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Over 20,000 customers have enrolled for Future group-owned Big Bazaar's latest marketing blitzkrieg, wherein they have to pay money upfront to join its membership club.
Titled 'Big Bazaar Profit Club', under the scheme, a customer has to pay Rs 10,000 to become a member and can shop for Rs 1,000 a month for 12 months, thus getting two months of shopping free.
"It is a loyalty and prepaid card for our customers, Many customers are liking it and we have seen over 20,000 customers enrolling for it," said a senior executive with the Future Group.
When asked about the legalities of the scheme, the executive said that it was a just a pre-paid card and nothing to do with money making . "Many retailers and jewellers are doing such schemes," he said.
A mail sent to the Future group spokesperson on Saturday did not elicit any response.
However, the company’s peers argue it’s an expensive scheme due to heavy discounts they offer and the administrative costs involved.
"It is a good way for them to get new cashflows. This way they can go and buy new goods," said a chief executive of retail chain who did not want to be quoted.
However, the Future group executive said: "It has nothing to do with money. It is about loyalty of customers coming in 12 times a year and results in business for us," he said.
"Cost of managing so many accounts is high. Administrative costs come to 2-3% of scheme. I wonder how they will make money. We can’t do it," the executive from a rival firm said.
