Thanks for sharing the chart with 2k to 10k per capita in different countries and timelines. Gives a great long-term potential for domestic discretionary consumption which applies not just to Manyavar but to several other businesses. FY23 per capita I suspect will be around ~ $2300, the effect of which is already showing across in lot of businesses
I had posted these snippets from a book on what happens to consumption alongside per capita.
It is very likely that China has hit the brick wall in terms of growth through tangibles. They are bound to become a services based economy as they have surpassed the $10k per capita. That mantle of consumption growth should get passed to us if we don’t goof up.
I think this management knows what it is doing very well. They are in no hurry to scale something that can get it into trouble if done poorly. It is always better to get the unit economics right first and then scale rather than scale and struggle with unit economics in retail. DMart is a great example of course.
Once the business is able to earn 10k/sft in Mohey, they would have cracked the code in terms of what works for the Customer, the franchisee and the business. Any mis-step here can set the house of fire in terms of capital and management bandwidth misallocation so I like their approach to track revenue/sft, inventory turnover, dead stock levels and conversion rate and make sure it has reached satisfactory levels before scaling it.
Disc: Invested around 1100 levels.
| Subscribe To Our Free Newsletter |
