Mall Management Case Study

ANSWER 1 –
Issues China’s conventional retail industry was facing-
After a decade of rapid growth due to the proliferation of the Internet, online
shopping, and e-commerce, the traditional retail industry faced a crisis. The
internet was rapidly evolving and improving, making e-commerce and online
purchasing more reliable, efficient, and successful than ever before. Every
November 11 (also known as "singles day" or "double 11"), China's online sales
records are usually broken. On November 11, 2016, for example, Alibaba, China's
e-commerce behemoth, sold 1 billion in 52 seconds. 16 The following year, on
November 11, 2017, it sold ten billion dollars in seven minutes, for a total of 168.2
billion in a single day.
Causes behind the issue –
1. Between 2009 and 2018, consumers chose increasingly tailored items and
services based on emotional triggers and impulses, which was made easier and
more convenient by online sales. Traditional retailers were forced to devise new
strategies to entice customers to return to their stores. Some commercial real estate
developers believed that rebuilding and optimising shopping malls' fundamental
infrastructure, as well as their appearance and layout, would be the answer. Others
believed that combining the two business models—online and offline sales—could
be the solution.
2. The meteoric uprise of e-commerce resulted in huge client losses for the
traditional retail industry, resulting in store closures across the country. Between
2012 and 2016, Walmart Inc. was forced to close 59 stores in a five-year period.
Furthermore, flaws in the shopping mall paradigm emerged, such as product
uniformity, brand overlap, and market layout convergence. Retailers continued to
promote their businesses through the same marketing channels they had previously
used, such as newspapers, radio, and television. Consumers, on the other hand, had
abandoned traditional sources in favour of internet sites and social media for
information and entertainment. Traditional media outlets found themselves
suddenly with fewer viewers.
Q.2. what is SNS? What drove IDL to adopt this approach in its commercial
design?
Add first part
Reasons driving IDL to adopt SNS approach in its commercial design -
1. SNS provided buyers with the most up-to-date product information and market
trends established by mall merchants, while physical store designs and activities
immersed customers in a pleasurable shopping experience. Customers could also
use social media to communicate with businesses and provide product feedback,
requests, and suggestions. Merchants may interact with customers directly in
order to better analyse and improve customer perceptions of their products, as well
as to more precisely transmit information to their target customers. The online
operations ensured that information was regularly updated and that users were
directed to real-world locations.
2. Through the SNS model, consumers received product and service information
based on their interests and requirements, which were determined through an
analysis of their behaviours in both offline and online stores. The offline
component included real space, popular sales features, and distinctive design to
provide a more complete purchasing experience for the consumer. SNS was able to
deliver more product information and attract clients by creating a visually
appealing environment. The online component created a virtual environment in
which customers could communicate, socialise, and use online services.
Q.3. How was SNS able to substantially increase sales for AS? What steps should be
followed to incorporate SNS in a retail business plan?
SNS was able to substantially increase the sales of AS -
1. Well-known events and attractions were frequently included at the AS centre to attract large
crowds. IDL introduced novel events, such as live video communications in a section of the
shopping centre where prices were low. Superstars were used to promote high-profile stores and
products. With the prevalence of online games, IDL established a distinct region dedicated to
online computer game rivalries on a colossal screen. Participants were able to watch live games
being played. The scene gave web-based gaming fans a chance to compete against the city's top
players.
2. Re-designing- Based on consumer wants and preferences, IDL reorganised AS's commercial
space into three key regions or ecospheres: fashion, magic, and love. To promote their way of
life, the fashion area featured young people's favourite brands, with a separate experience area
dedicated to innovative technologies and creative works. From the perspective of a child's
innocent nature, the enchanted area created a fairy tale realm exclusively for children. For young
couples, the love zone was a private, romantic setting.
3. For the online component of SNS, IDL developed the Neighbourhood Village, a digital
programme with three key modules: Neighbourhood Social Contact, Neighbourhood Interaction,
and Neighbourhood Services. The three sections included chat rooms, live video, games, mall
information, and other related activities. All of the customers' needs were met, and merchants
were able to openly converse and connect with them.
4. Sophisticated Zoning - While traditional decorations and design had failed to

draw large crowds to the shopping mall, IDL renovated a section of it with a 20-
meter-high glass and steel rainbow bridge, a multi-functional experience stage, a
children's slide, a spiral stairway, and a carousel. Throughout the mall, IDL used
clean, translucent, and rich patterns to give each section its own personality.
Add second part
Q.4. is it possible to apply SNS in the design of other commercial centres? If so,
what adjustments should be made?
Yes, SNS can be used in the design of other commercial centres because the main
focus of SNS is on customers and how to build interaction between them to
improve CX (Customer Experience). SNS aids in the offline and online felicitation
of new Social Networks, but the following changes will add more dimensions to
the existing SNS model –
1. Food revolution - As mid-market fashion retailers exit mall locations; landlords

will be able to bring in an exciting new type of restaurant offer. This will meet the
consumer's desire for a social experience and will most likely become the mall's
new anchor.
2. Emphasis on convenience and safety - The new mall must strike a delicate
balance between customers' desire for social interaction and their need for a safe,
convenient shopping experience. Customers' complaints must be addressed by
devising novel approaches to changing how retailers and owners structure their
businesses, communicate with customers, collect payment, and deliver goods.

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ANSWER 1 –

Issues China’s conventional retail industry was facing-

Causes behind the issue –

Add first part

Reasons driving IDL to adopt SNS approach in its commercial design -

SNS was able to substantially increase the sales of AS -

4. Sophisticated Zoning - While traditional decorations and design had failed to

Add second part

1. Food revolution - As mid-market fashion retailers exit mall locations; landlords

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