Subhiksha locks horns with Big Bazaar over price claims

Retailer Subhiksha has challenged Pantaloon group company Big Bazaar to move the Monopolies and Restrictive Trade Practices Commission (MRTPC) instead of Advertising and Standards Council of India (ASCI), which is a self regulatory organisation, for its disagreement with Subhiksha's recent survey on low prices.

"If they have issues with our survey they should go to the MRTPC and not ASCI which can not do much on the matter. We will contest the case there and the truth will come out. Nobody should make claims without facts", said R Subramanian, MD, Subhiksha.

The Chennai-based retailer had conducted a survey in the last week of March and released print advertisements claiming that it offers lowest prices in certain product categories compared to other retailers including Big Bazaar, D-Mart and Apna Bazaar.

Disagreeing with the survey, Big Bazaar went to the ASCI claiming that Subhiksha indulged in unfair advertising and demanded a correction. Its contention was that Big Bazaar's prices were shown highest among all the retailers taken up for the study in various cities.

Sadashiv Nayak, head operations, West Zone, Pantaloon Retail, says: "Our main objective of going to ASCI was to point out massive inconsistencies in the advertisements. These kind of the ads have a massive implication on retail trade and consumers. We have full faith in ASCI as the custodian of consumer advertising and sort out the issue."

Nayak adds: "They have also taken IMRB's name in the survey, which is a credible surveying agency. We want to sensitise them about the fair practices in competitive advertising. Moreover, you can not compare a similar product in different cities and in different formats and say that which is cheaper or costlier. They should take up something which is available across the country and all the 365 days of the year," he says.

But Subramian is steadfast when he says: " If you take 100 FMCG products in any city, those from the Subhiksha are always cheaper compared to Big Bazaar or any other retailers. Without any facts they were making claims and now we are exposing that", he says.

Nayak says that Pantaloon is not competing with Subhiksha as they are a bigger format retailer and deal in many verticals. "Both Food Bazaar and Big Bazaar aim at weekly and monthly shopping of the consumers with a overall value savings for the consumers. Whatever the claims we expect a natural correction from the manufactures who can not be seen partial to any retailer," says Nayak." But small retailers feel consumers will not gain anything in the marketing tactics of big retailers.

Says Mahesh Kambli, CEO, Apna Bazar cooperative, which found its mention in the survey: "Big retailers are engaged in predatory pricing. Most of them focus on 8-10 products and try to sell them cheaper than everybody. Initially consumers will get cheaper prices but ultimately, they have to consume products which they do not require or those which they do not need in large quantities."