The Inflationary Pressure in the Indian Economy is taking its toll on the Consumption of Consumer Durables. For instance, consumer products like fans have seen a drop in sales momentum. In this context, we have tried to find out how the sales of small consumer products like cook-ware and kitchen appliances is holding up for certain brands like TTK Prestige.
Digging deeper into the TTK Retailing Magic, we have found that Sales volume appears to have dropped by 10-20% in Tier 1 cities like Mumbai. However, cities like Ahmedabad, Raipur and Indore have continued to see sales grow by 20-25% YoY over the past few months.
So what is Driving TTK Kitchenware Sales in these Tier-2/3 Cities ?
The launch of new products by players like TTK Prestige; b) penetration of branded products into tier 2/3/4 cities where increased purchasing power over the past few years and higher brand awareness is attracting customers towards brands like Prestige and Hawkins. Also you must note that increased penetration of distribution model of firms like TTK Prestige into Tier 3/4 cities where large format retail chains like Big Bazaar are not prevalent has added to the company's topline.
In the last 3 years, the TTK Prestige Stock has shot-up from Rs 100 to Rs 2500 levels and is ruling firm in this bear market as well.
So don't you think TTK Prestige is an ideal candidate for Retail Franchising if it is not in your town yet ?