While I had not thought as deeply on the structural shift in Dollar as you have, I have also been watching the progress on the Project Lakshya efforts. I had initially built up a position in Rupa before deciding to invest in Dollar. Over the last quarter or two, I have turned more confident about Dollar.
That said, I have two concerns here – 1) There is still no signs of consumption recovery in the segments that these companies primarily focus on (maybe the elections will lead to a short-term bump up) 2) Competitive intensity seems to be increasing with a number of new-age D2C brands coming up. Examples include XYXX, Clovia, DaMENSCH etc. Unsure about their business models (as with most D2C startups), but so long as they are around, they could impact the sales of the traditional brands like Dollar, Rupa etc.
These two key concerns are holding me from increasing allocations much more now. Appreciate your thoughts here.
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