Online Retail Is In Jeopardy By Offline, Not the Contrary: Biyani
Kishore Biyani, CEO of Future Group said the growing online retail segment in India has a risk from physical retail models such as Easyday and Big Bazaar, on account of high cost of business and low business share of the former. Biyani stated even though the ensuing trend is digitization, digital and physical are not diverse as technology layering over physical is the need of the hour.
He said, “Online retail has a risk from us and it is time individuals realize that they are not a risk to us, as they do not even have 1% share of business and the price of doing business is too huge as well.” Over the years, a portion of the retail customers has shifted to the online platform such as Amazon and Flipkart for buying the day-to-day use things.
“If you see over the world, Alibaba is purchasing physical retail only, so is Amazon, and thus times have altered,” said Biyani mentioning that the fervor of online shopping by Indians of consumer items have gone away. The prominent retail chain is on a forceful enlargement mode observing enormous demand and had declared opening 10,000 member-only Easyday stores recently to make it an Rs 1.5 Trillion commerce prospect by 2022.
The group divulged Retail 3.0, a 30-year vision, by when it intends to become the biggest incorporated consumer retailer of Asia by 2047 with a value of more than $1 Trillion (approximately Rs 64,50,337 Crores). He said that the food and fashion segment are witnessing constant request with the fashion category developing speedily and chains such as Brand factory, FBB, and Central are in good position.
Biyani, when probed about his opinions on online retail taking over physical retail, said both are congregating and 10 Years henceforth the whole thing will unite entirely and the firm has always been at the lead, not missing any trend.
Biyani said, “China that individuals deem is the most digital-driven nation has 82% physical mode, while America has 89% physical model, and likewise, India as well has enormous prospective for physical retail as the share of online is very low. We are entitled Future group as we see at the future and plot much beforehand.”
According to a joint report by Deloitte and Ficci, the rising use of the web, apps, social media, and smartphones will result in the growth of omnichannel retail by a combination of online and offline services within the Indian retail industry that is developing at 10%, might almost duple to Rs 85 Trillion by 2021.