V-Mart Retail’s volume push to fire up margins | Moneycontrol.com

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.

The company endeavors to achieve volume-driven growth by pushing its own brands (that currently contribute around 35 percent to the total revenue) to around 70 percent of the company’s annual operating income over the next one to two years. This growth strategy is anticipated to protect margins through a higher degree of operating leverage.

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V-Mart Retail’s volume push to fire up margins – Moneycontrol.com.