Manyavar most profitable apparel brand in India

By

Maverick Martins

Published
Mar 2, 2017

Ethnic wear brand Manyavar owned by Vedant Fashion has become the most profitable apparel brand in India posting a net profit of Rs 90 crore. Manyavar posted a net profit higher than Zara, which until last year was the most profitable apparel brand in the country, according to a report in the Economic Times.

During year ended March 2016, Vedant Fashions posted a 22 per cent rise in sales at Rs 504 crore with net profit of Rs 90 crore, according to data sourced from Tofler, a company research platform.

In comparison, Inditex Trent that runs Zara stores had sales of Rs 842 crore and net profit of Rs 80 crore. In fact, Vedant Fashion's profit is higher than department store chain Shoppers Stop and Tata run Westside.

The company attributes it to a host of factors, from cost efficiency to its strict pricing policy.
"We never discount our merchandise as we plan our inventory better to avoid any stock pile up," said Manyavar's founder Ravi Modi.

The retailer has then been more aggressive, adding nearly two stores every week on average for the past three years, and now has more than 400 stores. Also, Manyavar either donates or destroys unsold stock, adding pressure on the company to keep designs relevant and sell products aggressively.

In comparison, most apparel brands have been offering steep discounts to move unsold merchandise, resulting in the erosion of retailers' margins and more than a fifth of sales taking place during end-of-season sales.

Indian wear, initially largely restricted to the older age segment, now finds acceptance among younger consumers, added Modi who now sell fusion clothing — a mix of modern and traditional wear — instead of just ethnic, which are reserved for special occasions.

The brand has also brought in India cricket captain Virat Kohli as brand ambassador to appeal to a younger consumer base.