Report on D- Mart
–
Largest retail chain in
India
D-Mart is a one-stop supermarket chain that aims to offer
customers a wide range of basic home and personal products
under one roof. Each D-Mart store stocks home utility
products -including food, toiletries, beauty products,
garments, kitchenware, bed and bath linen, home appliances
and more - available at competitive prices that our customers
appreciate. Our core objective is to offer customers good
products at great value. D-Mart was started by Mr. Radha
kishan Damani and his family to address the growing needs of
the Indian family. From the launch of its first store in Powai
in 2002, D-Mart today has a well-established presence in 158
locations across Maharashtra, Gujarat, Andhra Pradesh,
Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, NCR,
Tamil Nadu, Punjab and Rajasthan. With our mission to be
the lowest priced retailer in the regions we operate,
our business continues to grow with new locations planned in
more cities. The supermarket chain of D-Mart stores is owned
and operated by Avenue Super marts Ltd.(ASL). The
company has its headquarters in Mumbai.
D-Mart
CURRENT CLIMATE AND SITUATION
D-Mart seeks to provide a one-stop shopping experience for
the entire family, meeting all their daily household needs. A
wide selection of home utility products is offered, including
foods, toiletries, beauty products, garments, kitchenware, bed
and bath linen, home appliances and much more.
D-mart’s vision is to make available products/categories for
the customer’s everyday use at the ‘best’ value than
D-Mart is constantly expanding across departments to keep
pace with our rapidly growing business. D-Mart further
claimed that by the end of the current fiscal, the group will
have more than 700Stores from the present. Each such store
will have an investment of around Rs. 18 lakhs.
INDUSTRY-RETAIL INDUSTRY
Retailing is one of the pillars of the economy in India and
accounts for 23% of GDP. Most Indian shopping takes place
in open markets and millions of independent grocery shops
called khirana. Organized retail such supermarkets accounts
for just 8% of the market as of2016. Regulations prevent most
foreign investment in retailing. Moreover, over thirty
regulations such as "signboard licenses" and "anti-hoarding
measures" may have to be complied before a store can open
doors. There are taxes for moving goods to states, from states,
and even within states. An increasing number of people in
India are turning to the services sector for employment due to
the relative low compensation offered by the traditional
agriculture and manufacturing sectors. The organized retail
market is growing at35 percent annually while growth of
unorganized retail sector is pegged at 6 percent. The Retail
Business in India is currently at the point of inflection. Rapid
change with investments to the tune of US $ 25 billion is
being planned by several Indian and multinational companies
in the next 5 years. It is a huge industry in terms of size and
according to management consulting firm Technopak
Advisors Pvt. Ltd., it is valued at about US $ 350 billion.
Organized retail is expected to garner about 16-18 percent of
the total retail market (US $ 65-75 billion) in the next 5 years.
India has topped the A.T. Kearney ‘s annual Global Retail
Development Index (GRDI) for
the third consecutive year, maintaining its position as the most
attractive market for retail investment. The Indian economy
has registered a growth of 8% for 2017. The predictions
for2018 are 9-10%. The enormous growth of the retail
industry has created a huge demand for real estate. Property
developers are creating retail real estate at an aggressive pace
and by2021, 1300 malls are estimated to be operational in the
country.
RETAIL SECTOR
D-Mart is a chain of hypermarket and supermarkets in India
started by R K Damani. It founded in 15th May 2002 As of
2016, it has 110 stores spread across Maharashtra, Gujarat,
Telangana, Andhra Pradesh, Madhya Pradesh, Chhattisgarh
and Karnataka. The company shows a good pace in advancing
towards expanding across India.
D-Mart is a one-stop supermarket chain that aims to offer
customers a wide range of home and personal products under
one roof. Each D-Mart store stocks home utility products -
including food, toiletries, beauty products, garments,
kitchenware, bed and bath linen, home appliances and more -
available at competitive prices that our customers appreciate.
D-Mart today has a well-established presence in 110 locations
across Maharashtra, Gujarat, Andhra Pradesh, Madhya-
Pradesh, Karnataka, Telangana and Chhattisgarh. With our
mission to be the lowest priced retailer in the regions we
operate, our business continues to grow with new locations
planned in more cities.
CONSUMER BEHAVIOUR AND COMPETITIVE
PRESSURES
D-mart’s vision is to make available products/categories for
the customer’s everyday use at the ‘best’ value than D-Mart is
constantly expanding across departments to keep pace with
our rapidly growing business.
D-Mart will believe in ‘learning through opportunities. As an
equal opportunity employer, it strongly believes that
ANYBODY can be a part of D-Mart. It encourages candidates
from every background to bring in their best in terms of new
ideas, innovative thinking and positive outlook towards work.
They judge their prospective and existing employees only on
the basis of their professional mettle. It has consumers from
all kinds of religious background. It is why to stay up to date
and to make sure that the consumers from all religious
backgrounds are satisfied they offer separate deals.
D-Mart is a major shopping complex for today’s customers. It
is a place where customers find variety of products at a
reasonable price. The majority of customers belong to
middleclass family. The youth generation also likes shopping
& moving around D-mart. As it is surveyed it seems that D-
Mart is big competitors store at today’s level.
FOUNDER
D-Mart is owned and operated by Avenue Super marts
Ltd. (ASL) – a company founded by Mr. Radha kishan
Damani. Mr. Radha kishan Damani is respected in the
business world as an astute investor in the Indian
equity market, he has built a company that constantly
strives towards developing a deep understanding of
customer needs and satisfying them with the right
products. A firm believer in core business
fundamentals and strong ethical values, Mr. Damani
has built D-Mart into an efficient, large and profitable
retail chain that is highly respected by customers,
partners and employees alike.
MISSION
At D-Mart, they research, identify and make available
new products and categories that suit the everyday
needs of the Indian family. Our mission is to provide
the best value possible for our customers, so that
every rupee they spend on shopping with us gives
them more value for money than they would get
anywhere else.
CUSTOMER SERVICE PLEDGE
At D-Mart, They place strong emphasis on excellence
in customer service. Our employees believe in the
values of Action, Care and Truth (ACT) to get the job
done, with Dedication and Determination.
ACTION
Focus: To be focused about what I do.
Motivated: To be clear of achieving my goal.
Enthusiastic: To love what I do.
CARE
Respect: To respect every individual in the
organisation and provide her/him with the dignity and
attention to make her/him believe that she/he makes a
difference to the organisation.
Listen: To listen and resolve any employee / customer
grievance quickly and fairly.
TRUTH
Integrity: By being open, honest and fair in all our
relationships and being respectful and trustful to
others.
They strongly believe that honesty and sincerity are
critical in achieving complete customer satisfaction.
They welcome individuals who share our values and
believe in leading by action.
Reach of D- Mart
Amravati, Aurangabad, Dhule
Nagpur,
Maharashtra Nanded, Nandurbar, Nashik, O
Pune, Ratnagiri, Satara, Sola
Wardha.
Ahmedabad, Anand, Bhuj, Bil
Gandhidham, Gandhinagar, G
Gujarat Himmatnagar, Kalol, Mahesa
Nadiad, Navsari, Palanpur, Ra
Surendra nagar, Vadodara, V
Daman Daman
Hyderabad, Karimnagar, Kham
Telangana
Mancherial, Warangal
Anantapur, Bhimavaram, Elur
Guntur, Kakinada, Kurnool, M
Andhra Pradesh Nellore, Ongole, Rajahmundry
Tanuku, Tirupati, Tuni, Vijaya
Visakhapatnam
Bengaluru, Belgaum, Gulbarg
Karnataka
Mangaluru,Tumakuru, Udupi.
Bhopal, Dewas, Indore, Jabalp
Madhya Pradesh Mandsaur, Dr.Ambedkar Naga
Neemuch, Pithampur, Ratlam
Chhattisgarh Bhilai, Durg, Raipur, Rajnandg
Delhi, Faridabad, Ghaziabad,
NCR
Noida
Chennai, Coimbatore, Dindigu
Tamil Nadu Hosur, Madurai, Salem,
Tiruchirappalli, Tirupur
Amritsar, Barnala, Chandigar
Punjab
, Ludhiana, Mandi Gobindgarh
Rajasthan Ajmer, Alwar, Bhilwara, Jaipu
PRODUCTS AVAILABLE IN D-MART
STRENGTH OF D-MART
Focus on long-term: Damani, the founder of D Mart is an
investor and thus the company has been focused entirely on
long-term gains. This has made the company
maximise its returns through a value is driven pricing strategy.
Slow scaling up: D Mart started off on a very low-key note
and slowly took its time to move up the ladder. This gave the
company a better control and deeper understanding of its
supply chain and also helped them manage the bottom line
better.
People-centric management style: D Mart has a very good
employee policy in place and is very transparent in its
employee relations. They also have a good relationship with
vend or sand suppliers and the stakeholders are happy.
Discount Policy: One factor that delineates D Mart from its
competitor is its huge discount policy. The retailer sells
essential goods at a flat discount price which most
competitors cannot match and this helped them penetrate the
market.
Clear price-based differentiation: D Mart never followed
the trends set by other competing retail brands but believed in
setting their own trends.
WEAKNESS OF D-MART
Focus on certain places: Quite unlike their competitors, who
are present everywhere, D-Mart has focused more on the
Western States and has a very low presence in the South. This
has restricted them from gaining market prominence.
Slow growth: D Mart has established almost 16 years ago
much before the retail boom set afire in India. However, it has
not been able to capture the market even as much as many of
the later entrants primarily because of its long-term focus.
Sustainability of low pricing.
No frills: D Mart follows a no-frills approach where the focus
in to cut costs wherever possible. Their facilities are basic
the frills of most upmarket retailers
EVOLUTION OF D-MART
D-Mart is a chain of hypermarket and supermarkets in India
started by R K Damani. It founded in 15th May 2002 As of
2016, it has 110 stores spread across Maharashtra, Gujarat,
Telangana, Andhra Pradesh, Madhya Pradesh, Chhattisgarh
and Karnataka. The company shows a good pace in advancing
towards expanding across India. The retailer has 29 stores in
Maharashtra and Gujarat and is likely to double that
number in the next two years. “The plan is to close financial
year 2010 with 35 stores.
D-Mart executive said. A second executive said, on condition
of anonymity, D-Mart will add 10-15 large-format stores of
30,000-40,000 sq. ft every year for the next two years. D-
Mart did not reply to email queries. Industry observers said
D-Mart enjoys an edge due to its combination of large stores
and a value platform. D-Mart is a one-stop super market
chain that aims to offer customers a wide range of home and
personal products under one roof. Each D-Mart store stocks
home utility products - including food, toiletries,
beauty products, garments, kitchenware, bed and bath linen,
home appliances and more - available at competitive prices
that our customers appreciate. Our core objective is to offer
customers good products at great value. D-Mart was started
by Mr. Radha kishan Damani to address the growing needs of
the Indian family. From the launch of its first store in Powai in
2002, D-Mart today has a well established presence in 110
locations across Maharashtra, Gujarat, Andhra Pradesh
Madhya Pradesh, Karnataka, Telangana and Chhattisgarh.
With our mission to be the lowest priced retailer in the
regions we operate, our business continues to grow with new
locations planned in more cities. The supermarket chain of D-
Mart stores is owned and operated by Avenue Super marts
Ltd (ASL). The company has its headquarters in Powai,
Mumbai. The product mix is good & lot of variety is available.
The D-Mart offer price and the Max. Retail Price both ware
visible on the price card.
CORPORATE STRATEGY AND GOALS.
1.Keep an eye on the long term
Like Warren Buffett, Damani too has been a value investor
who would take canny view of the long term. When he turned
an entrepreneur, he retained the same approach and built D-
Mart without relying on any quick shortcuts. For instance, he
never leases property for his stores but buys it. In the long
term, it saves him from a big rental outgo. This was a key
factor behind the profitability of D-Mart.
2. Value your people
Damani began with buying a franchise of Apna Bazar. That
was when he began building personal relations with vendors
and suppliers. He values both and they never let him down.
The stores never go out of stock.
3. Buy low, sell cheap
Damani knew what he was doing: offering people consumer
products of daily use at heavy discounts. That became his
only goal. One of his methods was to pay his suppliers and
vendors within days
4. Go local
Even though D-Mart is the most successful grocery retail
chain of the country, Damani has confined it to the western
states. One reason is his reliance on local supplies instead of
elaborate supply chains.
5. Go slow
Though D-Mart started 16 years ago, it still has 119 stores in a
few states, a small number compared to those owned by
Ambani and Biryani. Instead of rapid expansion, Damani
adopted a slow pace which gave him his focus.
6. No frills
Damani knew the purpose behind his enterprise was to supply
consumer goods at lower prices. He did just that, without
wasting his energy on frills. His stores have limited range of
products and have simple decor. People come for just one
thing: lower prices. The trait reflects in his own appearance.
He wears only white shirt and white trousers, for which he is
called "Mr White and White".
7. Ignore the herd
Damani had learnt and practised with success the art of not
following the herd while he was an investor. As an
entrepreneur, he has the same approach. There have been so
many new-fangled ideas in retail, such as various e-commerce
trends, which he did not give any importance. Fashions or
trends cannot influence the man who knows what he wants
and how he can get it.
COMPETITORS OF DMART
D-Marts main competitors are More,
Hyper CITY Room story and Easy day. Hyper City is
Mahindra Retail's biggest rival. Hyper CITY was founded in
Mumbai, Maharashtra} in 2004. Hyper CITY operates in the
Hypermarkets & Super Centre industry. Compared to
Mahindra Retail, Hyper CITY generates $140M more
revenue.
More store is Mahindra Retail's competitor. More store was
founded in 2007 in Mumbai, Maharashtra. more store operates
in the Hypermarkets & Super Centres industry. more store
generates $80M more revenue than Mahindra Retail.
Room Story is an online store that sells kitchenware,
barware, decoration items, bed linen and home appliances.
room story’s headquarters is in New Delhi, Delhi. Room story
has a revenue of $1.5M, and 49employees.
Conclusion
D-mart is a hypermarket as it provides various kinds of
goods like apparels, grocery, stationary, food items, leather
items, watches, jewellery, crockery, decorative items, sport
items, chocolates and many more. It competes with all the
specialty stores of different products which provide goods
at a discounted rate all throughout the year. It holds a large
customer base and it seemed from the study that the
customers are quite satisfied with D-Mart. As of now there
are 110 stores of D-Mart in different cities of India, It seems
that there is a vast growth of D-Mart lying as customers
demand, increasing for D-Mart. It has emerged as a hub of
shopping specially for middle class people.
