IT HAPPENED IN INDIABook Review

By osho Kharbanda

Today’s AgendaFlow of Presentation

Author Intro & Make in India1

Built from Scratch2

The new, New thing3

For god, country & Big Bazaar4

Business @Speed of thought5

Kishore BiyaniNew Face of Indian Retail

Kishore BiyaniCEO, Future Group

Kishore Biyani: 55, is CEO, Future Group, which is designed to cater to the entire Indian consumption space.

After graduating in commerce, Biyani joined the family textiles business. Five years later he launched the first branded  ready-made trouser, called Pantaloon, marketed through The Pantaloon Shoppe.

Founded in 1987, as a garment manufacturing company, Pantaloon entered modern retail in 1997 with the opening of a chain of department stores, Pantaloons.

In 2001, Biyani evolved a pan-Indian, class-less model — Big Bazaar, a hypermarket chain, leading to the democratisation of shopping in India.

“ A manager always fears making a mistake and that is where he differs from an entrepreneur.“

• The Future Group operates through six verticals: Future Retail (encompassing all lines of retail business), Future Capital (financial products and services), Future Brands (all brands owned or managed by group companies), Future Space (management of retail real estate), Future Logistics (management of supply chain and distribution) and Future Media (development and management of retail media spaces).

• The group's flagship enterprise, Pantaloon Retail, is India's leading retail company with presence in food, fashion and footwear, home solutions and consumer electronics, books and music, health, wellness and beauty, general merchandise, communication products, e-tailing and leisure, and entertainment.

Future Group

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“ Indian bazaars with western hygiene“

Dipayan Baishya

Dipayan BaishyaBusiness writer, Head of strategy and group

Communication-CEO, Future Group

Dipayan Baishya is a business writer, Head of strategy and group Communication-CEO, Future Group.

He has been associated with the Economic Times and Business Today.

His articles have also appeared in Media, a Hong Kong based fortnightly and Knowledge at Wharton.

He was awarded the Don Sheehan International Journalist Fellowship by the Wharton School in 2005.

Made In IndiaRewrite Rules, Retain Values

What We Are Going to DoThis Chapter is all about Kishore Biyani way of understanding Indian retail market!

1. There are couple of emotions

that determine shopping behaviour which includes greed, unselfishness, fear and jealousy.

2. Predicting Indian consumer behaviour

becomes important in retailing.

3. The most interesting thing

about our country is that our growth will be based on ideas and solutions rather than physical assets.

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Made In IndiaRewrite Rules, Retain Values

Kishore Biyani is inspired by Sam Walton, Founder of Walmart.

KB strongly believes that consumer is always right!

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“ Retail is like riding a bicycle up the hill, if you stop peddling, you will slide down “

Made In India3 C’s

• Kishore Biyani believes in 3C theory : Confidence and Changes bringing in an unique era of Consumption.

• He used to observe people coming in his stores, to know more about their demands.

• He maintained the balance between confidence in making choices and humility in learning.

• Always believed in doing new things, process is :“LEARNING, UNLEARNING ,AND RELEARNING”

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Built from Scratch• He had the attitude of challenging and

was keen observer from very beginning.

• He had this attitude of pursuing with his own ideas, and never had expected any support from the family..There his entrepreneurial journey began….!!!

• KB quotes “I created my own ‘mental’ mentors, studied various subjects and eagerly sought knowledge. I strongly believe that there is a hard and arduous journey that one has to undertake alone.”

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Built from Scratch

• “Entrepreneurship is about thinking big, believing in your own ability and going ahead with huge risks even if you are aware that some of the ventures not be successful. “

• “It’s also about making decision, leadership, and about making your colleagues believe in your DREAM “ 10

Defying the Odds• This chapter is about KB’S struggles and success story

of Pantaloons.• He came up with the brand WBB, went on for

advertising worth few lakhs, and also hired an ad agency, which was new and innovative in that time and then established the brand.

• One day, inspired from Italian fashion for ready made garments .He had explored into this business of ‘Manz wear’(which came to be known as Pantaloon)

• He emphasised in the popularity of pantaloons.11

Defying the Odds• First franchise shop: in Goa called as Pantaloon

Shoppe.• In 1992 to raise more fund KB approaches the stock

market and announced IPO and he raise 225 lakh rupees by diluting his 60 % holding.

• Then he came across the idea of making pantaloons a one-stop destination for all apparel products for men: shirts, ties, trousers etc.

• And this way, he moved ahead with pace. 12

Defying the Odds• Kb always updates himself with knowledge of fashion

and fabric by visiting the NIFT.• He realised the need to scale up all these successful

businesses. • Finally, his business was enjoying the goodwill, even

over the Raymond's, but for that he had to defy many odds.

• ITS DUE TO HIS AMBITION, POSITIVE ATTITUDE, CREATIVITY, and STRONG DETERMINATION he has become SUCCESSFUL.

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The New, New Thing“ Despite all the difficulties, all the frustrations, there is a joy in having done something as well as you could and

better than others thought you could “• Kb decided to design Pantaloon Shoppe in the

provided large space in Kolkata. • Some important points about retailing are as follows:✓Fashion for the matter of retailing, is not selling

products, its selling of ideas. ✓Customers wants to experience everything when

they shop rather than just wasting money in shopping14

The New, New Thing• The crucial aspect in retailing is to make customers

relate to every product that are being sold. Store environment also matters.

• Kb had used the concept of visual merchandising which enables a retailer to talk more to customers.

• Moreover it requires a deep understanding of local tastes and preferences.

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The New, New Thing• KB believes : CUSTOMER IS THE KING• Customers should be given a comfortable environment

and personal shopping experience.• For KB achievement was more important than money.

he drive himself by what percentage of the consumer’s wallet he was going to attract!

• For him, Growth is important.• Honesty helped him win the trust of investors. He was the only one in the industry who was betting

on the future, rather than the present.16

For god, country & Big Bazaar• KB’s philosophical thinking makes him totally a unique

personality.• KB follows the Indian consumer with passion and

retail ,according to him is about heart.• Inspired from Saravana stores in Chennai, KB had

decided to open up a hypermarket. Less profit, more turnover.

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For god, country & Big Bazaar• KB had given full liberty to his employees to take risk and move on

with business. KB explain “ Never fear of mistake ,if you have made one get out of it fast . “

• Another successful model: food bazaar. It was established on The principle of not slicing the current opportunity, but growing it further.

• Big bazaar and food bazaar, were the greatest part of kb’s success.• However ONE question aroused, Would kiranas survive with the

arrival of modern retail outlets? It is not possible for Hyper mart’s to serve like ‘Kiranas’.

• As kiranas have personal relation with customer . “they know what a regular customers wants even before she enters the store “

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Bollywood calling• KB is always advertisement on big scale. Famous one liner are :

- “Channe ke bhaw me kaaju” ,- “Is se sasta aur accha kahin nahi”

• KB explained about how he tried to enter into movie making in the bollywood but could not produce a huge success there. The movie was “Na Tum Jano Na Hum “

• What makes Film Making is more challenging is that no one get a chance to correct the mistake.

• Well, what I have learned in this section is ACCEPTING THE MISTAKE, And not losing hope.

• KB still wishes to be great filmmaker in the industry.

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Business @the speed of Thought• KB is little uncertain about hiring people. He never expected anything

from those MBA’s. Not everyone can fit into his organisation. He wants his employees are willing to go through the continuous process of learning, unlearning and relearning.

"As members of organisational for family, it becomes important for us to ensure that everyone who joins him, understands the

soul of organization and he would help achieving him his potential”.

• He finds the people first, and then the job. He wanted such people because a stable team ensures speed and continuity of the business. 20

Business @the speed of Thought• For Location , the team used to undertake a survey in the local

markets/residential places to know about the product & taste of consumers.

• Then to the prices for land. KB did not bargain, he either said yes or no and due to this attitude, the dealers used to quote him the correct, reasonable price.

• Malls are new emerging face of Indian retail. However consumers feel difficult or inconvenient to visit each stores. So KB thought of establishing a mall without doors. There the concept of departmental store emerged.

• Then they created a group-Future group which is an umbrella entity which includes every undertakings.

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The Business of life“managing the family is no less important than managing the

business.”

• One of the most necessary step they took was to completely separate ownership, governance and execution.

• Within organisation their family members mostly concentrate on building and encouragement relationships with business partners and providing an overall guidance to the business.

“True failure happens only when individuals stop trying to achieve their personal best “

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Who says elephants can’t dance?• Every three years they have destroyed their existing organisational

design.• They started of as a garment manufacturer and launched a few

brands.• The next step was to establish their own retail chain for their fashion

products and slowly they built multiple retail chain.• Reaching out direct to the customer required a thorough

understanding of different customer segments.

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His views on Trust & Relationships is significant.“If you approach your business with this framework in mind, then

you shall see benefit in all interactions.”

• Most businessmen make the mistake of creating an environment wherein only then win. They see life only as a competitive arena & not a co-operative one. Relationships are built on principles, and not on the basis of power & position.

• However, this is not as easy as it sounds. To get to that level, every person’s aspirations & dreams have to be understood & more importantly, addressed appropriately. Therefore, to build great relationships, sacrifices will have to be made.

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Thank You For your Time