Big Bazaar is the most popular food and grocery retailer in India, with around 59 percent of all Indian consumers choosing to shop with them. A new report from GlobalData has given insight into its customer base and competitive position.
The majority of the retailer's customer base is below 34 years of age, with around 55 percent of its shoppers within this threshold. Due to the mass-market positioning of the company, it appeals to consumers of all income groups, however, it has the highest proportion of shoppers (21.7 percent) that sit above an annual income of INR750,000 or US$10,000.
With this in mind, Big Bazaar hopes to increase customer retention with the creation of its 'Big Bazaar Profit Club' membership program that has special discounts and offers for its members.
The global pandemic heavily impacted the store, and forced the major retailer to close 21 stores. But at the same time, eight new stores were opened to cut down on non-strategic costs and improve operating efficiency. After the second wave of Covid-19 lockdowns eased and vaccination rates in India helped the retailer recover.
The online marketplace is something Big Bazaar is currently expanding and will continue to improve. An online presence is crucial as 28 percent of GloblData's respondents mentioned they are buying grocery products online more frequently and 33 percent will be continuing this habit.
To cater for this increase, Big Bazaar has invested in its two-hour delivery service in over 120 cities and towns across India. An increase of over eight percent has since been seen in the company's online sales. The retailer is also set to strengthen its digital media marketing campaigns.
Big Bazaar is also still navigating the effects of a failed merger. Its Parent company Future Retail agreed upon a merger between Reliance Retail and Big Bazaar, however, Reliance Retail withdrew from the agreement in late April. Analysts are confident that this will not impact Big Bazaar too greatly, especially with more online investments planned and a youthful shopping population emerging.
