Experts have said that gross profit margins are low only when retailers act merely as sellers of goods manufactured by someone else, and that margins tend to increase when retailers sell their own brands.

 This is one of the reasons why Biyani stepped into the FMCG sector, with his own brands and also announced that he would target sales of company-owned brands, and increase his own brands to 80 per cent by FY’20 at his retail stores.

The online medium, Biyani said, is “only technology for getting orders”. Mr Biyani’s electronic store already has an online presence and adopts a hybrid approach to sales involving both online as well as traditional brick and mortar stores. The maverick entrepreneur also dismissed speculation that he would launching a major e-commerce initiative soon. “We’re launching a promotion. It’s not e-commerce,” he said.

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