Sai Silks Kalamandir's Varamahalakshmi store
Hyderabad (Telangana) [India], April 5: When buying a saree, the first thing a woman wants to understand is how it will look on her. Is the colour similar to the one that she saw in an advertisement? The next step would be to walk into a store to find out. However, the Covid pandemic has changed the dynamics of online shopping. Women are confidentially buying sarees online and returning to buy more. Large format stores are happy, too, as this puts less pressure on their offline stores.
This trend is observed with multi-format retailers like Sai Silks Kalamandir, Pothy’s, and Nalli’s etc.; Brands and retailers are bringing agility to their channels of sale in the wake of growing penetration
What has led to this shift? The answer lies in the lockdown during Covid-19, which forced retailers to rethink their strategy. Many Brick and Mortar (B&M) retailers like Sai Silks Kalamandir expanded their reach and sold their products through e-commerce channels that include their own websites and other online e-commerce marketplaces. According to a report, the share of e-tail in apparel and accessories in the overall retail share was over 17.5 per cent in 2020 and is expected to reach 21.8 per cent in FY 25.
Both in India and Worldwide, retail chains have adopted the hybrid model where people shop online and offline depending on their convenience. However, retailers like Sai Silks Kalamandir have seen a decisive shift in online purchases. This provides their customers with a convenient shopping experience.
One of the most captive markets for Indian sarees online is the Indian diaspora spread across the world, especially those residing in the USA, Europe, Singapore and Australia. Though overseas, they are rooted in tradition and follow the saree trends, be it innovative and evolving designs or new materials that are adaptable to seasons.
Saree has traditionally been a category that requires a trial for looks and touch-feel of the fabric to assess and make a purchase decision. However, it saw an increase in e-commerce uptake, which led to a change in consumer behaviour, and there was increased adoption of the online channel for apparel purchases too. Sai Silks Kalamandir adopted an innovative way of promoting by roping in television anchors and film stars to host saree sessions for customers, which not only brings style quotient and also helps the customers understand current trends and buy unique designs online.
Sai Silks Kalamandir has gone one more step ahead and started helping the Indian diaspora with other elements like the stitching of a blouse that goes with a saree in India, which makes the saree buying cool and perfect for all occasions.
Like Sai Silks Kalamandir, there are other retailers who are using various mediums like Apps and Websites and social commerce channels like WhatsApp, Video-shopping from home etc.
Sai Silks Kalamandir has a total store count of over 54 stores spread across namely Andhra Pradesh, Telangana, Tamil Nadu and Karnataka, with more than six lakh square feet area. It operates through four different format stores, namely Kalamandir, Mandir, Varamahalakshmi Silks, and KLM Fashion Mall. It plans to open more than 25 stores in the near future.
The e-commerce market in India has witnessed accelerated growth and is expected to reach 9.6% (US$ 103.4 Bn) of the total retail market by FY 2025 from its share of 4.6% in FY 2020 (US$ 36.6 billion) at a growth rate of 23% CAGR.
Disclaimer: No Business Standard Journalist was involved in creation of this content