The Mall, window-shopping and all!

If you are living in the metropolitan area, the malls are obviously the most common and effortless destinations. In the Philippines, especially during summer mall hopping and window-shopping are the top weekend activities.

Last week I decided to give my old sneakers a rest. My destination? None other than the mall, the busiest establishment that captures all types of market. It was then that I began to ponder how challenging it is to set a small business in this premier financial hub.

No, I don't have the capital to set-up a store, what I have in mind is you! Yes, those of you who might consider a small business in the mall.

Makati, Ortigas, Manila, Alabang, and Cebu –these are just some of the cities where shopping malls proliferate. Among these premiere malls are the successful chains of Ayala, Robinson's and SM. Most of these are multi-level, mixed-use, and carry diverse product lines.

A good friend who works as a public relation officer of one of said premiere chains shared some tips for those who want to position a shop in the mall, specifically in the Philippines.

Shopping malls generate millions of patrons' visits, that's why return of investments here is said to be better than those in stores outside the malls. However, before jumpstarting try to study the conditions first. Initially, you must be sure that your capital is prepared to invest on a store space. The value of each square meter of mall floor continually increases as more and more businesses vie for every single store space. Even those malls that are still in the building and development stage, space reservations are easily filled-out.

Rental rates depend on many criteria, among these are the type of product line, target market, available store location, the brand and category of product, and many other standards set by the mall management. Basically, the higher-end your product is, the higher the rate. The most-heavy traffic location (which is different in each mall) has the most racketing rate. However, rates are strictly confidential and are only discussed with the tenants, and would-be tenants of the malls.

Next to assess is whether your business is making a good return of investment. Because if not (or not yet), you must be sure that your product can easily be recognized and can generate patrons in a few months. And last but not the least, you must have a deep pocket for investment to make sure you can sustain the business even if it will not do well in the first two quarters or more.

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