Kishor Biyani - The Maverick

Views:
 
Category: Education
     
 

Presentation Description

No description available.

Comments

Presentation Transcript

IT HAPPENED IN INDIA The story of Pantaloons, Big Bazaar, Central and the great Indian consumer:

KISHORE BIYANI WITH DIPAYAN BAISHYA IT HAPPENED IN INDIA The story of Pantaloons, Big Bazaar, Central and the great Indian consumer

WHO IS DIPAYAN BAISHYA ??:

WHO IS DIPAYAN BAISHYA ?? He is a business writer, and has been associated with the Economics Times and Business Today His articles have also appeared in Media, a Hong Kong based fortnightly and Knowledge@Wharton He was awarded the Don Sheehan International Journalist Fellowship by the Wharton School in 2005 He studied economics at Presidency college, Kolkata and is based in Mumbai

About the book…:

About the book… It is the autobiography of Kishore Biyani , written with the help of Dipayan Baishya The book is divided into different sections/chapters that tells the story of how KB came up to the position that he enjoys today Kishoreji takes the reader through his childhood days, college life and finally how he left the usual way of doing family business and started his own journey on a road called entrepreneurship, which most of the young Indians now are aspiring to travel Throughout his narration, there are comments by many of his past and present employees, friends, relatives and associates These comments are real eye-openers in the sense that they give a peek inside the brain of this trader and businessman They give the reader a deep insight into Kishoreji’s personal as well as entrepreneurial abilities It is interspersed with a small album of photographs that tells about the past, present and the possible future of Pantaloons and all its subsidiary companies and formats

Understanding KB, The ‘Maverick’:

Understanding KB, The ‘Maverick’ There are a couple of emotions that determine shopping behavior which includes greed, altruism, fear and envy. KB always believed in trying to understand the needs, aspirations and buying behavior of the residents. He realised that the ' Indianess ' concept is strongly demanded by consumers and knew the importance of predicting Indian consumer behavior in retailing He has stated that India is a consumption-led country and the most interesting thing about the country is that our growth will be based on ideas and solutions rather than physical assets

Kishore Biyani :: Rajah of Retail:

Kishore Biyani : : Rajah of Retail Kishore Biyani is highly regarded as the retail king of India Born in 1961 in Marwari Maheshwari bania (business family) community He is known as Kishoreji or KB among his employees, friends and family He was an average student and was more interested in the practical aspects of learning which were not available in the academic setting From his childhood, he showed interest in organizational skills He pursued commerce in H.R.College , learnt typing, did a course in import and export of garments and joined the programme run by the silk manufacturers’ association, Sasmira He founded the concept of ‘ disco dandiya ’ durin g local dandiya festival at JeevanVihar , Malabar Hills which was la ter practiced in Mumbai suburbs He is an amazing individual with foresight, luck, unorthodox working and phenomenal ability to get his dreams realised through sheer persistence and hard work

Business :: Built from scratch:

Business : : Built from scratch He never wanted to enter the family business as it looked like the family members were preservers than entrepreneurs His family was obsessed about financial status that it looked like accountants were running the show He considers himself as a Creator and Destroyer of businesses rather than Preserver of businesses He started his career selling stonewash fabric with the brand name ‘ WBB ’ ( White, Blue & Brown ) to small shops in Mumbai He invested Rs . 3 lakh each with two associates and set up a small fancy yarn plant named ‘ Dhruv Synthetics ’ in mid-1986, which gave him a toehold to take an even larger leap

PowerPoint Presentation:

The Analytical and the Creative Approach In order to create something new and innovative, creativity is required. Analytical approach helps business to work efficiently and in discipline. Creativity alone can not drive business, and being analytical alone cannot keep you alive for long term business SOLUTION – The marriage of both these aspects which represents both halves of the brain : the Left ( Analytical) and the Right ( Creative)

Approach to Business:

Approach to Business One of the most necessary step KB took was to completely separate ownership, governance and execution. Each individual in the organisation does what he is best at, to achieve the same final goal. They call it 'collective individualism' - multiple beliefs but a single goal. There is no backstabbing, no animosity, no jealousy. KB calls the organisation his joint family and treats everyone like family members.

His beliefs:

His beliefs He used to observe people coming in his stores, to know more about their demands Always believed in doing new things, LEARNING, UNLEARNING AND RELEARNING KB always updates himself with knowledge of fashion and fabric by visiting the NIFT Fashion for the matter of retailing, is not selling products, it’s selling of ideas The crucial aspect in retailing is to make customers relate to every product that is being sold He used the concept of Visual Merchandising Category Management was another concept based on the belief that a customer walks into a store looking for clothes for particular occasions. E.g: Party shirt, formal shirt, casual shirt It also requires a deep understanding of local tastes and preferences He believes that we are a nation of shopkeepers. He believes that both kiranas and modern retail can co-exist

Business @ the speed of Thought:

Business @ the speed of Thought KB is little hesitant about hiring people. He never expected anything from those MBA’s. Not everyone can fit into his organization. The ideal people who form part of his organization are those who are willing to go through the continuous process of learning, unlearning and relearning He finds the people first, and then the job. He wanted such people because a stable team ensures speed and continuity of the business Wherever the Big Bazaar is established, it generates employment for 200-300 people. They are given training under the ‘ gurukool ’ programme For KB, retailing is all about location, location and location. His team used to undertake a survey in the local markets and in nearby residential places to find out whether people liked the film, ' Gaddar ' or ' Dil Chahta Hai ' to know the tastes of consumers KB thought of establishing a mall without doors. He felt that the consumers found it difficult and inconvenient to visit each store. This is how the idea of setting up departmental stores emerged

MODERN RETAILING:

MODERN RETAILING KB had given full liberty to his employees to take risk and move on with business. For Rajan Malhotra , head of Big Bazaar, ‘white shirts’ seemed attractive. But soon he realized that the demand for white shirts were less because it was difficult to maintain. When he asked KB for his advice, KB just asked to sell the shirts worth Rs.129 @ Rs . 49 !

PANTALOON GENES:

PANTALOON GENES In the business, human capital and creative capital is as important as financial capital KB believed in the importance of creativity. Every small and big idea was given shape by Idiom Design and Consulting based in Bengaluru . It was a team of over a hundred and eighty designers from multiple disciplines. They worked in a highly experimental fashion. They did not appoint market research and instead spent time on streets, blending with the crowd and observed people. And then they engaged in collective idea-making. They would incubate the ideas for some time, develop insights and then expand on them KB believed in the twin idea of constant growth and allowing others to grow. With this thought, came the PANTALOON GENES

Objectives &Mantra:

Objectives & Mantra His objective is to capture every rupee in the wallet of every India consumer, wherever they are- an investment banker living in South Mumbai locality or a farmer in Sangli He wasn’t money-minded. Achievement was more important. He did not drive himself by what revenues he was going to earn but by what percentage of the consumer’s wallet he was going to attract! “REWRITE RULES, RETAIN VALUES”

Ups &Downs:

Ups & Downs Loss of Rs . 8 lakhs in Manz Wear Pvt. Ltd. which was incorporated in 1987 There was always a Plan B for Kishoreji as a distributor of denim garments. At various points of his career, he depended on the cash flow from the distribution He opened Pantaloon Shoppe, the first franchise store in Panjim , Goa in 1991 Launched branded shirts, handkerchiefs, ties and socks under the name ‘ Knighthood ’ – Complete men’s wear destination In 1992, he announced initial public offer (IPO) at Mumbai, Delhi & Ahmedabad stock exchanges to raise Rs . 225 lakh He produced the movie, ‘ Na Tum Jano Na Hum ’ to promote the Pantaloons store and enter the minds of customers which flopped but built the brand which was the actual objective of the movie

Major milestones:

Major milestones 1987 Company incorporated as Mans Wear Pvt. Ltd. Launch of Pantaloons trouser, India’s first formal trouser brand 1991 Launch of BARE, the Indian jeans brand 1992 IPO ( Initial Public Offer ) was made in the month of May 1994 The Pantaloons Shoppe – the exclusive menswear store in franchise format launched across the nation The company starts the distribution of branded garments through multi-brand retail outlets across the nation 1995 John Miller – Formal shirt brand launched 1997 Pantaloons – India’s family store launched in Kolkata 2001 Big Bazaar – ‘ Isse sasta aur accha kahi nahin ‘ – India’s first hyper market chain launched 2002 Food Bazaar, the supermarket chain is launched 2004 Central ‘ Shop, Eat, Celebrate in the heart of our city ‘ India’s first seamless mall is launched in Bangalore 2005 Fashion Station – the popular fashion chain is launched aLL – ‘a little larger‘ – exclusive stores for plus-size individuals is launched 2006 Future Capital Holdings, the company’s financial arm launches real estate fund, Kshitij and Horizon and private equity fund In division . Plans forays into insurance and consumer credit Multiple retail formats including Collection i, Furniture Bazaar, Shoe Factory, e Zone , Depot and futurebazaar.com are launched across the nation. Group enters into joint venture agreements with ETAM Group and General

Competitors:

Compe titors

There are three IndiaS:

There are three IndiaS KB's Future Group has divided Indian customers in three different groups - INDIA ONE, INDIA TWO, INDIA THREE Each has different values, products and quality requirements INDIA ONE or the consuming class constitutes only 14% of India's population ( with disposable incomes) According to Maslow's theory of hierarchy, this 14% are in self actualization and esteem needs in the pyramid INDIA TWO or the serving class constitutes people who serve INDIA ONE and constitute 30% of the population. According to Maslow's theory of hierarchy, they are located in the social and security needs in the pyramid. Earning capacity of this class is 60% lesser than INDIA ONE INDIA THREE or the struggling class lead a life on hand to mouth existence. They cannot afford for a better living style. This segment does not contribute much in the contribution cycle. The need of the segment is local and the present business model does not address this class

Inspired by:

Inspired by He is a great follower of Sam Walton, the iconic founder of Wal - Mart. However, he has not taken anything from Sam Walton except the inspiration. While designing Big Bazaar, he decided to bank on his own instincts rather than copying the American retail stores Sam Walton's Made in America Stephen Covey's The 7 Habits of Highly Effective People Paulo Coelho's The Alchemist Anthony Robbins Awaken the giant within Tom Peter’s A passion for excellence Tom Peter’s Re-imagine

Consumer is the:

Consumer is the He believes that consumer is the king. Post-liberalization, the Indian economy has witnessed an upsurge in consumerism. Three crucial factors – the 3Cs have given momentum to this trend. According to him, 'Confidence' has paved way for 'Change' which in turn has enhanced 'Consumption' levels

Butt & Brush Effect:

Butt & Brush Effect The book exposes the philosophy underlying India's first hypermarket, Big Bazaar. Unlike the hypermarkets in the west, which are typically big-box format, with long, narrow aisles suitable for individuals shopping alone with carts, the Big Bazaars are created with multiple clusters. This compact and clustered format encourages 'butt and brush' effect and an ‘organized chaos' as Indians like bumping into people, chat, gossip and eat while they shop. It would come as a surprise to many that the Big Bazaar is a totally ' desi ' concept, and the format is inspired by and modelled after the Saravana Stores on the Ranganathan Street in Chennai, which is more than 25 years old and is a family-run retail store that operates on the “ low margin, high turnover” principle

Time pass theory:

Time pass theory One simplistic yet intriguing philosophy of KB is the Time Pass theory He quoted, “ I believe that we all come to this world to kill time. Therefore, we pick up some activity that we like doing and call it our profession. I call this the Time Pass theory ” It is just another way of putting that one should choose a profession which is one’s passion, which one would love to do day in and day out so that it becomes more of time pass and less of work or job

Who says elephants can’t dance?:

Who says elephants can’t dance? KB has filled the last chapter of his book with visions for the future and ideas on how to make an elephant dance Every organisation needs a Brahma, a Vishnu, and a Shiva – a creator, a preserver and a destroyer. For an organization to grow and keep pace with the changing reality, it needs these tensions simultaneously. Every three years, KB has destroyed the existing organizational design to avoid stagnation

FUTURE GROUP :

FUTURE GROUP Future Group was the outcome of new thinking - scenario planning, design thinking, innovation and ideas and a new area of research called memetics

Lessons from the book:

Lessons from the book He emphasizes the importance of a Win-Win situation between his organization, his business associates and his customers. He says, “ If you approach your business with this framework in mind, then you shall see benefit in all interactions. 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. Most businessmen make the mistake of creating an environment wherein only they 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 .”

Continued…:

Simplicity, Humility and Willingness to learn are the three assets of an entrepreneur Follow cultural changes in the society, follow people's spending , travelling and entertainment patterns Value relationships than anything else Confidence and Change are driving Indian Consumption and Indian Consumption will only head one way - North Abdicate rather than Delegate is the leadership mantra followed by him whereby abdication would give rise to micro entrepreneurship in the enterprise Focus on Branding, Marketing and Advertising Take quick decisions Micro entrepreneurship in an enterprise is the key Don’t bargain with people. See to it that they quote one price and you say YES / NO Emphasis on Design Management Storytelling skills are very important in today's creative economy Continued …

authorStream Live Help