Went through their online portfolio as well as visited some stores. I’m a bit worried that they are explicitly becoming a discount store.
While I do agree that other good brands(Nike, Adidas) also use this in India but I don’t see non discounted products at all. Without premiumization there can be 2 big issues :
- Brand being looked as a discounted product brand only – might have negative connotations attached about it in the minds of people despite being a good product(eg Tata Nano being linked as a “lakhtakiya”/non rich product)
- Pricing power being taken away from the brand if the customers have an anchoring bias in their minds.
Does anyone have any insights on if they are planning to try and premiumize their offerings or at least have a fresh stock of non discounted products so that not every red tape shoe is discounted at 80% ?
Disc : invested and part of top 3 holdings.
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