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Indian Fashion Designers and Profit Margins - Banking On Fashion
Indian Fashion Designers and Profit Margins
28 th Sep 2012

The Indian fashion design industry has been dominated by styles and collections that are traditional in nature. Most Indian fashion designers create elaborate and detailed bridal collections that feature rich fabrics and rich detailing. However, in recent times, there has been an increasing trend for Indian designers to also turn their attention to contemporary collections.

Indian fashion designers create products that used to be worn only for important events like weddings. For other times, brands used to be favored or even "imported" pieces (read: international brands). The designers were essentially creating products that yielded them maximum profits because each bridal dress was very expensive. This approach meant that a lot of the designers were creating styles for only a very limited number of people and within that audience, for a limited number of occasions. Each Bridal dress take a long time to manufacture, but most of the time is spent by the craftsmen, rather than the designers.

In recent years, the designers have expanded their offerings to include collections that target a wider range of people and wider range of times that their products can be worn. Enter contemporary collections from leading Indian designers - these collections are targeted at a younger audience looking to wear styles from designers not only for weddings, but even more casually. This not only opens up a new customer segment for the Indian deisgners, but also creates a new product range.

For consumers, the availability and accessibility of creations by Indian designers is usually a massive attraction for them to buy the collections. The number of buying ocassions increases drastically, while the average order value decreases. Net effect is usually a massive increase in the revenue and profits for the designer. Below is an indicative calculation of some potential impact that such a move might have. This is not representative neither of our business nor of our designers, but just a thought through logical approach.

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