After reaching great heights in stock markets, in 2001, Radhakishan Damani Famously known as Mr. White and White suddenly quit the markets and decided to enter the retail industry & DMart got born.

DMart is widely known as a one-stop shopping destination to meet all the household needs of a family.

To begin with – D-Mart wanted to create an image amongst the masses of a discount store that offers most of the products from across all major brands. Basically, a store that offers value for money!

Since people mostly come to Dmart because they all get what they need under one roof; hence, Dmart stores are operational in high traffic areas.

Dmart’s target audience being the middle-income group, it uses Discount offers as a promotional tool for luring the customers and increasing sales as well.

Overall – Dmart’s success is focused on three things: Customers, Vendors and Employees!

1. Customers
Since Dmart is targeting middle-income households, all their stores are in, or close to, residential areas and not in malls.

Their idea is not to meet every consumer need like other competitors, but instead, Dmart aspires to meet most regular consumer needs, while providing value for their money.

And since, 90% of these stores are owned directly by Dmart, they don’t have to worry about monthly rentals and their rise, or relocation risk. Additionally, this is helping them build assets on their books. This also helps to keep Dmart well-capitalized and debt-light, while its operations generate spare cash.

All the money that is saved using this strategy is eventually offered back to the customers in the form of discounts!

2. Vendors!
Vendor relationships are the second pillar of their model. Since R K Damani comes from a trader background, his vendor relationships have been his biggest strength.

The FMCG industry has a payment norm of 12-21 days, but Dmart pays its vendors on 11th day itself. This helps him stay in the good books of the vendors and avoids stock-outs.

And since Dmart buys in bulk and pays its vendors well in time, they also get to earn higher margins.

*Basically, their strategy is to “Buy it low, Stack it high and sell it cheap”!*

3. Employees!
This is the third pillar of their model. Dmart offers good money, flexibility, empowerment, and relaxed & efficient work culture. They even go on to hire 10th standard dropouts with the right attitude and commitment.

They prefer hiring raw talent and then invest heavily in training, to mold them as per their requirement. Employees are just told once about the value system and policies at D-Mart and then are empowered by giving them the freedom to operate without somebody constantly looking over their shoulders. There is absolute clarity on what needs to be achieved, but you don’t need to fear targets.

This unique model of doing retail business in India made DMart what they are today.

After the IPO listing (as Avenue Supermarts Ltd.)
as of November 2019, DMart has 191 stores spread across more than 11 states with a business valuation of close to ₹1,14,000 Crore.

Their competitor Future Retail Ltd has more than 1500 stores across India with a valuation of close to 39,000 Crore.

Learning from the story
1. Build a Business around your customers ie client-centric business.
2. Take care of all stakeholders in Business, they are the ones who will ensure success for you.
3. Build a business with the mindset of Value Creation; there is a huge difference between Assets & Value of Business.

Questions to ask ourselves
1. How do I build a truly Client-Centric Business?
2. Who all are stakeholders in my business and how do I ensure, we all build the business together?
3. How do I build a Valuable business?

If you really want to build business-like DMart On AUTOPILOT & find answers to the above questions; here’s my personal invitation to our FREE seminar Business On Autopilot

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