Kishore Biyani, CEO of Future Group, this week claimed that the much-believed growing online retail segment in the country has a danger from physical retail models such as Easyday and Big Bazaar, due to high cost of business and low share of business of the former.
The retail champion claimed that even though the upcoming trend is digitization, but digital and physical are not separate since coating of technology above physical is the requirement of the time. “Online retail has a danger from us and it is time individuals realized that they are not a danger to us, since they do not even consist 1% share of business and the cost of carrying out trade is also extremely huge,” Biyani claimed. Over the decades, part of the retail users has shifted to online marketplace such as Amazon and Flipkart for acquirement of the everyday use products. “If you see the globe over, Amazon is just purchasing physical retail, so is Alibaba and hence times have modified,” Biyani claimed to the media in an interview. He further added that the craze of online shopping of user goods by people of India have faded away.
The top retail chain is on a destructive growth mode seeing huge requirement and had lately declared starting 10,000 “member only” Easyday shops to make it a business opportunity worth Rs 1.5 Trillion by the end of 2022. The group revealed a 30-year dream, Retail 3.0, by when it aims to turn out to be largest incorporated user retailer of Asia by the end of 2047 with income of almost $1 Trillion. Biyani claimed that the food and fashion categories are witnessing constant demand with the fashion sector developing swiftly and chains such as Central, FBB, and Brand Factory are in good form.
When enquired about his opinions on physical retail being over taken by online retail, Biyani claimed that both are joining and a decade from now everything will join fully and the firm has always been at the front position, not absent for any trend. “China, which users believe is the most digital boosted nation, has 82% physical model, America consist of 89% physical stores, and similarly India as well has great potential for physical stores since online share is extremely less,” the CEO of Future Group claimed.
According to a report, rising use of apps, smartphones, social media, and web will result in development of omni-channel retail by merger of online and offline services.