'India ko samajhna hai toh Banaras jaiye': Kishore Biyani's wily tip to retailers

Future Group founder Kishore Biyani believes that if anyone wants to understand the intricacies of the retail industry, they should go to Banaras (or Varanasi). The group, he added, used to send newly-hired top executives to Varanasi for more insight. 

“Whoever used to join the company, we used to tell them to go to Banaras (now Varanasi). India ko samajhna hai toh Banaras jaiye, India ki retail ko samajhna hai toh Banaras jaiye (if you want to understand India, go to Banaras, if you want to understand India’s retail, go to Banaras),” said Biyani in a conversation with YouTuber Raj Shamani in his podcast.

“Around 1 lakh visitors used to go to Banaras every day, now it is 2 lakh. It is a place where many origins are there, including music, weaving, food. It is a very cultural city. The retail over there is very organised. If one street has undergarment shops, then you would get undergarments only…very, very well-designed market. I was unbelievably fascinated by Banaras. India ko samajhna hai toh Banaras dekhna chahiye (if you want to understand India, you must visit Banaras),” Biyani reiterated. 

The Future Group founder said that he used to visit Varanasi a lot. He called Varanasi the most fascinating city in India. 

When Shamani asked if technology is likely to change all these things, Biyani said, “Nothing changes”. 

Also read: 'Lost biz worth Rs 7,000 crore in 3 months': Kishore Biyani on how Covid-19 hit Big Bazaar

He then said that much can be learnt from any Indian city. He gave the example of Nagpur, where he added, the aspiration levels are low. “Population-wise huge, middle class very huge, but aspiration level lower than Pune, Nashik, Indore…how do you crack that market?” he asked. Hyderabad as a city is unbelievably fascinating, said Biyani. “It is the Punjab of South and the consumption is at a different level…of clothing, of properties, of movies..,” he said.

Biyani said that Hyderabad and Ahmedabad are the two cities that have seen unparalleled transformation. “Everything has changed…the landscape, the roads, the infrastructure, the buildings, the nightlife, the culture, the people…unbelievable change,” he said. He added that we all saw Bengaluru changing and that there’s nothing new in that. 

Everything sells in Hyderabad, he added. Biyani added that they would have most of their launches in Hyderabad. “It is a huge market for menswear…we had a Central store that used to do business of Rs 500 crore…one store…and our EBITDA was more than Rs 50 crore for that store,” said Biyani, adding that the store was of 2.5 lakh sq ft. Bengaluru also had a Rs 330-crore store, he said. 

Speaking about consumption in Punjab, Biyani said, “Jo nahin chahiye, woh cheez bhi lete hai (they would even buy things that they don’t need)”. Punjab has no middle class, it has upper class and the worker class, so the consumption data is skewed, he added. 

Biyani also gave the example of Patna and said that it feels like there is a shortage there because every new launch sees an overwhelming response, adding that they have strong aspirations, the population is educated and cultural. It is slowly growing now. 

“Another fascinating city is Calcutta (now Kolkata)...it is a world city, they achieved nirvana quite swiftly…so you have to deal with them that way,” he added. If you connect with the customer respectfully and emotionally, they will never leave you, Biyani added. 

Don’t start a business in Bombay (now Mumbai), Biyani said, adding that it is “very expensive”. 

Also read: 'Kaam karne ki zaroorat hi nahin’: Kishore Biyani's masterclass on the size of Indian retail market