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What Constitutes a Shopping Mall? Classification of Shopping Malls

What Constitutes a Shopping Mall? Classification of Shopping Malls

A shopping mall is a modern business model that integrates multiple functions within a single space. With its large scale and diverse goods and services, this type of business brings convenience to consumers. So, what constitutes a shopping mall? This article will provide an overview of shopping malls, from their definition, benefits, classification standards, to how to establish retail facilities.

What is a Shopping Mall?

According to Clause 2, Article 2 of the Regulations issued with Decision 1371/2004/QD-BTM:

“”A shopping mall is a modern, multifunctional commercial business model that includes a collection of retail stores, service establishments, conference halls, meeting rooms, and office spaces arranged in a centralized and interconnected architectural complex. It meets high standards in business area size, technical infrastructure, and management. It also offers civilized and convenient services that satisfy both business operations and customer demand for goods and services.”

Generally, a shopping mall is a modern business model that integrates multiple functions such as shopping, services, entertainment, and office spaces into a single location. It hosts a variety of stores and services while adhering to high standards of space, technology, and management, offering convenience and comfort to both customers and businesses.

A shopping mall is a business model that integrates many functional utilities within a shared space
A shopping mall is a business model that integrates many functional utilities within a shared space

Benefits of Shopping Malls

Shopping malls are increasingly popular as ideal destinations for shopping and entertainment due to their diverse products, services, and modern, convenient spaces. So, what benefits do customers gain when choosing a shopping mall?

Diverse Shopping Spaces

A shopping mall is a shopping paradise offering a wide range of goods and services. From fashion clothing, electronics, and home furnishings to cosmetics and supermarkets, you can find everything you need within one space. 

A shopping mall delivers a convenient and enriching shopping experience
A shopping mall delivers a convenient and enriching shopping experience

Convenience and Time-Saving

The greatest advantage of shopping malls is their convenience and time-saving aspect. Instead of traveling to multiple locations, customers can find everything they need in one area. This optimizes shopping time, especially for busy individuals.

Comfortable Shopping Environment

Shopping malls often feature spacious, airy, clean, and aesthetically pleasing designs. Therefore, when visiting a shopping mall, you can leisurely explore stores, enjoy diverse dining options, and participate in engaging entertainment activities.

With spacious, beautiful designs, shopping malls are perfect places to relax and explore
With spacious, beautiful designs, shopping malls are perfect places to relax and explore

Entertainment Activities While Shopping

Shopping malls diversify their services, especially entertainment activities. Movie theaters, play areas, and fitness centers are common amenities that create a perfect combination of shopping and entertainment.

A Place to Gather with Friends and Family

Shopping malls are ideal destinations for friends and families to share joyful moments together. Dining, watching movies, or exploring shopping malls has become a modern cultural trend, strengthening relationships and creating lasting memories.

Dining and watching movies at shopping malls have become part of modern culture
Dining and watching movies at shopping malls have become part of modern culture

Distinguishing Shopping Malls from Supermarkets

Shopping malls and supermarkets are two common shopping venues that are often confused. While both provide goods for consumers, they have distinctive characteristics, easily distinguishable through three main criteria:

  • Business Model: Shopping malls are versatile, with various businesses such as retail stores, food courts, entertainment areas, movie theaters, office spaces, and even conference halls. On the other hand, supermarkets focus primarily on retail, often offering consumer goods, food, and household items.
  • Scale: Shopping malls are generally much larger than supermarkets. In fact, many shopping malls today include supermarkets as part of their overall structure.
  • Product Scope: Supermarkets may specialize in specific fields, such as fresh produce or seafood, while shopping malls gather a wide variety of products and brands.

In short, shopping malls are comprehensive business models offering shopping, entertainment, and services, whereas supermarkets are simply large-scale retail stores.

Supermarkets differ from shopping malls as they are solely large retail stores

Shopping Mall Classification Standards

According to Decision No. 1371/2004/QĐ-BTM by the Minister of Trade, shopping malls are categorized into three grades: Grade I, Grade II, and Grade III. Below are the specific standards for each type:

Grade I Shopping Malls

To qualify as a grade I shopping mall, the following standards must be met:

  • Large Scale: Business area of 50,000 m² or more.
  • Spacious Parking: Adequate parking spaces appropriate to the mall’s size.
  • Modern Design: Architecturally solid, aesthetically pleasing buildings with advanced, modern design and technical equipment.
  • Safety Standards: Compliance with fire safety, environmental hygiene, and security requirements.
  • Diverse Services: Multifunctional activities, including:
    • Retail: Wholesale and retail stores, supermarkets.
    • Dining: Restaurants, cafes, food courts.
    • Lodging: Hotels and apartments.
    • Exhibitions: Event and product showcase areas.
    • Entertainment: Play areas, movie theaters, fitness centers.
    • Offices: Office leasing, conference rooms.
    • Financial Services: Insurance, banks, and financial services.
    • Others: Telecommunications, IT, consulting, and tourism services.
Grade I shopping malls feature an area of over 50,000 m²
Grade I shopping malls feature an area of over 50,000 m²

Grade II Shopping Malls

According to regulations, grade II shopping malls need to meet the following standards:

  • Large scale: Business area of 30,000 m2 or more.
  • Spacious parking lot: Having a parking space suitable for the business scale of the shopping mall.
  • Modern design: The architectural work is solidly built, aesthetically pleasing, using advanced and modern design and technical equipment.
  • Safety: Ensuring requirements for fire prevention and fighting, environmental hygiene, security, and safety for all subjects.
  • Diverse services: Multifunctional operation, including:
    • Goods trading: Wholesale and retail stores, supermarkets…
    • Food services: Restaurants, cafes, food courts…
    • Accommodation: Hotels.
    • Fairs and exhibitions: Event organization area, product introduction…
    • Entertainment: Playgrounds, cinemas, sports centers…
    • Offices: Office rental, halls, meeting rooms…
    • Finance: Banking, insurance…
    • Other services: Post and telecommunications, consulting, tourism….

Grade III Shopping Malls

To meet the standards of a grade III shopping malls, centers must meet the following requirements:

  • Scale: Business area of 10,000 m2 or more.
  • Parking lot: Having a parking space suitable for the business scale of the shopping mall.
  • Design: The architectural work is solidly built, with modern design and technical equipment.
  • Safety: Ensuring requirements for fire prevention and fighting, environmental hygiene, security, safety, and convenience for all subjects participating in business activities in the area.
  • Diverse services: Multifunctional operation, including:
    • Goods trading: Wholesale and retail stores; area for displaying and introducing goods.
    • Food services: Restaurants, cafes, food courts…
    • Entertainment: Playgrounds, cinemas, sports centers…
    • Offices: Office rental, meeting rooms for organizing conferences, seminars, transactions, and signing domestic and foreign trade contracts.
    • Other services: Consulting, investment brokerage, tourism…

The difference of grade III shopping malls lies in the scale of food services, which is usually smaller than the two higher classes. In addition, financial services such as insurance, banking, post and telecommunications, or hotels are not mandatory requirements for grade III.

The business area of a grade III shopping mall only needs to be at least 10,000m2
The business area of a grade III shopping mall only needs to be at least 10,000m2

How to Establish a Retail Presence in a Shopping Mall?

Establishing a retail presence in a shopping mall is chosen by many businesses due to the advantages of location, potential customer base, and available infrastructure. However, to realize this plan, you need to understand the legal regulations and follow the correct procedures. Here are 3 basic steps you need to take:

Step 1: Meet the conditions for establishing a retail presence

According to Decree 09/2018/ND-CP, to establish a retail presence, businesses need to meet the following conditions:

  • Have a feasible financial plan.
  • No overdue tax debts (if operating in Vietnam for 1 year or more).
  • The business location must comply with the planning of the area.

In particular, for retail establishments beyond the first establishment, businesses may have to conduct an Economic Needs Test (ENT) depending on the type of business and floor area.

Note: That shopping malls often have their own regulations on product lines, area, store design, etc. Therefore, you need to carefully research information from the shopping mall management board to ensure full compliance with the requirements.

Step 2: Complete the procedures for applying for a retail establishment license

If you have met all the necessary conditions, you need to prepare an application for a Retail Establishment License according to regulations. The application includes documents such as:

  • Application for a License (according to the form attached to Decree No. 09/2018/ND-CP).
  • Copies of documents including Business Registration Certificate, Business License, etc.
  • Document proving no overdue tax debts from the tax authority.
  • An explanation with full content such as the location of the retail establishment, business plan, and financial plan for establishing a retail presence in the shopping mall.

You can submit your application directly at the Public Administration Service Center or by mail to the Department of Industry and Trade. The competent authority will review the application based on factors such as compliance with industry development planning, field, market demand, diplomatic relations, etc. If the application is complete and valid, a License will be issued.

Step 3: Sign a lease agreement and complete procedures

When the License is issued, you need to sign a lease agreement with the shopping mall management board. The contract needs to clearly stipulate the terms of area, rent, lease term, responsibilities of the parties, etc. In addition, you also need to complete business registration procedures, apply for a fire protection license, food safety and hygiene, etc.

Renting retail space in shopping malls is a trend chosen by many businesses
Renting retail space in shopping malls is a trend chosen by many businesses

Conclusion

Hopefully, this article has helped you understand what constitutes a shopping mall, as well as the great benefits this type of shopping brings. With modern spaces, diverse products, and professional services, shopping malls contribute to enhancing the shopping experience and building smart consumer habits. Don’t forget to follow the Business Tips category to update more useful knowledge!

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Cẩm Tú

Cẩm Tú

As a content writer with a deep passion for culinary culture, I constantly seek inspiration from real-life experiences and innovations in the F&B industry. I believe that cuisine is not merely a story of flavors but also a reflection of culture, creativity, and social trends. Through each article, I hope to provide readers with valuable information and inspiration on the Kamereo website.View Author posts