Fantastic Summary.
While I agree with majority of what has been conveyed but would like to point out few places where the story hits speedbumps.
On the jewelery front, no complaints with execution, marketing or the recent expansions with Carat Lane and overseas Tanishq outlets.
Watches as a category they are doing well. But there is lack of significant growth whether it is in smartwatches or core business. I think two-year CAGR is just 10% when they should be dominating in smartwatches. Again 10% is not bad but it is not something that is exciting.
On the Eyewear division, they have completely dropped the ball. This should have been a business where they could have touched the watches business in terms of revenue but have significantly underperformed with too many changes in management, Franchisee formats etc. They have lost first mover advantage to Lens Kart and others and now changing strategies to try and catch up.
My overall concern is there are Jewelry dependent, and their growth will be tougher with more competition on organized side, city and region-based players now are updating brand presence and ensuring quality and therefore retargeting customers they lost to Tanishq. This is something management themselves acknowledge in FY24 concall.
I love the brand, use it and of course it has had phenomenal staying power over last few decades and shown the ability to manage frequent thorns in the road, but this is just to give a not so rosy picture.This slightly negative viewpoint is just to show that they have hurdles to cover.
P.s : To get to LVMH status they need to upgrade across product, marketing internationally.
Disclosure: Have invested in recent correction through family PF.
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