Success story of D-Mart
Success story of D-Mart
The 67-year-old Mr Radhakishan damani founded
D-mart in 2002 with it’s first branch in Powai's Hiranandani Gardens Mumbai. As
of April 2021 total of 234 D-mart stores across in 12 State and 72 cities including Maharashtra,
Andhra Pradesh, Telangana, Gujarat, Madhya Pradesh, Chhattisgarh, Rajasthan,
National Capital Region, Tamil Nadu, Karnataka, Uttar Pradesh, Daman and Punjab.
DMart is promoted by Avenue Supermarts
Ltd. (ASL) The company has its headquarters in Mumbai. As of 31 March 2019, D-Mart
had a total of 7,713 permanent employees and 33,597 employees
hired on statutory basis The splendid success story of D-mart is entirely
credited to Mr. Radhakishan Damani.
Today D-Mart valued at Rs 39,400 crore, is more
then its two big competitor Aditya birla fashion and future reatail. D-mart shares
got listed at a 102.14 and now it increase
at 3,649.80 D-mart share grow 491.64% in
last 4 year
Ø Beginnings extreme success of The D-Mart
Ø Reason of The loyal consumer base
Ø Simple strategy of D-mart
Ø Cheap Price Reason of D-mart
1)Reduced Expenses
2)Lowest-priced
retailer network
3)Volume
Sales
Beginnings
extreme success
of The DMart
D-mart was founded in the year 2002 by a 45-year-old
Radhakrishnan Damani at a point when he already made his millions in the
market. When Damani founded DMart, he was already a legendary name in Indian
stock markets or Bombay Stock Exchange. Moreover, he picked up several value
stocks and seen them as a rise to stratospheric valuations for the new company,
including Gillette and HDFC Bank.
He dropped
out of a commerce degree after the first year in the graduation, and he first
joined his father’s ball bearings business after quitting studies but had
started investing in stocks when he was 32 years old. Hereby, he ended up
becoming one of the biggest stock investors of the 90s, and the current stock
market investor Rakesh Jhunjhunwala considers him to be the best mentor of all
time.
But after a full packed successful stock market career in investing for
consumer-facing companies, Radhakishan
Damani decided to start his own work and he founded the
supermarket chain DMart in the year 2002. Moreover, he adopted strategies that
were unique to the Indian retail market. Afterward, most retail chains leased
their stores for their market and Dmart chose meticulously to do its research and
owned its own stores outright in various corners around India.
That
strategy seems to have worked for D-mart and from that day they never had to
shut down a store, it’s opened in all the years of its operation in various
places. While other retail players in the market time to the time change and
forayed into other categories, including electronics and fashion, D-mart
remained simply focussed on its core food and grocery business in the market.
Apart from that, when other supermarket chains are all launching their own
private brands for more sales and in a bid to improve margins, D-Mart still
stocks only third-party products for its grocery.
Reason of The loyal consumer base
One of the major reasons
for D mart’s dedicated customer base is its cheap prices for Indian households.
D-mart give you minimum 3 % discount directly
This does not drive away any positive consumers and they keep
returning to busy from the trusted brand name. This is also coupled with a low
price range, which means that bulk buying is a very common situation, on the
demand side of D-mart.
Simple strategy of D-mart
D-Mart has adopted a simple
strategy of garnering huge sales through affordable prices and keeping
price range within reach of customers is its top priority. It offers a discount
on MRP at any given time on all items except fruits, grocery, vegetables and
medicines.
D-Mart makes money by optimizing operations for low cost
and high volume sales. The company displays products that are consumed the most
and strikes deals with suppliers to get the lowest possible prices on all
products. This makes D-Mart a highly profitable and high-volume convenience store.
Cheap Price Reason of D-mart
1)Reduced Expenses
D-mart has kept its operating expenses very low. 80%-85% of its outlets are owned land or land leased for long term (20-30 years). This avoids property rent fluctuations. D-mart also doesn’t spend much on advertising, marketing and interiors. Timely payment to suppliers and bulk delivery gets them more credit and discounts. Working staff and manpower is minimal in D-mart which reduces additional expenses.
2) lowest-priced retailer network
It has established itself as a lowest-priced retailer network across India. Low price leads to heavy footfall which leads to heavy sales. D-Mart is able to sell its inventory quickly and restock it. This cycle attracts manufacturers who extend additional volume discount, thereby reducing purchasing price for D-Mart.3)Volume Sales
D-Mart follows “Everyday low cost – Everyday low price” model. It has established itself as a lowest-priced retailer network across India. Low price leads to heavy footfall which leads to heavy sales. D-Mart is able to sell its inventory quickly and restock it. This cycle attracts manufacturers who extend additional volume discount, thereby reducing purchasing price for D-Mart.
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