Dmart - India's Own Walmart

Today history was created at Dalal Street when Avenue Supermarts listed on exchange. It listed at a premium of more than 100 %. Market was frenzy over the IPO listing and many of the investors did not get allocated any share because of the over subscription of more than 100 times. Why the market is so much crazy over D mart? In a market where many a supermarkets are not able to find the right combination, where many of them started and closed or are thinking of shutdown, D mart is the one who has been growing and posting profits in a market where others are bleeding. D mart was able to crack the model and has been favorite of customers. It is said that there is an unwritten rule 'Not to place a Supermarket in an radius of 1.5 km of D mart'. 

D mart has placed its complete focus on savings. From customer point of view, even a MNC branded product will be available at  approximately 2 % discount. You do not have to worry about the prices here. They work with different smaller vendors which helps them to get better product and better pricing. Vendors are very happy with the payment policy and the volumes that they get from D Mart. Further, the bigger the packages that people buy, the bigger are the discounts if we consider per unit. People do compare that and buy more and more thus driving consumption. This way D mart is just not helping themselves but towards consumption story also. Unlike others who try to keep the negotiated and discounted rates to themselves and add to their contribution, D mart is smart enough to pass on them to their customers. Thus, the customers are sure that when they buy at D mart, they are getting the best deal available in the market. All these things, ensure their revenue end. They do not need any marketing as the word of mouth and the experience of customers ensures repeat visits. Customer experience and needs are the center spot of its strategy. All else takes a backseat. 

It is no surprise then that D mart has driven investors into frenzy to get smallest bite of its share. And it did disappoint many as many of them did not get the allotment of shares. Cheers to D mart and its business model.