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.
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.
“We sell out of the box. We don’t operate 24/7. We don’t spend for marketing or any other convenience – no packers, no parking assistants, etc. With the lower cost that we have, we are able to offer high-quality products at lower prices,” said Joerg Gruenewald, owner and operator of DALI Everyday Grocery.
They strategically open enterprises in rural and economically disadvantaged urban communities, focusing on regions that major retailers ignore.
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, Anja Grote 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).
“Our focus is on supporting everyday Filipino families through our products and the work we do,” Westrick said.
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.
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.
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.
Given Dali’s success, other shops are anticipated to establish their hard discount models or new formats to remain fiercely competitive.
