We are aware of the fact, that within 20 years of span, D-Mart becomes the King of the Retail Market. Eventually, beat competitions like Future and Reliance Retail. But very few are aware of its business strategy and owner.
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Some of the famous strategies D-mart follows:-
- 6-15% lower than MRP- Most of the products that are in the D-Mart retail stores are usually less than 6-15% of the actual MRP(Maximum Retail Price). This percentage varies from product to product. D-mart follows the simple principle of less profit but in large volume. Meanwhile, in other stores, they focus more on profit and less on volume. Gradually this increases the customer in D-Mart retail stores because of less price. Eventually, this led to increasing in customer loyalty. The main strategy is to target the Indian Middle-class family.
- More Volume in sales- D-Mart comes with a unique strategy of Deep Discounting. Deep Discounting helps the retail to sell their product in large volumes and in less prices. Eventually, less profit but high sales in volume causes more profit for D-Mart than other retailers
- Product Assortment Strategy- As the retail shop sells more different products other than the main item. Increase in volume sales helps the Inventory move in a flash. This helps in coming fresh products to the shell and less wastage of product. Eventually, customers also liked the fresh product.
The above strategy is for the consumers but what strategy it follows to beat its competition like Reliance Retail and Future Retail:-
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This can be easily described in three words Careful, Fancy and Ownership. Apart from being in the business for two decades, they have only 220 stores. While others are much higher in number, Reliance Jio has more than 11000 thousand stores. Meanwhile, other retailers started shutting down their stores. King of retail follows the State Ownership Model instead of renting they buy the place. This leads to only 0.2% of their total expenditure on equivalent rent. While other retailers have to spend more than 3% of the total expense.