Kolkata | Mumbai: There is a distinct preference for western and fusion wear that is seen outpacing ethnic fashion at the peak of India’s festive season this year, when consumers typically show a penchant for traditional wear.
Usually, the festive and wedding seasons between October and February are peak periods for traditional fashion. But growth in the ethnic segment has softened, with industry executives estimating sales are down 15-20% compared to last year. “Dresses, jumpsuits, and bandhgalas are replacing sarees and sherwanis at celebrations,” said Devarajan Iyer, chief executive of department store chain Lifestyle International.
“There is a clear industry-wide shift in consumer preferences. From Diwali parties to celebrations, more people are opting for western wear over conventional ethnic outfits, leading to slower growth in the traditional category,” he added. Companies said the demand shift is particularly noticeable among younger consumers and urban shoppers who prefer comfort, a key reason for them to opt for western and fusion styles over traditional garments. V-Mart managing director Lalit Agarwal said fusion wear, which incorporates ethnic styles and prints with western attire, is in vogue. “We are still seeing an uptick in demand for ethnic brands. But it’s increasingly skewed towards fusion wear which is more stylish yet carries the ethnic essence.””Western wear is cheaper than hand-embroidered ethnic clothing,” said Rahul Mehta, chief mentor of the Clothing Manufacturers Association of India. “Cost-conscious consumers are shifting, and women, especially, are embracing western looks for occasions. Ironically, ethnic wear is gaining popularity among men, who view it more as a status symbol.”
Pricing pressures and an 18% GST on garments priced above ₹2,500 has also hit ethnic wear demand. While the tax increase from an earlier 12% applies across apparel categories, large-scale western wear makers have economies of scale, unlike many MSME-led ethnic wear producers.
“The sale during this Diwali is not as expected. The growth has been flat this season probably due to increase in GST in this price segment. People were expecting a discount but in our segment the price has gone up. The upcoming wedding season will be a real test for ethnic wear,” said Mayank Mohan, owner of ethnic menswear brand Mohanlal Sons.
Despite the current lull, retailers said the long-term ethnic wear market will keep its cultural stronghold. Shoppers Stop, however, said the premium celebration wear category has been resilient despite economic slowdowns. “Our premium ethnic brand Kashish is the top seller across apparel categories, indicating that there is no slowdown at our stores. While value clothing remains under pressure, there is a strong trend of premiumisation,” said Kavindra Mishra, managing director at Shoppers Stop.
Biba‘s managing director Siddharath Bindra said it is betting on product innovation in fusion wear, bridal wear and kids wear and expects a double-digit growth this Diwali over last year.
