17 October 2022, Mumbai:
Quintessentially as India is a very heterogenous market and the essential characteristics of an Indian wedding are characterized by so much noise around it demonstrated by the best of the food, décor, and jewellery. Occasions tend to be inclusive affairs beyond immediate families involving society/the whole community assembling rejoicing/celebrating such music to ears as a collective dancing to the tunes of the band, baaja with baaraat.
In this first normal year in the last three years, the retailers, and brands all are enthusiastically bracing themselves for the so-called forthcoming Indian fat wedding season, which broadly falls in October and March of the year. Given that festivity is already upon us and considering post-Covid-19 demand tailwind fashion industry is starting to see despite looming global geopolitical risk concerns as surely we are not decoupled.
On the back of heightened hopes of improving business & consumer confidence ahead of the wedding season, the promotional festive sales bonanza/promotional offerings have already started gathering up steam. Trade expects to see this demand tailwind well supported by the continuing festive season onward and likely wedding season catapult in sales in winter 2022/23.
Many would argue there is a case for revenge buying and it is more than a pent-up demand this high season of 2022 wherein shoppers visibly desire to amplify their experiences and want to celebrate any occasion coming their way.
Most of the brands, retailers, and malls we have been talking to are unequivocally been happy to report that, “ Wedding sale is already started and there is a lot of buying exuberance as we keep getting data points from all across. Hopefully, it is a bounce-back quarter and we continue to be constructive on the season".
Data Points
Wedding celebration season always presents an immensely larger-than-life 'Opportunity to engage/Connect with consumers to make the best out of it'. As per one estimate," Nearly 10 million Indians/Couples rush to tie nuptial knots annually making the Indian wedding industry only second-largest globally to the tune of an estimated uncontested opportunity size (TAM) of around $50 billion with a healthy CAGR given steady population rise rate. Readers can do their maths what does it mean for the Wedding Industry going forward?
And as the proverb goes," Marriages are made in Heaven and Solemnized on Earth" no surprise that one does not leave any stone unturned ensuring that one's marriage ceremony being the greatest life spectacle is nothing short of a timeless lifetime memory/event of life.
On the back of wedding ceremonies, and profound societal culture according to the World Gold Council," India is the only second largest consumer of gold worldwide, precisely gold jewellery, only next to China, accumulating to whopping approx 850 tonnes of gold jewellery yearly, constituting some 27% of global consumption. The data further reflects that in 2021, India spent a historic high of approximately $55.7 billion on gold imports alone".
The industry estimates that wedding season accounts for some ballpark figure of 15-20% for the general apparel/clothes industry trade sales (gross), whilst if one were to look at the criticality of weddings in the overall retail pie it contributes a fat 60% or thereabouts directly or indirectly incidental to wedding festivities/marriage occasions in the form of jewelry gross sales/sales arising out of cosmetics firms. Besides driving supplementary business opportunities in the form of valuable gifting options for the beloved ones/the newlyweds and their kiths and kin.
Economic Headwinds
There are many moving parts including persistent sticky inflation, softening of consumer sentiment, particularly in low ticket article/consumer downgrading, and any other unknown potential dampeners as a lot of macroeconomic global variables are playing out in the background. But still, we continue to be constructive on the season.
