V-Mart: Fashioning Rural India

One of the early entrants in the country’s value-retail space, V-Mart is today a 448-store strong chain with its presence across India

New Delhi: Value retail chain V-Mart was launched in 2003, long before the term value retail became fashionable. The chain was founded by Lalit Agarwal to bridge the gap between urban and rural retail by providing fashionable and quality products at reasonable prices. The brand’s journey started with a debut store in Ahmedabad and extended store by store mainly in smaller towns and cities with less prevalent organised retail. As on 30 June, V-Mart had 448 stores, operating on a value retail model and emphasising affordability without compromising on quality. The stores are designed to be one-stop destinations, offering a wide range of apparel, footwear, home and personal care products.  

V-Mart plans to open 50 more stores by the end of December 2024 to reach more customers and bring the value-driven retail experience to new markets across the country.

Pricing strategy

Typically, V-Mart’s products are priced in the range of Rs 299 and above. Negotiating with suppliers and optimising supply chain costs is how V-Mart can offer products at affordable prices. 

“Our pricing strategy balances diverse tastes, streamlined options, and affordability for a refined shopping experience. We ensure value for the customers through market research, data analysis, and competition surveys,” said Vineet Jain, chief operating officer, V-Mart Retail Ltd.

Revenue & Profit 

In the first quarter of the financial year (FY)—Q1FY25—V-Mart’s revenue grew 17% to Rs 774 crore, as compared to Rs 661 crore in the same quarter last year (Q1FY24). V-Mart’s profit comes from efficient supply chain management, strategic pricing, and volume sales. 

“Our customer-centric approach and continuous innovation also gives us a competitive edge,” points out Jain. 

Customer Connect

The ‘Planogram to Instagram’ initiative by V-Mart, integrates the social media with their in-store experience. Customers discover products on Instagram and see the same themed displays in the stores, ensuring a seamless and engaging shopping journey. 

“Additionally, we focus on last-mile delivery to enhance convenience and satisfaction,” points Jain. 

“We collect customer feedback through net promoter score (NPS), Google reviews, SMS, emails, social media, and periodic surveys. Our customer relationship management (CRM) team reviews and acts on the feedback within 24 hours. Major feedback themes are discussed in our weekly business review meetings with all stakeholders, leading to long-term improvements,” explained Jain. 

Tech Innovations 

V-Mart has used technology to digitise the shopping journey from discovery to retention. The brand fosters customer loyalty through personalised engagement based on purchase history and demographics.

V-Mart has implemented geo-fencing for regional manager store visits and store manager daily store walks, to capture real-time creator details. It is also upgrading store layouts for better navigation and ambiance, introducing open facades, and enhancing the customer loyalty program. 

Additionally, training is provided through a digital L & D platform, which helps trainees to understand the product and processes. 

“We connect with customers on Instagram and Facebook, offering “One Click” Mobile App assistance for finding the right size and colour. Our services include on-door delivery, digital invoicing, and NPS feedback collection. Personalised follow-ups post-purchase ensure a seamless and satisfying experience. We connect with customers on important events like birthdays, anniversaries, and festivals, offering tailored made products and special deals,” said Jain.  

Furthermore, V-Mart forges form long-term partnerships with reliable suppliers, helping them improve processes and embrace new technologies to maintain quality while keeping prices low.

Future Trends & Preparations 

Going by the rise in digital integration, personalised shopping, and sustainability, V-Mart is investing in digital technologies, boosting e-commerce, and implementing sustainable practices. 

“We’re also enhancing personalised marketing and re-engineering our online business model to increase digital sales to 10% while maintaining profitability. Our supply chain has become more agile and scalable. Inbound automation has reduced receiving times from 1.5 days to hours, and new warehouse infrastructure is ready to support operations for the next five years,” explained Jain.

The Challenges 

The constant shift towards online shopping is one of the ongoing apprehensions V-Mart has been facing. 

“We are expanding our online presence with “One Click” App and Limeroad platforms to serve more online shoppers. Additionally, we are adopting sustainable practices in sourcing, packaging, and operations to meet the rising demand for eco-friendly products,” concluded Jain. 

Did you know?

V-Mart was originally established as Varin Commercial Private Ltd. in West Bengal, India as per media reports.