“You are cordially invited to…” are some words you will frequently come across over the next few months as Indian weddings are in full swing! Read below to get more insights about the industry!
Describing the Indian Wedding Industry!
An Indian wedding is not just a single-day affair. The event spans 3-4 days, from mehndi, sangeet, cocktail party, and wedding day!
As a result, wedding season sales contribute to 15-20% of the overall clothing off-take. The Indian wedding industry is worth around $50 billion in size. Around 13 million weddings take place in India each year. This industry isn’t very organized, and the branded players have only a 15-20% market share.
Which Players Have a Dominant Presence in This Space?
A dominant listed player in this space is a company named Vedant Fashions Limited. The company owns the famous ‘Manyavar-Mohey’ brand and counts the renowned duo Anushka Sharma and Virat Kohli as its brand ambassadors.
The company has been growing its revenues by 24% annually over the past decade with net profit margins of 26%. The company was listed on the stock exchanges in February 2022, and its shares have risen by more than 60% since then.
But great profits attract other players too! As a result, big houses on the likes of Reliance Retail and Aditya Birla Fashion have started acquiring established designers on the likes of Manish Malhotra, Ritu Kumar, and Satya Paul.
What Does it Mean For Investors?
‘A big fat Indian wedding’ increases demand for apparel and accessories and many other products too!
For context, marriages constitute over 60% of jewellery sales, which is a crucial period for cosmetic sellers. And all hotels get fully booked. So when many couples tie knots, companies in these industries also become a beneficiary!
