Buying finished goods from manufacturers and then selling them to users is called retail business. The goods sold through a retail business have a higher cost in comparison to goods sold through a wholesale business.
In India, retail business contributes 12% of the GDP and is the third-largest revenue generator
To start a retail business in India, there are certain policies to be followed. The purpose of this blog is to help aspiring entrepreneurs in establishing a retail business in India. The blog aims to give an insight into practical steps and strategies required to navigate through the Indian Retail Market so that ventures can launch successfully and have sustainable growth.
Steps to Start a Retail Business in India
Perform detailed market research, identify the consumer needs, competition, and target, and lay down an informative business strategy.
Plan the business outlining the vision, mission, structure of operations, marketing strategies, and financial projections.
Register the business and plan out timelines to obtain the required licenses and permissions.
Find a location if it is of brick and mortar type or decide on a platform to operate if it is an online business.
Implement result-oriented marketing strategies to reach out to consumers.
Retail Market Size Across India From 2011 to 2020, With Estimates Until 2026
Types of Retail Business
The retail business industry in India comprises a variety of business models considering the varied preferences of Indian buyers. They are mainly divided into 4 types which are detailed below:
Brick and Mortar Stores
These include traditional stores such as family-owned retail/kirana stores which sell groceries or a supermarket which sells multiple goods. It can also include a garment store, a jewelry store, and an electronic gadget store to name a few, which can be considered as specialty stores based on the consumer needs.
Ecommerce Platforms
Ecommerce platforms that sell online have gained considerable popularity in India in recent times, especially after COVID-19. Starting from essentials such as daily needs to automobiles, one can shop from the ease of their home through such eCcommerce platforms which are booming with attractive offers for consumers who buy on a retail scale. Also, a few websites supply directly to customers without any retail middlemen but at retail prices to mark their presence in the market.
Franchise Opportunities
The franchise market in India is evolving rapidly. It includes a variety of sectors such as education, food, and retail. With the growth in the economy, the franchising demand has increased which has in turn attracted a lot of global and domestic investors in the retail industry. Franchise models can be easy as they have all the prerequisites, one has to just invest and start doing good business.
A creative approach in retail selling is the mobile stores and pop-up shops. Unlike traditional stores, these businesses allow the engagement of consumers in a flexible and dynamic environment. This includes making use of temporary setups or vehicles which can be easily moved from one place to another. For example, a food truck which can be taken to any place depending on consumer demand. This helps brands reach out to a wide range of consumers.
Advantages of Starting A Retail Business In India
Expanding consumer market
Improvement in disposable income
Government programs to promote entrepreneurship
Choice of market niches and product selection range
Potential to incorporate new technologies
Registrations Required for a Retail Business
Retail business in India needs licensing and registration. This is also to procure permission from the concerned departments to run the business under the rules and regulations stipulated by the government under the Consumer Act. Hence one should understand the requisites to start a retail business. Below are a few pointers to go through for registration:
Registration options for the chosen business structure
To start an online retail business one has to understand the cyber protocols and plan accordingly. Below are a few pointers for online businesses:
Building an eCommerce website
Selecting a proper platform
Digital marketing plans
Customer engagement post-purchase in the online setup
Logistics to ship the goods purchased
With the above details, we can understand that India is one of the best places for retail businesses. Also, the retail business comes with some paperwork and an understanding of the system. Hence if a business person can get a hang of all these then retail business is a profitable business in India.
Advantages of Starting a Retail Business in India
Starting a retail business in India can be a great idea because the market is very large and growing fast. Here are some simple reasons why opening a retail shop or store in India is a good opportunity:
Talk directly to Customers: This helps you understand what people want to buy in the future and plan your business better.
Grow without Moving: You can add more customers easily without changing your store’s location.
Sell many types of Products: Retailers can offer a wide variety of items, unlike wholesalers or factories.
Lower Costs: Retailers don’t need to store a lot of stock, and they avoid paying commissions to middlemen.
Fast Growth: Because they give customers more choices, retail businesses can grow quickly.
Make your own Products: Retailers can also start making their own goods, which lowers costs and gives better control over quality and pricing.
Stronger influence on the Market: Retail shops help promote products and increase competition in the industry.
Buying finished goods from manufacturers and then selling them to users is called retail business. The goods sold through a retail business have a higher cost in comparison to goods sold through a wholesale business.
How to start retail business in India?
To start a retail business in India, first decide what products you want to sell. Choose a good location with high customer traffic. Register your business by getting a GST number, trade license, and shop act license. Arrange money through savings or a loan. Find trusted suppliers for your products and set up your shop with shelves and stock. Hire staff if needed. Promote your store using local ads and social media. Once ready, start selling and focus on customer service to grow your business.
What are the types of retail business?
The various types of retail businesses include brick-and-mortar stores, eCommerce platforms, franchise stores, and Mobile Retail and Pop-Up Shops.
Which are the best retail business in India?
Grocery stores, clothing shops, and mobile/electronics outlets are among the best retail businesses in India. They have high demand, regular customers, and good profit potential.
Which are the best profitable retail business in India?
Some of the most profitable retail businesses in India include grocery stores, mobile and electronics shops, clothing and fashion outlets, pharmacy stores, and cosmetic or beauty product shops. These have high demand, fast-moving products, and good profit margins, making them great options for new business owners.
Which are the licenses required to open a retail store in India?
To open a retail store in India, you need a Shop and Establishment License, GST registration, and a Trade License. Depending on your products, you may also need a FSSAI license (for food) or a Drug License (for medicines).
What are the steps to register a retail business in India?
The steps to register the retail business in India are as follows:
The retail industry in India is rapidly growing due to the emergence of new retailers. In fact, it accounts for 10% of the country’s GDP and 8% of its employment. India is also among the top 5 global retail markets in terms of economic value and is considered one of the fastest-growing retail markets in the world.
As people require commodities on a daily basis, there is a constant need for retail stores, making it one of the most profitable businesses in India with low to moderate investments. Small or medium-sized retail stores have a high profit margin, making them an ideal choice for entrepreneurs with limited capital.
In this blog, we will explore some of the best retail business ideas that can be implemented in India. Whether you are looking for low-investment business or high-investment business ideas, this blog will provide you with valuable insights that will help you make informed decisions about your business.
So, if you are ready to explore the ideas for the best retail business in India, let’s get started!
A retail business is when a business sells a product or a service to the consumer for his/her use. A retailer sells the product higher price than the wholesaler. Retail businesses can be considered as grocery convenience stores. Service-related businesses such as beauty salons and rental places are also considered retail businesses.
Types of Top Retail Business in India
The retail business is one of the most profitable industries in India, with a vast range of opportunities for entrepreneurs. Here are the types of retail businesses in India:
1. Low Investment Business: Low investment businesses typically require a smaller amount of capital to start and run, with costs of a few thousand. Examples of low-investment businesses include selling tea, opening a small grocery or fruit store, or starting a stationery or book store.
2. Medium Investment Business: Medium investment businesses require a moderate amount of capital to start and run, with costs ranging from thousands to a few lakhs (Indian currency). Examples of medium investment businesses include opening a medical store, starting a beauty salon or spa, or opening a cake shop.
3. High Investment Business: High investment businesses require a significant amount of capital to start and run, with costs in lakhs. Examples of high-investment businesses include starting an ice cream parlor, opening a vehicle showroom, or starting a large chain of restaurants or supermarkets.
How to Start Retail Business?
Step-by-Step Guide to Start a Retail Business
Step-by-Step Guide to Start a Retail Business
Choose Your Niche: Decide what kind of retail business you want to start. Think about what you enjoy, what you’re good at, and what people need in your area.
Do Market Research: Learn about your customers, what they like, who your competitors are, and what’s trending. Find out what’s missing in the market and how you can offer something better or different.
Make a Business Plan: Write down your business goals, who you will sell to, how you will advertise, how much money you need, and how your shop will run.
Arrange Money: Figure out how much money you need to start. Use your savings or look for help from banks, family, or investors.
Get Licenses and Permits: Check the rules for running a business in your area and apply for the required licenses and permissions.
Choose a Good Location (if needed): Pick a place that’s easy for customers to reach and has lots of people walking by.
Buy Products or Set Up Services: Find trusted suppliers who offer good prices. Make sure your products are always available and of good quality.
Set Up Your Shop or Website: Design your shop in a way that looks nice and is easy to move around. If selling online, make your website easy to use.
Promote Your Business: Use social media, local ads, and online platforms to tell people about your business and attract customers.
Give Great Customer Service: Treat customers well, help them when needed, and try to make them happy so they come back and tell others about your shop.
India’s vast population necessitates a grocery store in every locality. Basic household supplies, such as soaps, spices, and food items, are essential for every household, and the grocery store is the go-to place for these items. As a result, starting a Kirana Store is a low-investment, highly profitable retail business idea in India.
Total Retail Sales Worldwide
It is important to get the items you want to sell in bulk from the wholesaler at a lower price. This will help you price the product at a competitive price.
Stationery and Books Store – Best Retail Business Ideas in India
Opening stationery and bookstores is a lucrative and accessible retail business idea that requires minimal specialized knowledge. The store can offer a range of products, including storybooks, DVDs, school books, and stationery items, making it a one-stop shop for all students’ educational needs.
To differentiate your store from competitors, consider offering unique and educational gadgets or toys that are not commonly found in other stores. This will increase the store’s appeal to both children and parents, leading to increased foot traffic and sales.
Overall, opening a stationery and bookstore is one of the excellent retail and top business ideas in India that can make a significant contribution to the educational development of students in the community.
Opening a fruit store is a profitable and viable retail business idea in India. With an increasing focus on healthy eating and the rise of wellness trends, the demand for fresh fruits has been steadily increasing in the country. A fruit store can cater to this demand by offering a wide variety of fresh and high-quality fruits to customers.
The advantage of this business is that you do not require any specialized knowledge. India has the largest agricultural market in India and fruits are a primary product. If you decide to sell fruits, then you need to shortlist the category of fruits based on supplies.
A flower shop is an incredibly profitable and best business idea when established well. Establishing partnerships with hotels and offices is a lucrative opportunity since these businesses require daily floral arrangements. By partnering with them, profit margins can increase to 80%. Additionally, offering artificial flowers and gifts can provide additional revenue streams, making it the most profitable business in India.
By selling bouquets with unique styles or taking orders for party decor and weddings, a flower shop can expand its offerings and attract more customers. Offering personalized services such as flower delivery or subscription services can also increase customer loyalty and profitability.
If you have a talent for tailoring and creating perfectly fitting outfits, starting a tailoring business can be a great opportunity for you. The business can be set up from home, making it a low-capital investment option. Offering a range of services such as alterations, repairs, and custom-made clothing can attract a diverse customer base. With the right skills, customer service, and innovation, the business can thrive and grow in the competitive market.
6. Tea Stall
Business Name
Tea Stall
Business Type
Low Investment Retail Business
Investment Cost
INR 15,000
Profit Margin
30%
A tea stall is a low-investment business idea that can yield high profits. As tea is a beloved beverage in India, setting up a stall outside colleges or offices can attract a steady stream of customers. To increase profits, consider partnering with offices to provide daily tea deliveries. This can be a reliable source of income and establish long-term partnerships with businesses, making it the best business in India.
With the right location, menu, and atmosphere, the tea business can thrive and grow in the competitive market.
Agriculture is a crucial sector in the Indian economy, and there is a growing demand for high-quality seeds among farmers. By focusing on offering quality seeds, a seed-selling business can attract a loyal customer base.
If you live in or near an agricultural area or village, this presents an excellent opportunity to start a seed-selling business. Establishing partnerships with local farmers and agricultural organizations can increase visibility and lead to more sales.
Xerox and printing shops are always popular. Even if there are many in an area, they still get steady customers. Adding services like binding and lamination can help grow the business.
The investment is low. You just need a good printer, Xerox machine, and other basic equipment. Promoting your shop’s location is important to attract customers.
You also don’t need a big space, which keeps the setup cost low. If you want a small business in India with low investment, this is one of the best business ideas.
Medium-Investment Retail Businesses in India
S. No.
Business Idea
Investment Level
Target Customers
1
Medical Store
Medium
Patients, general public
2
Saree Shop
Medium
Women, wedding shoppers
3
Gift Shop
Medium
Teenagers, tourists, event-goers
4
Cosmetics Store
Medium
Women, makeup lovers, salons
5
Cake Shop
Medium
Families, event planners
6
Perfume Shop
Medium
Women, gift buyers
7
Sweets and Snacks Store
Medium
Local residents, festival shoppers
8
Sports Equipment Store
Medium
Athletes, sports enthusiasts
1. Medical Store
Business Name
Medical Store
Business Type
Medium Investment Retail Business
Investment Cost
INR 3-4 Lacs
Profit Margin
20-25%
Medical Shop – Best Shop Ideas in India
There’s no doubt that the medicine store is the best shop for business and the most profitable retail business. People often require medicines during an emergency or illness. A medical store owner can earn a profit of up to 60,000-80,000 by investing 3-4 lacs in medicines. If managed properly, medical stores can earn huge profits right away.
However, it also depends on the kind of drugs sold by the medical store on how much profit it can earn. On average, the pharmacy shop owner earns up to 20-25% on daily sales.
2. Saree Shop
Business Name
Saree Shop
Business Type
Medium Investment Retail Business
Investment Cost
INR 20,000
Profit Margin
40%
Sarees are a popular retail business in India and are worn by people from all segments of society. If you are interested in starting a saree business, it is essential to research the market and understand the latest trends. Visiting local shops and observing the demand for different types of sarees can provide valuable insights.
One of the best business ideas in India is to venture into the saree market, capitalizing on the popularity of Banarasi sarees and other sought-after varieties. However, it’s crucial to decide on the type of sarees you want to sell based on your target audience and the local market demand. Having a Saree business is one of the most successful small business ideas in India.
By providing quality products and exceptional customer service, the business can establish a loyal customer base and grow in the competitive market.
Opening a gift shop in India can be a lucrative business opportunity, but it requires careful planning and execution. The profit margin in running a gift shop is relatively thin, so there is little room for error. Therefore, it is crucial to conduct thorough research and plan out the business model before investing in the best shop business ideas in India.
A gift shop typically sells a variety of personal and corporate gift items. You can differentiate your shop by offering unique and personalized gift items that are not easily found in other stores. Additionally, offering gift cards can be an effective way to increase sales and attract more customers. It can be one of the most profitable small shop business ideas.
To succeed in the gift shop business, it is essential to understand your target audience and their preferences. This can be achieved by conducting market research and analyzing the demand for various gift items in your locality.
The cosmetic industry in India is rapidly growing, and there is an increasing demand for beauty and personal care products, not just among women but also among men. If you have a passion for cosmetics and an understanding of market trends, starting a cosmetic business can be a profitable venture and a high margin retail business with the right approach, research, and execution.
By offering high-quality products, understanding the market demand, utilizing online marketing strategies, and providing excellent customer service, you can establish a successful cosmetic business in India.
The cake shop industry in India is rapidly growing and becoming a high-margin business. With the rise in demand for cakes and baked goods, many entrepreneurs are starting their own manufacturing units to cater to the domestic market.
Apart from providing high-quality cakes, proper packaging and marketing are crucial to boost sales. It can be one of the best shop business ideas. It is also important to maintain high standards of hygiene and quality control to ensure customer satisfaction and establish credibility in the industry.
The perfume industry is constantly evolving, and many people use it as a way to express their individuality. Starting a perfume business requires a moderate capital investment, but it can also be one of the best startup ideas in India, as it can be done from home with minimal investment. To succeed in this business, it is important to research and stock a variety of popular and unique fragrances that cater to different preferences and occasions. Effective marketing and packaging can also help boost your sales and establish your brand in the market. Opening a perfume store can be one of the most profitable shop business ideas in India.
A sweets and snacks shop is one of the most profitable shop business in India that can be started with a relatively low investment. Sweets can be produced in bulk quantities, allowing you to price them reasonably, as there is no fixed rate for these products. Additionally, you can also sell snacks and other related items to increase your profit margins. To succeed in this business, it is important to maintain the quality and taste of your products, as well as to keep up with the latest trends and preferences of your target market.
The demand for sports equipment is always there. Professionals, kids, local sports clubs, schools, and similar groups often need quality gear. Many also look for retailers who can handle bulk orders.
Starting a sports equipment store is easy if you know about different sports, the latest trends, and good brands, and can give useful advice.
This business needs moderate investment and can begin with a small shop. Expanding is simple if you also add an online store.
9. Travel Agency
Business Name
Travel Agency
Business Type
Medium Investment Retail Business
Investment Cost
INR 5 lakh to 10 lakhs
Profit Margin
10-20%
To start a travel agency or become a tour operator, you need key certifications and a well-located office. A successful travel agent ensures hassle-free travel for customers. Having good knowledge of itineraries, sightseeing, flight fares, and hotel rates is essential.
A coffee shop is one of the most popular and profitable retail businesses in India, but it requires a significant investment. Running a coffee shop can be challenging, as you need to maintain a positive cash flow and generate high sales to keep the business going. The success of your coffee shop also depends on the location you choose, as it should be easily accessible and in a high-traffic area. However, with the right strategy and execution, a coffee shop can yield high profits and establish a loyal customer base.
Ice cream is a popular dessert loved by people of all ages, making it a profitable retail business in India. Starting your own brand can be challenging, but you can consider opening a franchise for established and reputable brands. It is a high-margin business, and you can earn good profits with the right location and marketing strategies. It falls under the top 10 retail business in India.
The fast food industry in India is highly popular, and opening a fast food restaurant is one of the most profitable business ideas in the country. If you plan to open a fast food restaurant, it’s essential to conduct market research to understand the workings of different restaurants, their management, investments, and profit margins. You can also consider offering unique and innovative food items to stand out from the competition and attract more customers. A well-managed fast-food restaurant can yield high profits in India and is one of the big business ideasin India.
The automobile industry in India is growing rapidly, with an increase in the number of vehicles on the roads. Owning a car wash business can be a lucrative opportunity, but it requires proper planning and significant upfront investments. You need to identify the right location for your car wash, as well as purchase the necessary equipment and hire staff to provide quality services. With the right strategy and marketing, the car wash business can be a profitable retail business in India.
The motorcycle market in India is experiencing double-digit growth in sales, making it a promising industry for entrepreneurs. Setting up a two-wheeler dealership can be a lucrative business opportunity, but it requires careful planning and significant upfront investment. To succeed in this business, you need to have a solid understanding of the industry and the business model.
A salon business is a great retail business idea for women entrepreneurs who have the right skills and knowledge in the beauty industry. With the option to operate from home, starting a salon business requires less capital investment. However, it is important to ensure that you have the necessary equipment and tools to provide quality services to your clients. Research the market to understand the latest trends in beauty and grooming services to offer a unique experience to your customers.
The Food Restaurant – Best Retail Business in India
Opening a food restaurant is one of the most profitable retail businesses in India, but it requires careful planning and a significant capital investment upfront. Before starting the business, it’s important to conduct a market survey to understand the competition and determine the best location for your restaurant. It’s also essential to develop a well-curated menu and pricing strategy to attract customers and maximize profits. With the right strategy and execution, a food restaurant can be a highly successful and one of the most profitable retail business in India.
8. Photo Studio
Business Name
Photo Studio
Business Type
High Investment Retail Business
Investment Cost
INR 5 lakh to 10 lakhs
Profit Margin
50%
Even though many people have DSLRs or digital cameras at home, professional photos still need special skills and equipment. Some shop ideas for starting a photo studio, offering services like school ID photos, passport photos for various forms, portfolios, events, and wedding photoshoots, and freelance photography for newspapers and journals. It is a trending business in India as the demand for various photoshoots is always in the market.
If you are good at photography and have a good camera, starting a photo studio can be a good retail business idea. This business can do well in many places, but competition is high, so picking the right location is key.
There are numerous profitable retail business opportunities in India for aspiring entrepreneurs. These range from traditional businesses such as saree shops and sweets stores to modern concepts like coffee shops and fast food restaurants. However, it is important to conduct thorough market research and planning before starting any business, as the success of a retail business largely depends on factors such as location, competition, and pricing. With the right knowledge, capital investment, and hard work, entrepreneurs in India can thrive in the retail industry and achieve financial success. There will be pitfalls in the business, but remember, great things take time.
FAQs
Is Retail Business Profitable?
Yes, retail business in India is profitable not only in metropolitan cities but also in small towns.
Which shop is best for business?
The “Shopify” platform offers comprehensive e-commerce solutions with customizable features and extensive customer support, making it an excellent choice for businesses looking to establish an online presence.
Which shop is most profitable in India?
It’s difficult to pinpoint a single “most profitable” shop in India as profitability varies widely across industries and businesses. However, businesses in the technology sector, particularly those involved in software development, e-commerce, or mobile applications, tend to have high-profit potential due to India’s growing digital economy and tech-savvy consumer base.
Which retail business is most profitable in India?
Some of the top retail businesses in India include Reliance Retail, Tata Group’s Trent, Future Group, Avenue Supermarts (DMart), Aditya Birla Retail, and Spencer’s Retail. These companies have established a strong presence across various sectors like grocery, fashion, electronics, and more.
What is considered as retail business?
Retail businesses can include grocery, drug, department, and convenience stores. Service-related businesses such as beauty salons and rental places are also considered retail businesses.
Are retailers in India covered under MSME?
No, wholesale and retail trade will not be categorized as MSME.
How to start a retail business in India?
Here are some easy steps to start a retail business in India:
Generate an idea and retail business plan
Choose a name for your retail business
Cover your legal basics
Find the right location for your retail business
Create a personalized experience
Build vendor relationships
Explore marketing opportunities for your retail business
Plan for a grand opening
Which is the best business to start?
Some of the best businesses to start are:
Consulting
E-commerce
Food delivery
Writing
Web designing and development
Digital Marketing
Online dating
Courier
Blogging
Youtube
Graphic Designing
Cooking
Handicraft
Which business is most profitable in India?
The most profitable businesses in India include pharmacy, cloud kitchen, real estate, mobile accessories, and digital marketing services, due to high demand and good margins.
In an era where everybody seems to become a successful entrepreneur, it is the aptness of a business model that makes all the difference. The company should be able to realise the nature of their target customer to make the best out of the situation.
Today the retail business is a very popular form of business among consumers. Here the company sell goods and services at a very low price through large distribution channels. In this form of business, a prompt understanding of the nature of customers is the most important.
DMart is one such important player in the retail industry which has successfully garnered a top position despite being a latecomer. There is absolutely no doubt that it is the unique business model of DMart that helped it to have an excellent debut in the industry.
DMart is a supermarket chain that is spread across 12 states in India. It is owned by Avenue supermarkets and was founded by Radhakishan Damani who is one of the most famous and successful value investors of the country, in the year 2000. It started with two stores in Maharashtra and is now a large chain of 176 stores that are spread across 12 states in India as of 2020.
In the year 2017, the company went public with an IPO of Rs 1870 crore. DMart got listed at the price of Rs.632 and as of 15 July 2021 its average trade price is Rs.3316. The shares of the company have grown more than 60% in just four years.
It is the sheer understanding of RK Damani about the market condition, the nature of the customers and the ability to have a very cordial relationship with the vendors that helped him and his company to get to the place that it is in now. He was successfully able to maintain a healthy attitude amongst the investors by adopting a very strong business model that ensured a healthy Return on Equity.
Revenue of DMart across India
What makes DMart unique?
As mentioned earlier the uniqueness of DMart’s business model has helped the company flourish phenomenally to become one of the most profitable supermarket chains in the whole of India.
Business to Consumer Model
Those who have gone to DMart will be aware of the extremely low price of the products available. This is because of the business to consumer model that it has adopted. Here as the name suggests, Products are directly taken from the producers or the manufacturers and given to the end-user.
Another reason why this method is successful is because of the nature of these goods. Most of them are things that we need on a day to day basis and hence the demand is consistent. It gives a lot of stability to the business as a whole.
Cost Involvement and Utilisation
It is well-known that any company will have to incur certain expenses for the smooth conduct of businesses. These include the cost of the location, salaries of the employees, expenses related to maintenance et cetera.
DMart has efficiently crafted its business model in such a way that it finds opportunity in these expenses as well. Most of its stores are built on their own land which reduces their expense of rent and leases immediately. The rents being one of the highest costs for any retailer, its ability to open stores on their own land saves the firm from that obligation.
There are absolutely no middlemen in the business of DMart. It ensures that they get the product for the best price and is directly given to the end-user which further helps them save a lot of money given as commission to these middlemen.
Unlike most of the retail stores, DMart pays their suppliers within just 10 days instead of the usual 60 days. This not only makes DMart a special customer to the suppliers but also gives it more power for negotiation.
Apart from that most of the employees are hired on contract. They are constantly trained for skill development and multitasking which saves the cost for DMart with regard to additional employment. This training ensures that the stores can be run smoothly with the existing number of employees.
An efficient relationship with suppliers is a very important part of the retail business and RK Damani has aced this task too well. Due to his excellent relations with the vendors and suppliers since the beginning of the business, he is able to maintain an extremely efficient supply chain that helps him constantly restock their inventory on time.
Knowing the Customer
One of the most successful marketing strategies of DMart is its discounts and customers. There is absolutely no doubt that DMart thrives through word of mouth marketing. It is its best advertisement. Their discounts are ever-increasing and endless. Along with that, they have an inexhaustible availability of products which makes them a favourite choice among the middle class.
The strategies of DMart is close-knitted with the innate nature of a common Indian who always looks out for the best price and is ready for a good bargain. RK Damani knowing the pulse of the customers successfully curated DMart’s business strategy in a way that suits both the customer and his business.
Despite all the discounts and low prices, DMart continues to earn profits of more than 9 billion per year. They have never incurred losses in any of their stores since its inception 20 years ago. This is mainly because RK Damani and his team believe in moving slow.
Unlike other competitors in the industry like Reliance retail whose expansion rate is over 714 stores every year, DMart opens less than 10 stores every year. They focus more on value retailing. Although the expansion of the stores in terms of number might look slow, there is no doubt about the survivability of the business in the long run.
With their very focused vision and a carefully curated network of supply chain and engagement, there is absolutely no doubt that DMart will continue to flourish in the market in the coming years as well. The success of DMart is an example of the fact that being lean in business can also help you be successful and survive even in the harshest of market environments.
FAQ
What is the revenue of DMart?
The revenue of DMart is 24,930 crores INR as of 2020.
Who is the founder of DMart
DMart was founded by Radhakishan Damani in 2002.
Is DMart an Indian company?
Yes, DMart is an Indian company founded by Radhakishan Damani and is owned by Avenue supermarkets.
Apoorva Bajj
