CEO Gautam Saraogi said women’s bottomwear clothing company Go Fashion India (GFIL) will not cut sales prices even if raw material prices drop.
“Even if raw material prices go down, we are not thinking of lowering our selling prices because even if we do think about doing so, it will have a very negative impact in front of our end customers,” he said in the earnings call. said.
He also said Go Fashion leggings and churidars cost around 599 rupees. About 80% of the company’s product portfolio is priced at he less than INR 1,000. Saraogi said the price increase was based on rising raw material costs over the past 18 months.
During 2022, GFIL has made two price increases. The first such in several years was in response to rising procurement costs for the goods sold. “But for now, as far as raw materials are concerned, price volatility is stable compared to what we have seen in the last three to four months,” he said.
Expressing optimism on the growth prospects, he said the overall bottomwear market is expected to grow at an annual rate of 12.4% and emerge as an opportunity of Rs 24,000 by 2025.
“We have chosen to dedicate ourselves to the bottomwear segment. We do not intend to dilute our interest by allocating investable resources to seed other apparel segments,” he said in the annual report. said in the book.
GFIL claims to serve only certain segments of this market [the upper to mid-market customer], he said, this segment holds the largest share of the market. It was growing according to evolving lifestyle patterns and pricing.
During the current financial year, GFIL plans to open 120-130 Luxury Brand Outlets (EBOs) with an investment of Rs 35 lakh each with a payback period of 15-18 months.
GFIL currently has 513 EBOs and 1,473 large stores in 31 states and UT. We also generate sales through multi-brand outlets and online.