All things mall and beautiful

Mall developers are on a tear to deliver premium retail spaces in top Indian cities as big spenders open their wallets. Discretionary spending had plummeted during the pandemic as consumers pivoted to higher savings. But with recovery in incomes, the pent-up demand is feeding a scramble for brick-and-mortar retail, dining and entertainment. By some estimates, top-tier cities will add half as much again to their mall space over the next three years as brands jostle for a bigger share of consumer expenditure. Big-ticket items like jewellery, appliances, apparel, cars and houses have seen the sharpest rebound with economic recovery. There is a resurgence in theatre audiences that is driving movies with outsized budgets. Eating out is back despite pricier menus. The pandemic has changed consumer behaviour while it raged as well as in its aftermath.

Buyers now seem to have blurred the sharp lockdown distinction between price and value. Those who splurge on clothes, for instance, intend to spend more. Brand loyalty has also increased with customers seeking out trusted names that deliver value. Guilt over conspicuous consumption in times of crisis that led to trading down has ebbed, aiding brand consciousness. Shoppers are returning to organised retail formats after a gap, and their preference has shifted towards single-brand stores for offline shopping while continuing with tested online marketplaces for the multi-brand experience.

On their part, brands are establishing a new engagement with the post-Covid customer. They are trying to offer superior offline touch-and-feel experience with seamless online delivery to create a mutually reinforcing ecosystem. Established brands are reinforcing their reliability messaging while newer ones are highlighting first-time-right in their communication with buyers. Brands are also attempting to radiate value by promoting star products in their portfolios and by reducing the acquisition hurdle at various touch points. All of which can make high-street shopping a vastly superior experience.