Kids’ ethnic wear emerges a promising segment in India

Kids’ ethnic wear is still niche with not too many big players venturing into this space. However, it’s a growing market with many new brands and established one vying for space.

Weddings drive up demand

For brands to carve out a niche takes constant innovation, with fabrics, pricing along with the right marketing avenues to attract customers. Since, these products are not about window shopping its more about aspirations. As Shashant Maru, Proprietor, Genuine says, “Ethnic wear is at the most 15 to 20 per cent of the junior wear market. In junior wear, its casual wear that dominates. Yet, the industry is growing at 10 per cent a year. The premium and super premium segment of ethnic wear is too well positioned.” In casual wear, western wear has taken over and ethnic now takes a backseat. But with indo western and fusion wear growing, people are ready to spend higher for the right kind of ethnic wear. So, there are kurtis, palazzos, lehangas, ghargra cholis and gowns with an ethnic touch which are in great demand. Though overall demand has fallen because of western wear but volumes are higher than before because of population growth. Since, it’s about a rare occasion, consumers are willing to spend more at one go if the product is good and presented properly.

Nikhil Furiya, Partner, Era says, “Ethnic wear has been doing well for the last five or six years. This has prompted many brands to jump into this category. It continues to be a demanding segment where sustaining yourself in the long term is difficult. Brands like Era, Genuine, Popton, Doll, AMI, Disha and Pari amongst others have been around for more than 10 to 20 years. For older players it’s all about consolidating working with organized retail, systematic functioning and marketing.

New brands find the going tough

As new brands enter the market experts opine girls’ ethnic is a challenging category. Market observers feel new brands have a tough time in establishing themselves, to attract retailers’ attention. You have to aggressively market your product and match it with a variety of trends and colors. Also, the fact that it’s a seasonal business also deters many from entering the market.

“Though for a newcomer its is tough but for existing players kids ethnics is promising because there are diverse tastes across various states in India, each brand gets their own customers,” avers Minesh Shah, Director, AMI. He adds, “Right now the market is flat but still we hope to grow by 25 per cent.” Many brands have dedicated designing team doing research on what works in the market. Therefore, even if you are a 25-year-old brand but inconsistent with both elements, you can’t expect to grow well. Throwing light on the scope of mid segment category, Kaushik Mehta, Proprietor, Keel Beel, explains, “The industry is geared towards the mid segment and one can expect maximum growth there. People making premium products are just two per cent of the industry. So, their turnover and sales may not be significant even though their margins are higher. If you want turnover and sales you have to cater to the mid segment.”