New Delhi: Ethnic wear brand Sabhyata plans to more than double the number of its stand-alone outlets by the end of 2017, taking the total store count to 100 from 40.
Launched in 2003, the company plans to touch Rs.100 crore in revenue by March 2017 and is hoping to double this number to Rs.200 crore by 2018. Sabhyata closed the 2015-16 fiscal at Rs.75 crore.
“We are opening two stores every month. 90% of our stores are company-owned, rest are franchised. We are targeting southern and eastern parts of the country particularly Kerala, Chennai and Guwahati,” said Pankaj Anand, director at Sabhyata, which currently operates in Delhi, Mumbai, Bangalore and Amritsar, among others.
The company sells apparels priced between Rs.449 and Rs.2,500 through its 40 stand-alone stores and online marketplace Jabong. Sabhyata sells traditional apparels for both women and men.
The company also plans to launch its own e-commerce platform. “We have stopped selling apparels through online marketplaces except for Jabong. We will be coming up with our own website probably in the next two months to sell our product,” said Anand.
Anand added that Sabhyata is planning to enter the formal and casual women’s wear segment. “We are evaluating the segment but will expand only after 2017,” he said.
Ankur Bisen, senior vice-president, retail and consumer, Technopak Advisors, said that it is a logical and reasonable expansion for Sabhyata. “Most of the ethnic brands target northern parts of the country for growth and expansion. There is a huge demand for traditional wear in southern parts as well. Because the overall market is growing so rapidly, it makes sense for ethnic wear companies to chart expansion plans,” he said.
According to a Technopak report, titled Understanding India’s Ethnicwear Market, the Indian ethnic wear market is expected to touch Rs.1,26,210 crore by 2019, up from Rs.82,220 crore in 2014. The market is currently growing at 15-20% per annum and is dominated by women’s ethnic wear segment which contributes 83% to the total market, followed by children’s and men’s ethnic wear with shares of 9% and 8%, respectively.