An Interview of Future Group's MD Kishore Biyani

Monday, November 19, 2007

In an interview with Chief Correspondent Syed Firdaus Ashraf, Biyani,
the founder of the modern retail group Big Bazaar, has redefined the
shopping for Indian consumers, gives his vision for the retail industry
and his company's plans in the coming years.

Why did you say in your speech that 2009 will be the defining
moment for Indian retailing industry?


All the new malls that are in the anvil will be ready by then. We will
also have a retail policy in place and consumers too will be ready by
then, so we are ready for interesting times. We will see lifestyle
retails, high-end retail. Every retailer will be in the market. So,
2009 will be deciding factor for the retail market in India.

Will the bubble burst?

We have too many retail forums and too many malls have come up.
The period to watch out for will be 2009 and it will be a testing time
for retailers, I feel. We will all know by then what the real demand is
and what the real supply is in the market. In the meantime, the
challenge will be to find the right kind of people and trained people
for the industry.

You mentioned in your speech at the India Retail Forum
that the rising realty rates in India will be a challenge
to the retail industry. Can you explain the rationale?


The consumer always saves money when there is inflation. He spends
less when things are expensive. Inflation affects the consumer's
psychology and people now tend to save money in such scenario and
not spend. It has been observed that when real estate prices keep going
up people tend to save and the consumption drops automatically.

Why have you started credit card banking and how is
the response?


It is only 45 days old and the response has been good. It is one of the
future ways of the retail market and a learning business for us. We
are learning it. We have given loans to 500 customers so far. We are
learning while we are doing our business.

What has the learning so far?

(Laughs) The first applications are always those of fraudsters.

What kind of potential do you foresee?

There is a huge potential and we have just begun. We are creating
our checks and balances. In the last 45 days we have learnt a lot
on who is a trade-worthy customer and that is a business secret.

You mentioned that there are two Indias today. The first
one are those people who have power to spend and the
second one are those who are dependant on them like
drivers, cleaners and housemaids. Can you explain this?


Today, only one India is growing. The people who have aspirations
and brains, they are the big consumers of retail market. This class is
not making the other India grow. Lot of people have to do a lot of
things to change the scenario. One option is that those who have
a good income will have to create an income for the India that is
left out. I call that group as the second India. They have to be
protected in a network and we need to give them a chance to grow
and become one of the consumers.

You once said that social security system is bad in India
and that needs to be improved...


Today, India's social security system is a family security system.
People save money for bad days but if you compare that with
developed countries people spend money because they know that
their government will look after them in bad days. They are not
afraid of spending money in the developed countries. In the same
way we need to create a system in India where people should not
fear to spend money and not bother about their insecurities.

What can private players do in such situation?

The only solution to this problem would be to raise income levels.
If we do that, then everybody will have spending power.

Do you think the real estate market has reached its peak
and will crash?


I cannot comment on it. I would however say that this is a game of
supply and demand. Price correction will always be there in such
situation.

You said that you are approaching the Brazilian and
Mexican ways to develop retailing business. Can you explain?


Every retail shop has domestic finance scheme in some cities of
Brazil and Mexico. We are also looking at that model. If you study
their trend then you will find that there is 6 percent default and
I feel it is okay because 7 percent default is the norm in credit
cards too.


What are the products that can be funded?

Lot of products can be funded. We have started with some products
initially but eventually the idea is to fund consumption as much as we can.

Do you believe in customer brand loyalty?

I believe there is something called emotional attachment to a brand.
People do switch over their loyalty at times. I feel that these days,
maintaining brand loyalty comes with a cost. I personally believe
that the customer is like a nomad. He will go from one store to
another store. He will only come to you if you give him value.

How did you crack the shopping woman's psyche so that
they eventually end up spending in Big Bazaar shops?


(Laughs) We keep women in mind. We work with them. We understand
their emotions and therefore they end up spending in Big Bazaar.


2 comments

Manoj said...

Dear Sir,
I Want to Me give a chance for this company .Presently working in Rei Agro Ltd.as a post of Computer Operator & Cum Caisher.

Plz Reply mail to this.
Rgs,
Manoj Kumar
Mo.No-9891576114

September 23, 2008 at 7:32 AM
soma said...

Dear Sir,

Loan Id :- 285547
Name :- Gaurav Midha
Invoice No/Advane Recipt No :- 600352000003
Name Of The Product :- Silver Oak Bed
Name of the executive :- Ajay Conact No (9702602710).

I had purchased the furniture from Store Location 2nd floor plot no 5 Sector 7 Kharghar.Navi Mumbai

Have some issue which i have follwing with your people from the past three months, but no solution fro your team.

1) At the time of Purchasing i was commited by the executive that the Emi would start 8 of every month, that is the reason that i requested to debit the Emi by Pdc instaed of Ecs. I had personaly visited twice to khargahr store and had spoken to Ajay he said that he will get back to me in two days, but no response till now. Still i am managing and all the emi are cleared on time as commited by me.

2) As i was just managing the emi which was great problem to me , the other problem is now that the bed has been damaged , if this is the quality your furniture , i think i had made a mistake to buy furniture from your store.

As told by your executive at the time of sale as told by your executive 1 year of warranty

Request you to kindly get the issue rectified or i will have stop the further Pdc from the fourth Month onwards.

Awaiting your positive response

Conact No :- 7498153015 & 9022950330
My Mail Id :- gaurav_midha1983@yahoo.co.in

September 25, 2010 at 10:08 PM