OUR UNIQUE BUSINESS MODEL SETS US APART IN THE INDUSTRY. WE ARE PRESENT
IN 130 MILLION TV HOUSEHOLDS ACROSS THE US, UK, AND GERMANY. OUR CUSTOMERS SHOW REMARKABLE
LOYALTY, WITH AN AVERAGE REPEAT PURCHASE RATE OF 24 PIECES PER ANNUM AND A RETENTION RATE
OF 39%.
Dear Shareholders,
FY 2023-24: A YEAR OF RESURGENCE
The past year marked a significant turnaround for our company, as we
regained growth momentum after a short period of challenges. Our key markets in the US,
UK, and Germany are showing signs of economic stability, allowing us to capitalise on new
opportunities and sustain our market-leading growth.
BROADENING OUR CUSTOMER BASE
Our efforts to broaden our customer base were significantly
strengthened by two strategic acquisitions we did during FY24. The acquisition of Ideal
World, a well-established teleshopping brand in the UK, has enhanced our market share and
opened new growth avenues. Additionally, Mindful Souls, an e-commerce company with sales
presence in the US, UK, Canada,
EU, and Australia, has positively contributed to our growth. We expect
the digital expertise of Mindful Souls to strengthen our existing digital businesses.
We have also strengthened our digital infrastructure by enhancing our
Salesforce Commerce Cloud, Marketing Cloud, and Service Cloud to improve the shopping
experience and ensure security and reliability. We optimised our digital marketing
campaigns and employed various tools such as SEO, SEM, Social Media Marketing, E-mail
Marketing, and Affiliate Marketing. These data-driven campaigns have helped us engage more
effectively with customers and driving conversions.
We are also leveraging AI to enhance customer acquisition and
retention. AI-driven TV planning enables
scheduling of high-performing products. AI-based demand forecasting and
inventory planning match realtime demand with supply, optimizing inventory level and
increasing revenue predictability. Additionally, AI-generated content for ad creatives,
product pages, and our website helps accelerate revenue. These initiatives are expected to
capitalize on future opportunities while improving customer retention and repeat
purchases.
OUR UNIQUE BUSINESS MODEL
Our unique business model sets us apart in the industry. We are present
in 130 million TV households across the US, UK, and Germany. Our customers show remarkable
loyalty, with an average repeat purchase rate of 24 pieces per annum and a retention rate
of 39%. Our vertically integrated model includes manufacturing facilities for fashion
jewellery, supported by a global sourcing base across 30 countries for lifestyle products
and gemstones. This integration allows us to maintain high-quality standards and cost
efficiency. Our omni-channel presence, spanning TV and digital platforms, ensures we reach
a wide and diverse customer base.
BEING A RESPONSIBLE CORPORATE CITIZEN - THE ESG WAY
Our commitment to environmental, social, and governance (ESG)
principles is integral to our operations. We operate two solar power plants in India,
generating 4.1 million kWh of solar energy annually. Our afforestation efforts have
resulted in the creation of two Miyawaki forests over two acres, comprising approximately
28,000 trees.
In water conservation, we harvest 6,100 KL of rainwater annually and
recycle 4.8 KL of water daily. We convert 100% of our biodegradable
waste into compost and recycle plastic and electronic waste through
government-approved recyclers. Our fleet of electric vehicles now includes 184
two-wheelers and three electric cars, reducing carbon emissions and eliminating 12 buses
from our fleet. Our SEZ unit has been certified as a ‘Net Zero Energy Building' (NZEB) by the Indian Green Building Council (IGBC), a significant
milestone placing us among only 16 projects in India to achieve this status.
VGL Group subsidiaries continue to be recognised as 'Great Place to
Work?', underscoring our dedication to fostering a positive work environment, maintaining
robust governance, and prioritising employee well-being and satisfaction.
WAY FORWARD
Looking ahead, our value-offering unique business model presents an
opportunity to capture future growth. We will continue to enhance customer engagement
through our omni-channel presence and extensive product portfolio of more than 25,000
SKUs. Our strong cash flows, dividend payouts, and commitment to the highest levels of
corporate governance will ensure sustained shareholder returns. The future holds
compelling opportunities for revenue growth and operating leverage, and we are
well-positioned to capitalise on these prospects.
Thank you for your continued support. Warm Regards,
Harsh Bahadur
Chairman