New Delhi: Ethnix by Raymond, an ethnic wear brand is charting a course for rapid expansion with plans to significantly increase its retail presence to 250 stores by the end of this fiscal year 2024-25 across India, a company’s senior official said.
The ethnic wear brand is aiming to open over 130 stores this fiscal year with a focus on regions with a high concentration of ethnic wear consumer brands, particularly in tier 2 and 3 cities, which constitute about 85 per cent of the market, said Bidyut Bhanjdeo, chief business officer of Ethnix by Raymond, in an exclusive interview with ETRetail.
During the last fiscal, the company opened 56 stores reaching a total of 114 stores as on March 31st, 2024, according to a regulatory filing. Going ahead, it is planning to expand retail store network mainly through asset light franchise model.
Investment and Expansion Plans
Presently, about 20 per cent of the stores are company-owned and company-operated, where significant capital expenditure is directed, while the remaining are franchise-operated, Bhanjdeo said.
Speaking about the brand’s investment plans, he outlined marketing, expanding footprint, technology and team building as the company’s key pillars of investment.
He shared, “We will be investing disproportionately in marketing campaigns this year. Cinema being a significant medium for us, helps showcase brand ads on 700 screens across India.” Ethnix is also investing in attracting young talent and enhancing its technology infrastructure.
Ethnix by Raymond operates predominantly in the mass premium segment of the ethnic wear category. Despite the company’s expansion plans, Bhanjdeo said that there are no immediate plans to enter the women’s category within the next three to four years. Instead, the focus remains on strengthening the men’s segment and penetrating deeper into smaller markets.
A Shift Towards Organised Segment
The ethnic wear market is witnessing a shift from unorganized to organized sector.
“Currently, about 65 per cent of the market is unorganized. But it is expected that the organized sector’s market share would increase by 15 per cent. By 2027, organized players are expected to capture 50 per cent of the total market share, although Ethnix’s share in this segment remains in single digits,”said Bhanjdeo.
Strategies and Growth Outlook
While digital penetration in the ethnic wear segment is less compared to offline sales due to the nature of the product, Ethnix maintains a robust omnichannel presence. “We have built a substantial digital presence through collaborations with influencers,” Bhanjdeo explained. However, the primary business remains rooted in physical stores, with the digital strategy aimed more at brand building than direct sales.
Ethnix by Raymond is on a path to double its sales every 2-3 years, with a long-term goal of operating 450 stores depending on market conditions and inflation impacts. “Our ambition is to continue expanding and capturing a larger market share in the organized ethnic wear segment,” Bhanjdeo concluded.
