I am not too sure of the market size, if I say so, particularly in the context of Indian women, unless they are urban and have not yet settled down (married). I don’t think married women, even the ones who work in corporate world are too concerned about how they look, from these products’ perspective, so I am guessing the growth so far might have come from metros and urban areas, I don’t know. I am not sure, if these are products that are bought and used discreetly irrespective of the place they live.
And the growth in sales is coming from a segment in metros and urban areas, once the need for such products is vanished, there wont be another purchase, unlike other recurring clothing items that women purchase regularly. A woman may want to be appealing, but only until she finds her man.
Maybe, in a few years, the younger women population, all of them, living in metros and urban areas could become potential buyers for many years, and the sales may grow exponentially, but as you had mentioned already, if indeed that is the case, the bigger players, the companies with deeper pockets, might come and take away market share.
This is new company to me, never heard before, so my view is elementary, I don’t know what management has said about the growth and where it is coming from, and I could be, and perhaps I am, completely wrong. My initial thoughts before investing is about sales, sales growth, and a moat etc, hence replied.
Could be a trading bet for a few years.
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