Future Group set to change India’s retail landscape
India: India’s retail market is
estimated to be worth USD 600 billion and the country’s largest retailer Future
Group and Star Bazaar have been trying to get most out of this. The retail
market is set to change as Future Group will sell a dozen of its own brands at
Star Bazaar outlets, which is co-owned by Tata Group’s Trent and UK’s Tesco.
Star Bazaar competes with Future Group’s Big Bazaar in India. This is a rare
instance of private labels being sold by a rival.
Future Group has been gradually
expanding its reach through its own retail network of more than 500
supermarkets, including Big Bazaar, Big Apple and Nilgiri’s. Star Bazaar runs
22 outlets which will benefit Future Group to expand its product availability. Furthermore,
Future Group set up an FMCG company, Future Consumer Enterprise (FCEL), about
two years ago, which has so far sold products in the group's retail network.
The company is working on its vision 2021 which targets to triple the revenue
form INR 22000 crore now.
According to TechSci Research, this
would help Future Group to turn its private label products into an acceptable
brand, which the company has been aiming for. This would also help FCEL which
offers more than two dozen products in food, snacks, home care, beverages etc. This
sharing of distribution channel would also help Star Bazaar which is aiming to
become a big player in booming India’s retail market.