After a push back in competition against the online retailers such as Amazon, Snapdeal and Flipkart, the owner of Big Bazaar, FBB and Central chain stores, Future Group has increased its advertising spends, offering bigger discounts and redoing stores in order to gain momentum and enhance consumer experience.
Big Bazaar and FBB has already uplifted their promotion and ad spends. The ad budget is said to have increased by Rs. 100 crore over the last year. The firm has almost doubled its adex for the two retail chain over the last year.
As per Biyani, the group has launched a 52-week campaign which they call Crazy Weekends, where valuable deals and discounts will be available for the customers over the weekends. Actor Varun Dhawan and Katrina Kaif have been hired as brand ambassadors for FBB.
Nearly $3 billion was raised by online retailers and the money was invested in providing heavy discounts and promotions. As per the report published by Industry Lobby Federation of Indian Chambers of Commerce (FICCI), and consulting firm KPMG, a total of Rs. 1,000 crore was spent on media advertising (majority on television) by these e-commerce players.
Brick and Mortar stores, as they could see increased pressure on profitability, they have raised spending on promotion and refurbishing stores. Brick and mortar retailers will have to go digital to increase sales as physical expansion has limitations with limited number of retail space, Rachna Nath, leader (retail and consumer) at PwC said.
The Future Group has also tied up with Amazon and is working on the omni-channel strategy. Shoppers Stop is also working on the same line which will unfold in the coming 18-24 months.