Danish fashion retailer Bestseller is shutting down its Indian ethnic wear brand Indifusion, which it had acquired three years ago, amid mounting losses and falling demand. The move also signals a larger slowdown trend in the overall ethnic wear segment since last year, said retailers and mall owners. Bestseller said the brand’s sales did not meet expectations or ambitions and, therefore, they decided to make strategic adjustments and realign its focus.
Bestseller, known for its western casual brands such as Jack and Jones and Vero Moda, purchased Indifusion in a distress sale during the peak of the pandemic but had no prior experience in operating an Indian wear label. “For a western brand company, understanding the Indian wear segment is challenging and time consuming too. Also, there has been a general slowdown in the discretionary segment including apparel, which worsened its revival plan,” said an industry executive.
Over the past two decades, a shift from ready-to-stitch clothing to ready-to-wear along with the entry of national players like BIBA, W, AND, and Global Desi has propelled the growth in branded apparel helped by a significant shift away from traditional sarees towards ethnic wear and western wear. In India, ethnic wear is the single biggest category in the women’s wear segment with a share of 71% despite global fashion brands such as Zara, H&M and Uniqlo pushing westernised clothing in their market.
“Indian wear is now reduced to just being bought for occasions, which led to a flat category growth over the past four quarters compared to western wear, which expanded at a double-digit rate,” said Devarajan Iyer, chief executive of Lifestyle International.
The women’s ethnic wear market is projected to grow at a compounded annual growth rate of 8% between FY23 and FY26 and cross $22 billion by FY26, according to Wazir Advisors.
“Consumers are seeking versatile clothing that can be worn on multiple occasions, and is comfortable and convenient, and at the same time incorporates cultural influences,” said Pakhi Saxena, retail and consumer product goods head at Wazir Advisors.
“Fusion wear has seen significant growth within the womenswear segment driven by an increase in the female workforce, younger population embracing traditional wear with a contemporary look and influence of fashion and entertainment industries.”
From basic kurtis worn over plain jeans to sarees with crop tops and lehengas teamed with shirts, fusion wear in India is constantly evolving, led by new and ongoing fashion trends and experiments.
With the new-age direct-to-consumer brands and people moving to western and fusion wear, the traditional wear segment has taken a hit.
