Eureka Forbes (EUREKAFO IN) India
Consumer Staples
Based on Iii’s latest interactions with business partners of Eureka Forbes, it is quite evident that the company is not interested in developing its offline sales channels (i.e. the franchises). Product quality and service-related issues continue to impact referrals, which used to account for nearly 70% of a franchise partner’s source of leads. The increased cost of ownership is causing customers to look for alternatives. The strategy of splitting sales and service franchise partners also does not bode well for the company’s market development. Premiumisation has few takers while the disconnect between ground realities and management is also quite alarming.
Edition: 189
- 28 June, 2024
Whirlpool (WHIRL IN), Aditya Vision (AVL IN), Electronics Mart India (EMIL IN), Eureka Forbes (EUREKAFO IN) India
Consumer Staples
Iii’s Bharat Connect Flash report provides insights, anecdotes and narratives that they pick up as part of their regular on the ground checks and that could potentially emerge as more significant trends or issues, warranting deeper attention. Highlights from their latest note which focuses on consumer durables include: 1) WHIRL’s offline sales are slowing down due to lack of price parity with online sales, lack of company support and flat consumer sentiment. 2) AVL’s competitive advantage is uncertain, with some stores emphasising lower prices and others focusing on service. 3) EMIL differentiates through a better shopping experience and pricing is not a major issue for growth. 4) EUREKAFO hasn't seen a change in the total cost of ownership (TCO).
Edition: 173
- 10 November, 2023