Not justifying Vedant but sharing some details as I work in same industry (I am aaprel retailer)
Companies like Raymond or ABFRL brands (Allen solly, Peter England) target essential segment / daily wear segment.
In this segment – average cost of products is usually less (avg 2000)
Product life cycle – max 2 years
So customer needs to buy products every alternate year, that’s why highest volume are in this segment and that’s why it is easier to scale this business.
That’s why most apparel manufacturer target this set of buyers and this leads to excessive stock production, leading to discount and thus compression of margin.
In case of wedding, customer buys garment once in his lifetime (designer suit or sherwani or lehenga). Thus he is willing to spend more. That’s why margin are higher and volume is low.
Simplest anology will be comparing apple and other Chinese manufacturer.
Both make similar products but has vastly different margin,despite being from same industry.
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