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Multiplexes, malls derive hot formula

Multiplexes, malls derive hot formula

Author | Source: The Economic Times | Wednesday, Dec 28,2005 7:13 AM

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Multiplexes, malls derive hot formula

It takes two to tango. And no one agrees more than malls and multiplexes. In a bid to woo customers and generate footfalls, multiplex and malls have come out with the winning formula.

So in the next one year, almost all multiplexes that will dot the country will be sitting on the top of a mall. And nearly 50% of the upcoming malls will have multiplex as one of their anchor tenants.

While malls try to cash in on the movie goers, multiplexes make the most of the impulsive urge of a customer to watch a movie after shopping.

“Mall and multiplexes complement each other perfectly,” says Alok Tandon, COO, Inox Leisure,” Multiplexes are the anchor tenants of the mall and built on the top floor.

So, besides the impulse-ticket buying of the consumer, the movie-goer also does window shopping which might convert into actual sales. “Tandon estimates that increase in footfalls might be nearly 40-50% in the mall and multiplex duo.

Says, Ajjay Bijli, MD, PVR Cinemas, “Multiplexes and malls are a perfect fit as both are two different entertainment formats and act as support systems for each other.”

Market research too shows that footfalls of retail consumers drop dramatically beyond the first two floors. “Most retails do not want to put up shop in the third or fourth floor. That is where multiplexes come in handy,” said a Delhi-based mall developer.

One of the key drivers why mall developers prefer to have a multiplex as part of the complex is that former are bulk users of property, taking up as much as 20% of the covered space.

“Malls are actually fuelling the growth of multiplexes for the simple reason that most modern multiplexes are being built in malls,” says Atul Goel, chief executive officer, E-city Entertainment. “For instance, in the NCR region, of the 100 upcoming malls, nearly 60 have multiplexes as anchor tenants,” he added.

But one cannot forget that there have been cases of standalone multiplexes and malls doing well on their own in Delhi, Mumbai and Bangalore. For instance, Ansal Plaza in Delhi, one of the early birds in the mall boom that struck NCR, has been able to stand on its feet - without any prop from a multiplex theatre - despite being so close to popular markets like South Extension and Lajpat Nagar. In fact, as per initial plans, a cineplex was supposed to be part of the Ansal Plaza complex.

Says Shravan Shroff, director, Shringar Cinemas, “I think the increase in footfalls is only around 15-20%. Footfalls depend on the location. If the location is good, they will generate footfalls irrespective of whether they are in a retail format or a standalone.”

Though almost all future multiplexes may be coming up in malls, Abhijit Das, head, Ansal Plaza Mall Management Company, does not feel that not having a multiplex or cineplex within the complex has been a disadvantage.

Tags: e4m

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