Luggage Channel Check - Demand Momentum Intact: Prabhudas Lilladher
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Prabhudas Lilladher Report
Recently, we conducted some channel checks (interacted with few distributors and a Managing Director of one unlisted company) in the luggage space to get a pulse of current demand trends.
Our checks reveal -
1. demand in Q4 FY21 benefitted from the gradual reopening of schools in January/February (augured well for backpack sales) coupled with a shift in market share from unorganized to organized players
2. cost inflation still persists, but the situation is better than Q3 FY21 (input cost was up ~60-70% on a QoQ basis) and
3. VIP Industries Ltd. has taken a price hike of ~6% from March 01 to counter inflationary pressures.
Overall, while sales momentum was good in Jan/Feb, March witnessed a slowdown due to rising Covid-19 cases.
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