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(DAY 573) Rise of Ethnic Wear Brands in India

· 7 min read
Gaurav Parashar

The Indian ethnic wear market has witnessed significant growth, with brands like Manyavar and Tasva emerging as key players in the industry. These companies have capitalized on the increasing demand for traditional Indian attire, particularly in the men's segment. This blog post explores the success of Manyavar and the entry of Tasva, backed by Aditya Birla Fashion, into this competitive market. The Indian ethnic wear market has been experiencing steady growth over the past decade. This growth can be attributed to several factors, including a rising middle class, increased disposable income, and a renewed interest in traditional clothing among younger generations. While women's ethnic wear has always been a significant segment, men's ethnic wear has emerged as a lucrative market in recent years. Ethnic wear for men typically includes items such as kurtas, sherwanis, bandhgalas, and accessories like stoles and juttis. These garments are particularly popular during festivals and wedding seasons, which form the backbone of sales for many ethnic wear brands.

Manyavar, founded in 1999 by Ravi Modi, has become synonymous with men's ethnic wear in India. The brand has successfully positioned itself as a go-to destination for festive and wedding wear, offering a wide range of products catering to various occasions and price points. Manyavar's success can be attributed to its focus on several key areas. The brand offers a diverse collection of ethnic wear, from affordable everyday kurtas to high-end wedding ensembles. This wide range allows Manyavar to cater to different customer segments and occasions. Manyavar has aggressively expanded its retail presence across India, with hundreds of exclusive brand outlets and a strong presence in multi-brand stores. This expansion has helped increase brand visibility and accessibility. The company has invested heavily in marketing, particularly during festive and wedding seasons. Celebrity endorsements and high-profile sponsorships have helped establish Manyavar as a premium brand in the ethnic wear segment. Manyavar has maintained a reputation for quality products and contemporary designs that blend traditional aesthetics with modern sensibilities. Manyavar's business model is heavily reliant on seasonal sales, with the bulk of its revenue generated during festival and wedding seasons. These periods, which typically include major Indian festivals like Diwali, Eid, and the winter wedding season, account for a significant portion of the company's annual sales. The seasonal nature of the business presents both opportunities and challenges. During peak seasons, Manyavar experiences high footfall and sales volumes, allowing for improved profit margins. However, this also requires efficient inventory management and the ability to predict and meet demand during these crucial periods.

Tasva, a relatively new player in the ethnic wear market, has entered the scene with the backing of Aditya Birla Fashion and Retail Limited (ABFRL). Launched in 2021, Tasva aims to capture a share of the growing men's ethnic wear market by offering premium products and leveraging ABFRL's retail expertise. Tasva's entry into the market is characterized by several strategic decisions. The brand has positioned itself as a premium ethnic wear brand, targeting urban consumers who are looking for high-quality, designer ethnic wear. Tasva has collaborated with renowned Indian designer Tarun Tahiliani, bringing his expertise in traditional craftsmanship and contemporary design to a wider audience. From its inception, Tasva has adopted an omnichannel approach, establishing both physical stores and a strong online presence. This strategy allows the brand to cater to changing consumer preferences and shopping behaviors. Tasva focuses on blending traditional designs with modern sensibilities, offering products that appeal to fashion-conscious consumers looking for ethnic wear suitable for various occasions. Backed by ABFRL's resources, Tasva has ambitious plans for rapid expansion across major Indian cities, aiming to establish a strong retail presence in a relatively short period.

Despite being a new entrant, Tasva has reported healthy margins, which can be attributed to several factors. By positioning itself as a high-end brand, Tasva can command premium prices for its products, contributing to higher profit margins. Leveraging ABFRL's existing infrastructure and supply chain expertise allows Tasva to optimize costs and maintain profitability. The brand focuses on reaching its target audience through strategic marketing initiatives, including digital campaigns and influencer partnerships. Tasva's measured approach to expansion helps maintain a balance between growth and profitability, allowing the brand to establish itself in key markets before scaling up. Both Manyavar and Tasva heavily rely on festival shopping and wedding seasons for a significant portion of their sales. These periods are crucial for ethnic wear brands in India for several reasons. Festivals and weddings are deeply ingrained in Indian culture, with traditional attire playing a central role in celebrations. This creates a consistent demand for ethnic wear during these seasons. Many festivals involve the tradition of giving new clothes as gifts, driving up sales of ethnic wear during these periods. The rise of social media has amplified the importance of wearing new and stylish outfits during festivals and weddings, further boosting demand for ethnic wear.

Brands often release special collections for major festivals and the wedding season, creating excitement and encouraging purchases. Ethnic wear brands typically ramp up their marketing activities during these seasons, with targeted campaigns and promotions to capture consumer attention. The concentration of sales during these periods requires careful planning and execution. Brands must accurately forecast demand and ensure sufficient stock to meet the surge in sales without overstocking. Retail outlets often need additional staff during peak seasons to manage increased footfall and provide quality customer service. Many stores extend their operating hours during festival seasons to accommodate shopping preferences and maximize sales opportunities. Brands often offer discounts, bundle deals, or exclusive products during these seasons to attract customers and drive sales. For online sales, efficient logistics and delivery systems are crucial to ensure timely delivery of products during high-demand periods. While the ethnic wear market in India presents significant opportunities, brands like Manyavar and Tasva also face several challenges. The heavy reliance on seasonal sales can lead to cash flow issues during off-peak periods. Brands need to develop strategies to maintain steady revenue streams throughout the year. The success of ethnic wear brands has led to increased competition, with both established players and new entrants vying for market share. This competition could potentially lead to price pressures and reduced profit margins. As fashion trends evolve, brands must continually innovate and adapt their product offerings to meet changing consumer preferences. Economic downturns or reduced consumer spending can significantly impact the sales of non-essential items like premium ethnic wear. Recent global events have highlighted the importance of robust supply chains. Brands need to ensure they have resilient supply networks to mitigate potential disruptions.

The success of brands like Manyavar and the entry of new players like Tasva highlight the potential of the ethnic wear market in India. These brands have demonstrated that by focusing on quality, design, and strategic marketing, it is possible to build successful businesses in the traditional clothing segment. The key to long-term success in this market lies in balancing tradition with innovation, effectively managing seasonal demands, and adapting to changing consumer preferences. As the Indian retail landscape continues to evolve, ethnic wear brands that can navigate these challenges while maintaining their cultural relevance are likely to thrive.

For consumers, the growth of this market means greater choice, improved quality, and easier access to traditional clothing. As brands continue to innovate and expand, the ethnic wear segment is poised to remain a vibrant and essential part of India's fashion industry for years to come. The interplay between cultural heritage and modern retail strategies will continue to shape the future of ethnic wear in India, offering exciting opportunities for both established brands and new entrants in this market.