From Shopping Centers to Lifestyle Hubs: How Malls are Evolving with Trends and Customer Demand

What do customers seek when they visit a mall? A blend of heartfelt warmth, ease and convenience comes to mind. Today's customers are asking questions that delve deeper than mere product availability. “Will I get an electric wheelchair for my father? Will my children be supervised while I shop?” These are questions people seek answers to before they set off to a mall on a Sunday afternoon with their family.

There has been a significant change in consumer behavior in recent years and more is likely to follow. Consumers want to be well informed and have options at their disposal. People now prefer to shop in Malls instead of Supermarkets. Due to the recreational and entertainment values available, malls are popular places for people to shop and for families and young people to be entertained.

In my observation, malls have assumed the role of what American Sociologist Ray Oldenburg termed "third places." Malls offer people spaces to chill out, enjoy coffee or an environment to nurture on-the-go productivity. The spectrum of visitors spans from entrepreneurs to students, from work meetings to friends chatting. Malls have evolved into coworking environments and ideation hubs, reflecting the ever-changing dynamics of modern lifestyles.

Despite the 1of Direct-to-Consumer (D2C) brands that accelerated the adoption of E-commerce at the onset of the Pandemic, the lure of malls as lifestyle centers has grown formidably stronger. It's undeniable that online platforms provide the luxury of unending product inventory, yet there's a distinct value proposition that retail centers bring to the table, where human interaction intwines with a multi-sensory environment. Here, customers experience and are exposed to a multi-sensory stimulus of sight, sounds, smell, touch and even taste.

Technology enhances accessibility and efficiency but people are exhausted from prolonged screen exposure. Senior customers who are not proficient with tech want their questions answered by brand representatives. Also, the mobile-first Gen Z consumers still like to shop in physical stores just as much as they do online because they like to see, hold, and try on products before buying.

All this leads us to conclude and believe that Malls have transformed from shopping destinations to a place of a myriad possibilities, making them the beating heart of communities and neighbourhoods. In a time when virtual connections are the norm, these third places offer an immersive escape to human interactions, warmth, ease, and convenience. With an integrated bouquet of offerings like family entertainment centres, gaming arcades, cafés and services like free Wi-Fi and a range of culinary experiences alongside a mix of retail brands, there’s something for everyone.

This article is authored by Sameep Pathak – Chief Executive Officer – Mall, Oberoi Realty.