women wear retail Dec, 05 2011

Generate profits ethnically

Ethnic wear is the most up-and-coming sector in the Indian apparel market. Read on to get the essence of the Indian ethnic wear in the franchise industry.

By Neha Prashar
Sub Editor
Generate profits ethnically

Possessing an affluent traditional legacy, India has always been associated with Ethnic wear. Where the influence of the east is making the Indian masses more westward, we also see a lot of people from the east influenced by the rich Indian heritage. This insight has made the ethnic wear industry more approaching and flourishing. Currently, this Rs 9,000 crore market is likely to reach a Rs 45,000 crore turnover in the near future. The dealers and franchisors dealing with ethnic wear are the first ones to gain complete revenue of this growth.

Speaking about the occupancy of ethnic wear retail franchising in the Indian apparel industry, Asheeta Chhabra, Business Development Head, Chhabra 555 said: “The segment which ethnic wear retail franchising occupies of the entire pie is relatively small. Only a handful of players, including Chhabra 555, have ventured into this domain.”

Since the modern yet contemporary look is ‘in’ these days, it has made the ethnic wear industry the most sought after. Due to this, the segment has found to gain a remarkable change from being unorganised to organised. Out of the current industry players, 35 per cent are found to be successfully operating in the organised league, leaving the rest 65 per cent brands unorganised. Franchising has played as an expansion factor for all these brands making them reach a large chunk of people. Keeping in mind the growing popularity of the industry between the Indian consumers, many successful as well new brands have now opted for expansion through the franchising model.

Factors pertaining growth

This remarkable growth in the ethnic wear franchising segment is a provenance of several factors. With the Indian women becoming more brand conscious, branded shops are gaining more popularity. Franchising is a key towards increasing a brands retail presence. Also Indian wedding and festive season involves a lot of traditional maneuver, making the consumers rush to the nearest branded ethnic wear outlets to buy traditional wear.

“A lot of change has happened in the ethnic wear retail franchising scenario since bygone times, but I don’t think there are any changes in bridal wear segment” stated Vivek Agarwal, Owner, Divasa.

Also many other factors like a boost in disposable income, revelation to media and Bollywood, recognition of designer wear are responsible for the growing demand of ethnic wear. As per the report by Technopak, the size of ethnic wear consumers in India have guaranteed that there is no drop in its growth. It still remains the most essential item of clothing brought by majority of Indian women in Tier I and Tier II cities.

Sex no bar

Though ethnic wear has always been misinterpreted for women attires like sarees, lehengas, chudidars, etc, the segment also covers men outfits like sherwanis, kurta pyjamas, etc. Growing at the rate of 30-35 per cent yearly, the industry not only caters to the women masses, but also accommodates the menswear segment. Retailers and franchisors these days are looking ahead to concentrate more on ethnic clothing for men. The best examples of ethnic dressing by men are journalists and politicians. These men make the attire an integral part of the Indian apparel scenario. Although the focus is tilted towards women, men’s ethnic wear too plays a sizeable role.

Industry troupe and their franchise expansion

Apart from the already booming names, there are a huge number of brands that are making their debut in the Indian ethnic wear industry day by day. Since franchising is said to be one of the best ways of expansion, brands are appointing franchisees from across the country to make their retail presence stronger.

Ethnic wear brands like Chhabra 555, Satya Paul, Ritu Kumar, W Women’s Wear, Ashika Fashionwear, Anshu's Designer Studio, Divasa, Vasari, etc. have been successful in making their mark through franchising.

Speaking on the advantages of franchising Chhabra said: “The emergence of franchising as a strong concept over the last few years has resulted in positive implications for numerous sectors in India. Many budding entrepreneurs have diverted interest towards this business model.” Chhabra 555 has presently reached the figure of 50 stores across the country. They are now aiming to reach 100 in the next five years.

“Since it is a profitable concept for the franchisor, franchisee and the consumer, we have taken up franchising route for expansion“, stated Agarwal. Divasa has presence in over 15 states all over the country.

“We opted for the franchise route in 2004 to expand our presence across the nation in order to cater to the rising demands of ladies’ fashion wear and accessories. Franchising is the best preferred mode of expansion for international and domestic companies,” said Jyoti Mohan Narula, Managing Director, Genesis Colors. Satya Paul womenswear is presently available through 40 exclusive brand stores in 20 cities of the nation, out of which 16 are franchised. The brand is also catering to over a 100 multi brand womens’ wear stores in India through an art digital design studio, company run factories and a vastand a vast distribution network.

Ravi Bhandari, Director, Anshu's Designer Studio, stated: “To inform the fashion conscious women across India about our offering, we took the franchise route for expansion.”  Anshu’s Designer Studio presently have nine franchised stores; two in Delhi and Chennai, and rest in Raipur, Jabalpur, Lucknow, Ahmedabad etc. The company plans to reach 50 stores by March 2012.

W Women’s Wear presently is available at 60 exclusive stores across 25 cities in India. It is also present in 500 retail points including shop-in-shops. As a part of its future expansion plans in India, the company plans to set up 100 exclusive 'W' stores in the country including tier II and tier III cities by March 2012.

The foreign connection

Ethnic wear has not only captured the Indian market, but has also made its presence well-built internationally. It is roughly said that 15-20 million NRIs and 40-100 million Indian on a global front are interested in dressing in Indian garments.

Speaking on its international expansion, Chabbra said: “Chhabra 555 is now making an international foray and we intend to establish a strong dealership network across selected countries. We are searching for strong business partners as Master Franchisees in– USA, Canada, UK, Middle East, Australia, etc. We are looking for partners who share our passion to grow the brand and business to greater heights.”

Satya Paul is present in Pakistan, Malaysia, Dubai and Kuwait through a retail network. “Besides the domestic market, we also have marked our presence in the international market with two retail outlets,” said Narula on Satya Paul’s global presence.

Industry anticipation

Looking down the road the industry growth seems to be escalating all the way. The brands not only feature traditional attire but also add in a tint of westernism to the clothes making the category more looked for. Précising, the industry is still in its novice phase and a lot more is expected by the ethnic wear brands to deliver to the consumers.

Possessing an affluent traditional legacy, India has always been associated with Ethnic wear. Where the influence of the east is making the Indian masses more westward, we also see a lot of people from the east influenced by the rich Indian heritage. This insight has made the ethnic wear industry more approaching and flourishing. Currently, this Rs 9,000 crore market is likely to reach a Rs 45,000 crore turnover in the near future. The dealers and franchisors dealing with ethnic wear are the first ones to gain complete revenue of this growth.

Speaking about the occupancy of ethnic wear retail franchising in the Indian apparel industry, Asheeta Chhabra, Business Development Head, Chhabra 555 said: “The segment which ethnic wear retail franchising occupies of the entire pie is relatively small. Only a handful of players, including Chhabra 555, have ventured into this domain.”

Since the modern yet contemporary look is ‘in’ these days, it has made the ethnic wear industry the most sought after. Due to this, the segment has found to gain a remarkable change from being unorganised to organised. Out of the current industry players, 35 per cent are found to be successfully operating in the organised league, leaving the rest 65 per cent brands unorganised. Franchising has played as an expansion factor for all these brands making them reach a large chunk of people. Keeping in mind the growing popularity of the industry between the Indian consumers, many successful as well new brands have now opted for expansion through the franchising model.

Factors pertaining growth

This remarkable growth in the ethnic wear franchising segment is a provenance of several factors. With the Indian women becoming more brand conscious, branded shops are gaining more popularity. Franchising is a key towards increasing a brands retail presence. Also Indian wedding and festive season involves a lot of traditional maneuver, making the consumers rush to the nearest branded ethnic wear outlets to buy traditional wear.

“A lot of change has happened in the ethnic wear retail franchising scenario since bygone times, but I don’t think there are any changes in bridal wear segment” stated Vivek Agarwal, Owner, Divasa.

Also many other factors like a boost in disposable income, revelation to media and Bollywood, recognition of designer wear are responsible for the growing demand of ethnic wear. As per the report by Technopak, the size of ethnic wear consumers in India have guaranteed that there is no drop in its growth. It still remains the most essential item of clothing brought by majority of Indian women in Tier I and Tier II cities.

Sex no bar

Though ethnic wear has always been misinterpreted for women attires like sarees, lehengas, chudidars, etc, the segment also covers men outfits like sherwanis, kurta pyjamas, etc. Growing at the rate of 30-35 per cent yearly, the industry not only caters to the women masses, but also accommodates the menswear segment. Retailers and franchisors these days are looking ahead to concentrate more on ethnic clothing for men. The best examples of ethnic dressing by men are journalists and politicians. These men make the attire an integral part of the Indian apparel scenario. Although the focus is tilted towards women, men’s ethnic wear too plays a sizeable role.

Industry troupe and their franchise expansion

Apart from the already booming names, there are a huge number of brands that are making their debut in the Indian ethnic wear industry day by day. Since franchising is said to be one of the best ways of expansion, brands are appointing franchisees from across the country to make their retail presence stronger.

Ethnic wear brands like Chhabra 555, Satya Paul, Ritu Kumar, W Women’s Wear, Ashika Fashionwear, Anshu's Designer Studio, Divasa, Vasari, etc. have been successful in making their mark through franchising.

Speaking on the advantages of franchising Chhabra said: “The emergence of franchising as a strong concept over the last few years has resulted in positive implications for numerous sectors in India. Many budding entrepreneurs have diverted interest towards this business model.” Chhabra 555 has presently reached the figure of 50 stores across the country. They are now aiming to reach 100 in the next five years.

“Since it is a profitable concept for the franchisor, franchisee and the consumer, we have taken up franchising route for expansion“, stated Agarwal. Divasa has presence in over 15 states all over the country.

“We opted for the franchise route in 2004 to expand our presence across the nation in order to cater to the rising demands of ladies’ fashion wear and accessories. Franchising is the best preferred mode of expansion for international and domestic companies,” said Jyoti Mohan Narula, Managing Director, Genesis Colors. Satya Paul womenswear is presently available through 40 exclusive brand stores in 20 cities of the nation, out of which 16 are franchised. The brand is also catering to over a 100 multi brand womens’ wear stores in India through an art digital design studio, company run factories and a vast distribution network.

Ravi Bhandari, Director, Anshu's Designer Studio, stated: “To inform the fashion conscious women across India about our offering, we took the franchise route for expansion.”  Anshu’s Designer Studio presently have nine franchised stores; two in Delhi and Chennai, and rest in Raipur, Jabalpur, Lucknow, Ahmedabad etc. The company plans to reach 50 stores by March 2012.

W Women’s Wear presently is available at 60 exclusive stores across 25 cities in India. It is also present in 500 retail points including shop-in-shops. As a part of its future expansion plans in India, the company plans to set up 100 exclusive 'W' stores in the country including tier II and tier III cities by March 2012.

The foreign connection

Ethnic wear has not only captured the Indian market, but has also made its presence well-built internationally. It is roughly said that 15-20 million NRIs and 40-100 million Indian on a global front are interested in dressing in Indian garments.

Speaking on its international expansion, Chabbra said: “Chhabra 555 is now making an international foray and we intend to establish a strong dealership network across selected countries. We are searching for strong business partners as Master Franchisees in– USA, Canada, UK, Middle East, Australia, etc. We are looking for partners who share our passion to grow the brand and business to greater heights.”

Satya Paul is present in Pakistan, Malaysia, Dubai and Kuwait through a retail network. “Besides the domestic market, we also have marked our presence in the international market with two retail outlets,” said Narula on Satya Paul’s global presence.

Industry anticipation

Looking down the road the industry growth seems to be escalating all the way. The brands not only feature traditional attire but also add in a tint of westernism to the clothes making the category more looked for. Précising, the industry is still in its novice phase and a lot more is expected by the ethnic wear brands to deliver to the consumers.

Related: Lingerie is no more a secret category

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