Vedant Fashions remains bullish on expansion despite headwinds
Despite current headwinds, India's largest ethnic wear retailer, Vedant Fashions remains bullish about its expansion plans, particularly targeting the untapped South Indian market.
The Indian wedding market is currently experiencing a slowdown compared 2023's post-pandemic rebound. Middle-class consumers are tightening their belts, impacting discretionary spending. This is translates to a no-growth year for Vedant Fashions, with net profits dipping by 6.8 per cent
The pinch is been felt more by lower middle class and working class consumers of the company, while affluent consumers continue to splurge
This huge gap in the urban and rural revenues is impacting the sales of brands like Manyavar and Mohey. However, high-end designer brands catering to the affluent, like Ritu Kumar and Sabyasachi, are flourishing.
Undeterred by the slowdown, Vedant Fashions’ retail space increased by 172,000 sq ft to 1.64 million sq ft in FY24. Its store count also jumped to 673 from 530 in the same period.