The management is relying on change of consumer attitudes for scaling up in future. Any investment here is purely based on assumption that people will adapt and it is not on concrete grounds. Sure management is improving performance on y-o-y basis but that could be because of initial adapters and it may not be major trend. It could also be a fad. I believe there should be some empirical evidence like demand not being seasonal anymore. That is when we can say this is more of a trend than a passing by fad. I can relate this to Tata Nano. It started as a vision of Rs 1 lakh car which is affordable to almost all. Sales picked up initially due to early adapters but then it failed to take off. The management was again relying on change of consumer attitudes which did not happen as buying car was more seen by consumers as a matter of prestige and nano somehow gave an impression of being a cheap car and hence low prestige.
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