Big bazaar
- 1. Market The retail industry is one of the biggest money spinners in the world, notching up US$ 6.60 trillion (Rs. 2.64 crore crore) in turnover (Source: Euromonitor Study). In India the sector is worth Rs. 720,000 crore (US$ 180 billion) growing at between 11% and 12% annually (Source: CII-McKinsey Report). Despite its massive size, the business is almost entirely controlled by the unorganised sector. While organised retail makes up 70% to 80% of all retail business in developed countries, in India it is pegged at a lowly 2% (Source: Crisil Report on India’s Retail Industry).This is by far the lowest in the world and even far below comparable countries in Asia. In China, organised retailing accounts for 20% of all business, while in Indonesia it is 25%, in Philippines 35%, in Thailand it is pegged at 40% and in Malaysia it is reputed to be 50% (Source: Euromonitor Study). Big Bazaar is credited with bringing organised mega retailing to India.The project was conceived as a uniquely Indian hypermarket in a format that combined the look, touch and feel of Indian bazaars with the comfort, convenience and quality that modern retailing brings. Launched in August 2001, Big Bazaar has now become the iconic destination of modern retailing for all sections of Indian consumers.There are 80 Big Bazaar stores in 45 cities including smaller towns like Sangli, Durgapur, Panipat, Palakkad, Ambala, Meerut, Kolhapur and Haldia. Attracting over 100 million customers every year, it has democratised shopping in India and become synonymous with great promotions that offer quality products at affordable prices. Spread over anywhere between 30,000 square feet and 150,000 square feet of retail space, a typical Big Bazaar store offers over 160,000 products across categories like apparel, general merchandise, food, cosmetics, home needs, electronics, furniture, communications, books, music, gold and pearl jewellery and even value added services like consumer credit, beauty salons, gyms and travel services. On a typical weekend evening, a Big Bazaar store plays host to over 10,000 customers – from moms along with their demanding kids to senior citizens with their grand children in tow. Built on an inclusive platform that welcomes consumers from all socio-economic strata, a visit to Big Bazaar is not only about shopping but also about spending quality time with the family. Achievements Big Bazaar is helping India make up lost time. It is currently in the midst of the fastest ever expansion of a hypermarket format anywhere in the world. From 30 stores in June 2006, Big Bazaar will be emblazoned on 120 new stores by June 2008. There could be several ways of measuring success of a retail chain. However, if figures were to be taken as the most authentic claim of having arrived, then Big Bazaar is already there. For more than 100 million people who walk past its billing counters, each year, it is now the preferred shopping destination. From Panipat to Pallakad, Big Bazaar’s tagline, Is se sasta aur accha kahin nahi is a source of cheer and happiness. This has been recognised by the numerous awards that Big Bazaar has won in the past twelve months.The brand has been adjudged the Best Value Retail Store and Best Retail Destination at the Images Retail Forum for four consecutive years, beginning 2004. CNBC Awaaz, in association with ACNielsen-ORG Marg, which conducts a study across 21 major cities and some 10,000 consumers, on their most preferred brands, has voted overwhelmingly for Big Bazaar. Both in 2006 and 2007, Big Bazaar won the Consumer Award for the most preferred large, food and grocery store. It won the award for Value Retailing and Retail Destination of the Year by Reid & Taylor in 2006 and in the same year also won the Reader’s Digest Platinum Trusted Brand Award. History The first Big Bazaar store, with an area of about 24,000 square feet, opened on VIP Road, Kolkata in August 2001.This was followed by stores in Hyderabad, Bangalore, Mumbai and Gurgaon. The initial categories on offer were apparel, general merchandise and food. Later, several brands from categories like electronics, furniture, music, communications and books were added to the bouquet of products. Big Bazaar implemented SAP in 2005 to run its stores in the most efficient manner that technology could provide. With an increasing number of customers 26 SUPERBRANDS Business Superbrands- 2nd edition(Main) 8/27/08 3:15 AM Page 26
- 2. patronising its stores, it was time for Big Bazaar to reach out to them.To pay tribute and to tell them how much they were appreciated, Big Bazaar launched a co-branded credit card. In association with ICICI bank, the Big Bazaar-ICICI Bank credit card made its first appearance in May, 2002. As an extension of its customer relationship initiatives it also launched Shakti, a credit card for housewives, in February 2006.The card was unique, for it required no proof of income. Today the Big Bazaar-ICICI Bank co-branded card is one of the largest loyalty credit card programmes in the country. Big Bazaar is now an agglomeration of multiple, carefully chosen categories and brands. Within the store, Big Bazaar has created several sub categories: Depot is its books and music section; Staples offers office stationery products while Star & Sitara is a beauty salon. Future Money provides consumer credit for products purchased within Big Bazaar. Product With a better understanding of consumer behaviour across various cultures and classes, Big Bazaar has put together a stunning range of over 160,000 SKUs. Private labels of Big Bazaar are among the largest apparel and fashion brands in the country. These include, DJ&C – men’s casual wear range and Knighthood – men’s formal wear range; Pink & Blue are exclusive garments designed for modern kids; Srishti, a label of ethnic wear for women; Haute N Spicy, fashionable western wear for teenage girls; Dreamline, a label that caters to an entire range of home linen, utensils and crockery and D’tachi, a luggage label that offers outstanding value for money. Big Bazaar has also tied up with a host of well-know brands which offer exclusive lines created especially for the store.These include Levis, Lee Cooper, Wrangler and Disney. Recent Developments Big Bazaar, a part of the Future Group, is currently driving a number of initiatives. Future Money, a credit facility is in an experimental stage in several outlets. Cleartrip for travel and tours and Talwalkar’s for gym and health club services have also been launched in many stores recently. With a view to bringing value to more people, Big Bazaar is taking its brand to Tier II and Tier III towns as well. Big Bazaar is also using the huge footfalls to its stores to test new concepts and ideas.The customer response this generates helps in refining a launch before a full fledged roll out. Promotion Big Bazaar has been credited with some of the biggest consumer campaigns in the history of Indian retail. In celebration of Republic Day, Big Bazaar created a three-day shopping bonanza called Sabse Saste Teen Din.This has now become a national event that attracts millions of customers eager to benefit from the once-in-a- year smart deals. In January 2008, the three-day event generated sales worth over Rs. 240 crore (US$ 60 million) in 80 Big Bazaar stores. 15th August, India’s Independence Day is billed as the Maha Savings Day. So successful has this become that to cater to the rush Big Bazaar stores in many cities stay open till midnight. Wednesday Bazaar is the Hafte ka Sabse Sasta Din. It was initially created with the intent of decongesting weekends and driving footfalls on weekdays. As it transpired, most Big Bazaar stores now attract as many customers on Wednesdays as they do on weekends. A property that offers special benefits and privileges to senior citizens was built around Senior Citizens Day. Price Challenge was created to reinforce Big Bazaar’s value proposition of Is se sasta aur accha kahin nahi.The scheme simply offers twice the price difference should the cost of an item at a Big Bazaar store be found to be more than the market price. Exchange was an innovative promotion launched by Big Bazaar in 2005 to provide customers an opportunity to get rid of their junk and in return shop for a wide range of products at a discount. In-store communications in Big Bazaar are unique and rather novel.To ensure that no one misses out on an opportunity to gain from special offers, service boys ferry around a trolley with the product inside, announcing the scheme. Not only is this entertaining it also helps customers pick up the product from the trolley instead of walking up to the rack where it is on display. To make sure that non-English speaking customers don’t feel alienated the communication is also conducted in the local language.The communication is always unambiguous and direct. Brand Values Brand Big Bazaar stands for delivering value for money. Customer service and shopping comfort are at the core of Big Bazaar’s philosophy. Innovation and initiative define its brand character. It strives to reach out to its customers by imbibing the local flavour and melting into the local geography. Big Bazaar has recently launched a campaign titled Power of One.This initiative encourages customers to add One Rupee to their bill towards donation to a social cause. Big Bazaar makes an equal contribution and donates the entire proceeds to an NGO called Save the Children India.This is a selfless body which has been working for the welfare of children from marginalised sections of society. Big Bazaar has recently launched a corporate campaign which revolves around a family having a great time together.The brand anthem Khushiyon se Bhari Jholi connects with the customers at an emotional level positioning Big Bazaar as part of the happy moments. www.pantaloon.com THINGS YOU DIDN’T KNOW ABOUT Big Bazaar 27SUPERBRANDS 2 million customers walk-in each week into Big Bazaar stores Collectively, Big Bazaar stores cover nearly 4 million square feet of space In three days between January 25 and January 27 2008, Big Bazaar sold over 100,000 pairs of Jeans and 200,000 shirts Big Bazaar has a base of over 1 million loyalty card members More than 160,000 products are sold at Big Bazaar stores Business Superbrands- 2nd edition(Main) 8/27/08 3:15 AM Page 27