Famously known as the Retail Czar of India, Kishore Biyani has recently announced the launch of Big Bazaar Direct, A unique, direct to home business model. The Big Bazaar brand name is a huge success all over India for various reasons. Their deals, discounts and various marketing strategies are proven in the Indian market. Big Bazaar is one of the world’s fastest growing hypermarket chains with a lot of achievements, milestones and awards.
And now they’ve launched Big Bazaar Direct (BBD) where customers can dial and order what they want. According to future group, this “aided-ecommerce” idea is keen to concentrate on areas not serviced by organized retail. The idea that it won’t be easy to find retail spaces in the future to meet the needs of growing population led to the thought of the business model. This can meet a lot of demands in the retail industry in a cheaper and efficient manner. However, there are a lot of products consumers don’t want to buy unless they see, feel or try them. Conventional shopping could still be the preferred way and this can just be an alternative. But this type of business model can bring a revolution in the industry. It can cut down costs and increase profits for everyone.
So how does this work?
Anyone can pay a sum of 3 lakh rupees and become a direct franchisee of BBD. These franchisees are provided with tablets with complete data on products, deals and discounts. Customers directly interact with these franchisee/agents and place orders which in turn are placed by them to BBD. And BBD ships these order directly to the homes. This is like a win-win-win situation where the Business, the franchisee and the customers are all happy with the deal. The customer gets the deal, discounts on his shopping right at his doorstep. The franchisee/agent earns a commission on every order. BBD acquires new customers in areas it can’t serve otherwise and also saves a lot of money and resources compared to its conventional operations. Here, the company just maintains a godown or a distribution facility for a certain area. For example, According to BBD, their current distribution facility at Nagpur is enough to handle operations for the entire Vidarbha region. The operating cost of a retail business is reduced because maintenance, staff training, power, security, parking, rent/lease etc expenditures are much less compared to the conventional model. This makes it a very profitable business model at all levels.
Doing it Right means everything
The BBD model has a lot of advantages. Though this is something new, there is great planning, research and a most trusted brand name behind this idea. The backing of future supply chain, technology and building a strong franchisee network could make this a success. The most important thing is marketing, building up a franchisee network, letting people know that the service is good, setting up the brand.
Big Bazaar has done a lot of great marketing campaigns to woo customers. It has explored new markets and offered different deals. It has done everything from celebrity endorsements to offering free food at the hypermarkets. It is also planning to add Value added services like grinding, de-seeding, vegetable cutting etc services for free. This can mean a lot to customers. Extending such strategies and plans to BBD could help it grow. Imagine someday if this type of business model is success, one could buy cut vegetables while sitting at home with a tablet. Life could be made so easier.
The tagline says it all – “घर बैठे!” which translates to english as “While sitting at home”. The tagline stresses on the comfort of getting your shopping done with best deals while sitting at home.
The major target, the Indian middle class, thinks this kind of idea is cool. Most middle class people work on hectic full time jobs. They don’t have much time to go for grocery shopping. The traffic, parking problems, crowd, fuel expenses everything adds up to their woes. The concept of BBD can give a perfect solution to these problems. Actually people might not mid paying an extra few bucks for this kind of service.
The cool factor – The technology, pleasure of getting the work done and getting best deals while sitting at home adds up to the feel or experience a customer can have with BBD. People coming home with cool gadgets and taking orders makes the customer feel a lot more superior than waiting in long queues for billing in conventional outlets. As long as the customer enjoys the service and has a better experience compared to other models. this will be a hit.
Further, the delivery time can also be reduced with efficient planning and market research. Speeding up the delivery process can be an added advantage. Also, e-commerce sites and apps could be designed to take orders. And may be the franchisee/agent can take samples with them helping the entry of new products to the market. There surely is a lot more scope in the future.
Kishore Biyani has always been a great entrepreneur. Coming from a middle class family, he has great insights on the Indian middle class who are his major target. His famous lines like – “Garv se kaho, hum kanjoos hain” and campaigns on savings etc help in creating a bridge with the customers. According to his 3-C theory, Change and Confidence among the entire population is leading to rise in Consumption, through better employment and income which in turn is creating value to the agricultural products across the country. This new model implies the same. Being someone who has done this before and has a clear picture of the market can make something like BBD work effectively in the Indian market.
The brand name, the funding and the people behind this idea are all strong, educated and experienced and have the potential to make it a success. If at all it fails, it can’t spoil the brand reputation of Big Bazaar or Future group.