An apple to apple comparison for DMART’s apparel (high margin) segment would be VMART, which not only derives 90% of its revenue from fashion clothing but also operates at similar price points.
VMART’s performance trends in FY23 shows 100% growth over FY22 for ASP of 500 plus. Moreover, higher transaction size of around 2000 INR are seen at ASP of ~500-560 INR and transaction size of around 900 INR at ASP of ~380 INR.
It shows people are willing to spend more on high price apparels and also buy more in terms of volume. FY23 sales of other apparel companies (operating at higher price points) show similar trends. While DMART which largely operates at around 300-350 INR ASP seems to have missed the party leading to reduced gross margins.
Subscribe To Our Free Newsletter |