We use our own and third-party cookies to optimize your experience on this site, including to maintain user sessions. Without these cookies our site will not function well. If you continue browsing our site we take that to mean that you understand and accept how we use the cookies. If you wish to decline our cookies we will redirect you to Google.
Already have an account? Sign in.

 Remember Me | Forgot Your Password?

Indian Grocer’s No-Frills Strategy Keeps It Successful

February 18, 2016: 12:00 AM EST
Indian supermarket chain D-Mart – the third largest in the country – has turned a profit every year for 15 years while larger domestic competitors have struggled, and foreign companies – Walmart, Carrefour, Metro AG – have all lost money consistently. The secret, apparently, is shrewd simplicity. D-Mart doesn’t spend a nickel on the marketing technology that other retailers are so in love with, i.e., data analytics, loyalty programs, e-commerce, social media advertising, etc. It offers customers a limited range of products, so it negotiates favorable prices with suppliers. It sells groceries and cheap household items at prices well below the maximum retail price (MRP) mandated by Indian law. Customers come to buy the lower-margin foods, but end up buying higher-margin items as well.
Adi Narayan et al., "Giving Shoppers Less Means Big Bucks for Indian Retailer", Bloomberg Business, February 18, 2016, © Bloomberg L.P.
Market News
Companies, Organizations
Marketing & Advertising
Developed by Yuri Ingultsov Software Lab.