Dali is a leading grocery store known for its cheap products that made its name known in the Philippine market with its rapid expansion despite competing with other big stores, such as SM Savemore and Robinsons Supermarket.
Capitalizing on the growing demand for high-quality yet affordable items, Dali has quickly established a strong presence across cities, offering a wide range of products.
Prioritizing Affordability and Accessibility
Dali's hard discount strategy provides low-cost goods by reducing operational expenses and emphasizing needs over expensive items. On their website, Dali stated they aim to improve the daily lives of Southeast Asian Families by providing good quality products at the lowest price possible to contain food inflation.
They strategically open enterprises in rural and economically disadvantaged urban communities, focusing on regions that major retailers ignore. This way, they target families that prioritize needs rather than wants and luxurious expenses.
According to a report from Business World, Dali relies on direct partnerships with suppliers to save costs and pass on savings to customers. These suppliers include Kopi Juan, Kingrox, and Pinoy Cola.
In a 2023 study by the Philippine Retail Association, Dali raises the standard of living among people with limited resources by making necessities cheaper.
Dali vs Big Shopping Stores
Dali has expanded rapidly, building over 600 outlets since 2020, contrary to the slow pace of expansion of giant retail chains such as SM and Puregold. The emphasis on the hard discount strategy provides it an edge in a mostly untouched market niche.
In a 2024 forum, Westrick, director of strategic supply chain and ESG officer at Hard Discount Philippines Inc., said, “You are inventing new products, you are branding the products, you are creating labels. This is our own brand.”
From the findings of their in-house branding strategy, Dali promotes in-house brands, which have lower prices and larger margins than branded goods found in typical supermarkets, switching brand names like Fudgee Bar (Known version) and Choco Bar (Dali's version).
According to recent reports, Dali’s aggressive pricing strategy has forced competitors to adopt similar techniques to retain their customer base, signaling its growing influence in the retail market.
Exploring Dali’s financial growth and challenges
Balancing cheap prices with high operational costs is still a major challenge for sustainable growth. In the 2024 Retail Market Report, experts noted that the company must manage growth without compromising service quality or affordability for its core consumers.
Based on financial records, Dali experienced a combined loss of PHP3.26 B in its first 3 years, indicating the difficulties of rapid expansion. Rapid scaling presents issues such as supply chain inefficiencies and increasing logistic costs.
Unpacking Criticisms
According to business news updates, Dali faced allegations of copying packaging designs of popular brands, prompting a complaint with the Intellectual Property Office of the Philippines (IPOPHL).
The Department of Trade and Industry (DTI) issued a directive to monitor the sale of suspected rip-off products, citing potential intellectual property (IP) rights violations. During routine checks from January to April 2024, nearly 82 Dali branches were found to be in full compliance with the Suggested Retail Price (SRP) and Price Tag Law.
Major corporations accused Dali of selling things that displayed strong resemblances to their trademark goods, among them are items bearing the UFC and Datu Puti logos. Meanwhile, Dali has been reprimanded for remaining silent on claims of intellectual property rights abuses, escalating public and media attention.
What makes Dali stand out from other stores?
Dali provides affordable pricing, making it a preferred option for budget-conscious shoppers looking to maximize their savings. In recent market analysis, Dali provides regional and regionally sourced items that respond to community preferences and assist local businesses.
More than their products are promoted as cheaper options compared to big-name brands, the grocery store's simple approach and emphasis on local sourcing have raised awareness of more sustainable retail practices in the market sector.
On consumer feedback, Dali’s minimalist store design stands out by offering easy navigation, ensuring a quick and hassle-free shopping experience, whereas most Dali store is built the same, interior and exterior.
Revolutionizing the Market
By focusing on accessibility, Dali indirectly contributes to household savings—stimulating local economies. Dali supports Philippine manufacturers and suppliers by sourcing 60-70% of its products locally, hence helping local economic growth.
“We are only going to stay in Luzon for right now. We are probably going to hit about 900 to 950 stores this year,” Westrick told reporters on a forum hosted by the Asian Development Bank.
Dali targeted 950 outlets by 2024, focused solely on the Luzon region. Dali's potential to extend beyond Luzon into Visayas and Mindanao opens up chances for expanded market penetration and accessibility across the country.
Dali's strategy has urged Filipino consumers to prioritize affordability, which has resulted in shifting shopping habits across income levels. Given Dali’s success, other shops are anticipated to establish their hard discount models or new formats to remain fiercely competitive.
