Ethnix by Raymond Targets Tier II & III India for Next Growth Phase

Ethnix, a division of Raymond, has rapidly emerged as one of the fastest-growing ethnic menswear brands in India, with over 140 stores across 70 towns. Vipul Mathur, Chief Business Officer for New Businesses at Raymond, gave insights on how the brand is balancing traditional values with modern retail and franchise strategies to capture the evolving Indian consumer.

Understanding the Consumer Shift

Ethnix primarily caters to the ethnic menswear segment, garments worn for special occasions such as weddings, pujas, and festivals. The Indian consumer today is well-informed and influenced by social media, celebrities, and influencers, especially the younger crowd. This group carefully researches and curates their looks, moving beyond basic ethnic wear to more fashionable, customized options.

The brand’s approach includes serving both the older generation, which has historically remained loyal to Raymond, and the younger generation entering the ethnic wear market. “Today, consumers are preferring ethnic wear for the office, and through Instagram and influencers, we are educating them on how to pair it. For any occasion, we have trending bundis to pair with a kurta, and our CBD guides them in a better way,” explained Mathur, highlighting the brand’s uniqueness in ethnic.

Franchise Model and Store Formats

Ethnix operates under a carefully balanced model that combines company-owned and franchise-owned stores. While its parent company, Raymond claims to have around 1100 franchise-owned stores and 250 company-owned stores. About one-third of the stores are owned and run by the company, one-third are owned by the company but run by franchisees, and the remaining third are wholly owned and operated by franchisees. 

Franchisees, many of whom run longstanding Raymond textile stores, often open Ethnix stores nearby to meet the growing demand for ethnic wear. Mathur assured that franchising with Raymond is profitable for both parties due to the brand visibility, and he mentioned that two-third of revenue is generated through franchising. The company’s philosophy is simple, if the franchisee succeeds, so does the brand. This win-win emphasis is supported by technology, inventory management, and continuous business support, which maximize franchisee success and minimize risk.

Personalized Shopping Experience

Ethnic wear shopping is intimate and personalized. Customers often visit stores with family and friends to seek advice and recommendations. A key differentiator for Ethnix is its customization service, where customers can request specific styles, sizes, and personalized embroidery with no additional charge, with delivery in two to three weeks.

Digital touchpoints complement physical stores by enabling customers who know Ethnix well to shop online, albeit cautiously, since ethnic wear is about fit and occasion appropriateness. The company is steadily growing its online presence, recognizing that e-commerce will play an increasingly important role in reaching customers who prefer convenience. The brand sells ethnic wear online through its own websites and on Amazon, Myntra, and Flipkart. It has also planned to make its ethnic wear available at Shoppers Stop, Lifestyle, and other departmental stores.

Fashion-Forward and Culturally Relevant

Ethnix’s design philosophy blends high fashion with cultural relevance and regional diversity. The creative direction under the brand’s CMD ensures garments are trendy yet wearable. Influencers and youth engagement campaigns emphasize not only the outfits but also how to pair them to look fashionable for special events.

The brand offers regionally inspired collections that reflect local preferences, such as lighter fabrics and traditional kurtas in the South and heavier textures and embroidery in the East. However, Ethnix maintains a national appeal by mixing regional sensibilities rather than confining styles to a single geographic market.

Targeting Tier II and III Cities

Half of Ethnix’s revenue currently comes from non-metro cities, reflecting its robust outreach beyond Tier I urban centers. The increasing disposable income in Tier II and III cities and heightened brand awareness have driven expansion efforts into these markets, where rental costs are favorable and the brand resonates well.

Mathur confirmed, “Our largest businesses are from Delhi, Bengaluru, Kolkata, and Hyderabad, and from the remaining part is around 50-55 percent.”

This strategic focus is supported by regional warehousing and logistics capabilities, enabling quick replenishment and customer-centric inventory management to address the demand fluctuations typical of ethnic wear.

Challenges and Opportunities Ahead

Operating in a predominantly unorganized ethnic-wear market gives Ethnix room to grow by providing superior quality, branding, and a retail experience. The brand’s commitment to franchisees includes taking responsibility for merchandise that may not sell in franchise-run stores, thereby mitigating financial risks for franchise partners.

Regarding future growth, Ethnix aims to deepen its presence domestically before pursuing international expansion. The company plans to leverage existing Raymond franchise networks abroad to reach the Indian diaspora, which has a strong preference and higher purchasing power for traditional Indian wear.