Sarees can be largely categorized as an occasionwear. They are still the default outfit in south Indian weddings and other big family occasions, at least for married women. While some investors may perceive occasionwear as a limiting factor in terms of growth, there is still repeat buying since ladies usually do not like to repeat the same saree. And there is a big gifting market as it is customary in many communities to gift sarees to extended family members during weddings and other functions.
From my interactions with family members during the recent wedding season, I gathered that Kalamandir enjoys a very good brand recall when it comes to wedding/festive saree shopping, although a majority prefers certain unbranded local shops that they trust. This is still a very disorganized market, which is ripe for disruption.
It is worth noting that Titan sees big potential in this segment and is expanding Taneira stores with a tall target of 1,000 crore revenue by FY27.
Disc: Bought multiple lots in IPO and averaged in the recent dip.
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