Big Bazaar's Saste Din, Saste in name only
by Santosh
Big Bazaar and the culture of always low prices has finally arrived here in India. The question is – does Big Bazaar match consumer expectations, or are they just making empty promises.
I paid a visit to the local Big Bazaar at Fatima Nagar in Pune on Republic Day. Kishore Biyani’s retail chain was having its fabled Sabse Saste 3 Din (3 Cheapest days) on that weekend. Much has been written about the Sale in Kishore’s book – It Happened in India. I decided I was going to have check out what the fuss was all about.
Sure enough, there was a line that stretched around the store with people waiting to get in. The phenomena was not limited to the Pune store and could be seen at every Big Bazaar in India. While waiting in line, a middle aged housewife asked us if we had been to the sale before. She explained to us how the store would announce impromptu deals on many items with spot discounts valid only for about an hour. She also warned us that we need to look at not only the price point, but also the deal terms very carefully (fine print). Many items had been excluded from deals – including Jewelery.
It took about 20 minutes to get in to the store. The wait was brief and there were services (chaat, snacks) outside the store presumably for those waiting. Kishore Biyani has designed his Big Bazaars around the idea of contemporary Mandi or Bazaar with grey (austere) tiling and minimal Air Conditioning. Stocks have been organized, but not hung for display. Clothes and other non-electronic items were arranged in wire-mesh boxes. As Kishore describes in the book, the entire idea of the Big Bazaar is to target the Service employed Indian. He calls this class India II, which serves the minority consuming class. This class now has a sizable spend on improving their lives. The model is based on maintaining margins and drawing customers in en-masse, enough to get the buzz going around the store and the discounts. He suggests that his stores, lighting, tiling, layout and staff are all tailored to help the average Indian be comfortable when shopping.
Once in the store, like many other customers, I focused on the items going cheap. For example, a locally made DVD player was being sold for Rs. 1,200/- against the Philips DVD player at Rs. 3,110/-. For the price-conscious consumer, the unbranded DVD player was a bargain. There were other items like the DVD player, Flash Drives and Plastics being offered under a discount.
Surprisingly, the Croma store next door to the Big Bazaar was a lot cheaper than the Big Bazaar for the same electronic items. For example, 2GB Flash Drives were Rs. 50/- cheaper than the same in Big Bazaar. Also, the same plastic containers were cheaper at the Tru-Mart. Big Bazaar seems to be employing the old bait and switch trick. Anjali, with her knowledge of how retail works says that the bait for customers are the low prices for aate-daal (or common items like Flour, Pulses, Onions, Potatoes). However, not all prices are kept at their theoretical retail minimum, which explains the Flash Drive which was priced lower at Croma.
Big Bazaar’s Marketing is definitely very savvy. Indeed, how many stores in India can boast of long lines outside the store? Their prices on the other hand leave much to be desired. I am willing to bet that the stores inventory turns are much higher than the Industry average and their margins are higher too. Their prices are therefore irrational.
Retail chains like Pantaloon’s Central, Piramyd’s and Shoppers Stops’ which serve India I – the consuming class, suffer from depressed margins thanks to rapidly appreciating real estate. Big Bazaar are relatively better off than the other chains since they target areas going for lower than premium and make better use of their floor space. Their entire strategy is to get as many people in to the door as possible. In fact, the Salesman to Customer ratio at these stores is skewed when compared to Central or Piramyd.
The appeal of low prices and bargains spans not only consumer classes but even cultures or galaxies. So, if Big Bazaar has managed to attract the masses, and convince them that they’re getting value for their money, they will only attract more of them. Walmart started with suburbs in central and southern America, but today they’re global because their promise always low prices is universally appealing. As long as they deliver on it or ensure that you don’t find out, they’re unbeatable. After all, what explains why someone like me was deal hunting at Big Bazaar?
On the pic above I see a Reebok logo…I wonder whether they sell real reeboks at such bazaars.
They will usually have at least one branded product and one local make in every category though I’m not sure about the shoes category.
Guerillero, That is indeed the real Reebok.
Cheers,
Santosh
great article. i like it.
really nice article dear, keep it up
I have purchase lot of glossary items from BIG BAZAAR kothrud branch on 19/06/08,bill no.T22/14321.One of the item was SAFFOLA SUNFLOWER OIL which is costing Rs120/bag ( as MRP).But same oil is available in any shop for Rs.91-98 max. Wherein you are charging for Rs.120,then in this situation your prices are higher than any other glossary shops. In that case you should ad ‘sab se sasta’ it should be sabse mehenga dam’.I have asked for clarification but got very arrogant answer, pl avoid this cheating once for all.
Thanks,
Decided not buy anything from BIG BAZAAR .
I have purchase lot of glossary items from BIG BAZAAR kothrud branch on 19/06/08,bill no.T22/14321.One of the item was SAFFOLA SUNFLOWER OIl which is costing Rs120/bag ( as MRP).But same oil is available in any shop for Rs.91-98 max. Wherein you are charging for Rs.120,then in this situation your prices are higher than any other glossary shops. In that case you should ad ‘sab se sasta’ it should be sabse mehenga dam’.I have asked for clarification but got very arrogant answer, pl avoid this cheating once for all.
Thanks,
Decided not buy anything from BIG BAZAAR .
I like music n 70 mobile
Thanks
One cant just compare the prices of BigBazaar with any other nearby outlet …………the reason being a neighborhood shop like Croma might have slashed the prices just for that particular period of the “Sabse sasta din” announced by Big Bazaar just to be competent as far as Electronic goods are concerned …………the same thing applies to Tru- Mart………….or any other shop specialized in their respective line of business be it Consumer durable or electronics or glossary………………
The question which one need to take care is …………Is the current price of the electronic item at Croma or any other Electronic item shop stable, if yes, then since how many days or have they changed it just to be competent enough and survive in the market?
If they got a stable pricing policy then one can blame BB as not keeping prices as low as it promises. If not then one needs to understand that the neighborhood outlet will be ready to bleed to survive in front of a TIGER.
sir, I student of T.Y.BMS i got the project on ur retail malls. i wanted to know that how u manages ur prices as u re giving consumer products at a very cheap rate.
Which type of schemes,services u provide to ur customers so that ur sales increase.
sir,plz reply.
As Simple as this they have recently expired items and that they buy in bulk which is then thrown to you at cheapest prices and then fools feel satisfied
ITS REALLY GR8 ARTICLE
BUT THOUGH INDEED THE STORE FULFILLS THE NEEDS OF MANY MIDDLE CLASS CITIZENS OF INDIA THAT THE OTHER GLOSSARY STORES CANNOT IN TODAY’S INFLATIONARY WORLD
SO RATHER THAN CRITICIZING WE SHOULD APPRECIATE THE INITIATIVES TAKEN BY BIG BAZAAR
DEMOCRATIC COUNTRY WE ARE LIVING DOESN’T MEAN THAT WE DON’T SEE THE FULL ADVANTAGES TO THE MIDDLE AND LOWER CLASS PEOPLE.
COMON GUYS DONT BE SELFISH AT THIS EXTENT ! ! !
Today I have visited Big Bazzar in Kothrud , Pune . This is my very very worst ( raddi ) experiebce in my life to visit such bad mall.
The offer are diaplyed on showcase but when you ask the counter boy said it has been ended last month only. Well another thing is the gift displyed on special sunday offer are not available & they refuse to give. I have to struggle for my sunday offer gift. The next they are pointing that we have to take the card to get the regular gift as per offers.. What the hell this big bazaar sorry BIG LOOT BAZAAR…
Long live the grocery shop for the years to come …………………
Big Bazaar in Pune – Fatima Nagar have very arrogant workers. I was looking for some T shirts and they were expecting me to see the T shirts only from Plastic, See the cost and buy it. I asked them, if they have any T shirts which are unpacked, So that, I can get the feel, Quality, size etc. I cannot spend 900 bugs without looking at the T shirts properly. I got vey arrogant answers from the so called Manager. Why should some one buy from Big Bazaar?
Quite some comments but as a matter of fact everyone has to accept them as they r true.
The home delivery of BB also is really problematic and never leave being on time but issues reg any damages will make ur days horrible and make u think y have i bought anything of that sort at BB
on the contrary i feel big bazaar is an excellent store keep it up MR.BIYANI criticism is a part and parcel of success but i feel big bazaars are wonderful stores and are successful in giving a comlete shopping experience.
well i totally disagree with those people who are against to Big Bazaar,this is such excellent mall in india,we get so many offers and also we get a good quility product.
I happened to visit BB some 2 yrs. back at Fatima Nagar store. I bought men shirts on a scheme. Though I shelled good amount of money , to the controry the quality was very poor after one-two wash. Since then I decided not to buy anything from BB. More importantly not to fall prey to attctive and enticing advertisisng and marketing strategies of thrs.
I would only say “WAKE UP PEOPLE”…. If you are buying from Big Bazar, then be informed about the prices of commodities outside …
hi..two days back visited BB in Belgaum, Karnataka, with my wife.. we experienced the most embarrassing moment of our life..few days back my wife had purchased one Doll made up of Clay from the local market and kept it in her bag and she forgotten to take out it from her bag…after 2-3 days, we went to BB & my wife carried the same bag into the mall..we purchased some articles, paid the bill and in the exit, the detector made some beep as soon as my wife walked through it…security stopped us and one of the employee of BB searched my wife’s bag and started his enquiry about that Doll.. we tried to convince them that it was purchased from local market…but they didn’t agree to our explanations…there was no receipt of the Doll purchase with us as most of the shops in local market don’t issue receipt..same time one of the sales girl by name Radhika, in charge of section relating to the dolls who was on the way back to her home after finishing duty, came near us and accused that we were there near that section for about 30 min and took that doll.. this happened infront of other customers…it was true we visited that section but did not buy anything from there…another senior person also did not listen to us and made us to hand over the doll…it is the way of dealing with the customer at BB, Belgaum… we both, myself a Doctor and my wife an Advocate (ID was also shown to those employees) are from a respectable family background…there was no need of getting such a small doll by fraud for us…we are not unhappy with the security procedure followed by BB but the behaviour of the sales girl did hurt us and we decided not to visit any BB in future…
hi everyone ,
its good to share things for BB
Its a big loot only ..
i bought Around 7 to 8 clothes from big bazaar for my daughter ..
I tried one for my daughter who is of six months old .
The colour of the Tshirt was orange and white mixed up
but With a single wash , orange colour got faded …
anyone can imagine the how the colour will be
hats of to a Brand Name
i bought MILTON 1 lt. flask from bi bazaar for rs.510…………after availing 15 percent discount……….i was shocked when a wholesale person was selling same flask for 425 rs………..i decided to say NO to big bazaar……and i dnt have faith in the deals of dis store any more.
😦
Dr Gouda,
You had a very terrible experience.
Felt bad reading your story.
Regards,
Bharath V V
hi, i am an MBA student.. and yesterday i went to BB. And i want to know various promotion statergies adopted by BB to promote his brand..
Hello i want to know when big bazaar is going to open in runwal group mall ghatkopar.Pls mail me.Thanks
we have bought a LCD TV from BB(SANYO)
had complaint within 2months of buy.. complained to manoj (Salesman) over there.. till now 1year over.. no action is taken.. its a very bad mark over the Big Baazar…
we have even sent our original bills to sanyo service centre.
big bazaars home bazaar kothrud pune, i had worst experience with these guys we gv them full contract for our modular kitchen to be done and they happily accepted to carry out all our requirement including civil work,electric and ofcurse furnitur.and so we paid all the money in lacs…as they dont process till full payment,,once this was done then our story starts of calling them evryday on phone and listening to their false commitments..soon they came up with workers not avilable etc excuses,and didnt come to work at all for 4-5 days at all and initial 2 days they had already demolished my existin kitchen and i hd shiftd it to another room in my house,and now i was left with lot of inconvience,as whole work wd hv been finished by this duration.
and they dont evn hv the courtesy to say evn a single sorry nor they reply to our calls.
worst experience, and very non professional people
mahesh erande and bhimcharan ..dont rely on their talks..
People,
Big Bazaar must not be the place for big purchases ie high spending ventures. Use it for no more than some clothing, apparels, shoes and provisions.
I hope this is true and will want to see what you say!
Our friend here could have opted for modular kitchens from Godrej instead, i think.
Cheers
really nice article