Sunday, October 27, 2019

The Increasing Trend In Marriage Halls

The Increasing Trend In Marriage Halls The increasing trend in marriage halls over the years mainly from 2007-2012 is contributed by a number of reasons. The main aim of this thesis is to find out the reasons to the rising trend in marriage halls from 2007-2012 and to gather in depth knowledge of the marriage halls business and industry in Lahore Pakistan. The areas of research are Gulberg and Garden Town Lahore. Marriage is a basic necessary process every human being passes through during their life time. It not only is necessary but a social custom as it is a religious practice that every individual is likely to follow. Marriage halls aim at organizing marriage and wedding functions providing all the services for the convenience of the people under one roof. Marriage halls provide all services including food, cutlery, sitting arrangements, decor, music system, safety, security and parking. The mission of a marriage hall is to sustain customers and increase repeat clientele as there is high competition in the marriage hall industry. Marriage halls aims at providing customers with the best quality and best arrangements in arranging their marriage function and allowing them to be satisfied as much as possible. Marriage halls business has been a glooming business in the past couple of years and has proven to be profitable. There are 20 marriage halls located in Gulberg and Garden Town both registered and un-registered. As a result with the changes in the government regulations, awareness of customers and economical changes in the economy of Pakistan has affected the industry tremendously and has also given way to increase in competition by introducing outdoor catering services, marquees and other catering service providers to meet customer needs. In this paper I will be discussing the trend of marriage halls from 2007-2012 and the reasons as to why they have increased or decreased supported by facts and figures and using both qualitative and quantitative data. I will be focusing on only Gulberg and Garden Town area in Lahore as my target market and sample size. 1.1 Background Increase in the number of marriage halls and the increasing trend over the years have increased in all over Pakistan from 2001-2012. Pakistan having a large population allows a large number of people getting married every now and then. The marriage halls business is increasing day by day and therefore it is of my interest to find out the reasons to the increasing number of marriage halls in Lahore from year 2007-2012. The increase in the number of marriage halls is due to the convenience it provides to the hosts and allows package budgeting and are easily available according to the requirement. Indoor marriage halls provide protection against bad weather conditions and also allow more traditional outlook for marriages the ambiance, the decor as compared to the outdoor marriage events. According to the Punjab Government laws the halls have to be closed by 10pm rather than events held outside. The owners of marriage halls are more pressure and tension to shut down by 10pm if not they are penalized but in case of outdoor marriage events the organizer and host are in less pressure and tension as they have more time to vacating the area. The marriage hall industry is the only industry booming in the past 5 years as it requires converting residential area to commercial marriage halls. I am motivated to research on the rising trend of marriage halls as this research has not been done previously as it requires first hand information. Therefore it allows me to conduct different research methods to find out the increase in the number of marriage halls. The purpose of this research is to gain all the knowledge about the industry and to have in depth knowledge of the industry. 1.2 Industry Overview Marriage halls industry has been glooming in Pakistan from 2007-2012. A rising trend is seen in the increase of number of marriage halls in Pakistan. Investors foresee it as a profitable investment irrespective of the economical challenges, fluctuations in the prices and changing policies of the government. The changes in the government policies have affected the overall industry in Pakistan; therefore investors have made big investments in marriage halls business. Marriage halls are and have been facing different challenges that affect the business including the rules and regulations of wrapping up the function by 10pm, allowing a one-dish policy in food which as a result squeezes the profit margins for the investors but allows them to earn profits. The high rate of inflation strongly contributes to the increase in the number of marriage halls as the purchasing power of customers have reduced and they prefer to arrange their functions as economically as possible. The challenge of load shedding is another major problem faced by the marriage halls which as a result has increased their expenses and decreased their profits. The overall industry in Pakistan has been facing a business slum by the changes in the government frequently over the years with fluctuations of prices therefore marriage halls have been a safe resort for investors to invest and earn profits. As marriage is a necessary process every individual goes through investors foresee marriage halls business as a profitable business in spite of the challenges being faced by them. Recently from 2010, the competition for marriage halls has been increased by different competitors including marquees and outdoor catering which has increased competition for marriage halls to compete with. Though the target market for marriage halls is particularly the upper-middle, middle-middle and lower-middle class therefore it allows marriage halls business to sustain the business as the middle class income group is high in Pakistan. 1.3 SWOT Analysis Strengths Security Marriage halls provide security to the customers as compared to the other competitors. They provide security in situations of danger, fire and secure the properties of the guests in the function. Economical Prices Marriage halls target the middle class and therefore allow middle class income groups to arrange their function with the best facilities in the most economical prices possible. Due to the high inflation rate in Pakistan marriage halls are booming as the purchasing power of consumers have decreased and marriage halls provide the best economical prices to arrange function compares to competitors. Weaknesses Customization A major weakness of marriage halls is that they provide standard format to arrange marriage functions and lack in providing customization the customers according to their needs. Capacity Marriage halls do not have enough capacity to accommodate people more then 500-700. Whereas marquees can accommodate large number of people from 700-1000 number of guests. Opportunities Increase usage and capacity Marriage halls have an opportunity to increase their usage by conducting other functions including seminars, exams, business meetings, lunches to increase their revenue. Marriage halls also have an opportunity to increase their capacity by building halls to accommodate more people. Threats Government Regulations Government regulations pose a serious threat to marriage halls as they can only offer one dish to be served in the main course and the time restrictions that the functions have to be wrapped up by 10pm. The government regulations are a limitation for marriage halls to earn more profit and to offer customers more satisfaction. Increasing Competition The increasing competition in the industry is also a serious threat that the marriage halls have to face a number of challenges and meet different ways of conducting business. 1.4. Research Objectives:- To find out the percentage increase of the marriage halls from 2007-2012 in Lahore. To find out the number of marriage halls in Gulberg and Garden Town Lahore from 2007-2012. To find out the reasons as to why the trend has increased in marriage halls over the years. To conduct primary research and gain knowledge on marriage halls business in Pakistan. To find out the prospects of marriage halls in Lahore Pakistan. To compare the trend of rise in marriage halls in Pakistan with India and China. 2 Theory 2.1 Literature Review:- Marriages take place in every society, community and country. A number of reasons have been highlighted over the years as to the rise of marriage halls. Wedding expenses have increased by 20 to 30 percent this season and are likely to increase in the coming months. Catering and poultry prices are high and wedding hall rates have been raised considerably. This has added to the consumers financial burden but traders in wedding-related businesses are making the best of it. Wedding halls in Gulberg, Garden Town, Johar Town and Faisal Town have increased their rates and blamed the move on inflation.2Inflation plays an important role in decreasing purchasing power of consumers to spend on wedding activities. Increase in prices has increased expenses and therefore there has been a 30 percent increase in the prices of wedding expenses and wedding halls rates. Due to the high inflation rate consumers find places with economical prices to arrange their functions. Marriage halls therefore provide the only means to arrange a wedding function economically that can be easily afforded by the consumers targeting the middle income groups. The trend of conducting marriage ceremonies at banquet halls has decreased in the city in recent days, as people are scared to leave their houses in the prevailing security situation, owners of various banquet halls told Daily Times on Saturday. In addition to a reduction in the total number of reservations, the numbers of guests attending weddings has also decreased, they said, adding this was very bad for business. They said their business was already under tremendous pressure due to rising prices and limited budgets and the recent wave of terror attacks had only added fuel to the decline. Inflation has squeezed the purchasing power of the people, said Mahboob Ahmed, the owner of a private marriage hall.3 In 2009 with the increase of terrorism in the country marriage hall business has been affected tremendously. People instead arranging their functions outdoor or in marriage halls preferred to stay at home and arrange it at their home. Lack of security caused a lot of people to think whether to arrange wedding functions in house or in marriage halls. Terrorism along with inflation posed a serious threat to the marriage halls and increased intense amount of security concerns in order to survive their business. The industry in 2009 faced a number of challenges allowing the business slope to move downwards effecting marriage halls adversely. The LDA concerned is responsible for providing basic facilities to residents, but it seems that the authority has adopted a liberal policy for issuance of NOCs for conversion of residential plots into commercial plots. It is because of this liberal policy businessmen take advantage and are building marriage halls without considering the prerequisites of the by-laws. The residents are suffering from this mushroom growth of marriage halls which are more than from any other scheme in Lahore. 5 The liberal policy of LDA to issue NOC to the marriage halls in one of the major reasons in the rise of marriage halls in the past couple of years. Lahore Development Authority has been converting residential plots into commercial areas providing businessmen to invest in opening marriage halls and serve as a source of generating revenue for the government as well as the marriage hall owners. Marriage halls surrounded everywhere in the residential area cause inconvenience to the residents causing traffic jams and noise disturbance to the residents living in the surroundings. By issuing NOC creates a high opportunity for businessman to open marriage halls and earn revenue more easily as compared to other industry in Pakistan District Coordination Officer (DCO) Noorul Amin Mengal has warned the owners of marriage halls and said they should be closed on the given time and in case of negligence they would have to face consequences as per law. Chairing a meeting at Town Hall on Wednesday, the DCO said in future no case would be lodged against bride and groom and their relatives while the entire responsibility of late closing of marriage halls would be on the shoulder of halls owners and case would be registered against them.6 Government regulations have immensely affected the running of marriage halls business. All marriage halls are strictly advised to adhere to wrapping up of a wedding by 10pm. In providing food items government has also limited the availability of food items to one-dish only which effects the marriage halls reducing their profits. The DCO stated to charge fines to any marriage hall violating the law and the fine solely being paid by the marriage hall owners. Government regulations have limited the profits of marriage halls but on the other hand the government regulations have been made in the favor of the public security and protection. Therefore these laws allow marriage halls to be profitable as the customers pay the full price of a function allowing marriage halls to provide less and earn more money per head. As Pakistani society has grown more overtly conservative, weddings remain one of the few culturally acceptable venues for men and women to meet without restriction and even dance with each other. In other words, a mehndi is simply a substitute for a nightclub. The phrases used to justify the extravagance ranged from people will talk if you dont have an elaborate wedding, to I just want a traditional wedding and there is social capital being built at weddings.7Marriages in Pakistan from the very start have been a source of entertainment and over the years the ritual has become more of a status symbol of having a prestigious marriage. People in Pakistan spend big amount of money on marriages and is known to be one of the biggest expenses in lifetime for every family in Pakistan. Marriages in Pakistan are costly due to the different events taking place in a marriage including dholki, mehndi, barat and walima. Pakistan facing severe economic challenges the higher spending on wedding functions has not declined as marriages in Pakistan is known to be a big event and spending more money is a status symbol to have a status in the society. But Indias burgeoning middle class now 300 million strong are turning weddings into showcases of their growing disposable incomes and newfound appetites for the goodies of the global marketplace. The largesse has spawned an $11 billion wedding industry, growing at 25 percent annually and beginning to rival the US industry valued at $50 billion. Top global luxury brands and local entrepreneurs are learning that the way into the pocketbooks of Indias new consumers is through their nuptials. 8India has a big wedding industry which is overcoming the US industry. Indian weddings are now a show of wealth in the society and wedding service providers are earning large amounts of money by customizing services. The Indian wedding industry is growing with 25% annually which is more than the growth of the US industry. India is an emerging country with people witnessing rise in disposable income. Increasing disposable income renders people to mark this grand event with luxurious celebrations. Wedding at exotic locations, far from the maddening crowd of the city has become a rage and is considered to be a significant driver. Destination weddings continue to increase as it allows the wedding to be unique. In this format of the event, a planner becomes imperative due to the lack of knowledge of the place at which the wedding will take place as well as towards streamlining the entire process. An Indian wedding needs a lot of time and effort towards planning and implementation.9 India has a big wedding industry growing with a high rate every year. Different factors contribute to the increase in the spending on the marriages in India as well as the number of marriages taking place every year. Weddings for higher class in India are an opportunity to show their wealth, for middle class it is an event for which they have to go beyond limits to make it luxurious and for the lower class it is as simple as a normal event. Spending on luxurious locations, places, have given way to wedding planners as wedding in India require a lot of time to plan. Demographic Profile, In 2011, India had a population of 1.21 billion, and with average family size of five members, there are around 242 million families in India. Considering one marriage per family every 20 years, on average India has around 10 million marriages per year. Also,the estimated median age in India as of 2011 in 26.2 years, signifying a large proportion of population in marriage age group.10 India has a large population of 1.21 billion with average families accounting around 242 families. Almost 10 million marriages take place every year in India with the increasing population the number of marriage increases proportionally. In 2011, it was seen that majority of Indias population lies with the marriage age bracket. Availability of wedding loan and wedding insurance, Many banks and financial institutions have started lending marriages loan to ensure hassle free wedding experience. Also, increase in disposable income has encouraged newlywed to opt for wedding loan and make wedding a grand event. This attitude to make the wedding event grand increases the total wedding cost. With high financial stakes, the couples or their families opt to buy marriage insurance that take care of contingencies during marriage like cancellation/ postponement due to fire or natural disaster, accident of bride groom or burglary.11 Another important factor contributing to the increase in the number of weddings and increase on wedding expenditures is the accessibility of marriage loans and insurance provided by the Indian government. Now its easier for people to spend more as they have access to loans and can pay off later. These all facilities provided by the Indian government are provided to enhance the wedding industry in India and to strengthen it. Wedding Insurance is also popular among people as due to natural disasters during wedding functions people have an option of being compensated by the insurance companies in case of different problems including natural disaster. Official figures suggest that 10 million people wed annually and that the industry as whole turns over more than 250 billion yuan (US$30.2 billion) each year. Big cities such as Beijing, Shanghai and Guangzhou have established well developed wedding celebration markets. Beijing, for example, leads the country with 1,000 wedding related firms. About 50,000 couples get married each year in the capital, a diamond mine for the wedding businesses.12 China wedding industry is rising with an increasing number of marriages taking place each year. The main cities of China including Beijing, Shanghai and Guangzhou contribute to the higher revenues generated from weddings on a larger scale. All cities in China have related business to the wedding business which help generate higher profits and develop its wedding industry. While parents use weddings to cement their status and display their wealth, the bridal couple are experimenting with ways to personalize the experience, drawing not only from the U.S. but also from South Korea and Japan, and usually involving vast sums of money. Whereas Chinese weddings used to be about a dinner banquet and honoring parents, todays weddings feature more exotic fare like fire-dancing, elaborate video presentations and motorcades of luxury cars with nameplates like Bentley, Lamborghini and Ferrari.13 Wedding in old times were entirely different from what they are now in the 21st century. People now focus more on showing of their wealth and status by having a lavish wedding of their children and is more considered as a symbol of honour. Chinese weddings are now arranged more exotically with having large amount of budgets for each step in a wedding arrangement from wedding planners to make up to photography and honeymoon. People in china display their status in a wedding by the prestigious cars they have and the different presentations of showing of their wealth in the society. Excess is in order in all departments of the Indian wedding industry, estimated to be a staggering US$ 25.5 billion (Rs.1,42,596 crore) the economy of a small country and growing at the explosive rate of 20 to 25 per cent a year. The speed of economic growth in India, which is responsible for the creation of overnight fortunes, is also creating a conspicuous, yet almost desperate type of consumption at weddings. The average budget for an Indian wedding ceremony in the middle class is estimated to be US$ 34,000 (around Rs.19.01 lakh). The upper-middle and rich classes are estimated to spend upward of US$ 1 million (Rs.5.59 crore). This doesnt include cash and valuables given as part of a dowry. Companies like GE Money India have introduced an auspicious personal loan, exclusively for weddings. Giant malls like the Wedding Souk in Pitampura, Delhi, spread over one acre and with over 100 shops dedicated to weddings, have emerged14 Indian wedding industry is rising day by day and the Indian government provides loans to provide access to cash for weddings. The average wedding costs around 6 crore. People in India spend large amount of money on weddings therefore wedding in a flourishing business in India and contributes a large chunk to the growing economy. Marriage rates have tumbled over the past few decades, falling from about 10 marriages per 1,000 people in the mid-1980s to 6.8 marriages in 2009. This decline is a result of social influences (fewer couples looking to commit) and attitudinal changes, as consumers hold off for financial and lifestyle reasons. However, the fall in the marriage rate has not resulted in a complete disaster for the industry. In fact, the decline has led to a higher-than-average wedding spend, meaning even greater profits for those involved Coming off of 2005 and 2006, two of the most prosperous years in the wedding industry, the sector plummeted as the economy entered recession. Revenues fell from a high of $67.5 billion in 2005 to $42.9 billion in 2009. Industry performance is expected to improve in 2010, expanding an estimated 10% to $47.2 billion, but still far below the years, so businesses need to put in place appropriate strategies to capture that increasing demand.15 As mentioned above the decline in marriage rate in China has led to increase in spending and earn higher profits. The decline is mainly caused by social influence on people, lack of commitment and difference in lifestyles. The decline has not caused damaged but allows the Chinese government to implement strategies that help to capture the increasing demand and develop wedding related business to enhance the industry and provide more services in order to generate more revenues from the wedding industry. 2.2. Competitor Analysis The competitor analysis focuses on two main competitors including Marquees and Outdoor Catering services that cause a serious threat to the marriage halls. Over the past few years the competition in the industry has increased by the increasing awareness among the consumers and consumer needs and wants. Consumers now like everything their way which imposes a pressure on the service providers to be more efficient and provide customized services to cater to their needs. 2.2.1. Marquees Marquee is a tent used for outdoor functions. Different investors have introduced a new concept of marquee which is basically taken from Saudia Arabia Hajj performance in Mina where there are small marquees for people to reside in for 5 days as a necessary process to perform Hajj. The concept has been introduced in Pakistan to arrange marriage and other functions in the outdoor. This has increased the competition for marriage halls as marquees allow customized services meeting the consumer needs and wants and providing value added facilities that include changing the theme of the set, colors, lighting, sitting arrangements to customize the marriage function to the consumer needs. Though marquees lack in providing few facilities including no kitchen, re-heating food facilities and as everything in a marquee is outsourced by other service providers they cause a threat to the quality of food and food diseases as to being stored for longer hours before it is served. Marquees pose a serious threat to the marriage halls indoor services as consumers are more aware and require more customized services and facilities then the traditional marriages concept in the marriage halls. 2.2.2. Outdoor Catering Services Outdoor catering services are an emerging business that has been posing a serious threat to the marriage halls from past many years. The Pioneers of the outdoor catering services are Nadeem Caterers, Hanif Rajput, Zafar Caterers, Dynasty and many other that have changed the way marriage take place now. They provide a complete package from providing a tent to the food, sitting arrangements, generators, lights, music system and all other facilities according to the customer requirements leaving them satisfied. Outdoor caterers pose a threat to marriage halls as it allows consumers to arrange the function with outsourcing different materials from different people and arranging their function according to their needs and budget. 2.3 Comparative Analysis 2.3.1. Industry Overview of Marriage Halls in India India being rich in its culture, history rituals and customs in all aspects surpasses all countries and is known to have the best lavish wedding ceremonies all over the world. All industries in India have been affected tremendously with the financial slum being faced by India, but somehow the marriage hall industry has been able to survive and people spend more money on marriages and perceive to have a life time experience spending as much as they can. The demand for weddings in India has increased and the numbers show that weddings have increased every year. The Wedding season in India takes place in October and all the marriage halls in New Delhi are booked a month before. Indias wedding industry is flourishing as not just the halls but the wedding planners, designers, jewellers, beauty parlours now cash on the wedding season by providing different ways of organizing weddings. Weddings in India are more taken as a an event t spend large amount not by the upper class but the middle class to project their wealth having a status symbol. Wedding Planners in India provide all services from marriage halls to arranging the whole event within the consumers budget making it a customized service for people to pay high fees. People are now more aware of the changing trends in arranging marriages they do not want a simple five-star hotel wedding but a customized wedding. With the increase in purchasing power of the consumers in India people now have more income and spend more on weddings. Indias wedding industry is growing faster and bigger day by day, with people trying to overdo each other as to whose wedding arrangement is better. According to experts its been stated that a single wedding now normally takes 1.5 crore without jewellery. Indias wedding business is flourishing as now new designers are capitalizing on the opportunities in India. Indias wedding business is the best business to invest as it has large profit margins and because of people increased income, and increase in purchasing power they spend more on weddings allowing wedding related services to earn more. Fewer auspicious days, as marriages are arranged only on auspicious days as Hindus place a lot of emphasis on astrology, the industry faces seasonal revenue. In case of unfavourable planetary combination as per astrology marriages are postponed. This act as a barrier for the growth of wedding planner. Furthermore as large number of marriages across country takes place on few selected dates this give rise to the possibility that wedding planner may not be able to capture additional market share.22Marriages in India take place seasonally as majority of the Hindus believe in astrology. This restricts wedding planners on capturing the market share apart from the seasonal dates. This is a restriction for the wedding planners to earn high revenues and is a challenged faced by them. 2.3.2. Industry Overview of Marriage Halls in China Chinese wedding industry has been glooming from past 5 years with a rise in number of marriages each year. The increase in the spending on weddings in China is attributed mainly because of economic, increase in disposable income and cultural change. Wedding expenditures have increased mainly in the urban areas of China accounting to 70% wedding day expenses. The cultural change has a strong impact on the increase on the wedding expenses due to the different government policies including one child policy. Parents want to spend large amounts of money of their childs wedding as they just have one child and desire to have a dream wedding for their child. Other factors contributing to the increase in the wedding expenses is the traditional arrangements and economic factors. Having a new house, household accessories after wedding has become a necessity as before wedding children live with parents and after marriage live separately. The spending habit of chinese people and the increase in disposable income increase the spending on weddings. 30% of savings are spend on weddings of every person in China. With the rise in the number of marriages each year and the increase in wedding expenditures businesses in China have taken it as an advantage and strengthened the wedding industry by providing specialized wedding services and increasing revenue. 2.4 Research Question Rising trend in marriage halls in Gulberg and Garden Town from 2007-2012 in Lahore Pakistan 3 Methodology:- The methodology I will be using to research and analyze the rising trend in marriage halls in Pakistan is by conducting Interviews Survey Study Questionnaires Examination of Secondary Data To gain in depth knowledge of the marriage halls in Lahore I conducted a survey study following the steps mentioned by Campbell and Katrina (1953) in the book Essentials of research design and methodology. Campbell and Katona (1953) delineated nine general steps for conducting a survey. Although this list is more than 50 years old, it is as useful now as it was then in providing a clear overview of survey procedures. The nine steps are as follows: 1. General objectives: This step involves de ¬Ã‚ ning the general purpose and goal of the survey. 2. Speci ¬Ã‚ c objectives: This step involves developing more speci ¬Ã‚ city regarding the types of data that will be collected, and specifying the hypothesis to be tested. 3. Sample: The major foci of this step are to determine the speci ¬Ã‚ c population that will be surveyed, to decide on an appropriate sample, and to determine the criteria that will be use

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.