Big Bazaar Direct Model and Modus Operandi
Everyone now days are testing the water with one business or the other in the E-commerce sector. People are crowing it as the next big things. No one wants to miss the e commerce train. And Kishor Biyani, CEO, Future Group is no exception. Big Bazaar Direct has been recently launched with a tweek in the e commerce model.
Big Bazaar Direct will be a franchisee based model. The franchisee will each get a tablet which is connected to the centralized application. The Agent will take order from retail customer and punch into the tablet real time. The tablet will be updated real time with the latest offers and prices on around 1000 non perishable items.
3L investment needs to be made initially by the franchisee to become one of which 1 L Rs is the refundable security deposit. Another 1 L is the branding, merchandising, tablet, software and other capital expenses. Remaining 1L is for order purpose. For example, whenever a customer makes an order, an SMS confirmation will be sent to the customer and order amount will be deducted from the 1L bracket. The order will be placed maximum within 7 days and the customer will pay to franchisee as soon as the order is placed. For Rs.500 and above the order is free of any delivery charges.
The franchisee will get a commission on every order from customers. The commission bracket will be 3-6% for grocery products, 3-7% for electronic products and 8-20% for furniture products. Also, the net of all the commission earned in a month will be credited to the franchisee account on the 5th of the next month. The relationship manager will be providing training and other related support to the franchisees from time to time.
The Big Bazaar Direct venture has started now in Nagpur but by 2013 end they aim to expand nationwide. The core model is subject to the minor changes as the project proceeds along.
Regards,
Swapnil Srivastava
12IB-049
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