and expansive atriums further elevate the shopping experience, blending retail, dining, and entertainment to create a world-class environment. Previously known as Prozone Intu Properties Ltd., Prozone Realty Ltd. is focused on developing, creating, and managing top-tier regional shopping centres and mixed-use developments across India.
With 15.32 million sq. ft. of fully paid-up land banks in prime locations, the company has developed 2.1 million sq. ft. in the form of two malls—one in Aurangabad, Maharashtra and the other in Coimbatore, Tamil Nadu. It is now in the process of developing over 13.22 million sq. ft. across various phases.
In an exclusive interaction with Shopping Centre News, Bipin Gurnani, Whole Time Director & CEO, of Prozone Realty Ltd. speaks about the company’s growth strategy, upcoming projects and industry trends. Edited excerpts…
How has the current financial year been for Prozone Malls?
The performance of most shopping centres post-COVID has surpassed pre-pandemic levels. Both of our operational malls in Aurangabad and Coimbatore have experienced double-digit growth. We have observed robust leasing activity, coupled with a noticeable increase in consumer spending. One key indicator of a mall’s success is the rise in revenue share, which has increased by nearly 30% for us.
Has the measure of success for a shopping centre changed today?
The primary function of a shopping centre remains consistent—offering excellent infrastructure for both retailers and shoppers. However, the key challenge lies in tailoring the experience to the specific needs of the local customer base. It is crucial to create an environment and a mix of experiences that resonate with the target audience.
Unfortunately, many mall developers fall short when it comes to conducting sufficient research to understand their catchment, which can be a risky oversight.
What is your current leasing model and what is your churn rate?
Our leasing strategy is constantly evolving based on what we believe our customers want. It is not just about helping our centres with what we think works—it is about addressing gaps in our catchment and listening to customer feedback.
When it comes to tenant churn, we approach it differently; resizing or relocating a unit can sometimes enhance a brand’s performance. Our priority is to ensure the success of existing retailers who have invested in our malls while keeping our offerings fresh and relevant so that frequent visitors always have something new to experience.
Striking the right balance between category and brand mix is crucial, but it is a complex process.
Have family entertainment centres (FECs) become the new focal point in malls?
Cinemas and Food & Beverage (F&B) outlets are significant drivers in attracting repeat customers, but the overall tenant mix offered by the mall is equally crucial. Additionally, ongoing events and promotions throughout the year play a key role in consistently drawing visitors.
Will you be incorporating an omnichannel approach to meet consumer preferences?
In our view, certain categories make up a significant portion of the omnichannel experience, but this is primarily driven by substantial price differences, which we believe are gradually narrowing.
Brands have recognized this shift and are now offering a wider variety of differentiated merchandise at their physical stores. Our approach to omnichannel will focus on facilitating consumer requirements. However, it will not serve as a replacement, as the core purpose of the mall is to provide customers with a superior experience.
Are you planning any technology or digital integrations?
We are currently implementing an integrated customer relationship management (CRM) platform aimed at enhancing the experience for consumers visiting our malls alongside our brand partners. This initiative will not only facilitate seamless transactions but also foster community engagement. As a brick-and-mortar entity, we strongly value human interaction in addition to digital technology.
All our ongoing digital initiatives will complement our physical interactions with customers. It is important to emphasize that, for us, technology is not a replacement; rather, an additional layer to create a more comprehensive ecosystem for our shoppers.
What marketing and promotional strategies have been effective?
In today’s landscape, where distractions abound, effective marketing is essential for any shopping centre. It is crucial to maintain top-of-mind awareness, not just as a shopping venue, but as a go-to destination for entertainment, community, and social engagement.
At Prozone, we operate with a comprehensive marketing calendar that spans the entire year, divided into three key components:
- Community engagement activities that foster a sense of connection and ownership (Yeh mera mall hai).
- Promotional initiatives designed to drive foot traffic, ultimately leading to increased conversions for retailers.
- Social engagement that aligns with our customers’ celebrations.
There is no such thing as too much marketing.
How do you view the current shifts in consumer shopping behaviour?
Consumer habits are continually evolving, shaping customer shopping behaviours. As a result, shopping malls must adapt to these changing dynamics by incorporating flexibility into their design and customer-facing experiences. This is essential for a traditional brick-and-mortar infrastructure business to accommodate shifting customer preferences. To remain relevant over the next decade, mall developers must create ever-changing experiences that serve as engaging hooks, ensuring customers discover something new each time they visit, especially since the new generation is always in search of fresh experiences.
Customers are increasingly selecting their shopping medium based on their specific needs. While both malls and traditional markets fulfil certain requirements, malls have the advantage of serving as aggregators for the diverse needs and wants of families across different age groups.
How do you analyse these changes and trends going forward?
Customers seek more than just a basic shopping experience or a transactional relationship with malls and retailers; they desire engaging experiences that foster involvement.
Referring to Maslow’s hierarchy of needs, the level of customer engagement often depends on their stage in the lifecycle. Today, the younger generation is spending more and saving less, reflecting spending habits similar to their peers in Western markets.
We understand that malls have always aimed to adapt, and we strive to align our marketing efforts with these continually evolving consumer preferences.
Tell us about the expansion plans.
In addition to our two operational malls, we have two malls in the advanced stages of planning at Nagpur and Mumbai.
What pace of growth is expected for the industry in the coming years?
The industry is currently underpenetrated and has significant room for growth. To capitalise on this, we must remain agile and focus on developing destinations that can easily adapt to the evolving preferences of consumers. As an optimist, I firmly believe that while the sector will change, those malls that can adapt will experience substantial growth.
