Men’s ethnic wear brands are getting aggressive on expansion to cater to the increasing demands. Ethnic wear franchise is definitely a business worth exploring.
The new generation has made fashion a priority with the higher disposable income levels, higher spending capacity, and greater shopping inclinations. The Indian ethnic wear market is however dominated by women’s ethnic wear. Which contributes to nearly 83% and is followed by the kids’ ethnic wear and men’s ethnic wear categories with shares of 9% and 8% respectively. Studies show that this trend is mainly due to the lack of men’s ethnic wear specific outlets. Whereas women may still be fashion’s biggest spenders when you look at how fast sales are growing, men now lead the race—and they’re expected to widen the gap over the next few years.
According to a research by Euromonitor International menswear will outperform the women’s clothing sector across the world by 2020. Men-specific ethnic wear brands like Manyavar have acknowledged this and are planning to open 600 exclusive brand outlets by 2020.
Manyavar CEO Ravi Modi claims, “Manyavar has been a catalyst in the growth of men’s ethnic wear category. The idea was to bring Indian wear back to mainstream apparel wear, changing the perception of restricting Indian wear only to weddings. We have had proud moments when we created new categories in ethnic wear like fusion wear.”
The ethnic wear market in India has grown, strangely enough, by becoming more western, according to executives in apparel companies. The market for men, presently at INR 1623 crore (USD 305.82 million), is expected to grow at a CAGR of 8.5%, as brands specific to men’s ethnic wear industry introduce new styles in the everyday collection of men’s ethnic wear. “Consumer outlook towards ethnic wear has changed and evolved considerably over time. They are now open to adopting and experimenting with cuts, colors and hues. This will go a long way in ensuring that ethnic wear continues to be contemporary and interesting. Being market leaders we have consciously made efforts to command a bigger share in the contemporary man’s wardrobe by urging people to increase occasions of usage.” Modi adds.
Men’s ethnic wear brands are now targeting younger audiences who are expected to respond well to the more casual designs. These brands hope to encourage younger customers to incorporate ethnic garments into their everyday wear.
The minimum area required for a men’s ethnic wear franchise outlet will be 1000 sq ft. with a minimum security deposit of 20 lakhs. The investment of a franchise for a brand’s stock will range from 15-25 lakhs, which will then, in turn, be sold for a 29.5% markup. The dead stock by the end of the season will be absorbed back by the company and the franchise will be refunded for its amount. The average amount of interior expenditure tends to be 2800 per sq ft, hence for a 1000 sq ft store; the expenditure on interiors would range from 28-30 lakhs, including the cost of IT equipment. A store of a 1000 sq ft would require the manpower of 5 people, whose collective salaries would add up to 80,000 to 1 lakhs in a metro or Tier I city. The miscellaneous expenses of a store of this kind would range from 70-80,000 a month.
Keeping these expenses in mind an average men’s ethnic wear store can break even in 1-1.5 years, in a high populous area. As in peak festival seasons, the store can generate revenue of 1.25-1.5 crore. In addition to this, the costs of advertising and logistics are solely overtaken by the head brand, as well as the assistance of the franchise in terms of training employees and talent acquisition.