Campus Activewear Ltd. IPO

Campus Activewear Ltd. IPO - SWOT Analysis

Strengths:

• India’s largest sports and athleisure footwear brand.
• Strong omnichannel sales and distribution network with pan India network.
• Sustained focus on design and product innovation facilitating access to the latest global trends and styles through fashion forward approach.
• Integrated manufacturing capabilities supported by robust supply chain that is difficult for competitors to replicate. 
• Strong brand recognition.

Weaknesses:

• Negative cash flows from investing and financing activities. 
• Significant indebtedness and certain restrictive conditions imposed by lenders.
• Business is affected by seasonality, which results in fluctuations in operating results.
• Sales of the company’s products are primarily concentrated in North India.
• Limited control over the ultimate retail sales by distributors and retailers.
• Reliance on third parties to manufacture slippers. 

Opportunities:

• Scope to expand online presence and scale up information technology systems.  

• Can grow business through acquisitions of, or investments in, new or complementary businesses, facilities, technologies, or products, or through strategic alliances. 

Threats:

• Disruptions in trade distribution and direct-to-consumer channels could hamper sales. 
• High competition in the sports and athleisure footwear industry can pose challenges.
• Strict environmental regulations can create hurdles. 
• High raw material and labour costs could weigh on margins. 
• Rapidly changing consumer preferences and fashion trends could affect performance.