FUTURE GROUP LOOKS @ FRANCHISEES FOR BIG BAZAR

The Kishore Biyani-promoted Future Group, which runs India's largest retail chain in both value and lifestyle formats, is aiming to have 50,000 Big Bazaar direct franchisees by the end of this year. The company is aiming to have an average business of Rs 5 lakh from each Big Bazaar direct franchisee. "We would have around 50,000 Big Bazaar Direct Franchisee by the end of this year. We expect an average business of around Rs 5 lakh from each franchisee in a year," Big Bazaar Direct Director Vivek Biyani told PTI. He further added that by the end of March 2014, the Future Group would have 1,000 franchisees. Big Bazaar Direct is a franchisee-based model where the franchisees will personally visit consumers and take orders for products. The products will be delivered in 3-7 days. According to Biyani, the company has already launched the franchisee-based models in Mumbai, Hyderabad and Gujarat. It launched in Delhi on January 11. "We would soon launch it in Rajasthan and Madhya Pradesh and would cover pan India by the end of this financial year," he added. According to Biyani, the company is targeting kirana shops, medical stores, persons with consumer network, insurance agents and persons engaged in professional services like payment of bills etc, as franchisees. The Future Group is providing its franchisees an electronic device, which would have all the information about its products and offers. The franchisee employees would visit the consumer's place and collect the orders. "It would have the same schemes and prices of our Big Bazaar retail outlet with brick and mortar set up," he said. Through this venture, the company would also try to expand its base in the tier 2 and tier 3 cities, where the Future group still has no retail store. In return, the Future group is paying a commission ranging from 3 per cent to 20 per cent, depending on the kind of products sold. "For electronic goods and food, we have lower percentage for the franchisee and for products of fashion related goods it (commission) is higher," Biyani said. On the investment, he said a minimal amount is required as this model uses the existing infrastructure of the Future Group as warehouse, stocks etc. The franchisee has to invest initially Rs three lakh. "We have done only some investment in the technology side of proving pads and to train our franchisee partners," he added.