Kishore Biyani-promoted Big Bazaar Direct, which is the omni-channel business of Future Group, has tied up with payment solution firm Oxigen Services, a company statement said on Wednesday.
The partnership comes at a time when the country’s leading brick-and-mortar retail players, such as the Future Group, are adopting an omni-channel approach to selling products. This strategy is meant to take on competition from online rivals. “Our partnership with Oxigen helps us further penetrate deeper in the market by expanding our reach and network through Oxigen retailers,” said Kishore Biyani, Group CEO of Future Group. The Big Bazaar-Oxigen duo will now service 20,000 pincodes across the country.
In the past, Biyani has been vocal in calling practice of disruptive pricing, pioneered by online players, an unsustainable business model. He said that the intention of the partnership is to capitalise on Oxigen’s 150 million customer base, depending heavily on the scale it will allow rather than resorting to a disounting mechanism.
“The main advantage is that after having shopped with us for more than a decade, our customers are assured of the quality, the brand value so we don’t have to resort to additional price cuts,” said Biyani.
While some believe that discounts are necessary to draw online shoppers, data shows that the scale has tipped in favour of convenience rather than price cuts.
According to a report released at the Retail Leadership Summit, 60% shoppers choose online platforms for convenience. In light of such statistics, Big Bazaar’s sourcing strength is expected to bode well and bring customers best prices. To be sure, experts said that initial disounts on the website could mean a rapid growth but agree that over a period of time, discounts will need to be scaled down.