Big Bazaar Direct - Benefits for franchisees and customers

So far, we have studied BBD from business perspective of organization. Now, in this article, we are going to visualize the business and benefits from the angle of franchisees and customers.

Franchisees

These are the features for the franchisees:

1. Franchisees can be any interested people such as Kirana store owners, entrepreneurs, chemists, homemakers, insurance agents, etc. who want to expand their business through Big Bazaar tie-up.
2. A person has to make an upfront investment of Rs. 3 lakh to become a franchisee. The breakup of the investment is like this: i) Refundable security deposit – Rs. 1 lakh ii) BBD Set-up charges – Rs. 1 lakh (it includes the cost of tablet, 1 year training, initial branding, launch materials, etc.) iii) E-wallet amount – Rs. 1 lakh (It’s the money used to place orders)
3. The commissions of BBD various based on the product: Grocery item – 3 to 6 percent, electronics – 3 to 7 percent and furniture – 8 to 20 percent. The total commission will be credited to the franchisee account on 5th of every subsequent month.
   
4. The franchise will get an opportunity to develop his or her customer base through BBD. The brand of Big Bazaar helps the franchisees to gain their credibility immediately and allow doing business faster.
5. Franchisees has an option of doing it as side business.
6. Franchisee doesn’t have any territory limitation in getting orders. It’s not like brick-and-mortar stores and franchisee based in Chennai can take orders in Chengalpattu. All the franchisee need to do is to enter the right area code while taking orders.

Return of investment: 

Let’s take the average percentage of commission as 7%. A franchisee is investing 3 lakhs and, even though 1 lakh is refundable, the franchisee needs to make > 43 lakhs of turnover to breakeven the investment. The breakeven period purely depends on the franchisee’s ability.

Customer's point of view

Indians normally prefer to shop items by visiting retail stores, either Kirana stores or modern stores. However few people, who are >50 years of age group, may tend to go for home delivery especially groceries and medicines. Considering this case, these are the pros & cons from customer’s side:

1. The customers will get their goods delivered at their door steps without straining themselves.
2. If order is made through tablets then the customers can get more than 1000 deals, besides the offers available in Big Bazaar stores. An additional shipping charge will be charged is order amount is Rs. 500 or less.
   
3. Customer can select groceries, electronics and furniture products from BBD product catalogue. Currently no perishable goods like fruits, vegetable and dairy products are offered in this innovative business.
4. Customers have the choice of choosing items freely (with suitable SKU), since the franchisee take the orders individually.
5. The only disadvantage is the delivery of goods in 3-7 days. Waiting a week to get grocery items won’t be workable for people for a young family who prefer to buy items frequently. It will be workable for family which plan to buy items for future.

Hope these three articles might help you understand the whole picture inside Big Bazaar Direct.

Other articles:

Future group – Still the Maharaja of India Retail Industry

Big Bazaar Direct - A new mutation business model from Future group