D-Mart is India’s one of biggest supermarket chains which parent company is Avenue Supermarts Ltd. (ASL). D-Mart’s business model is different from other retail stores. The man behind the D-Mart Bussiness model is Mr. Radhakishan Damani, an equity investor.
D-mart located in 221 location in India there are Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, NCR, Tamil Nadu, Punjab, and Rajasthan.
D-mart is one of the lowest price retailers in India. There are so many brands d-mart have like D Mart, D Mart Minimax, D Mart Premia, D Homes, Dutch Harbour. D-MART listed in the stock market as Avenue supermart.
D-Mart product categories
The product in D-mart can divide into three categories 1)Food 2)non-food 3)general merchandise and apparel.
food products contribute a total of 52.40% in revenue in FY19-20. The items of food category are Groceries, staples, processed foods, dairy, frozen products, beverages & confectionery, and fruits & vegetables
Non food category contributes total of 20.29% of total revenue in FY19-20.
3)General Merchandise and Apparel
General Merchandise and Apparel contribute a total of 27.31% of total revenue in the year FY19-20. The items are Bed & bath, toys & games, crockery, plastic goods, garments, footwear, utensils, and home appliances
Strategic Locations and Design
D-Mart has a total of 214 stores end of the FY19-20. It has stores across 11 states and one union territory. D-Mart added 38 new stores in FY 19-20.D-mart continuously growing its stores year to year. In FY2002-03 it was like 2 stores, In FY2012-13 it was 57 stores, in FY 2015-16 it was like 110 stores. In FY 2018-19 it was 176 stores, In FY 2019-20 it has 214 stores.
State wise present stores
1) Maharashtra -76, 2)Gujarat -37, 3)Telangana -24 ,4)Karnataka -20 ,5)Andhra Pradesh -17 ,6)Madhya Pradesh -11, 7)Rajasthan -7 ,8)Punjab -5, 9)Tamil Nadu -10 ,10)Chhattisgarh -5 ,11)NCR -1 ,12)Daman -1
D-mart Business Model
D-Mart’s business model succeeded because of its marketing strategy. D-mart mostly focuses on maintaining cost-efficiency. D-mart offering the best customer value means a good product at a low price which is the most important thing of the Business model of D-mart. D-mart has stable performance across all financial years. Below are the key Business models of D-Mart…
Trade discount is one of the main things of D-Mart Bussiness Model Whenever D-mart Buy any product from supplier D-mart not buying not in small quantity but in large quantity Because D-mart selling their product in more volume in stores he wants more quantity from the supplier when D-mart buying more product from supplier D-Mart getting Trade discount. That is one of the key points of giving discounts to customers. Part of the trade discount D-Mart uses to give discounts to customers.
Cash Discount also one of the key factors of success D-Mart Business Model Whenever D-Mart buying any product from suppliers with huge volume it’s giving the payment within a week and its save interest. suppliers also happy and they are giving cash discounts to D-Mart. D-mart using one of the parts of cash discount to giving a discount to customers.
when you visiting D-Mart stores you can see that so many products have bought one get one or buy three and get one more extra. So when you buy more items in volume D-Mart will give you a discount. This type of model gives D-Mart to sell the product in huge volumes and give discounts to customers. When D-Mart buy huge volume from a supplier D-Mart can ask Volume discount.
What are slotting fees? When any manufacturer wants to list their product to any retail store, they have to pay one-time fees to that retailer. Like that in the D-mart business model charging their manufacturer fees for listing their product to D-mart stores. These slotting fees D-Mart using to give the customer discount.
Suppose D-Mart getting 10 Rs as slotting fees D-mart keeping 8 Rs as profit and 2Rs for giving a discount to customers .one more advantage of the D-Mart Bussiness Model are they selling in huge volume with discounted price. D-Mart is bullish on the Indian consumption story.
Every manufacturer provides high slotting fees to D-Mart to sell their product in high volume and D-Mart using the slotting fees to give discounts to the customer. It’s becoming a win-win situation for both customers and D-Mart.For that D-Mart getting more customers. These are the main advantages of the D-Mart business model. This is why D-Mart business Model is so successful and D-Mart Product is so cheap.
5.D-Mart uses Own Land
When D-Mart opening any new stores D-Mart prefers to Buy the land instead of taking a rent. It uses one-time cost but its saves monthly rent and land become fully owned by D-Mart.
6.D-Mart Uses Own Product
You go to D-Mart you will be so many D-Mart brands on the product. Under the D-Mart brand mostly D-Mart is selling like Dal, sugar, rice, wheat, coriander powder, groundnut, etc. Under D-Mart brand which is manufacture by themselves has advantages of price control of it.
D-Mart also selling these items in loose quantity. Most of the profit has come from these items. Mostly if you go to D-Mart you will see there are two types of products one is a D-Mart product and the other is a different manufacturer product.
D-Mart keeps their own product front and another product besides that with different prices and different quantities. So D-Mart prefers their own brand first, the customer ended with buying D-Mart product. Which contributes more profit to the D-Mart account.
There are so many D-Mart brands like Dmart Minimax, D-Mart Premia, D homes, Dutch Harber. One more strategy they are using like they keeping their product in eye position in stores and eye positioning products have more sales than foot positioning products.
How Controlling the Expandature of D-Mart
Controlling the expenditure is the main factor behind the D-MART Business Model success. Most of the time when D-Mart wants to start a store, D-Mart prefers not to rent the property but to buy the property. It will take more costs at one time but future it will save D-Mart money. D-Mart not increasing the stores very fastly but slowly and steady. D-Mart uses the other store’s profit to buy new land.
One more thing is that D-Mart business Model not offer any franchisee model. When D-Mart wants to open new stores its buys the land and starts the business. In that case, D-Mart can save the franchise money. D-Mart not providing the HI-FI facility for customers like air conditioning, cafeteria, KFC, which saves money for D-Mart.
D-mart getting Cash discount from supplier how? In D-mart business model gives payment to its supplier very fast like within a week for that it will cost less interest and the supplier also happy they are giving cash discount to the D-Mart and that cash D-mart using to give a discount to customers.
D-mart business Model relies on local suppliers instead of involving many supply chains, cut down the supply chain is saving more costs. D-mart business model giving importance to regional products.Regional product giving more sales in D-Mart stores.
Shareholding Pattern of D-Mart
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How You open a D-Mart Super Market
First of all, D-Mart does not offer any franchise Model. but if you have a property and you want to sell the property or give the rent to D-Mart. For this, you have to go D-Mart website and go to the Partner with us page, fill-up the form and take one property document photo and upload it. Later D-mart will contact you.
Join With D-Mart as Supplier:-If you manufacturing any product you can join with D-Mart and sell your product to D-Mart stores. To list your product to D-Mart you can go D-Mart website and Partner with as supplier section. Provide your Contact and Product details and D-Mart will contact you. Go to the official of D-Mart click here
D-MART is India’s fastest-growing supermarket which has 214 stores across India. So many business models that make D-Mart more ahead of others in this field like trade discount, cash discount, slotting fees, branding their own product, prefer buying land rather than renting. The main person behind this success story of the D-Mart Bussiness Model is Mr. Radhakishan Damani. Damani’s hard work makes the success story of the D-Mart business Model.
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