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Images Business of Fashion November-2015 PDF
Images Business of Fashion November-2015 PDF
Ethnicwear Market
Indian ethnicwear market was estimated to be of `82,220 crore in 2014 and is expected to
grow at a CAGR of 9 percent to reach `1,26,210 crore in 2019. The market is dominated
by womens ethnicwear which contributes 83 percent to the total ethnic market
followed by kids ethnicwear and mens ethnicwear with shares of 9 percent and 8
percent contribution respectively, shares Amit Gugnani, Senior Vice President
- Fashion and Kanti Prakash Brahma, Principal Consultant - Fashion at
Technopak.
65
penetration of brands in this category etc. the higher growth rate of salwar kameez
have contributed to the exciting growth category, it is expected to become the most
trajectory of ethnicwear. dominant womens ethnicwear category
in 2019.
Ethnicwear market of India is
expected to increase at a CAGR of Key ethnicwear-specific
9 percent over the next 5 years consumer trends that are acting
as growth catalysts
mens ethnicwear with shares of 9 percent Consequently, the entire fashion landscape
and 8 percent contribution respectively. of the country is evolving at a rapid pace.
CAGR 9%
2019 (P)
9%
7%
2014
43%
12,170
50%
10,610
7,430
Total - 1,26,210
Total - 82,220
6,740
1,03,430
41%
68.050
50%
FASHION BUSINESS
Occasion specific clothing Preference for branded apparel Value consciousness Adoption of alternate channels
The Indian consumers, The ethnicwear Consumers have started Indias fashion consumers,
both men and women, consumers have started factoring in value for including the ethnicwear
increasingly prefer inclining towards money in their etnicwear consumers, no longer limit
to dress themselves branded apparel owing purchase decision. themselves to any particular
depending on the occasion. to assurance of better Consequently, the demand retail channel. Disruptive growth
Hence, ethnicwear has design, quality and fit. for private label ethnicwear of alternate retail channels,
become a preferred Growing disposable has increased substantially especially that of e-tailing
choice for wedding income, increasing in the recent years. has impacted ethnicwear
ceremonies, festive aspiration levels among Brands and retailers have category as well. Consumers
celebrations, historic youths are driving factors started offering discounts, are adopting generic fashion
events (independence day, for branded ethnicwear promotions in more e-tailing websites, ethnicwear
republic day celebrations, market. innovative ways to lure the specific e-tailing websites along
etc.) value seeking ethnicwear with physical stores for their
consumers. ethnicwear requirements
67
adopting alternate retail channels for
ethnicwear as well entrants, the market has its own set of it difficult to club Indian consumers in
challenges. Brands and retailers have a single group. Unlike Westernwear,
The ethnicwear consumers are no longer to focus on the key imperatives of the ethnicwear category is directly linked with
restricting themselves to traditional ethnicwear market to emerge as long- regional preferences and ethnicity. Thus,
retail channels. Indian consumers have term winners. The imperatives for success the degree of heterogeneity is much higher
started looking beyond mere products, in Indias ethnicwear market include: in ethnicwear category. In addition to the
they increasingly seek quality shopping 1. Understanding the peculiarities of above mentioned factors heterogeneity of
experiences combined with best pricing, Indian ethnicwear consumers, 2. Creating choices of a consumer makes the market
wide range of product portfolio, multiple and sustaining a differentiated market even more complex. For example, a women
brands under one roof etc. Consequently, positioning, 3. Introducing innovative ethnicwear consumer might straddle
ethnicwear retailing has evolved from designs, styles and fits, 4. Developing between ethnicwear and westernwear,
traditional family based stores of cities strategic sourcing capabilities, 5. between branded and unbranded
to large format stores, e-tailing, home Integrating retail channels to provide products within ethnicwear and between
shopping etc. seamless shopping experience (Exhibit 4). different brands within branded products.
Availability of multiple retail channels
Consumers have also started accepting Imperative #1. Understanding the have added additional complexity to the
COVER STORY // November ISSUE | 2015
through any one or a combination of characterised by heterogeneity and thus to achieve as in India all these factors,
product portfolio, cost leadership, service, the sourcing volumes are low, sometimes consumers, channels, products and
customer orientation, retail experience etc. sourcing gets localised depending on technologies, are undergoing through a
shall be key to achieve sustainable growth. peculiar demands of specific markets. transitory phase marked by rapid evolution
Deployment of advanced consumer On the high end of the market, the from one phase to another.
analytics, right store location selection, affluent consumers seek uniqueness of
judicious visual merchandising etc. are the design, a glorified heritage of location Conclusion
some of the areas that could differentiate that the product is sourced from etc.
brands and retailers. These additional requirements make the
sourcing volumes per style even lower. In The Indian ethnicwear market is evolving,
Imperative #3. Introducing innovative an era where the consumers are seeking business models of brands and retailers
designs, styles and fits instant gratification of their fashion needs, have to evolve accordingly
dealing with multiple artisans, sourcing It is critical to bear in mind that in a
Both mens and womens ethnicwear partners, working in collaboration with constantly evolving retail landscape,
markets have witnessed introduction them to develop products, managing the set of associated opportunities and
of innovative products, attractive inventory in the entire value chain shall challenges evolve in tandem. The brands
COVER STORY // November ISSUE | 2015
designs, contemporary styles and fits. be critical to achieve sustainable profit in and retailers have to revisit their business
The consumers will continue to seek ethnicwear market. model, strategic and tactical decisions on
new features in ethnicwear that will a regular basis to factor in the changed
differentiate her/him from the rest. Hence, Imperative #5. Integrating retail channels market dynamics. Understanding the
brands and retailers who could constantly to provide seamless shopping experience consumers, keeping a track on technology
introduce differentiated fresh merchandise innovations and building a customer-
are expected to sustain their market With increasing acceptance of alternative centric responsive and scalable business
positioning. retail channels, brands and retailers not model are three key defining factors that
only have to ensure presence in multiple will shape the future of ethnicwear brands
retail channels, they also have to integrate and retailers.
various channels to provide a seamless
shopping experience to the ethnicwear
consumers. Omni-channel retailing has