Little scuttlebutt about Dmart –
Last 3 days, I spent in Jaipur and met various bedsheet manufacturers for my own business (I am in apparel / Clothing / Handloom business)
Out of these, 3 were supplying directly to Dmart, Vmart, Reliance Retail and many other chain stores. One has big online presence as well.
When we spoke about Dmart, they were all irritated. They said Dmart is selling very cheap, mark-up of 15 to 17% only.
This has lead to complaint from other trade channel (wholesale).
But they said they have no option than supplying to Dmart because if they don’t, someone else will.
This is because Dmart is paying them within a week of raising invoice and thus everyone want to work with them.
They mentioned, Reliance is working on heavy margin (>35%) and usually pays within 45 days of raising invoice.
They also said Dmart focus is not as good as before (lot of new members were bought in because stores are opening rapidly) but they still got industry’s best process and there is a very good chance that they will continue to grow for years to come.
They also emphasized that Dmart is willing to try a lot of new things and they are not afraid of loss.
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