With a strategy to go online via e-commerce, the retail company future group partnered with digital payment platform Paytm. As a result, paytm users can now shop for the big bazaar retail products on online paytm marketplace. Your goods will be delivered to your home.
Future Group operates stores, such as Big Bazaar, FBB, Central, Brand Factory, Foodhall, Ezone and EasyDay. Through this deal, the users can use paytm wallet at all the future group retail outlets. Additional 15% cashback will be provided at the big bazaar for the paytm users.
“The unit economics of e-commerce has been the key bane for understanding the business, making a partnership the most viable format to take Big Bazaar online,” said Kishore Biyani CEO of Future Group
“In the last two years, we have been serious in understanding this business and how to engage with it… one has to make this business happen,” he added.
According to the business giant, “The cost of acquiring a customer (in e-commerce) is more than 20%, cost of fulfilment is more than 20%, cost of running the operation is 8-10% totalling almost 50% as cost of operation. At this cost, you can’t sell any goods in this medium,”
Together (with Future Group), we see a fantastic opportunity to create a mobile first, omni-channel retail and payment solution for our wide consumer base,” Vijay Shekhar Sharma, founder and CEO of Paytm said.
Big Bazaar offers Maha Bachat sale from August 13-17 targeting Rs 1000 crore sales and this will be encouraged with online sales Biyani said.
Both the companies are targeting large-scale acquisition of the customers and seamless payments through digital wallets. This can be the driving force for the companies’ kick-start the business.