Kishore Biyani's roadmap to make Future Group a Trillion Dollar Biz by 2047
Retail 3.0 is the Group’s 30-year plan to become Asia’s largest integrated consumer retailer by 2047
Leading retail chain Future Group has announced the launch of Easyday, a chain of member-only neighbourhood stores to make it a Rs 1.5-trillion business opportunity by 2022. This is part of Retail 3.0, the Group’s 30-year plan to become Asia’s largest integrated consumer retailer and a trillion dollar business by 2047.
Future Group CEO Kishore Biyani plans to blend technology with offline retail to offer an new retail experience where customers can either walk-in to the brick and mortar store, send texts (including on Whatsapp), order online using the app, or just call the store. Future Group has also tied up with Facebook and Google to aid with data analytics and social media engagement. The main philosophy behind the stores is “You Ask, We Deliver” and the retail format is therefore titled ‘Tathastu’.
“The group will have 1,100 Easyday stores by the end of FY18. Each store will have an investment of around Rs 15 lakh,” said Biyani. He expects over 10 million consumers to spend up to Rs 1 lakh annually through the Easyday stores by 2022.
Each of the stores will be equipped to handle 2,000 members and will be spread over 3,500-4,000 sq ft and offer 3,500 stock keeping units. Members will be charged Rs 999 in annual membership fee, for which they will get 10 per cent discount on all purchases.
“We will place a store within 2 km of every consumer,” he explained. Technology giant Google has tied up with Future Group to help identify the locations of these stores and to aid its hyper-local member acquisition. “We have 300 mn Indians on smartphones spending about 3 hours a day online and we know exactly where they are and so on and so forth. So we are able to take these signals that we have from all our products (Android, Maps, Search) put them together and figure out where should that next Easyday store be,” said Rajan Anandan, MD, Google India.
Future Group has also tied up with social media network Facebook to aid with generating user-behaviour profiles. The data analytics centre for Tathastu in Kolkata will be led by Sandipan Chattopadhyay, former chief technology officer at Just Dial Ltd.
Having experimented with e-commerce and burnt his fingers, Biyani said that the cost of doing business will be cut from 45-55% in the Retail 2.0 format to 7-10% in the Retail 3.0 format.
The brand will first be launched in Punjab. Ogilvy and Mather has conceptualised the brand campaign which will go live on December 1. The 360 degree campaign will first be unveiled in Punjab and Delhi-NCR.
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