India’s ethnic wear market has entered a defining phase. Once dominated by traditional family-run boutiques and legacy craft houses, the category is now brimming with new-age labels, digital-first brands, and ambitious regional players scaling rapidly across the country. As consumer expectations evolve—from craftsmanship and authenticity to modern aesthetics and omnichannel access—brands are recalibrating to stay relevant.

In this competitive landscape, leaders like Soch, Fabindia, and Mysore Saree Udyog (MSU) are showcasing how sharp positioning, deep-rooted craftsmanship, and technology-led retail innovation can drive long-term growth.

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Staying Relevant in a Crowded Market

With the ethnic wear category becoming increasingly cluttered, brands are sharpening their unique value propositions. For Soch, differentiation extends beyond product design—its strength lies in storytelling.

“Our storytelling — through campaigns that celebrate women, culture, and craft — further differentiates us. Each collection is thoughtfully curated to reflect India’s diverse heritage while staying relevant to evolving fashion sensibilities,” shared Vinay Chatlani, Co-Founder & CEO, Soch Apparels.

Heritage-driven brands like Fabindia and Mysore Saree Udyog continue to anchor their identities in authentic craftsmanship and long-standing artisan partnerships.

“While the ethnic wear space has become crowded with trend-driven and craft-inspired labels, we stay rooted in genuine craft and long-standing partnerships with artisan communities across India. Our products are not interpretations of heritage; they are crafted in their purest form, using traditional techniques sustained over decades,” said Sumit Arora, President – Apparel, Fabindia.

For MSU, trust, pricing transparency, and consistency remain the foundation of its consumer promise.

“The focus remains unchanged: offer exceptional products, fair prices, and a seamless experience. A 20-year price-match guarantee reflects our promise of honesty and value,” added Kamlesh Talera, Founder, Mysore Saree Udyog.

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Offline Still Dominates Sales

Despite accelerated e-commerce adoption in India, ethnic wear continues to be an emotionally driven category where touch, fabric feel, and fit influence purchase decisions.

“Currently, our offline channel remains our core strength, contributing approximately 80 percent of overall revenue,” said Chatlani.

Talera echoed this trend:

“Today, 95 percent of customers prefer visiting a store and physically seeing the product. Only 5 percent buy online.”

The Omnichannel Shift

While stores are the backbone, brands are doubling down on digital commerce to build seamless omnichannel journeys.

“Although the online segment has historically been smaller, it is experiencing exponential growth, with a projected 60–70 percent growth in online sales this year, driven by increasing digital adoption and our omni-channel initiatives,” shared Chatlani.

Fabindia is pursuing a similar path.

“We are building more experiential formats and investing in digital commerce to reflect an omnichannel world. We also continue to strengthen our digital platforms to ensure convenience, accessibility, and a consistent brand experience across every touchpoint,” said Arora.

Domestic Expansion Plans

With rising demand in tier II and III markets, brands are expanding strategically across the country.

“Domestically, we plan to add 20–25 new stores annually, focusing on disciplined expansion for deeper penetration in high-potential clusters and cities where the brand is already strong,” shared Chatlani.

For MSU, the first phase of expansion is focused on South India.

“The first and second phases would definitely be more southern, and then we may go further up North. Whether it is Maharashtra, Andhra, Karnataka, or Tamil Nadu, these are the states we would look at initially,” said Talera.

Fabindia continues to blend company-owned and franchise-led growth.

“We are reaching customers through a balanced mix of company-owned stores and a strengthened franchise model,” added Arora.

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Taking Indian Craft Global

As global interest in Indian ethnic wear surges, brands are expanding internationally.

“Following the recent launch of our first three stores in Malaysia, we are exploring additional locations across Singapore and Dubai in the near future,” shared Chatlani.

Fabindia, too, is exploring markets with strong affinity for Indian craftsmanship.

“We continue to operate select international locations and explore opportunities in markets that have an affinity for Indian craftsmanship and culture,” expressed Arora.

MSU’s global footprint is driven organically.

“We have customers from various parts of the world, such as America, the UK, Australia, and Dubai, and we have a lot of repeat customers,” added Talera.

Commitment to Craftsmanship

Ethnic wear remains inherently craft-centric, and each brand preserves authenticity in its own way.

“Our collections blend heritage and contemporary design, each telling its own story. Crafted through the collaboration of our design team and partner artisans, each piece stays true to Soch’s ethnic DNA while embracing modern trends,” shared Chatlani.

“Our products are based on longevity. We have certain products today that we have been selling for the last 38 years. Every designer has to spend a certain number of hours on the shop floor. That is how our products keep evolving,” said Talera.

“At its core, Fabindia remains a craft-led brand… presenting that craft through thoughtful design, relevant formats, and richer storytelling that resonates with modern Indian consumers,” added Arora.

Technology as a Growth Lever

Technology is becoming increasingly critical for scaling production and enhancing retail experiences.

“We have used a lot of technology right from 1987, and every year we have been upping our game. We have developed separate software for the weavers, where their younger generation feels much happier and smarter working with us,” highlighted Talera.

“We are investing in digital commerce and stronger systems that support omnichannel retail,” added Arora.

Sustainability as a Core Philosophy

As consumers seek transparency and ethical production, sustainability is becoming central to brand identity.

“Our commitment extends to reducing waste, encouraging mindful consumption, and fostering a circular approach that celebrates craft, culture, and community,” shared Arora.

“We are trying to push younger generations to understand and accept more and more natural silk and cotton products, which are an integral part of our legacy,” said Talera.

Category Expansion

Ethnic wear brands are evolving into holistic lifestyle brands to increase consumer wallet share.

“The goal is to build Soch as a holistic ethnic lifestyle brand that caters to diverse wardrobe needs—from everyday elegance to grand celebrations,” expressed Chatlani.

“Each category reflects Fabindia’s philosophy of craft, sustainability, and thoughtful design, enabling consumers to experience the brand’s ethos across multiple facets of everyday life,” added Arora.

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Festive Demand Strong as Ever

India’s festive season continues to be the biggest revenue driver.

“Festivals like Diwali and Durga Puja drive strong demand across categories. We align our collections, campaigns, and retail experiences around these moments—offering new drops, exclusive offers, and culturally resonant storytelling that enhance both engagement and sales,” highlighted Chatlani.

Vision & Market Outlook

Even as competition intensifies, market potential remains robust.

“Our vision for the coming years is to establish Soch as India’s most loved ethnic wear brand with a strong global presence, recognized as a truly omni-channel brand,” shared Chatlani.

“The ambition is clear: to scale responsibly, stay true to our values, and bring genuine Indian craft to more consumers across geographies,” remarked Arora.