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Ethnicwear brand Lakshita’s secret to success: Innovation, technology & sustainability

Celebrating 23 years of empowering everyday moments that define a woman’s journey, Lakshita stands as a beacon of excellence, inclusivity, and sustainability in the ethnic and Indo-Western wear category. Pioneers in size inclusivity, the brand, which was established in 2001, is renowned for its commitment to quality craftsmanship and trusted services. Lakshita’s modern approach to modest dressing, tailored uniquely for the Indian woman, emphasises precision fit, premium fabrics, and sustainable practices.

The brand envisions helping every woman feel empowered enough to embrace their individuality and transform fashion with innovative and inclusive designs for life’s multifaceted roles.

In a freewheeling Q&A with IMAGES Business of Fashion, Sachin Kharbanda; MD & Founder, Lakshita, talks about the ethnicwear market in India, the factors driving its growth and how Lakshita has stayed in tune with changing consumer preferences over the decades to stay at the top of the game. 

How is the ethnicwear market growing in India? What factors are driving this growth?  

The ethnicwear market in India is valued at Rs 1.84 trillion and is experiencing a robust growth rate with a CAGR of 8%. This expansion is driven by several factors: 

  • The deep cultural and traditional significance of ethnicwear ensures its continued popularity among Indian consumers. Additionally, the blending of traditional and modern styles, known as Indo-western fashion, has broadened the appeal of ethnicwear, particularly among the younger generation. 
  • Economic growth and higher disposable incomes have further enabled consumers to invest in high-quality, stylish ethnic garments. 
  • The increasing influence of social media and fashion influencers showcasing ethnicwear has also played a significant role in this growth. 
  • The consistent demand during festive and wedding seasons continues to drive the market, as people seek to wear the latest trends and designs.

What are the notable shifts in consumer behavior in ethnicwear in the last 5 – 10 years?

Consumers have increasingly shifted to shopping for ethnicwear online, a trend driven by the convenience, extensive choices, and the ability to compare prices and read reviews that e-commerce platforms provide. Despite this shift, offline retail stores continue to hold significant importance, particularly for customers who value a hands-on shopping experience, personalised assistance, and the opportunity to try on garments before making a purchase. To cater to diverse consumer preferences, omnichannel strategies that integrate both online and offline shopping experiences have become crucial for businesses.

Consumer preferences and lifestyles significantly influence their choices in ethnicwear. The rise of high-end designer labels and the increasing influence of modern silhouettes, alongside our intact cultural roots, have shaped consumer preferences towards modern adaptations and sustainable options.

What is the split in the market – Men vs. women vs. kids? Which of these is growing fastest and why? 

In 2024, the revenue in the Women’s Apparel market in India amounts to US$51.05 billion, with an expected annual growth rate of 3.99% (CAGR 2024-2028). Among the different segments, Women’s Apparel holds the largest share, highlighting its dominant position in the market. 

The ethnicwear market is primarily driven by women, who account for the largest share due to the extensive range of occasions and categories available and is also driven by factors such as increased workforce participation, social events, and a desire for attire that is both fashionable and traditional. 

Although the men’s segment is expanding, it remains smaller in comparison. The kids’ segment too is growing, particularly during festive seasons and weddings.

What are the new emerging categories in the segment?

Ethnicwear was once primarily associated with festive occasions and weddings. However, there is now a growing demand for fusion wear and Indo-western styles like Co-ord sets, as well as modern adaptations of traditional clothing for casual and everyday use. We have increasingly been experimenting with unique cuts, fabrics, and embellishments to create contemporary ethnicwear that merges tradition with modern aesthetics.

What are the challenges posed by the unorganised sector of ethnicwear in India?

The unorganised sector poses significant challenges to the organised ethnicwear market by offering lower-priced products, making it tough for established brands to compete solely on price. Furthermore, the unorganised sector can rapidly adapt to local trends and demands. However, it often falls short in terms of quality assurance, compliance adherence, brand trust, and consistent customer service — areas where brands like Lakshita excel and can leverage as a competitive advantage.

Buying online or in-store – which medium is more popular for ethnicwear and why?

For Lakshita, in-store shopping remains more popular due to our USPs like tailored fits, free alteration in every facility, fabric quality, and personalised service. Customers often prefer to experience the feel of the fabric and ensure the perfect fit before making a purchase. However, our online sales are growing rapidly as we enhance our e-commerce platform, offering convenience and a broader reach. 

What is your Omnichannel strategy? How do you work on providing a personalised / bespoke experience online?

As a retail-first brand, Lakshita envisions ‘many roles, one life’, aiming to deliver excellent product and service experiences to customers. Our omnichannel strategy aligns closely with this vision, ensuring customer delight by meeting brand objectives and fulfilling customer needs through a blend of technology and service. The omnichannel platform is designed not only to facilitate standard e-commerce journeys but also comprehensive omnichannel experiences. Built on a modern microservices architecture, it seamlessly integrates with existing retail technologies, enhancing functionality without requiring extensive system overhauls. This customer-centric approach ensures that every customer’s requirements are met, whether directly through the brand or via our omnichannel capabilities, thereby creating a delightful experience for customers.

How much revenue does online retail contribute to your overall sales? 

Currently, online retail contributes 10-12% to our overall sales. However, this segment is growing at an impressive rate of 50% year-on-year, driven by our efforts to enhance our online presence and the increasing acceptance of shopping online among our customers.

How will innovation drive ethnicwear retail in India?

Innovation in ethnicwear retail will be fueled by integrating technology into design, production, and retail processes. This encompasses advancements in sustainable fabrics and leveraging data analytics for personalised marketing. Enhancing the omnichannel experience to ensure seamless shopping across online and offline platforms will also play a pivotal role.

What are your top 3 favorite technologies (in-store and online) for your brand?

  • In-Store Heatmaps: We utilise heatmaps in our physical stores to analyse customer movement and behaviour. This technology helps us understand foot traffic patterns, optimize product placement, and improve visual merchandising. By identifying high-traffic areas, we strategically position our bestsellers and new arrivals to maximize customer engagement and sales.
  • Enhanced Online Customer Experience Tools: Online, we have integrated various tools to ensure a seamless and enjoyable customer experience. This includes a robust return management system, streamlined order placement and confirmation processes, and a comprehensive ticketing system for efficient customer relationship management (CRM). These technologies streamline our operations, minimise friction points in the customer journey, and enhance overall satisfaction.
  • Integration of Online Marketplaces and Brand Narratives: Leveraging various avenues of selling online and the emergence of social media. In today’s digital landscape, integrating with online marketplaces and our D2C platform enables us to gather valuable insights into consumer behaviour and preferences through the analytics tools provided by these platforms. We ensure that our brand narrative remains cohesive and compelling across all touchpoints.

Tell us about your upcoming collection and how it will help shape the segment in the coming season?

Our upcoming Autumn-Winter (AW) collection is poised to make a significant impact on the ethnicwear sector. This collection is designed with a festive dominance, reflecting the joy and vibrancy of the season. We have focused on premium quality and luxurious finishes, ensuring that every piece exudes elegance and sophistication.Our AW collection caters to diverse preferences and marks a significant stride in the Indian apparel market with integrated storytelling narratives. 

What sets this collection apart is its exceptional value for money. While similar quality garments in the market are priced around Rs. 15,000, we offer them at much affordable price, without compromising on quality. This underscores one of our core USPs – delivering premium products at competitive prices.

The AW collection will be our largest yet, with a 30% increase in style options compared to previous years. It embraces the concept of “many roles, one life,” offering something for every occasion and every woman, regardless of age. From opulent festive wear to versatile everyday pieces, our collection is designed to cater to diverse tastes and requirements.

Our premium range, priced around Rs. 10,000 to Rs. 11,000, epitomizes affordable luxury. Each garment is crafted to be a wardrobe staple, capable of being passed down through generations. By offering a wide range of price points, we ensure that there is something for everyone, reinforcing our commitment to inclusivity and diversity.

How have you incorporated sustainability into your new collection in particular and your brand in general?

  • Ethical Production Practices: Our production processes are designed to be as environmentally friendly as possible. We have implemented energy-efficient technologies in our manufacturing units and adhere to strict waste management protocols. Additionally, we ensure fair wages and safe working conditions for all our workers, reinforcing our commitment to ethical practices.
  • Lifetime Alterations: We offer complimentary lifetime alterations on our garments. This service extends the lifespan of our products, encouraging customers to cherish and maintain their Lakshita pieces for years to come. By promoting longevity, we reduce the need for frequent replacements and contribute to a more sustainable fashion cycle.
  • Sustainable Packaging: We have transitioned to eco-friendly packaging solutions, using recycled and biodegradable materials. This initiative helps reduce waste and demonstrates our dedication to sustainability at every touchpoint of the customer journey. Our carry bags are designed to be sturdy and reusable, serving as multi-purpose bags for our customers.

What are your expansion plans? Do you plan to explore new geographies and markets in India / abroad? Any plans to expand into Tier II and beyond – if yes, why?

We are dedicated to expanding our retail presence both domestically and internationally. In India, we aim to open new stores in Tier I and II cities to meet the rising demand for high-quality ethnicwear in these areas. Currently, we operate from 71 stores and have plans to increase this to 100 stores by the end of FY24, along with further expansion in eastern, western and southern India. Our international expansion strategy includes our recent entry into the Nepal market. This expansion is driven by the growing popularity of Indian ethnicwear globally.

What is your annual turnover and expected ARR over the next 2 years?

Our annual turnover reflects a steady 30-35% year-over-year growth overall.

What is the future of ethnicwear retail in India?

The outlook for the Indian ethnicwear market appears optimistic. Rising disposable incomes, evolving fashion preferences, and a deepening cultural appreciation are driving continued growth in demand for ethnicwear. Innovations in technology, including advancements in e-commerce platforms and tools for virtual try-ons, are set to enrich the online shopping experience and narrow the divide between online and offline retail channels.

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