In a quarter marred by GST, while most consumer-facing businesses struggled, a few stood out, and V-Mart Retail (V-Mart), one of India’s most renowned apparel and merchandise retailers, was one of them. The company is executing its ‘value’ model well, and the relative advantage of organised players post GST will be an added feather to its cap. While markets have adequately rewarded the stock, investors should wait for the right opportunity to participate in this interesting growth story.
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Sale volumes, private label brands to drive growth
V-Mart’s key strength lies in gaining market share through adoption of a penetrative pricing strategy. During the quarter ended June 2017, the company decreased its average selling price of apparel by roughly 3 percent from Rs 277 to Rs 269 per piece. Consequently, the transaction size witnessed an increase of 5.5 percent from Rs 663 to Rs 699. The move has worked well for the company and no price increase is on the cards.
In a quarter marred by GST, while most consumer-facing businesses struggled, a few stood out, and V-Mart Retail (V-Mart), one of India’s most renowned apparel and merchandise retailers, was one of them. The company is executing its ‘value’ model well, and the relative advantage of organised players post GST will be an added feather to its cap. While markets have adequately rewarded the stock, investors should wait for the right opportunity to participate in this interesting growth story.
Sale volumes, private label brands to drive growth
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