Valuation, page-575

@saintex

Re: China, I am confident that their low cost model has a good chance of succeeding in China, as at the end of the day automation reduces costs overall.

Re: Cettire's performance compared to competitors, my feeling is that it is the equivalent of the Kmart effect- wherein given the lower end luxury shopper, in the setting of the current macroeconomic conditions, will shop around for the best value. As Cettire has substantially lower overall gross margins than competitors, but is still much more profitable- shoppers get a better deal. This powers network effects and the retention curves that Cettire have shown further speak to the value of the service. As an aside, I see that Farfetch is in major trouble they have a substantial debt burden, flailing growth and now have a much lower stock price. They may be compelled to raise at signficantly discounted prices and will likely not be able to invest too much in customer acquisition moving forward, which should play into Cettire's hands.