Investing in Wedding Wear Sector
India’s peak wedding season, which typically occurs between late November and mid-December, provides a boost to the economy. The surge in wedding-related activities during these two months provides a significant push to economic activity.
A survey by the Confederation of All India Traders (CAIT) stated that there were about 35,00,000 weddings in 2023, while it was 32,00,000 in 2022 and 25,00,000 in 2021. There are several crucial aspects involved in an Indian wedding, such as clothing, cuisines, jewellery, venue, and other miscellaneous categories
Growth Prospects
In the wedding attire market, in 2023-24, high-end designer brands, including Tarun Tahiliani, Abu Jani, Sandeep Khosla, Sabyasachi, and Rahul Mishra, saw impressive surges in sales of wedding and occasion wear. These labels registered a significant growth in sales ranging from double-digits to triple digits, which contrasts the broader trend of subdued demand in other retail segments.
The premiumisation trend within the wedding sector underscores the shift towards luxury and exclusivity, contributing to the financial success of these high-profile brands. Sabyasachi Mukherjee, a leading name in luxury fashion, reported a phenomenal 42% increase in revenue, reaching ₹487 crore for the financial year 2023-24.
Market Players and Performance
The wedding wear sector’s buoyancy is reflected in the performance of major retail players. Reliance Retail and Aditya Birla Fashion and Retail, two prominent entities in India’s fashion landscape and listed companies, have significantly impacted the wedding wear market. Both companies have invested heavily in joint ventures (JVs) with leading designer brands and have acquired several labels, thereby expanding their footprint in the high-end wedding and occasion wear segments.
Indivinity Clothing, in collaboration with Tarun Tahiliani, saw its sales double to ₹100 crore. Similarly, Reliance Abu Sandeep Private Limited reported a remarkable 155 percent increase in sales, reaching ₹131 crore. Aditya Birla’s Finesse International, which operates the Shantanu & Nikhil brand, achieved a 14 percent growth in sales to ₹85 crore.
The House of Masaba, another significant player, saw its revenue increase by 39 percent, reaching ₹70 crore. Reliance Retail’s partnership with Anamika Khanna’s fashion brand AK-OK also contributed to the overall industry growth, with the JV posting ₹17 crore in sales during its first full year.
While the market for wedding wear has traditionally been dominated by local, made-to-order shops, brands like Manyavar (Vedant Fashions Limited), Mohanlal, Tasva, and Ethnix by Raymond have positioned at lower price points and successfully tapped into the celebration wear market.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.