Startups need to better their success rates to be seen as serious job creators, believes Kishore Biyani, the CEO of Future Group. Talking at the opening of his group’s new store, Biyani said that startups need to venture into areas that are more successful. Answering a query on his statement that only 10% startups succeed, he said, “The question that I was asked was whether startups can create jobs. I have always said that worldwide 9 out of 10 startups fail, so no startups cannot create jobs. India needs a lot of job creation, can startups create jobs, probably no! We need manufacturing to drive jobs. That was my statement.”
In an interview to ET Now, Biyani said, “Startups are a necessary evil, you need them to build entrepreneurs. India needs thousands of entrepreneurs. India needs a lot of startups, but startups have to get into spaces where the success rates are high. We want success rates of 30%, not 10%.” “We should look at canvas which is much larger, which is much bigger,” he added.
Asked about his take on Patanjali’s decision to come out with ‘Swadeshi’ jeans, Biyani said, “Let’s see what Patanjali has in mind, what products they want to make. Jeans is a western product, you can’t really Indianise it. Once we see the product and we believe that our customers want it then we will sell it.” Last year, Kishore Biyani-led Future Group had entered into a partnership with Baba Ramdev-promoted Patanjali Ayurved to sell the latter’s FMCG products through its stores.
— ET NOW (@ETNOWlive) September 15, 2016
At the launch of the Future group’s ‘Central brand’ store in Delhi, Biyani said, “We believe that the customer is looking at experiences, they are looking at a product. If you want to sell an expensive product, then the customer should feel that it is worth buying, the product should seduce you. So, we have tried to create an environment where the product is highlighted in a high definition and you feel like buying.” “I think this store has been designed in that fashion. We got a German designer on the brief of seduction, how can we seduce customers. Hence we created this store,” he said.
Asked about the growth prospects for the group and its stores, Biyani elaborated, “We prepare much in advance. If you look at the Onam season, it just got over and we were totally prepared for the Kerala market. The pooja season has started in the Eastern part of India. We are fully geared up, the same store growth during Onam has been 30%, which is very very positive. We have seen growth in the pooja marjet, which is more than 30%.” “We expect this year to be a bumper festive season, from the trends of Onam and Dura pooja. If we can grow at 30% in two markets which have been in the festive season, then I think we can expect a bumper Diwali. The markets have not been consistent, but September has been a good beginning,” he added.