A lot of new categories, retail concepts will emerge in the next 6-9 months, in the aftermath of government opening foreign direct investment in retail, said said Kishore Biyani, founder and group CEO of Future Group, the country’s largest retailer at the Indian Retail Forum Here
“FDI in multi brand retail will make Indian retail mature,” Biyani said, adding that many private equity funds and retailers who have 20-30 year vision will come to India.
“Retailers need money to expand. A lot of mergers and acquisitions will happen and balance sheets will change,” he said.
Biyani’s Pantaloon retail has raised money by selling stakes in its fashion format and financial services company.
He said there would be convergence of digital and physical formats to capture the consumption in the next couple of years.
“In seven to eight years, the total consumption will grow from $ 400 million to 1 Trillion. India does not have retail space to capture $ 600 million of consumption.
The cost of penetration of modern trade is becoming expensive in big cities, Biyani said.
“In top 10 cities, modern trade has already captured 20 to 30 per cent in many categories. In cities such as Bangalore, it is 40 per cent. The cost of penetration of modern trade is becoming expesive once it touches certain point. It is expesive to get customers to buy,” Biyani said.
