Future Group CEO Kishore Biyani is back to bashing online retail once again. Biyani stated that the much-believed expanding online retail sector in India has a threat from physical retail models like Big Bazaar as the former suffered on account of their low business share and high cost of business.
Biyani stated, “Online retail has a threat from us and it’s time people realised that they are not a threat to us, as they don’t even have 1 per cent business share and the cost of doing business is also too high.”
He also added that though the next trend is digitisation, physical and digital are not different as the layering of technology over physical is what is needed at the moment.
Pointing out to global trends, he further reiterated, “If you look the world over, Alibaba is only buying physical retail, so is Amazon and therefore times have changed”, adding that the fever of online shopping of consumer items by Indians have gone away.
The Kishore Biyani led Future Group had recently announced the launch of Retail 3.0 business model ‘Tathaastu’ which would blend technology with brick and mortar. Under this model, it plans to become Asia’s largest integrated consumer retailer by 2047 with revenue of in excess of $1 Tn. The leading retail chain is also on an aggressive expansion mode and had recently announced opening 10,000 member-only Easyday stores.
Online Retail And Physical Retail: The Merging Boundaries
While Biyani has been vociferous in his views against ecommerce and online retail from the beginning, he still believes that both are converging and ten years from now everything will converge completely. He further added that the company has always been at the forefront, not missing any trend.