Legacy Brands Lose Ground in Women's Ethnic Wear Market
Wedding-wear retailer Manyavar is reportedly losing market share to more nimble ethnic wear brands that better cater to evolving consumer tastes. The shift is attributed to urban female shoppers seeking greater variety, value, and personalized experiences. These shoppers are increasingly turning to neighborhood markets and pop-up stores, valuing local discovery and deal-hunting.
- The Indian ethnic wear market was valued at USD 19.09 billion in 2023 and is projected to reach USD 30.45 billion by 2030, growing at a CAGR of 6.9%. Women's ethnic wear makes up 71% of the total women's clothing segment in India. - Vedant Fashions, Manyavar's parent company, reported a sales growth of 8.66% over the past five years but has seen a decline in profit growth recently. The company has acknowledged that competition in the ethnic wear segment is at an unprecedented level, with the number of stores tripling in the last two to three years. - The unorganized sector, consisting of mom-and-pop shops and local markets, dominates the ethnic wear market, holding approximately 80% of the market share. This presents a significant challenge to organized retailers like Manyavar. - Hyperlocal commerce is a rapidly growing trend in India, with the market expected to grow at a CAGR of 51.84% between 2021 and 2025. This model allows local offline stores to serve customers through digital platforms, offering faster delivery and a more personalized shopping experience. - Consumer behavior among urban Indian women is shifting, with a growing preference for a blend of traditional and contemporary designs. There is also an increasing demand for stylish yet professional ethnic wear suitable for the workplace. - Price, fit, and fabric quality are the top purchasing triggers for women's apparel in India. A brand's public image and celebrity endorsements also influence purchasing decisions, with actresses like Kiara Advani and Alia Bhatt serving as brand ambassadors for Manyavar's Mohey brand. - While ethnic wear remains dominant, Western wear is the fastest-growing category in the Indian women's apparel market, fueled by Gen Z and urban professionals. This trend is prompting ethnic wear brands to incorporate Western silhouettes into their designs. - The rise of e-commerce and social media is significantly impacting the fashion industry in India, allowing for greater exposure to trends and fueling online shopping, even in Tier II and Tier III cities. Online platforms are expected to contribute 35% of apparel sales by 2030.
