Manyavar spreading EBO presence, plans women’s label

Ethnic wear label Manyavar from Vedant Fashion is witnessing good growth as light ethnic wear moves beyond weddings and festivals. The company is now looking at establishing a strong EBO network and launching an e-

commerce portal to reach out to its pan-India customers. Also on the cards is venturing into women’s ethnic wear. The plan is to launch a women’s wear line next year called ‘Manya’. It will consist of occasion wear like ghagras, saris and salwar suits.

Spreading EBO network

Ever since entering the ethnic wear space in 2002, the company has opened 270 EBOs. “We prefer high streets to malls as this ensures profitability. We aim to have 600 EBOs by 2016, covering one million square feet. We have two store formats: the first is around 800 to 1,200 square foot and second is our flagship format spread over 3,000 square foot. We have 30 flagship stores across India. Flagships are one-stop destinations so these will have a wider product range,” explains Ravi Modi, MD, Vedant Fashion, makers of the brand Manyavar.

The company also has more than 20 franchise partners operating more than 5 stores each; and more than 10 franchise partners operating more than 10 stores each. “We will open pure franchise models in Tier II, III and IV cities. MBOs can’t help you grow beyond a point. EBOs are a better bet,” he opines.

The company will also start its own online business this September, since it believes that the online business will evolve in the next decade.

Product expansion plans

Manyavar has the capacity of producing two million pieces annually having a 79,000 square foot set-up. Next year, it plans to build a three lakh square foot warehouse. “For the last five years, we have grown at 57 percent every year. This year, we have grown by 80 percent. The category is evolving. I’d say it’s growing by 25 percent, but there are production challenges because it is an unorganised industry. We have some 30 fabric suppliers. It’s a totally unorganized industry,” avers Modi.

Modi points out that the ethnic wear label has to depend on small vendors scattered across the country. From vendors in Varanasi, to hand-embroidery units in Kolkata. One sherwani needs 50 man-days of labour. There are design challenges, company needs to train the workers to get the designs right. Commenting on the business dynamics, Modi says, “In India, sales of any brand is dominated by occasions like marriages. It’s a myth that ethnic wear sells during marriages and denim doesn’t. People in India spend only during marriages. In the non-marriage season, the entire retail sector suffers. For us, as for most others, the worst period is July, August and September.”