As the Indian economy has entered a new growth phase, the entertainment industry is witnessing unprecedented growth. To leverage on the present day consumer's lavish spending habits, many multiplexes have come up in metros and tier II cities too. The changing lifestyle of the Indian consumer is the paramount factor for the current multiplex boom and the consumption trends are slowly converging with global standards. The propensity of the Indian middle-class consumers and rising disposable income are the other important drivers. In addition, rising affordability and changing demographics and mode of spending such as using credit cards in the urban area is further fueling the consumer spending. Hence, to cash in on the consumers' spending spree many shopping malls have cropped up, majority of them in National Capital Region (NCR) and Mumbai region. The expenditure on entertainment, clothing and dining has witnessed significant growth since 2002. Moreover, organized retail has increased to 3% of the total retail consumption, which is likely to touch 8-10% in the next couple of years with the entry of many business groups.
Multiplexes are the latest craze in India in the last three years and this is one of the biggest factors in driving up collections for Bollywood. They have an average of 250 seats per screen and are often characterized by a good ambience, comfortable seating, air-conditioning, modern infrastructure, and good quality Food and Beverages (F&B). Riding on the current entertainment boom, the big multiplex operators such as Adlabs, PVR Cinemas, Inox and other players are planning to increase the number of screens every year. With movies being the most preferred form of entertainment, the multiplex players are expected to spend Rs. 1,200 cr in the next two years in terms of expansion. |
