What Are The Components Of Mall Management?
When malls first came into existence (in the mid-1950s), they were little more than enclosed shopping centers that housed an assorted collection of shops. Nobody bothered with research or marketing because these spaces were a novelty in themselves. Certainly, nobody had thought about the components of mall management!
While these early malls attracted visitors, they often would not bother to buy anything. The malls of today are, of course, very different. Can you remember the last time you went to a mall and didn’t buy anything? Let’s look at the different mall management strategies that have led to their success.
The 5 Key Components Of Mall Management
When deciding to open a mall, positioning is the first component of mall management that you need to think about. In short, it refers to how you “position” yourself in your consumers’ minds and distinguish yourself from your competitors.
You can’t decide how you want people to view your brand if you don’t know who your potential customers are! A household survey of those who live in the area can help you with this. You can then divide your target market based on factors such as age, gender, income level, and hobbies and interests.
Once you analyze your data, you will have an idea of what you should offer on your premises. We can call this your retail mix. You can decide your retail mix based on the income levels of the households in your neighborhood.
For instance, if the average household income in your area is high, you can offer a selection of luxury brands. On the other hand, for middle to low-income households, you can offer economy brands that provide value for money.
One important thing to remember is that it isn’t just customers who you need to attract! You also want to ensure you can bring in and retain staff to work at your mall. You can do this by offering competitive salaries and attractive working conditions.
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As the name suggests, zoning refers to how you divide the total area of your mall into various “zones” and what you choose to include in each. If you get your zoning right, your shoppers will easily be able to find what they are looking for and will not create any bottlenecks.
There are two kinds of customers you need to consider – focused buyers and impulse buyers. As the names suggest, focused buyers know what they are looking for, and come to your mall with a specific intention in mind. As long as your offerings are to their requirement, taste, and budget, they will be satisfied.
On the other hand, impulse buyers do not enter your mall with a specific plan. They tend to engage in window shopping, only purchasing if they find something that appeals to them. You need both kinds of customers for your mall to function smoothly.
Once you have an idea of the demographics of both kinds of customers, you will be able to determine the right tenant mix to attract the most footfall. Remember, the better your retail tenants do, the better it is for you!
An essential component of mall management is engaging in promotion and marketing for the brands you house. This helps you attract new customers and create new sources of revenue for your tenants. There are numerous ways in which you can promote your mall. The most effective models include the hosting of events because this draws more footfall.
How you organize these events should depend on the demographics of your consumers. For example, if they celebrate certain national or cultural holidays, you should design your marketing calendar accordingly.
Some other promotional events that have proved to be successful include book fairs, fashion shows, talk shows with celebrity guests and musical contests.
4. Facility Management
This component of mall management refers to how you integrate technology and processes in your building to run your operations smoothly. This includes everything from handling fires to plumbing to managing the water supply to parking to security to housekeeping.
We can think of facility management as including three aspects: infrastructure, ambiance, and traffic.
1. Infrastructure Management
This refers to how you administer and supervise the basic amenities that you provide to your tenants and visitors. After all, you want everyone who uses your mall to be comfortable and safe. In addition to making sure there is enough power, water, and ventilation, you should have safety methods in place in case of emergencies.
2. Ambiance management
This is where you think about the aesthetic aspects of your mall. What music can you play for your shoppers? What lights should you use? How do you want your staircases and elevators to look? You can even consider how you want your mall to smell!
3. Traffic management
As you might have guessed, this is closely tied to your zoning practices. It consists of managing the flow of people inside the operational area of your mall. This includes not just your shopping area and food court, but parking spaces as well.
As the name suggests, the last of our mall management components refers to how you collect and manage your assets to meet your overall goal, which is probably having a net positive cash flow. To do this, you need to identify and manage various risks.
For successful finance management, you need a robust accounting system to track your assets and liabilities. You must consider all aspects of your income (including rent and parking) and expenditure (including electricity and other services that you pay for).
How Can You Effectively Combine The Different Components Of Mall Management?
This is a monumental task with a lot of moving parts. iTrobes is a mall management company that can help you out! We deploy our innovative mall management solutions with the help of experienced professionals who will handle everything from data security to strategic development. Write to us today to start building your dream mall!