Hey @Chins
Thank you for sharing your insights. I also spoke my relatives who are in the garments business. Sharing it for everyone’s benefit.
Profile: They are from Himachal. They arent directly into innerwear business. They are into women’s designer wear, particularly clothes for marriage. They also sell Sleepwell mattresses. The only product line that is close to Dollar is leggings, which they sell from Lux.
Below is their verbatim response.
- Sleepwell is also going in within similar model to remove distributors. Currently distributors take care of the retailer. In case of any issues, distributors can fight with the company, but retailers wont be able to do that.
- Such models dont work because often retailers run out of the product, it is not replenished.
- In old model, Company gets money from Distributors, but without that, company will be exposed to the risk of default from retailers.
- Lux leggings are highly in demand and sell very rapidly. He says, Lux has much more variety that Dollar. If Dollar has 50 colors, Lux will have 200. Quality of Lux is also better. They dont sell Dollar products.
Disclosure: Hold a small tracking position for now.
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