How to start Dmart Franchise 2022



Dmart- D Franchise opportunity

With a presence of 196 stores in 72 cities spread across 11 states, this supermarket chain has managed to become the 11th most valued Indian firm by market valuation, with the company’s market capitalisation standing at ₹ 1,58,902.37 crore on the BSE ( Business stock exchange ) and that’s how Dmart earned its name.

About Dmart

Dmart was established by Dr. Radhakishan Damani and family to address the basic and growing needs of the Indian family

Dmart is one stop supermarket chain which aims to offer the consumers with a wide range of basic personal and home products at the most competitive prices like :

Home utility products : food, toiletries, beauty products, garments, bed and bath linen, kitchenware etc

Facts about Dmart :

·       Founder                     :  Dr. Radhakishan Damani

·       Founded                    :  2000

·       Headquarters           :  Mumbai

·       Subsidiaries              :  Avenue Food plaza pvt ltd. , Avenue E-commerce ltd.

·       Revenue                    :  $ 2.7 billion (FY19)

·       Net income               :  $ 133.85 million (FY19)

   I.        Everything you need to know about Dmart :

A.                Unique selling point (USP) For Dmart Franchise :

The unique selling point of owning a Dmart franchise and the value you’d get from its business is because of the following reasons :

·       Firstly, it aims to meet the middle-class Indian consumer needs like no other supermarket chain I.e starting off with “everyday low prices, every day low cost strategy “

·       Secondly, because of its low costs followed by high demand, it’s inventory turnover is high helping them negotiate their costs while purchasing further bulk inventory

B. Business model of Dmart :

Every business model comes with 4 variants which defines its operations and business value. Incase of Dmart it is as follows:

a.    Value proposition: The value which which a Dmart franchise proposes is like discussed above :

·       If you own a Dmart franchise you won’t be spending on marketing strategy but on the sales through “everyday low cost” strategy of Dmart making operations easier

·       Secondly, high demand because of low cost is likely to increase your inventory turnover ratio, providing a consistent yet growing business.

b.   Target consumers : The consumers towards whom Dmart’s low cost deals could be targeted are as follows :

·       Budget savoury, middle class consumers

·       Low income consumers

·       Independently living, budget savoury with sophisticated tastes for brands- consumer

c.    Competitor review : The main competitors which could compete with Dmart in terms of attracting customers would be : Big bazar, Reliance fresh, Ratnadeep etc. Dmart stand as a leader when it comes to the sales part of business

d.   Marketing strategy : Dmart doesn’t believe in or has any marketing strategy. It lets the “word of mouth” do all of its promotions.

It offers everyday discounts and low costs for customers rather than spending on fancy, hunky dory marketing strategies.

C.                Benefits of starting a Dmart franchise :

The benefits which one could seek from starting a Dmart franchise is as follows :

      i.            Brand name : Dmart carries its name across 196 cities in India itself and is the 11th most valued Indian firm by the market valuation. Giving you all the reasons to become a part of its operations

   ii.            Easy management : Dmart comes with frequent and high inventory turnover ratio, helping you keep a track of the inventory by keeping up with the high demand of customers because of low costs

iii.            Easy operations : The ownership of a Dmart franchise wouldn’t involve you in any sort marketing strategies to keep up with because of its principles to divert the money in providing low costs and discounted deals to customers

iv.            Minimal requirements: Dmart doesn’t come with a load of paperwork or even as heavy investment. It also provides an easy return on investment

D.                What are the qualifications and requirements for a Dmart franchise :

1)   Requirements:

·       A space requirement of 1000 sq ft., a floor area requirement In a prime location within residential and commercial area

·       A staff requirement of 10 members with training in sales, customer management, IT etc

·       A skill requirement of entrepreneurship, customer satisfaction and management in the owner

2)   Qualifications

One can qualify as a franchise owner if they meet with the following requirements:

·       Standard franchise agreement

·       Lease agreement

·       Aadhar car, PAN Card and bank details

·       GST registration

·       Documents certifying the financial and entrepreneurship background status

E. Investment required to run a Dmart franchise :

1.  Investment ₹10lakhs-₹20lakhs
2.  Brand/franchise fee ₹25000

Assistance by Dmart :

·       Detailed operating guidelines manuals for operating franchise

·       Expert guidance from head office to franchise in starting a franchise

·       Installation of current IT systems and support in partnering and collaborating with brands.

F. Dmart franchise profits :

a.  Return on investment 40%
b. Payback period 2 years

An average Dmart store does

·       Sale of : ₹ 21.4 lakhs per day

·       Profits : ₹ 1.7 lakhs per day

G.                How to apply for a Dmart franchise

One can apply for a Dmart franchise in the following ways :

·       Either by visiting the official website of Dmart and leaving your contact details along with your query to acquire a Dmart franchise

·       Or by emailing the Dmart on their official email address, or contacting them on their customer care number and presenting your quests for the same.

II.        Suggestions:

Having second thoughts about whether or not to take up this franchise. Let’s fact check :

·       Firstly, Dmart has also been seen expanding it global presence in markets like Amsterdam, New Jersey and San Francisco so you might want to have a part of this expansion

·       Secondly, Dmart deals in Indian consumer’s consumption demand and your supermarket will be a one stop for all of their needs which will remain unaffected by any economic or political instability.

·       Lastly, requires minimal investment, enough profits, easy management giving you more than just reasons to get your hands on this franchise.

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