DMart’s Secret Sauce: A 43% Discount

Avenue Supermarts’ DMart chain has quietly amassed a portfolio of over 30 private label brands, now accounting for 20-25% of its total sales. The key differentiator? These products are priced, on average, 43% lower than their national brand counterparts, Bernstein analysts quipped on Tuesday.

Indian retailers, including DMart, Reliance Retail, and Tata’s Trent, are embracing private labels at a pace that outstrips their Western counterparts, often within years rather than decades of inception.

This accelerated adoption stems from India’s unique retail landscape, characterized by a fragmented consumer goods market and the absence of deeply entrenched national brands.

The strategy allows these retailers to offer products at significantly lower prices – DMart’s private labels, for instance, are 43% cheaper on average than national brand equivalents – catering to a highly price-sensitive consumer base. By controlling product development, pricing, and promotion, retailers can maintain higher margins while reinforcing their value proposition.