Indian retailer saves via HK sourcing (hktdc.com)


	Shivein Shukla of Whole Wealth outlines the cost savings by sourcing through Hong Kong

It is no co-incidence that India's largest retailer has set up an office in Hong Kong to source from its growing trade partner, China.

Future Group, which has around 450 stores all over the India with easily recognised names like Pantaloons, Big Bazaar, Food Bazaar, HomeTown and Ezone, set up the buying office one and half years ago.

Shivein Shukla, Head of International Sourcing, Whole Wealth Ltd (a Future Group venture), explained that it was more commercially viable for the group to source directly from the mainland rather than rely on sourcing partners.

"Our orders grew in volume as our company grew bigger and diversified. It is important to have our own sourcing office as it is run by people who understand the needs of our parent company and can translate these needs," explained Mr Shukla.

Hong Kong, he said, is an ideal base because of its proximity to China. "We have set up two mainland offices in Guangzhou and Yiwu and they are involved with merchandising and sourcing. The Hong Kong office looks after finance and logistics. It is the key in our sourcing operations."

Future Group sources both perishable and non-perishable items from China through its Hong Kong buying office and also has a sourcing alliance partners in Thailand, Malaysia and Vietnam. It also sources from Hong Kong trade fairs organised by the Trade Development Council (HKTDC).

City of innovation

"We are working on a possibility to have a Style Hong Kong Festival in some of our stores in India with the help of HKTDC. Hong Kong is seen as a place of innovation and as a trend setter. Indian people are highly exposed to Hong Kong and many Indian families come here for holidays. I think there is great synergy between Hong Kong and India." said Mr Shukla.

The Future Group has come a long way since the first retail store Pantaloons was set up in Kolkata in 1997 by Kishore Biyani, known as the "Rajah of Retail". Pantaloon Retail was awarded the International Retailer of the Year 2007 by the US based National Retail Federation, the world's largest retail trade association. The group has since diversified into insurance, asset management, media and building malls.

"In the last 10 years, Future Group has given shape to organised retailing in India. Our retail stores cater to the needs covering all aspects of a person's life," said Mr Shukla.

He said at the moment, Future Group has taken the big step to establish an office in Hong Kong. Although the Hong Kong office is small and is staffed by only eight people (a total of 30 in both the Hong Kong and China offices), the company is here to stay and the operation will grow substantially over time. The group is always looking to align itself with the right brands and companies for further growth.

"We have a ready platform in India, and we are actively looking for strategic partnerships with Hong Kong brands and companies to collaborate with us for future growth," said Mr Shukla.