How Radhakrishna Damani's D-Mart beat big Bazar and Reliance in the market? Their strategies says it all!!!

Get to know how D-Mart beat Big Bazar and Reliance in the market.

Nov 19, 2021 - 16:20
How Radhakrishna Damani's D-Mart beat big Bazar and Reliance in the market? Their strategies says it all!!!

If we talk about the hypermarket chains in India, so we usually think of Reliance retail or Big Bazar. But, there is an company whose , in their 19 years of operations profits have increased by almost 1700%. Their share price in just 4 years has increased by about 580%, and in october 2021, their market capitalisation was more than 3 lakh crores. That company is, D-Mart.

D-Mart was founded by Radhakrishna Damani. After gaining experience in the ball bearing business, and becoming an ace investor in the equity market, Radhakrishna Damani founder D-Mart. And now on the Forbes list, he's the 4th richest Indian.

Even then the question rises that despite of competing with retail giants like Mukesh Ambani's Reliance retail and Kishore Biyani's Big Bazar, how has D-Mart been so successfull?

Well, there are several factors. One of the key factor of D-Mart's success is deep discounting. D-Mart offers discounts to its customers. Because of this strategy, D-Mart always remains ahead of grocery stores. How? Explore Valley will explain it to you. — Assume that MRP of 1kg butter in the market is Rs 500. But D-Mart will sell it at Rs 450. Due to this discount, profit will be less, but more units of butter is expected to be sold. This strategy leads to more volume in sales. Which means, more people came into the store, to buy the butter. D-Mart, at the same time, follows the product assortment strategy. In this strategy, D-Mart studies the consumer shopping patterns, which helps them to place the products smartly. Fir example, right next to butter, cheese and other dairy products are placed. So when a customer comes to buy butter, so he also purchases other products along with it.

D-Mart is also very cautious when it comes to expansion of their stores. In its 19 years, D-Mart has only 238 stores across India, whereas future retail has around 1308 stores, and Reliance Retail has more than 12,000 stores. But in this if we see revenue per sq ft detail, D-Mart is in the forefront. According to a 2017 report, D-Mart's revenue per sq ft is 25,844 rupees way better than Reliance and future retail. And in 2021, the revenue increased to 27,360 rupees. All these strategies leads to low operation cost, which brings in more revenue.

In recent years, other than big retailers, D-Mart has been facing severe competition from E commerce platforms, Firms like Big Basket, Grofers, Amazon, Jio market and Flipkart Supermart.

However after facing a lot of competitions D-Mart stood high amond all of them.

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