Ethnix by Raymond, a brand specializing in ethnic wear, is on a trajectory for rapid expansion, aiming to significantly boost its retail presence to 250 stores across India by the end of the fiscal year 2024-25, as stated by a senior company official.
Bidyut Bhanjdeo, the Chief Business Officer of Ethnix by Raymond, mentioned that the ethnic wear brand is targeting the launch of more than 130 stores this fiscal year. Their emphasis lies on regions with a dense presence of ethnic wear consumer brands, especially in tier 2 and 3 cities, constituting approximately 85 percent of the market.
During the previous fiscal year, the company opened 56 stores, bringing the total to 114 as of March 31st, 2024, according to a regulatory filing. Looking ahead, the main strategy for expanding the retail store network is through an asset-light franchise model.
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Bhanjdeo mentioned that currently, approximately 20 percent of the stores are company-owned and company-operated, requiring significant capital expenditure. The rest are franchise-operated.
In discussing the brand’s investment strategies, he highlighted marketing, expanding the footprint, technology, and team building as the key pillars of the company’s investment focus.
He shared, “Our focus this year will be on significantly increasing investments in marketing campaigns. Cinema, being a significant medium for us, allows us to showcase brand ads on 700 screens across India.” Ethnix is also directing investments towards attracting young talent and improving its technology infrastructure.
Within the ethnic wear category, Ethnix by Raymond mostly serves the mainstream luxury market. Bhanjdeo stated that although the company intends to grow, there are no urgent plans to enter the women’s division in the next three to four years. Instead, strengthening the men’s segment and expanding into smaller markets continue to be the major priorities.
The ethnic wear market is undergoing a transition from being largely unorganized to becoming more organized.
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Approximately 65% of the market is currently engaged in unorganised business activities. Nonetheless, a 15% increase in the organised sector’s share is predicted. While Ethnix’s share in this market is still in the single digits, organised companies are expected to capture half of the market by 2027, according to Bhanjdeo.
Although digital penetration in the ethnic wear segment lags behind offline sales due to the product’s nature, Ethnix maintains a strong omnichannel presence. “We’ve established a significant digital footprint through partnerships with influencers,” Bhanjdeo elaborated. Nonetheless, the core business remains centered around physical stores, with the digital strategy primarily focused on brand building rather than direct sales.
Ethnix by Raymond is aiming to double its sales every 2-3 years, with a vision of eventually running 450 stores, subject to market conditions and the impact of inflation. “Our aspiration is to sustain growth and secure a greater market share in the organized ethnic wear segment,” Bhanjdeo concluded.