Commercial due diligence of a handbag brand for a private equity firm looking to invest.

Project Background

Wazir performed a detailed analysis of the handbag brand’s market performance and competitive landscape, collaborating with the private equity firm to provide insights for informed investment decisions.

Scope of Work
Evaluate the target, answering the following key questions:

1 What is the size, segmentation and key growth opportunities and trends in the handbag market?

2 How does the target company’s market positioning compare with its key competitors?

3 What are the current distribution strategies and channels, and how do they compare to industry benchmarks?

4 What are the consumer preferences and purchasing patterns in the handbag market?

5 How does the target company’s cost structure compare with industry standards?

6 Is the organization’s structure aligned with its growth objectives?

7 How efficient is the design and sourcing process in terms of product quality and supply chain management?

8 What is the growth potential for expanding retail operations into new markets?

9 Is the target company’s business plan scalable and sustainable?

Result Delivered
Provided detailed analysis of the Indian handbag market, including:

Industry overview – structure, size, growth rate, emerging trends

Competitor benchmarking – major competitors, business models, market positioning, pricing strategies, distribution channels, key differentiators

Consumer research – consumer behaviour, buying patterns, preferences, purchase influencers, gaps in target’s current offerings, opportunities for targeted marketing and product development

Based on the market analysis, Wazir evaluated target’s performance:

Growth potential – assessment of scalability and sustainability of business, potential for expanding retail operations into new markets

Cost benchmarking – target’s operational cost structure against industry benchmarks, identifying areas for potential improvement in cost efficiency

Business plan validation – reviewing target’s financial forecasts, aligning them with the broader market analysis, ensuring the PE firm could make an informed investment decision