What happened to Big Bazaar, will you never get to watch Big Bazaar anymore? Why Future Group Failed 2022 ?

Big Bazaar, Central, FBB and Brand Factory must have done shopping from these places at some point or the other. It was like a boon for us and the middle class family members. The rate of the goods here used to be found in less than the rest of the store. There were always good discounts and offers going on here, which made the customers happy. By running good discounts and offers, people used to interact on their side, which helped in their sales and marketing. Even after getting so much popularity, where did this company and the market disappear? Let’s discuss more about Future Group.

The Maha Sale page with the best offers of Big Bazaar used to be seen in the newspaper, but now this page is also not appeared in the newspaper for some time. Behind all this is the negligence of Future Group and the increasing debt on them. Due to this debt, Reliance acquired Future Group’s largest retail market in August 2020, Big Bazaar and all other brands for just Rs 24,713 crore.

What is the reason behind why all this happened? – Future Group

One Time Future Group, which has made its mark in the Retail Market, is standing on the verge of poverty today.

First let’s look at the background of Kishore Biyani, the founder of Future Group, he was born in 1961 in a Marwari family, after completing his schooling, when he came to the collage, he joined his family business in the final year of the college. His family business was of silk mill, the name of his silk mill was Bansi Silk Mill, inside it he used to make clothes made of silk, and sold it in different cities. He had joined his family business but he did not have any special interest, he wanted to do something different.

He met a friend one day and he saw that his friend was wearing a trouser of a different cloth, and that trouser was made of stone wash fabric. How to recognize the quality and specialty of his clothes, he inherited this skill from his family, he immediately recognized that this cloth which is very good if I order this cloth in bulk and sell it here.

I can earn a lot of money, so he did the same, he ordered that clothes in bulk and after that all the garments and sellers were nearby, they sold them and they made a profit of lakhs of rupees within just 6 months. This was the first profit of his life. This increased his confidence, and he felt that he can do business individually and can make his business successful.

After that he started the company, he named him W.B.B (White Blue Brown), inside it he used to sell men’s trousers and he did not make trousers himself, he used to get them made from different mills and sold in the market under his brand name. What used to happen in those days, when there were big brands they used to put their clothes in the exhibition, and their clothes were sold there, but Kishore Biyani did not have that much money; he could not pay the fee for the exhibition, he could not understand anything. The thought came to his mind that if I can’t go to the exhibition, it’s okay; I might put up a stall outside the exhibition.

Kishore Biyani created another brand from WBB in 1987. He named it Menswear Private Limited, it was a garments manufacturing company. He made a lot of profit from this new company, later Kishore Biyani named this company Pantaloons.
Do you know what is pantaloons? Why did Kishore Biyani name pantaloons?

Pantaloons got its name because this company was the first to make patloon. From patloon came the name Pantaloon. The company that belonged to them made men’s trousers. Later, Pantaloons also started selling womens and childrens clothing. Hence, its name was changed to Pantaloons Retail. His franchise began opening all over the world. People liked it a lot. In those times, when malls did not exist, Kishore Biyani opened a 10,000-square-foot Pantaloons store in Calcutta, a modern shopping center where people could find mens, womens and childrens clothing all in one place. Apart from this, people got the experience of entertainment and eating, which was very much liked by the people, seeing that in the metropolises of India and other cities, big pantaloon retail outlets were opened there. This concept of Kishore Biyani proved to be of great benefit to him. From this, he earned a good profit.

Kishore Biyani thought, Why not open a store where people can get everything from groceries and home appliances. Kishore Biyani understood the psychology of the Indian people very well. He knew that if people were given good things at a low cost, they would want to take it from them. After that Big Bazaar started where people used to get everything in one place. Whose price was much less than the market because good discounts used to run inside Big Bazaar.

There came a time when Big Bazaar outlets were opened all over India, and people preferred to leave the normal shop and go to Big Bazaar. Because things were cheap there. This was the time when both Pantaloons and Big Bazaar became successful in the retail market. For this reason Kishore Biyani was called the king of retail.

After the success of Pantaloons and Big Bazaar, he never looked back, he started investing in more business like film production, real estate, insurance, malls, furniture etc. Also started doing different business. After that he started acquiring many brands. His business was doing well till 2007.

Only then did Flipkart enter the market, due to which people started getting online goods while sitting at home. Kishore Biyani did not want anyone to enter his market, be it offline or online. He also created a website called FutureBazaar.com.

This website had only one purpose so that people could shop from home, But in 2007, online shopping was not so much in trend, there were very few sales on it, so they did it. There was no profit but he suffered a loss of Rs 350 crore.

Due to which he closed this online platform. Basically, what started under him was that due to the 2008 global economic downturn, all the debt he had taken at that time, he invested money in different businesses or different brands. He was not able to bow down to that debt, that debt was increasing continuously. After that, they had to merge all the brands they had within four brands, and those four brands were Pantaloons, Big Bazaar, Central, Food Bazaar.

By 2012, the future group had a debt of more than 8000 crores. Due to which his own successful company Pantaloons had to be sold for 1600 crores to Aditya Birla group. His debt was reduced to a bit in 1600 crores, but he did not take any lesson from this thing, whenever we start or acquire any new business the profit generated from our old business, we invest that profit in our new business, but what kishore Biyani was doing, he was taking debt from different places and start investing in new business. Due to which there was a lot of loss and their debt was increasing continuously.

In 2013, there was a lot of trend of online business, at that time many online platforms came in the market like Snapdeal, Flipkart, Big basket, so they thought that they should try online business once again. Then they created a website called Big bazaar direct. In this, he brought such a concept, anyone can take its franchise and after taking the franchise in his vicinity, he can directly buy inventory from Big Bazaar, and can earn a lot of money by selling it to the people around him, but the people Didn’t show interest on this thing even here too he had to bear a lot of loss.

After that Kishore Biyani thought that there is not much scope in online business, he should focus on his offline business only. After that he did not start spreading his business in the south. In 2014 he bought a grocery named Nilgiris Grocery Chain for which he paid 300 crores, then in 2016 he bought easyday club and heritage fresh company, then in 2017 he bought hyper city by paying 650 crores, then in 2018 Bought a famous electronic chain in e zone.

All the business that Kishore Biyani bought or acquired, whatever money he took was not in the profit of Kishore Biyani, he had taken all the debt from the market, and he bought it by taking the debt, because he thought that all this The company will give them a lot of profit in future, but they did not understand that the trend of the market is slowly changing, because Jio had come in 2016 and after io came internet revolution came and people online Started shopping, but Kishore Biyani felt that there was not much scope in online, because he had lost twice in online, he felt that he should focus on offline. Due to which he was increasing the business by taking debt and was also acquiring business.

By doing this, 2019 came, they hogged a debt of Rs 12,778 crore, and then came the pandemic which further worsened the situation. From March 2020 to April 2020, the share price of the Futures group fell by 80%. There was so much debt on Kishore Biyani that he had to take a decision to sell his successful company named big bazaar to pay it off. Aug 2020 Future Group sold all the business related to logistics, retail and warehouse to Reliance Retail for Rs 24713 crore.

There were more than 1800 retails stores of Future Group all over India, all of them were occupied by Reliance Retail. The identity of the Future group was Big Bazaar, FB, Central, all of them belonged to Reliance. Future Group is bankrupt now. There was another case due to which the Future group got stuck in a very bad way. In 2019, the Future Group made a deal with Amazon before selling its company to Reliance.

49% stocks of destiny coupons had been offered to amazon, for which amazon had given Rs 1500 crore, and in that deal it changed into additionally that if future organization sells its shares to each person, before that amazon will have to be informed other than amazon. He cannot sell his shares to the competitor. Future group did not do this, they sold their company to Reliance. Because of which amazon felt bad and take legal action against future group.

Responding to this, the future group said that our deal was with future coupons and not with the future group, they did not do any wrong by selling their company to Reliance. No solution has come out in the matter so far.

We get to learn 3 things from this thing.

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