"Phygital"- Kishore Biyani

Brick-and-mortar stores and digital retail are from two different eras which contain it's own advantages and well as disadvantages. Future group founder Kishore Biyani said that a hybrid business model of both physical stores and digital retail would be a better business model for businesses to increase their profitability. He named this hybrid model as 'phygital' which means a combination of both physical and digital business models. 

Eventhough, physical and digital retail started in different eras, they will eventually come together in the next 3-4 years. Biyani said the above statement and added that both physical and digital retail has its own advantages as well as disadvantages.

Amazon India and Future group have entered into a long-term business agreements for expanding the reach of retail stores and consumer brands through online markets. Future group operates under various organizations like Big Bazaar, Nilgiris, Heritage Fresh, EasyDay and WH Smith which accounts about 1700 stores and 350 million people entering the retail network.

Kishore Biyani explained further that physical retailers will need a digital presence, while digital retailers will need physical presence due to the costs for acquiring the customers and fulfilling the orders. Therefore, there will be an ultimate model which will be a hybrid model which will eventually help businesses to perform better. 

Both formats have their own challenges and advantages. Digital platforms have the reach whereas physical stores do not have that reach. Brick and mortar stores bring in customer interaction whereas digital platforms lack customer interaction. Biyani also added that 'phygital' will happen in India soon.

E-commerce has been growing at a phenomenal pace in India due to Amazon and Walmart owned Flipkart accounting for a large share of the market. While Amazon and Flipkart have been pumping in millions of dollars, small traders have been pointing out that these major players have been indulging in unfair practices to gain market share.

Jeff Bezos, the Chief Executive Officer of Amazon announced an investment of 1 billion dollars (Rs 7000 crore) in India to help small and medium businesses online and committed to exporting 10 billion dollars worth of Indian made good by the year 2025.