Indian Grocer’s No-Frills Strategy Keeps It Successful

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.