Hey, george, are you busy?
Not at all Lucas. What's on your mind?
I want to ask you some questions about the research report I just read.
It's about the luxury market in India.
Sure. What would you like to know?
The report says the luxury market is growing rapidly.
More money being spent than ever before.
For example, from 2015 to 2016, the industry saw a growth rate of about 35%.
Well, indians upper middle class has been growing.
Which means more people have money to spend on luxury items.
Yeah, and some companies have seen higher sales than ever before.
What was the growth rate for the industry between 2015 and 2016 around 35% higher sales than before growing rapidly.
The industry saw a growth rate of about 35% between 2015 and 2016.
Some companies have seen higher sales than ever before.
The report is about the luxury market in India.
More money is being spent in the market than ever before.
The report says the luxury market is growing rapidly with more money being spent than ever before.
For example, the company trendy had a steady sales growth rate of about 9% from 2015 to 2016.
And yet Chinese market share decreased from 7% to about 5% over the same period.
Why is that?
Well, you can only consider the revenue generated by trendy
You need to compare it with sales for the luxury industry as a whole.
What happened to 20 between 2015 and 2016?
Even though it has steady sales growth, its market share decreased in the same period.
What does he need to compare trends? Revenue with.
The company trendy and steady sales growth rate of about 9% from 2015 to 2016.
Do you mean dividing Chinese total sales revenue by total industry sales?
Yes also work here.
In 2015, 20 grew by 8% and the industry grew by 32%.
In 2016, the industry grew by more than 30%.
While 20 sales only increased by 9%.
In other words, 20 wasn't keeping pace with the industry.
How is the company's market share calculated?
A company's market share is calculated by dividing its total sales revenue by total industry sales.
Why do trendi total market share decrease?
In 2016, the industry grew by more than 30%, while 20 sales only increased by 9%.
In 2016, the luxury industry grew by more than 30%.
Its market share decreased because it couldn't keep pace with the industry.
So on trend it was gaining sales. It was actually losing ground in the market.
Exactly.
I think trendy has to change its business strategy to appeal to new customers.
How much do that?
By diversifying its product line or appealing to new demographics, it might be able to reclaim some of its market share.
If trying to appeal to new demographics, it might improve its market share.
we'll have to wait and see.
I'm not 20 CEO after all.
Soon the market is really getting competitive.
I'm excited to see what trends you will do next.
Me too.
How does he feel about Chinese future?
Excited to see what they will do next.
How will change you change strategy.
They will have to wait and see what happens.
In 2016, the company sales only grew by 9%.
He thinks charlie has to change its business strategy to appeal to new customers.