01 August 2024, Mumbai
Vivek Biyani, the scion of India's retail dynasty, is set to disrupt the industry once again with his new venture, Broadway. Billed as a ‘new-age departmental store’, it aims to cater to the unique consumption patterns of India's digital-first generation. This venture marks a significant departure from the traditional retail model, promising to cater to the evolving preferences of India's tech-savvy youth. The store will exclusively house digital-first brands, offering them a physical platform to connect with consumers.
A co-retail model
Biyani's approach to retail is a radical departure from traditional models. Instead of the usual inventory-heavy model, Broadway will operate on a flexible, fee-based structure. Brands can rent space for varying durations, without the burden of minimum guarantees or inventory management. This ‘co-retail’ concept, as Biyani terms it, is reminiscent of WeWork's disruption in the co-working space. "It's like what WeWork did for co-working spaces," Biyani explains. "We are telling brands that it is a co-retail environment for them, there will be no long-term rentals or fixed deposits, they don’t need to incur capital expenditure."
By focusing on creating a vibrant, experiential environment, Broadway aims to be a physical manifestation of Instagram. The store will host regular events, workshops, and content creation opportunities, making it a hub for both brands and consumers.
Recognizing the importance of content in today's digital age, Broadway plans to transform its stores into experiential hubs. With in-store events, content studios, and integration with F&B, the aim is to create shareable moments and foster brand loyalty. "Broadway will be a physical replica of Instagram," Biyani claims. "We will do 10-15 events/experiences a day."
Is it a risky model?
While the concept of Broadway is undoubtedly innovative, it also presents significant challenges. The success of the venture hinges on several factors:
Brand selection: Curating a compelling mix of digital-first brands is crucial. The store's appeal will depend on offering products that resonate with the target demographic.
Consumer acceptance: Will consumers embrace a store that doesn't offer a wide range of products or familiar brands? Generating foot traffic and building loyalty will be essential.
Economic viability: The fee-based model, while attractive to brands, needs to generate sufficient revenue to sustain the business. Achieving profitability will be a key test.
Competition: Traditional department stores and e-commerce giants pose significant competition. Broadway will need to differentiate itself effectively to carve out a niche.
While Broadway's concept is innovative, it also carries inherent risks. The success of the model hinges on the ability to attract and retain a steady stream of high-performing digital-first brands. Moreover, the execution of the experiential and content strategy will be crucial in driving foot traffic and sales. Retail experts caution that the lack of traditional retail experience among the target brands could be a challenge. While digital-first brands have a strong online presence, translating that into a successful physical store requires a different skill set, say experts.
Indeed Broadway's entry into the market is undoubtedly ambitious. If successful, it could disrupt the traditional retail landscape and create a new benchmark for the industry. However, the road ahead is fraught with challenges, and the company will need to execute its strategy flawlessly to achieve its goals. As Broadway prepares to open its first store in Delhi the retail industry watches with keen interest. The success or failure of this venture could have far-reaching implications for the future of physical retail in India.
