Lockdown impact | Winning consumer confidence key: Mall owners

Mall owners on April 21 participated in a webinar to discuss ways on how to deal with operational problems post-lockdown.

The panel comprised Alok Tandon, Chief Executive Officer, Inox Leisure Ltd; Ashwin Puri, Co-Founder & CEO, Lake Shore India; Dalip Sehgal, CEO, Nexus Malls, a Blackstone company; Riyaaz Amlani, CEO & MD, Impresario Handmade Restaurants; Vishak Kumar, CEO, Madura Fashion & Lifestyle (MF&L), Aditya Birla Fashion and Retail Ltd. (ABFRL). The panel was moderated by Anuj Kejriwal, MD & CEO, Anarock Retail Advisors Pvt. Ltd.

"The situation at hand needs a true partnership approach, hence, it is important that we are reasonable with our partners, collaborate across the supply chain, and involve our business models to face the time ahead," said Kejriwal.

Tandon  said most of the malls will have to delve deeper into what the temporary changes are going to be for the first couple of months after the lock down.

"On opening we will have to ensure that the intervals are staggered and that no two intervals coincide so that people don’t crowd in the lobbies. We will have to ensure that the food that is served is done by certified COVID-19 free employees and that the cutlery is absolutely hygienic," he said.

Track this blog for latest updates on the coronavirus outbreak

Kumar of Madura Fashion Fashion & Lifestyle (MF&L), Aditya Birla Fashion and Retail Ltd. (ABFRL) said a 'new normal' will be seen.

"There will be a different cost structure. It will take some time for demand to pick up and that will be the time that various brands can work on to demonstrate wellness, which could give a new kind of retail therapy to consumers," Kumar said.

Key takeaways:

Changing Consumer Behaviour
—If a brand is able to demonstrate wellness and a high level of relevance, it will win consumer patronage.
—Comsumer are mostly looking at ecommerce for essentials. Experts said once consumers see that shopping centres are safe, consumers will return to malls for shopping.
—Consumers are going to be less experimental with food.

—The first to come out of this crisis will be the millennials and Gen-Z. Experts feel fear factor is a lot lesser and Gen Z have also managed to save some money which is not something that they are not used to.

Effect on malls, cinema halls

— Cinema halls will be the last to revive. Food, and entertainment will take time to revive as well. — The reason that there is a tug between landlords and business owners is not because of the uncertainty that is in the atmosphere right now but because there is uncertainty about where the business is headed after the lockdown.

— All Cinema operators will have to reduce their F&B menus and stagger interval timings.
— On opening, most businesses in malls will inmost probability run a single shift (‪2pm to 11pm‬) focusing on peak leisure time.

— Malls and retailers will have to work on a no-lose no-lose formula for the next few months and win-win after that. Wherever the government comes in it has to passed on to the entire industry.

Advice for Businesses
—Businesses must focus on the 4Ss: Safety of employees and customers, securing supply of employees, sourcing the right inventory and securing the trust of the shopper.
—Right now is the time to review and renew SOPs, reskill employees so that they are better equipped and have an array of skills to be able to multi-task when stores open again.
—The first 90 days post-lockdown are about winning over the trust of the millennials and Gen-Z.
—Brands must get digital influencers on board to communicate and win over consumer trust once the lockdown is levied along with brands doing their own communication.
—Businesses will have to over manage and focus on cost-reduction especially when it comes to franchisees.
—Safety of customers and employees should be paramount. Even one single case will put the clock back a few months.
—The biggest challenge is value retention. So businesses must look at cost-cutting but not at the risk of losing value.

·—he focus should be on winning the consumer confidence and bringing them back.

Follow our full coverage of the coronavirus outbreak here

First Anniversary Offer: Subscribe to Moneycontrol PRO’s annual plan for ₹1/- per day for the first year and claim exclusive benefits worth ₹20,000. Coupon code: PRO365