Indian ethnic wear segment is changing the dynamics of the entire apparel industry. The ethnic wear brands have taken the industry to another level, as retailers dealing in ethnic wear brands have put across their best efforts and offerings to structure the industry. The industry is being viewed as a lucrative investment destination too; many brands like Manyavar (famous for Men’s ethnic wear) are able to offer a sumptuous 30 % return on investment to franchisees.
Ethnic wear as a market has been and still is expected to register a remarkable double-digit compound annual growth rate (CAGR) of 8% to reach US$ 19,600 million by 2018. This segment comprises 74 per cent of overall women’s apparel market with a market size of US$ 11,500 million. The ethnic wear for kids as another segment is projected to grow at a CAGR of 10% for the next few years. Even within kids wear, girl’s ethnic wear is burgeoning with choices and demand for latest trends and its market is more than two times than that of boys’ ethnic wear segment. Though the growth is highly propelled by women, the market for men, is also expected to grow at a CAGR of 8.5%, and will largely be within the high fashion segment that is heavily guided by occasion based purchases. Brands like Manyavar are India’s most valued and dedicated men’s ethnic wear brand growing from strength to strength.
The growth in the segment is being propelled by many factors in India; more structured shopping formats, internet boom, numerous designer labels and demand from tier II and tier III cities to name a few. This humungous growth is attracting major apparel retailers, such as Shoppers Stop, Future group’s Pantaloon, Tata’s Westside and Lifestyle are keen to expand their footprints in Tier II and III cities.
E-commerce boom is a big player in this game. Today, consumers are able to purchase popular and branded ethnic wear from the comfort of their home, just within few clicks from their tabs or smartphones. Online shopping is gaining highest momentum from the tier II and tier III cites; the online sales of Indian ethnic garments have increased by more than 70 per cent over the past couple of years. More and more designers of ethnic garments are executing beneficial partnerships with this thriving market, especially to serve the high-end consumers in the Metros. According to a company statement, Amazon India is offering over 12,000 styles in a variety of garments, like saris and kurtas from more than 90 brands. People specifically look for Biba coupons and Craftsvilla Designer wear offers as their top most searches to shop online. These portals are exclusively meant for ethnic wear shopping; they not only showcase latest trends and styles in ethnic wear space, but also provide shopping tips through blogs and live chats to help their customers make an informed choice.
Not only in India, but ethnic wear is also capturing big deals and strengthening its presence internationally. It has roughly been estimated that 15-20 million NRIs and 40-100 million Indian on a global front are interested in dressing in Indian traditional clothing like sarees, kurtas etc. E-commerce further enables Indian wear to mark a niche for itself globally.
Other big factors are the big fat Indian wedding industry and cultural & religious occasions contributing to the growth of Indian ethnic wear market. India is a land of diversity and every region and every festival has its own feel and colors. From every small family function to big festivals like diwali, people are scouting for contemporary ethnic Indian wear to look glam and great.
Higher standards of living, more choices that don’t pinch on the budget and increasing young population have accentuated the growth of Indian ethnic wear industry. On top of that numerous benefits are offered by e-commerce portals; higher discounts, festive offers, branded options, free and super fast delivery and hassle free returns/ exchange policies coupled with secured online payment systems have removed all the hitch people used to have while shopping online. Mobile apps have made it all the more easy and comfortable to shop while you are on the go.
Hence, with so many factors working strong to take the industry at new heights, Indian ethnic apparel market is undoubtedly a promising one – for brands as well as the customers.