How To Start A Big Mart Franchise in India? Is it the Next Walmart?

Do you know which industry in India accounts for over 10% of the country’s GDP? It is none other than the Indian Retail Industry. It also accounts for 8% of the employment in the country as well. The Retail Industry in India is considered as one of the largest, most dynamic and fast-paced industry with numerous competitors entering the market. The entire shopping concept is designed according to customers’ taste, behaviour and preference leading a revolution in the industry.

Big Mart – A grocery supermarket brand

Big Mart Retail Corporation is a grocery supermarket brand which started its journey in 2007 by proving free home deliveries of food items and groceries. Big Mart has provided the customers with an easy option of browsing and shopping for food and groceries without walking into a physical grocery store.

Big Mart’s main aim is to deliver customers with high-quality products such as grocery, snacks, soft drinks, toiletries, bakery products, dairy and much more. With over 22,000 products and 1200+ brands, the company is providing customers with an exclusive shopping experience that no other supermarket brand can.

History of Big Mart

It was in April 2007 that Big Mart an international brand commenced its journey with free home deliveries by allowing consumers to choose the products they needed from the comfort from their home or office.

In 2009 Big Mart commenced its very first operational retail store in 100 Sq.ft of an area which offered door-to-door delivery to all its customers guaranteeing on-time delivery of the highest and best quality of products.

In 2016 Big Mart Retail Corporation was incorporated and became one of the fastest growing on-time/express home delivery of food items and groceries. The company thereby successfully touched its customer base worldwide.

In 2017 Big Mart came out with its big mart franchise model as a departmental and convenience store on 300 Sq.ft to 500 Sq.ft of an area with an extensive product range which included items required on a daily basis such as vegetables, fruits, dairy products, magazines, newspapers, etc.

I think as you are interested in Super Market related franchises, you should also check out Big Bazaar Franchise, before making your final decision.

What is Big Mart Retail Corporation’s USP?

It is a unique grocery supermarket brand

Big Mart allows you to browse and shop through their catalogue without having to walk into a grocery store. The company has made it possible for its customers to order everything they need from the comfort of their homes and offices.

It basically means that you don’t have to stand in long queues or get stuck in traffic jams or pay for parking or even carry heavy bags because Big Mart gets you everything that you require right at your doorstep free of any delivery charges. Big Mart has become a pioneer as they are the ones that have brought this unique concept to the consumers of India.

High-quality products

big mart franchise

Big Mart main mission is to deliver a delightful shopping experience to its customers through a diversified range of products. The supermarket offers a huge array of daily use products such as groceries, snacks, toiletries, magazines, newspapers, stationery, bakery items, dairy products, soft drinks and many more. Big Mart Retail corporation is a huge online food and grocery store platform that has products over 22,000 with over 1200 brands that have been made available in their catalogue for the consumers to find whatever they are looking for. They always guarantee on-time delivery along with best quality products.

Organic food products

Big Mart has taken another leap forward by starting from the seeding of food items at their farm to its final step consumption by consumers. The company sources, processes and retail all the way to the final step of consumption. Big Mart Direct focuses on making your life more easier and hassle-free by allowing consumers to choose from around 858+ organic products by bringing it right at your door-step.

Benefits of owning a Big Mart franchise in India

Big mart is one of the fastest growing grocery supermarket chains in India which provides its customers with a plethora of traditional, modern and fusion shopping brands which are affordable for all its customers. They provide:

Free quick and on-time home delivery under any weather condition.

  • 100% high-quality products
  • 24*7 customer support
  • Provides branded products all under a single roof
  • Electronic billing along with cash on delivery option
  • Low initial establishment costs by providing best locations with minimum rentals
  • The company provides complete guidance and training to its franchise outlets.
  • The parent company also provides sales, marketing, technical and operational support.
  • Marketing, advertising and branding support is also provided by Big Mart such as Tv ads, Newspaper Ad, etc.

What are the requirements for setting up a Big Mart franchise?

Area

There are two retail outlet franchise model and depending on the model the area requirements differ.

FOFO model franchise – Franchise Owned Franchise Operated

These type of franchise model are owned and operated by the owners of the Big Mart franchise. The parent company is not involved in any of their daily operations.

  • The area required to set up a SMART MARKET FRANCHISE FOFO MODEL is 300 Sq.ft to 1000 Sq.ft.
  • The area required to set up a SUPER MARKET FRANCHISE FOFO MODEL is 1100 Sq.ft to 5000 Sq.ft.
  • The area required to set up a SHOP FROM HOME FRANCHISE FOFO MODEL is 100 Sq.ft to 200 Sq.ft.

FOCO model franchise – Franchise Owned Company Operated

This type of franchise model is where the company operates the Big Mart franchise and the supermarket/smart market will work on a commission basis and assured income will be guaranteed by the parent company.

  • The area required to set up a SUPER MARKET FRANCHISE FOCO MODEL is 2000 Sq.ft to 20,000 Sq.ft.
  • The area required to set up a SMART MARKET FRANCHISE FOCO MODEL is 300 Sq.ft to 150 Sq.ft.

Skills or experience required

  • Individuals who have a passion to become entrepreneurs and invest their time in the venture.
  • Individuals who are customer oriented and have innovative skills.
  • Individuals who have good communication skills and who can interact well with customers.
  • Individuals who have knowledge on how to operate the billing system.
  • Individuals should be a team player and should be able to adjust to the working environment and the culture followed in the franchise.

Regions of operation

Big Mart has its operational outlets in regions such as Delhi, Ahmedabad, Haryana, Himachal Pradesh, Uttar Pradesh, Tamil Nadu, Karnataka, Goa, Daman and Diu, Gujarat, West Bengal, Madhya Pradesh, Sikkim, Odisha, Mizoram, Assam, Arunachal Pradesh and many more.

Training requirement

  • Detailed operational manuals on how to run a franchise business are given to all the franchise owners so that they can get a better understanding of how the company operates.
  • Franchise training is conducted at Big Mart’s head office located in Gurgaon.
  • In-field assistance will be available for all the franchise outlets.
  • Expert guidance will be provided by the head office during the opening of its new franchise.
  • Current and updated IT systems will also be incorporated at the outlet by the parent company.

Minimum staff requirement

Every franchise outlet should at least recruit the following candidates to ensure a smooth and seamless operation of the business.

  • Accountant
  • Cashier
  • Store manager
  • Cleaning Staff
  • General Staff
  • Stock/inventories supervisor
  • Marketing manager

Financial requirement for setting up a Big Mart Franchise

Investment

FOFO model franchise – Franchise Owned Franchise Operated

SMART MARKET FRANCHISE FOFO MODEL

Smart markets are basically a retail store chain of Big Mart in India. Products that are related to lifestyle, basic human needs, personal hygiene and care, home care are available in this specific market. The financial requirement is mentioned below.

  1. Franchise fees = Rs.3,50,000
  2. Software fees per login = Rs.50,000
  3. Product cost per Sq.ft (minimum cost) = Rs.3,000
  4. Interior according to company layout = Rs.1,000/Sq.ft
  5. 2 undated security deposit cheque = Rs.5,00,000 each

SUPER MARKET FRANCHISE FOFO MODEL

Supermarkets are basically mega retail store chain of Big Mart in India. Products that are related to lifestyle, basic human needs, personal hygiene and care, home care are available in this specific market. The financial requirement is mentioned below.

  1. Franchise fees = Rs.8,50,000
  2. Software fees per login = Rs.50,000
  3. Product cost per Sq.ft (minimum order) = Rs.2,000
  4. Interior according to company layout = Rs.1,000/Sq.ft
  5. 2 undated security deposit cheque = Rs.10,00,000 each

SHOP FROM HOME FRANCHISE FOFO MODEL

Shop from Home markets basically lets customers choose various products from their online catalogue without going to a physical retails store. The products range from organic food, vegetables, fruits, bakery, dairy, stationary, frozen foods, branded food, cosmetics and many more. The financial requirement is mentioned below.

  1. Franchise fees = Rs.3,00,000
  2. Software fees per login = Rs.50,000
  3. Product cost (minimum order) = Rs.1,00,000
  4. Interior according to company layout = POS Machine, Packs, Freezer
  5. 2 undated security deposit cheque = Rs.2,00,000 each

FOCO model franchise – Franchise Owned Company Operated

SUPER MARKET FRANCHISE FOCO MODEL

  1. Franchise investment cost (interiors, product cost, operation cost) = Rs.5,000/Sq.ft non-refundable investment cost.
  2. Software fees per login = Rs.50,000 and Rs.1,00,000 extra from second logins.
  3. Franchise fees = Rs.500/Sq.ft
  4. 2 undated security deposit cheque = Rs.10,00,000 each

SMART MARKET FRANCHISE FOCO MODEL

  1. Franchise investment cost (interiors, product cost, operation cost) = Rs.5,000/Sq.ft non-refundable investment cost.
  2. Software fees per login = Rs.50,000 and Rs.1,00,000 extra from second logins.
  3. Franchise fees = Rs.3,50,000
  4. 2 undated security deposit cheque = Rs.5,00,000 each

Franchise terms and conditions agreement

FOCO model franchise – Franchise Owned Company Operated

  1. For the FOCO model super market franchise, the agreement period is 5 years and it is renewable once the terms get over.
  2. For the FOCO model smart market franchise, the agreement period is 5 years and it is renewable once the terms get over.

FOFO model franchise – Franchise Owned Franchise Operated

  1. For the FOFO model smart market franchise, the agreement period is 5 years and it is renewable once the terms get over.
  2. For the FOFO model super market franchise, the agreement period is 5 years and it is renewable once the terms get over.
  3. For the FOFO model shop from home franchise, the agreement period is 5 years and it is renewable once the terms get over.

The Profitability of the franchise explained through a hypothetical example

Total investment made in a supermarket franchise = Rs.10,00,000

Expenses incurred in a month

  • Rent paid for a 2000 Sq.ft area = Rs.3,00,000
  • Salaries paid to 10 employees (Rs.10,000*10) = Rs.1,00,000
  • Miscellaneous expenses incurred for the month = Rs.50,000

Total expenses incurred in a month = Rs.4,50,000

Income earned in a month

  • Average footfall of customers in a day = 250 customers
  • Average amount an individual spends in the supermarket = Rs.200
  • Total income earned in a day (250*Rs.200) = Rs.50,000

Total income earned in a month (Rs.50,000*30) = Rs.15,00,000

Gross profit for the month (50% of Rs.15,00,000) = Rs.7,50,000

Total profit earned in a month (Rs.7,50,000 – Rs.4,50,000) = Rs.3,00,000

You can get back your entire investment based on the profitability example within 3-5 months.

Conclusion

Big Mart the online food and grocery store has created a revolution in the Indian retail market. To have its foothold across the country the company started giving out franchises of their retail store chain in India to people who are interested in making additional income and are also passionate and dedicated to growing along with Big Mart together.

Big Mart’s mission is to provide its customers with on-time speedy delivery at their doorstep without compromising on its high-quality products thereby aiming for the customers to lead a convenient and hassle-free life and constant profit to its shareholders and also doing their bit by being responsible towards the environment.

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