SUMMARY
The Retail 3.0 Model Was Announced At Nasscom Product Conclave 2017 Held At Bengaluru
Retail Giant Future Group’s Founder and CEO Kishore Biyani has announced to launch Retail 3.0 business model in India soon. “It is a model called Tathaastu. This will help you get anything you want,” said Biyani.
With its presence in every state of India, Biyani said that for the success of Tathaastu-Retail 3.0, it is essential to have a retail store within the parameter of every two kilometers.
Kishore Biyani revealed the Retail 3.0 model while speaking at the recently held Nasscom Product Conclave 2017 event in Bengaluru on November 2, 2017. The theme for this year’s two-day conference revolves around innovation fuelling India’s digital revolution, in the realm of new age technologies such as Big Data & Analytics, Cloud/SaaS, AI, VR, AR, Robotics or IoT.
Talking about what is the success mantra of Future Group, Biyani said, “We are an end-to-end retail products and services provider. Right from production, distribution to supply chain, we have got everything. Even, Baba Ramdev needs us to sell his products.” Biyani further added, “We don’t believe in numerical data, but in subjective reports that come directly from the customers. This is because Indian market is diverse and always surprise us.”
He also shared that even over the next 10 years, his business model will not change. “We are in three categories of business — food, fashion and home… we have manufacturing, we manage our own supply chains, we have our own stores and we have our own data.”
On the competition front, Biyani agreed that a healthy competition is required to bring out the best of any company. However, he was concerned about the way tech-driven companies are burning money. “Cost of doing business in a technology-driven model is very expensive, and the payment charges in India are much higher than that in China.”
Earlier this year, Kishore Biyani took a two-year break from ecommerce, considering the rising losses and lack of stability in the space. As he stated at that point of time, “It’s stupid to be in the online space. In lifestyle, the ecommerce industry revenue in India will be around $387.14 Mn (INR 2,500 Cr) and losses too will be of an equivalent amount. Mobile and electronics, too, do not make money online. Having burnt our fingers, we have decided to take a break of at least two years before even thinking anything remotely about online.”
Kishore Biyani is yet to reveal more details around the Retail 3.0 model. However, considering that it focuses on having an offline store in close parameters, one can consider that (offline) hyperlocal commerce can get a big boost with this initiative. Having burnt his fingers already in ecommerce seems Biyani is back to the basics while further increasing the ferocity of online vs offline battle.
