8484 l l ENTREPRENEURENTREPRENEUR l l JJUULY 2019LY 2019
To cater to the increasing
demands, most of the
menswear brands are up for
franchise expansion in the
Tier-II and Tier-III locations.
“We are planning to add 100
stores across India over the
next three years. Majority
of these stores will be in
upcountry markets. The
franchise model is helping
us reach out to maximum
customers in these markets,”
says Vakharia.
In addition, Raymond
Apparel plans to open 40
stores. Saha says, “With
ongoing strong growth
momentum in upcountry
locations, we expect to almost
double our revenues over the
next two years.”
The start-up investment for
a franchise store of a brand
like Park Avenue is estimated
at Rs 50 lakh for 1,000 sq. ft
and Rs 40 lakh for a 700 sq.
ft store. “The investment will
include stock deposit of Rs
1,300 per sq. ft and interior
deposit of Rs 3,000 per sq.
ft,” discloses Walia. Monthly
revenues may be expected in
the range of Rs 10-15 lakh,
which may go up to Rs 25
lakh during the festive season.
Overall, a store can expect
gross profits in the range of
10-15 per cent of the revenues.Being Indian,
Being Ethnic
Indians wear their love for all
things ethnic literally on their
sleeves. It is on big display
not only in the metros but in
smaller cities too. And while
women, with 87 per cent
share, overwhelmingly vote for
ethnic wear, men are catching
up fast with a growth forecast
of 8.5 per cent CAGR. Brands
such as Manyavar are making
men’s ethnic wear a modern
fashion statement.
Further, conquering the
upcountry market is an
exciting challenge for ethnic
wear brands. Experts believe
that as more than 65 per cent
customers are based in TierII and III cities, these regions
are very crucial for any brand
to succeed in the women’s
ethnic wear category. Market
experts also affirm that ethnic
wear is the preferred outfit for
women aged between 16 to 50
years in these cities. Noting
the increasing demand, brands
such as Biba and Breya plan to
rev up their expansion plans
in these cities. “We may open
80-100 outlets by 2020 with
a specific focus on Tier II and
III cities,” says Pratik Agarwal,
co-founder of Breya. Biba
plans to add 200 more stores
by 2021.
Further, fusion wear, the
blending of ethnic and western
wear, is all the rage these days.
“Customers are experimenting
with cuts, colours and hues.
This will go a long way in
ensuring that ethnic wear
continues to be contemporary
and interesting,” says Ravi
Modi, Managing Director,
Manyavar. And though sarees
dominate the ethnic wear
market with 47 per cent share,the segment is witnessing
growing influence of fusion
wear with kurtis.
“Today’s modern
women pair Indian kurtis
with western wear – it’s
comfortable and applicable for
both casual and professional
wear,” says Agarwal of Breya.
The brands claim an average
footfall of 40-50 customers a
day, with an average spending
of Rs 2,000-3,000 per
customer. Even the salwar
kameez has transformed into
a more evolved avatar with
different cuts and drapes. The
salwars have transformed
to pants, palazzos and
skirts whereas kurtis have
transformed into long floor-
length dresses, anarkalis and
asymmetric flare kurtis. These
can be worn at work, in casual
outings and even on occasion
be evening wear.
Start-up investment for an
ethnic wear store of 800-
1,200 sq. ft size ranges from
Rs 20-40 lakh. Of this, Rs 12-
15 lakh goes into interiors andFashion