Research by: Mahalakshmi Srinivasan, Dhruba Jyoti Sarkar, & Sandeep Puri
Abstract
In July 2024, Avenue Supermarts Limited (DMart), a leading Indian retail chain, maintained its stance against entering the ultra-fast delivery market. The company’s success had traditionally come from its competitive pricing and discount strategy rather than from convenience-focused rapid delivery services. This position was challenged when the chief executive officer of a competitor predicted that his quick-commerce company’s revenue would surpass that of DMart within 18–24 months. As the retail giant faced mounting pressure from quick-commerce players, it had to find ways to grow while staying true to its core value proposition of low prices. While DMart’s decision to avoid ultra-fast delivery might reflect its operational strengths, the company needed innovative approaches to meet evolving customer expectations. How could DMart adapt its successful physical retail model to thrive in the digital ecosystem while maintaining its competitive advantage in pricing?
Learning Objectives
This case can be used to explore the tactical and strategic aspects of potential moves a traditional grocery retailer might make in response to the quick-commerce trend while maintaining alignment with its business model. After working through the case and assignment questions, students will be able to do the following:
- Identify key drivers of demand and growth in the quick-commerce sector, and describe their impact on traditional retail.
- Understand and analyse customer expectations of traditional retailers like DMart and the factors influencing these expectations.
- Explain how enhancements in customer experience can provide a competitive advantage.
- Weigh the potential benefits and challenges for DMart of adopting a quick-commerce model, considering operational and strategic implications.
- Analyze competitive positioning and differentiation tactics that leverage DMart’s existing strengths and market presence.
To cite this case: Srinivasan, M., Sarkar, D. J., & Puri, S. (2025). DMart: Quick-commerce industry in India. Ivey ID: W41657. London, Canada: Ivey Publishing.
To access this case: https://www.iveypublishing.ca/s/product/dmart-quickcommerce-industry-in-india/01tOF0000074KiUYAU
