The Founder and CEO of Future Group, Kishore Biyani is set to launch an app for Big Bazaar to give a competition to its eCommerce counterparts in India. This move is a price-cutting strategy that brick-and-mortar stores have been struggling to come to terms with.
Biyani in an interview stated, “We are launching a price-match offer where if you shop from us and anybody else is selling cheaper than us at that moment, we will automatically give credits in your account — anything online or offline.”
Future Group is currently testing the app that will let consumers compare prices offered by online and other offline retailers.
Apart from this, Future will soon conduct an omni-channel pilot programme in which its Big Bazaar and Food Bazaar stores will deliver goods to customers in Mumbai an hour after they place their orders.
In general, since the eCommerce companies are heavily fueled by investments, they can afford to offer goods and services at an outrageously low price. Such heavy discounting strategies adopted by players like Flipkart, Amazon, Snapdeal and others have proved to be a major challenge for offline organized retailers, for the condition is not the same for them.
However, adding a comment to the matter, Biyani, who is set to take over Bharti Retail, asserted that eCommerce doesn’t bother him much, for he believes, it won’t be able to match real-world stores in terms of overall volume.
“Who is afraid of ecommerce?” Biyani asked. “Even if you open 10 sites in 10 years, it will be 10% (of the total organised retail market). Secondly, worldwide, multichannel is the way. Traditional retailers doing multichannel is a bigger thing than pure online in any which way.”
The app, which will be available for public use in Mumbai in the coming weeks, will go nationwide in the coming months. Future’s acquisition of Bharti Retail in an all stock deal valued the latter at Rs 500 crore, reports ET.