The rich cultural heritage of India can be attributed to the large number of foreign invaders like the Aryans, Alexander the Great and other Greeks, the Kushans and the Huns, and Muslim invaders including the Turks, Arabs, and Afghans. All of them lived here in India and Indians adopted their cultural traits to a great degree. Ethnic wear of India has also been influenced to a greater extent by their culture. The significance of ethnic wear increases especially during festive and wedding seasons. These functions are not complete unless accompanied by heavy ethnic clothing, which forms a significant part of our tradition. Also, as it is a time for people to get together, looking good becomes important. People are now becoming more conscious about their looks, increasing the demand for such clothing in the country. The immense availability of skilled labour that carries out beautiful embroidered works in phulkari, kashmiri, parsi, etc. add to people’s desires. To cope up with these increasing needs we have witnessed a growth in this industry.
En route to being organised
Ethnic wear had been found more specifically with local retailers when no had brand stepped into this business. Statistics prove that 65 per cent of the market is still unidentified and the remaining 35 per cent consists of organised/ known labels and well-known designers. It includes occassion wear, which is sold through identifiable garment stores. Talking about the unorganised market and giving figures, Mr Hemang Savla, Concept Head, Ethnic Formats, Future Group tells, “Presently, the organised market in the ethnic wear industry is around Rs 2000 crore, while the unorganised market is still large at around Rs 40,000 crore.” However, over the years we have seen progress towards the organisation of this industry. The organisation of the industry can be attributed to the roping in of various brands, which have now led the way and opened diverse avenues for others to be a part of this business.
Business escalation reasons
Ethnic wear has registered a change with time and is now leaning towards fashion-mix or fusion, with much more emphasis on the Indian aspect. Consumers today demand a traditional yet contemporary look for their ensembles. The products have in turn adopted this theory to give out fresh designs and prints to the closet. Brands have understood this proposition to their benefit and are dressing up the consumer with a varied array of product choices that combine Indo-western design sensibility with a label that says it’s ‘Indian’.
As the industry is growing at a great pace, there have to be enormous reasons catering to its growth. This industry had been largely untapped till a few years back and still provides ample scope for those looking at entering the market. Mr Mishra puts it best saying, “The overall Indian women’s apparel market has undergone a transformation over the past few years – the growing number of working women, changing fashion trends, rising level of information and media exposure, and the entry of a large number of foreign brands, have given the industry a new dimension. It’s a highly lucrative market.” Besides these factors, the shift towards buying readymade garments and design consciousness among customers, have also helped augment growth. Furthermore these clothes are very comfortable and offer a variety that’s unmatched while being affordable at the same time. Interesting cuts, necklines, vibrant colours replacing the dreary and dull ones, have taken the industry to greater heights. Ms Rachel Bracken-Singh, Design Director, Anokhi says, “There appears to have been a substantial increase in the spending power of the middle class. This is the group of people who have a natural affinity with India’s strong and unique style, known largely as ‘ethnic wear’. They, for obvious reasons, relate to the decorative, printed, embroidered, colourful textiles of their own culture and now have the income to indulge in buying more for their wardrobes than ever before. Also, the Indian look has been very popular globally for quite some time and those travelling to India also look to buy the same ethnic wear.” Greater exposure to media and the silver screen as well have a majestic role to play. The absolute proliferation of retail space has unquestionably added to the detonation in this segment. Mr Savla says, “Generic growth in retail is one of the key reasons for the growth in the ethnic wear industry. Another factor is the influence of Indian soap operas. Occassion related wear too has created the need for customers to buy specific kind of clothing for specific functions or occasions of the time of the day.” The role played by soap operas and movies in strengthening the essence of ethnic wear clothing has been mentioned time and again. It is now common to find clothing for various TV shows and movies being sponsored by various retailers. On the other hand, we also find an apparel range, similar to the ones worn by actors and actresses in shows, on stands in stores. Mr Siddharath Bindra, Managing Director, BIBA tells, “BIBA, in association with Pantaloon, pioneered the revolutionary concept of Bollywood merchandising way back in 2002, which was a runaway success. BIBA today has exclusive merchandising Rights for eight Bollywood super hits including Devdas, Baghban, Na Tum Jano Na Hum, Waqt, Hulchul, Hero, 7 1/2 Phere, and The Perfect Husband.” Satya Paul has sponsored clothes for TV show 'Jassi Jaisi Koi Nahin' and the movie Saas, Bahu Aur Sensex.
The absolute size of the ethnic wear market is much larger than the western wear market. According to Technopak, the sheer volume of ethnic wear consumers in India has ensured that there is no drop in its growth. It still remains the most important garment segment splurged on by the majority of Indian women in Tier I and Tier II cities. As compared to its international counterparts, India still holds an extremely superior position when it comes to the utilisation of ethnic clothing. In some of the Asian countries, ethnic wear clothing is reserved only for special occasions, whereas in India, it forms a part of the daily wear too.
Organised market big impression
Ethnic wear retailers such as W, Good Things and Khadder, Millionaire, Bhandej, Diwan Saheb are opening stores at a fast and furious pace. The industry is witnessing an infusion of newer entrants who are striving hard to step into the organised share to earn big bucks. Giving them competition are private labels from big retail giants Shoppers’ Stop, Lifestyle, Westside, Globus, Pantaloons, etc. The Future Group recently launched a new retail format ‘Kurta Company’ - a one-stop shop for stylish and contemporary Indian kurtas. Targeted to attract today’s Indian youth, the ‘Kurta Company’, showcases new ideas and forms of kurtas both contemporary and stylish. You can also find complete range of tunics, duppattas, churidars, patiallas, leggings and stoles along with merchandise such as Kolhapuri chappals and trendy range of jholas and handbags for women.
Nevertheless, the mainstream brands are also prepared to join the race as Park Avenue from the house of Raymond Apparel Limited has completed its wardrobe with a heritage wear label.
The retail sector on the whole is also very promising. The significant shift from the unorganised to the organised retail sector in the traditional markets is making way for more professional retail formats such as exclusive brand outlets and retail malls. The present scenario is in sync with growth prospects. The B-class cities are the ones, which are looking forward to retail transfusion within them.
The women’s wear brand ‘W’ is a good example of the retail growth for ethnic wear brands as the brand has a national footprint today with 140 points of sale. It has 30 exclusive stores in all major cities across India and is also retailed out of department stores like Pantaloons, Shoppers’ Stop and Lifestyle. BIBA on the other hand, captured a niche market that it identified as the gap that existed in branded women’s clothing. It is strongly positioned in the lifestyle category, under the ‘Women’s Ethnic Wear’ section.
Not just woman’s domain
Fascinatingly, ethnic wear has risen above the age and sex barrier and everyone is looking to own a piece of it. Though women are the primary target patrons for ethnic wear, the Indian male is not far behind. Retailers are progressively turning their attention to ethnic clothing for men. Today, it’s a common sight to see men wearing short kurtas in vibrant colours, some with motifs emblazoned on them. And its not just kurtas- shirts in linen and raw silk are also an option. But by and large, this is a women dominated segment. Mr Savla informs, “Women’s wear by far, contributes to the larger share of market in the ethnic wear. Women are specific and more selective about ethnic wear. Tradition too demands that a certain number of sarees or women’s ethnic wear be gifted during weddings and other big occassions in the family or community. Also, the price range in women’s ethnic wear is very high compared to the men’s segment. For example, it may be possible to buy men’s wear within the range of Rs 20,000 – Rs 50,000 but the purchase of a saree or a bridal ensemble could easily translate into expenditure anywhere in the range of Rs 50,000- Rs 3,00,000.” Commenting on their range for men and women, Ms Singh tells, “Anokhi does a small range of men’s wear. Our ratio is much more biased towards women and I think the general market is perhaps so. I do not necessarily think that men enjoy wearing ethnic clothing any lesser than women, but women certainly have both more time and usually more inclination to shop.” Giving facts, Mr Puneet Nanda, Design Head, Satya Paul articulates, “As far as the Indian apparel market is concerned, a larger share of the women’s wear market in India comprises of ethnic wear unlike the men’s wear market, which is dominated, by western wear. According to a research done on the Indian apparel market in 2007, 74.3 per cent of the women’s wear market in India comprises of ethnic wear.” Nevertheless, we often see journalists and politicians in ethnic clothes representing the common man. Moreover, ethnic wear for men is now an integral part of almost every fashion show. Though the weightage is more towards women, men’s ethnic wear also makes a considerable contribution.
Competitive spirit
With the entry of more players in a sector, the competition level increases. The competition may not be immense in this sector at the moment, as a lot of potential is still untapped. Ms Singh says, “If you are talking about competition for Anokhi then I would have to say we do not have any. There is room for everyone to do their own thing. Anokhi has always been inspired by traditional crafts and used them as a foundation for its creativity but has always been known for its innovations in print and design. Our collections contain a large percentage of contemporary prints, styles, colours and details, executed to an international standard, enabling our customers to buy our clothes and wear them anywhere. We focus on what we do well, not on what other brands or businesses are doing.” Alternatively, W had the good fortune to be the pioneer in a virgin market. Mr Mishra says, “We understand that the future is ours only if we continuously evolve. Our competitive strategy is therefore based on an ongoing and compulsive innovation mindset with an equal focus on process, technology and people that will enable us to service the aspirational needs of our consumers consistently and in a better manner than our competition. As far as pricing is concerned, we feel today’s consumer differentiates one product from the other on the basis of the brand, aspirational value, unique features and overall shopping experience. He/She does not mind spending an extra penny on his/her wardrobe to get a garment, which is perfect in fit, style, cut and design - truly “ready to wear”. As more players become a part of this industry, the competition scenario will get intense and help the industry grow further.
Demand overseas
Ethnic wear is making waves both at home and internationally, and is gathering a lot of foreign exchange. There are roughly 15-20 million NRIs and 40-100 million ethnic Indians outside India who have an interest in wearing ethnic clothing. Anokhi did not expand overseas. It began with only export to high-end boutiques within the UK. Anokhi has had franchisees in England for many years and exports to both large and small companies predominantly under the Anokhi label. Anokhi garment and furnishing collections have been consistently sold to independent stores in Japan, France, Germany, Holland and the US for many years and across much of the globe in places such as the Virgin Islands, Mauiritius, Scandinavia, Spain and Australia.
Designers too have bet big on this industry. Thanks to them, India is understood very well in terms of design sensibility in the foreign nations. They yearn to wear Indian ethnic designer wear by Ritu Kumar, Tarun Tahiliani, Satya Paul, JJ Valaya, Ravi Bajaj and many more. Traditional and ethnic clothing is quintessential in fashion shows now. It is with the efforts of such contributors that ethnic clothing is gaining global significance. Designer ethnic clothing and branded ethnic clothing are two sides of the same coin and together, they complete the organised market. But both are different in their own right. Mr Nanda says, “As compared to branded ethnic wear, designer ethnic wear has an aspirational value attached to it. Each piece is given special attention and most of the times it is made to order as well and this ensures the right fit and the right look for the wearer.”
The road ahead
The ethnic wear industry is highly fashionable and very niche. The road ahead for this industry seems to be very smooth. Indians abroad and fashionistas all over the world accept this style of clothing. Predicting a very bright future for this industry and giving ways to achieve success Mr Savla says, “There is huge potential for many manufacturers to become national brands via the organised retail shop-in-shop format. Today, with the growth of retail industry in India, it is possible to have 100 outlets as SIS within a short span of time. The idea is to find a solution to manage adequate manufacturing and outsourcing capacity and bring in discipline in not just product development but making it available in organised retail shelves across the country.” This category will struggle to achieve size, volume and standardisation in comparison to all other categories. Celebrities will certainly help in glamourising this category. Thanks to Bollywood and TV serials, which have depicted lavish traditional Indian weddings, ethnic wear is here to stay in the apparel market.
This is just the starting point for the ethnic wear market. More and more atomic brands will form a part of this industry, which means clear success and a hot ticket to markets all across the world.
Copyright © 2009 - 2024 Franchise India Holdings Ltd