Sales slump for Manyavar & Mohey's parent Vedant Fashions
ETMarkets.com
Representational
Mumbai: Fewer wedding dates, subdued consumer sentiments and increased competition from newer players wiped off nearly $2 billion from Vedant Fashions' market capitalisation over the past five months.
The company behind Manyavar and Mohey said competition in India's ethnic segment is at a level never seen before and is not sustainable with the number of stores trebling over the past two-three years. The biggest ethnic wear brand posted 2% revenue growth last fiscal, while same store sales growth fell 4% in FY25 as well as the quarter ended March.
"We have certainly witnessed competition in the last two decades of us operating this brand. Nothing at these levels, for sure. We have not seen these many stores ever opening up, because it has all happened in a very short period, the last two to three years. Earlier as well, when there was competition, there were a few stores here and there, but nothing at this scale," said Vedant Modi, chief revenue officer at Vedant Fashions, at its earnings call.
The market for occasion wear was historically serviced more by local shops or made-to-order ones, but over the past decade brands such as Manyavar, Mohanlal and more recently Tasva and Ethnix by Raymond entered the segment. "Typically, what we have noticed is people open up a single store in a city and do decently well. And as they sort of scale up to a state level, to a region level, that's when things start to go south. This industry must understand the hack of understanding consumer preferences and understanding data at a very deep pin code level, because what works in one part of the city does not work in the other part of the city," said Modi.
According to management consulting firm Wazir Advisors, the apparel and accessories market in India was estimated at $75 billion in FY23, and the total ethnic wear market represented nearly 30% at $22 billion. Within that, the ethnic menswear market was estimated at $2 billion in FY23, just 10% of the total ethnic wear market, indicating the potential upside. Of the total ethnic wear market, wedding and celebration wear accounts for 58% and men's contribution is 12% of the segment. Hence, wedding and occasion wear dominates the men's ethnic dress collection and is relatively high on branded quotient.Historically, the celebration wear category is the least impacted by slowdowns as Indians like to celebrate weddings, festivals and other occasions as lifetime events. But Vedant Fashions has had a tough year thus far, which it blamed on minimal wedding dates and weak performance, especially in Andhra Pradesh and Telangana, where the company has higher presence compared to peers."If I give you an example of a city like Raipur, we used to have one exclusive brand outlet which we operate. And maybe another 25, 30 stores would have opened in that market. And if we look at the financial data of all these numbers of stores opening, hardly any of them are at a mark where business is sustainable even in the mid-term. So, certainly there is a lot of macroeconomic pressure which we have seen," Modi added.Analysts said Vedant's fourth quarter performance was underwhelming on revenue delivery despite low base and wedding season tailwinds.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
37 minutes ago
- Time of India
Germany pitches itself as a reliable partner for Indian students amid US visa uncertainties
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Germany has been a reliable partner for Indian students for a long time, and it is not "erratic" or "volatile" but very steady, Ambassador Philipp Ackermann said here on Tuesday, while asserting that his country wants the "smartest and the brightest" from comments come in the backdrop of difficulties faced by international students, including from India, on matters related to academic admissions for higher studies in some countries, and student visa with reporters at his residence here, Ackermann said over 50,000 Indian students are currently in Germany pursuing higher studies, and "our experience is that number will rise".Without naming any country, the German envoy to India also indicated that more Indian students were likely to choose Germany as an academic destination, in view of the issues faced by them currently in the context of other countries."In the light of... with student admissions and student visa procedures in some countries, it is maybe a good time to state that Germany is eager and happy to receive Indian students," he said in his opening mentioned multiple times that his country has been a "reliable partner" for Indian students, and even added that "we don't check social media (accounts of students) before you come"."We feel that Germany has been a reliable partner for Indian students for a long, long time. And, will remain so. We are interested in Indian talent, we are interested in Indian brains. We are interested in those Indians who really want to achieve something, and Germany will always be a partner for such people. So, we are not erratic, we are not volatile, we are very, very steady," Ackermann also underlined that Germany offers first-class education, and those are willing to study hard to achieve it, are "welcome" and can "count on us"."And, we are eager on having talented young Indians coming to Germany," the envoy universities and German research institutions have made "extremely good experiences" with students, and it has been seen that the number of Indian students is increasing every year in universities, and universities of applied sciences have also accepted a growing number of Indian students, the ambassador said."We are talking about 50,000 plus Indian students in Germany, and our experience is that number will rise. We already now feel that more Indian students.. and that is certainly in the context of difficulty they face in other countries, and that more Indian students are interested to join German universities and German research institutions," the envoy of various top German universities such as Cologne University, University of Gottingen, Freie Universitaet Berlin, and research institute like the Max Planck Society and Fraunhofer were also present on the in an interaction with PTI Videos, the envoy said academic cooperation is a key pillar in the India-German bilateral ties."We are searching Indian talent, and this is a time where many Indian students who had ideas to go elsewhere, now have second thoughts, and don't get where they really... wanted to go. So, what I am saying is, look at Germany, if you want a first class education, in many, many areas, above all in STEM area, German universities offer a broad range of possibilities, English-taught possibilities, with the clear perspective to join labour market in Germany after that," he said."So, we have been a reliable partner for India in the last couple of decades... but what is important for me is to say that we want the smartest, the brightest from India," Ackermann told envoy said the "offer is on the table", there is a clear growing interest."Also, we want to encourage every student to individually search for universities, avoiding agents who will offer you a complete package, which sometimes is not a satisfaction," he Lasch, Director, DAAD Regional Office, New Delhi, also interacted with the -- German Academic Exchange Service -- is marking its centenary this year, while its India office was set up 65 years said "applications to universities" have increased by over 30 per cent in the last couple of months, compared to the last academic year, citing data from said there are about 425 universities, out of which there are 305 public has about 400,000 international students and it offers 2,300 study programmes in English language, she the country is among the top five destinations for Indian students along with the US, Canada, the UK, said German education system is "widely a public good", which means most universities don't charge for studies and if they charge, the state-run universities, it's a small fee, compared to fees charged by universities in Anglo-Saxon countries."So, its merit-based not money-based approach," he a query on German visa issues, the envoy said, "There is no backlog anymore (of student visas). Two years ago, we had a huge backlog.. we changed our system."Asked about the new citizenship rules by the German government, the ambassador clarified that "the government has not make a U-turn on citizenship, there was a very short way to citizenship within three years, this has been blocked now. Now, it is five years".
Time of India
38 minutes ago
- Time of India
'India now fourth-largest economy in world...soon to become third': CM Yogi after PM Modi completes 11 years in office
File photo: CM Yogi Adityanath (Picture credit: ANI) LUCKNOW: As Prime Minister Narendra Modi completes 11 years in office, Uttar Pradesh Chief Minister Yogi Adityanath on Tuesday stated that India is the only economy in the world that has doubled in one decade. "Before 2014, we were a fragile and unstable economy--India ranked 11th in the World. In the last 11 years, it has climbed and is now the fourth-largest economy in the world. When India was celebrating its 75th Independence Day, under the leadership of PM Modi, we surpassed Britain, the country which had ruled over India for almost 200 years... India is the only economy that has doubled in one decade," said UP CM Yogi Adityanath as PM Modi completed 11 years in office. "India's per-capita income also doubled in these 11 years, while exports surged--projecting India to become the world's third-largest economy by 2027," he added. In an attack on the opposition parties, the Uttar Pradesh CM said, "Family and dynastic politics fuel casteism and harm the social unity of the country... We have to end dynastic politics to avoid repeating the mistakes of history and losing our independence again." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 새로 나온 '실손보험' 최적가 비교가입! "보험사별 맞춤설계+가성비 굿"... 굿리치 보험대리점 (등록번호:제2006038313호) 가입하기 "Now, we have changed our nature concerning our response to terrorism, which was before 2014 - that India favours peace. PM Modi, by giving a new normal, has changed the entire concept - we will live in peace with friends, but if someone imposes war on us, induces terrorism in our country and is a threat to our security, the response will be surgical strike, air strike and Operation Sindoor - we have shown it with made-in-India and the world has realised India's strength - just a few days back," said UP CM Yogi Adityanath. CM Yogi further said that governance is now based on the satisfaction of everyone and the appeasement of none; the country has witnessed it in 11 years.
Hans India
an hour ago
- Hans India
Indian diaspora in UK applauds PM Modi govt's 11-year milestone
London: As Prime Minister Narendra Modi marks 11 transformative years at the helm of the Union government, members of the Indian diaspora in the United Kingdom (UK) are coming forward to express their admiration and pride in the nation's progress under his leadership. From professionals in London to community leaders in Slough town in Berkshire, a shared sentiment resonates among them: India's global stature has risen to unprecedented heights. They attribute this progress to PM Modi's commitment to stable governance, the uplift of millions from extreme poverty, advancements in India's Defence capabilities, and the positioning of the nation as a leading economic and cultural force on the world stage. Speaking to IANS, Indian-origin cancer scientist Vishal said, 'In the last 11 years, extreme poverty has fallen significantly, and India has become the fourth-largest economy. That's a powerful testament to growth and governance. "The changes are palpable; people now see us with respect. There are countless benefits that come with becoming the fourth-largest economy. Extreme poverty in India has dropped remarkably from 27.1 per cent in 2011-12 to just 5.3 per cent in 2022-23, paving the way for good job opportunities. "Furthermore, we are making significant strides in Defence, focussing on exports. Our purchasing power has also increased drastically. We are doing exceptionally well, and I hope PM Modi continues as Prime Minister for two more terms to witness even more developmental efforts.' Alok Gupta, Co-Founder and Director of the Indian Diaspora in the UK (IDUK) Group, emphasised India's leadership in digital transformation, the successful hosting of the G20 Summit, and the push for Defence self-reliance through the 'Make in India' initiative. 'Whether it's the Unified Payments Interface (UPI) or vaccine export, the world is now watching India. We have surged from the tenth to the fourth position among the world's economies, surpassing Japan. India is the fastest-growing economy globally. "During COVID-19, we not only produced vaccines for our citizens but also exported them. Under the 'Make in India' initiative, we are manufacturing everything domestically, including Defence equipment. In the recent conflict with Pakistan, we utilised indigenous equipment. It's commendable how we are emerging as an exporter in the Defence sector. "Hosting the G20 Summit in 2023 showcased our status as a world power. Digital transformations like UPI are further milestones that make us proud.' Many diaspora members also commended India's firm response to terrorism, particularly in light of the recent attacks in Pahalgam in which 26 people were killed. They noted how the abrogation of Article 370 has transformed Kashmir, enhancing tourism and local livelihoods. Another diaspora member residing in the UK stated, 'We are emerging as a world power. PM Modi has provided stable governance for two terms and is now in his third term. His leadership is remarkable. Additionally, he has facilitated a cultural exchange, as evidenced by Saudi Arabia embracing yoga. Recently, India has emerged as the world's fourth-largest economy.' Across interviews and public forums, the diaspora expressed a unified belief: Under PM Modi's leadership, India has not only reconnected with its civilisational pride but has also emerged stronger, prouder, and more united on the global stage.
