Kishore Biyani’s ‘Retail 3.0’ blend of technology with brick & mortar
ET Bureau|
Updated: Nov 03, 2017, 11.22 AM IST
BENGALURU: Future Group’s Kishore Biyani plans to launch a new digital strategy ushering what he calls Retail 3.0, which will blend technology with brick and mortar retail. The new avatar will be launched in the coming weeks and will be called Tathastu.
“We are going to launch Retail 3.0. It’s called Tathastu – you ask and you get it,” said Biyani, during the sidelines of Nasscom Product Conclave held in Bengaluru. on Thursday, adding that Retail 3.0 aims to bring everything at the customer’s door.
Expanding its offline footprint, the company will also be opening retail stores every 2 km radius which will offer discounts to those living in their radius, where consumers can become a member of the store.
Moreover, he played down online retail businesses and their strategy to tap into small-town India. He said these ecommerce companies are not competition and even refers to them as Retail 2.0. “I do not see a market in the rural areas as the consumer spend is too less over there. So, there is no point going to the bottom of the pyramid.”
He adds that it doesn't make economic sense to go to the bottom of the pyramid. "You will sell 100 SKUs in a rural market, as opposed to urban areas where one can sell 70,000-80,000 SKUs.”
Comparing ecommerce companies to typewriters which gave way to computers and died down, Biyani said that e-commerce companies in India barely contribute to less than 0.2% of total retail sales and will never be able to make money in this country.
In an earlier interview with ET, Biyani had said, “The total nonelectronic business that happens online is less than the turnover of the Future Group (last fiscal, the revenue was Rs 21,000 crore).”
ET had recently reported that home grown online retailer Flipkart is in talks with Biyani to pick up an 8-10% stake in Future Lifestyle Fashions Ltd (FLF), the listed fashion arm of the Future Group.
Biyani further added in terms of using technology that artificial intelligence will be one of the focus areas for Future group. Going forward when the technology matures, it will also be used to bring in personalization for the customers. “Technology is not our core area so we will look to partner with technology companies to enable retail 3.0.”
Talking about GST implementation in India, he says that it had affected the supply chain overall that led to many retailers offering discounts and many were not able claim transactional credit under the tax regime.
Generate customized GST compliant invoice for Free. Click Here:
“We are going to launch Retail 3.0. It’s called Tathastu – you ask and you get it,” said Biyani, during the sidelines of Nasscom Product Conclave held in Bengaluru. on Thursday, adding that Retail 3.0 aims to bring everything at the customer’s door.
Expanding its offline footprint, the company will also be opening retail stores every 2 km radius which will offer discounts to those living in their radius, where consumers can become a member of the store.
Moreover, he played down online retail businesses and their strategy to tap into small-town India. He said these ecommerce companies are not competition and even refers to them as Retail 2.0. “I do not see a market in the rural areas as the consumer spend is too less over there. So, there is no point going to the bottom of the pyramid.”
He adds that it doesn't make economic sense to go to the bottom of the pyramid. "You will sell 100 SKUs in a rural market, as opposed to urban areas where one can sell 70,000-80,000 SKUs.”
Comparing ecommerce companies to typewriters which gave way to computers and died down, Biyani said that e-commerce companies in India barely contribute to less than 0.2% of total retail sales and will never be able to make money in this country.
In an earlier interview with ET, Biyani had said, “The total nonelectronic business that happens online is less than the turnover of the Future Group (last fiscal, the revenue was Rs 21,000 crore).”
ET had recently reported that home grown online retailer Flipkart is in talks with Biyani to pick up an 8-10% stake in Future Lifestyle Fashions Ltd (FLF), the listed fashion arm of the Future Group.
Biyani further added in terms of using technology that artificial intelligence will be one of the focus areas for Future group. Going forward when the technology matures, it will also be used to bring in personalization for the customers. “Technology is not our core area so we will look to partner with technology companies to enable retail 3.0.”
Talking about GST implementation in India, he says that it had affected the supply chain overall that led to many retailers offering discounts and many were not able claim transactional credit under the tax regime.
Generate customized GST compliant invoice for Free. Click Here:
