As you can see the above figure, How a traditional Business works. Around 60% of the revenue is gone in distribution and advertisements.
Now, the big business men like TATA's, AMBANI's and others eyed on this 60% revenue which goes in distribution and came up with a mall concept. Imagine how much profits these people are making, thats why they can afford to give huge discounts which normal retail stores cant provide.
So dude what are you thinking? If these people can earn so much, why cant we? Thts what is the concept. YOU become the distributor and YOU can have as much potential as what these TATA's and AMBANI's are earning.