Don’t know if it’s just me but Vedji Ticku used to communicate properly while VSG only says a few words about a specific question and starts to generalise about long term picture, robust growth etc
eCom growth was 39% for Q3 and 28% was for YTD
Page finally has good product range in Athleisure which is where bulk of the incremental growth is going to come. They had very few designs and product offering range itself was small pre-covid. They have worked hard to improve this but the pricing is a big hurdle they need to overcome. I am not sure how they can scale Athleisure if they continue with the existing prices, particularly outside of metro/t1 cities. 40-50% premium to competition is a bit too streched. There is a huge addressable market but I feel they are limiting themselves to targeting a tiny part of the population with the rigid pricing model.
There seems to be a lack of understanding by Page’s management about the market dynamics and how big of a tailwind apparel has in India given the increase in discretionary spends. Every person wants to “look” good, brand matters but not at a 50% markup unless you’re catering only to the luxury segment.
The power has shifted back to the retailer and consumers will prefer Zudio/Trends over legacy brands like Page because of the steep difference in price points. Zudio had 60% growth in apparel for the last two quarters. Brand loyalty has taken a hit with change in customer buying patterns.
Even after seeing such fantastic eCom growth, the management is still hell bent on not having a native application on either Android or ios. Significantly smaller brands who do 100-200 crore turnover have applications as people use their smartphones 4-6 hours a day and a lot of online shopping happens online via mobile but no… not Page! Abfrl has different applications for each of their big brands like Van Heusen, Louis Philippe, Peter England, Allen Solly etc…
Either the management is too late or they focus too much on ARS/logistics/distribution etc forgetting such trivial things. I still remember from the previous con calls in 2019-21 period on how Bharat Shah (ASK) was quizzing the management about below average marketing/reach. They have followed a similar trend in apparel too.
Disc - top-3 holding, made transactions in the last 30-days
Subscribe To Our Free Newsletter |