India’s premium menswear sector is entering a new phase of growth as more and more professionals, entrepreneurs, and affluent consumers prioritize personalization over logo-driven luxury. While premium ready-to-wear brands have long dominated urban wardrobes, a shift toward made-to-measure (MTM) and bespoke apparel is beginning to reshape the economics of the menswear market.
The opportunity is significant. As per IMARC Group estimates, India’s menswear market is valued at $21.91 billion and projected to reach $42.44 billion by 2034, at a compound annual growth rate (CAGR) of 7.24 per cent. Yet premium MTM apparel remains a relatively underpenetrated segment, accounting for only about 1 per cent of total apparel volume.
This gap is creating a substantial runway for established apparel groups, heritage tailoring brands, and emerging fashion businesses seeking higher margins and stronger customer loyalty through personalization.
Why retailers are betting on customization
For apparel brands dealing with growing competition and fluctuating consumer demand, MTM apparel offers a compelling business model. Unlike conventional ready-to-wear formats that often require extensive inventory stocking and end-of-season discounting, custom tailoring operates on a demand-led production cycle, reducing inventory risk and improving working capital efficiency.
DFU Publications data show the customized and MTM shirt segment is growing at an estimated CAGR of 12 to 15 per cent, significantly faster than the broader apparel sector, which is expected to expand at around 9 per cent annually. This growth reflects changing consumer expectations. Affluent buyers are seeking garments that provide superior fit, exclusivity, and personalization rather than relying solely on standardized sizing formats.
|
Menswear segment |
Base value (current/recent cycles) |
Terminal forecast value (2034) |
Projected CAGR |
|
Aggregate Indian Menswear Market |
$21.91 bn |
$42.44 bn |
7.24% |
|
Custom and Bespoke Suits Vertical |
$274.15 mn |
$456.89 mn |
5.91% |
|
MTM Premium Shirt Segment |
Sub-segment Leader |
Sector Outperformer |
12.0-15.0% |
|
Premium Made-to-Measure Penetration |
1.0% of Total Apparel Volume |
Projected to double to 2.5% |
Growth via Omnichannel Platforms |
Large organized players are already positioning themselves to capture this opportunity. Raymond Lifestyle, for instance, has intensified its focus on premium tailoring through its Raymond Made to Measure business while simultaneously strengthening its fine-fabrics portfolio. The company has outlined plans to add nearly 900 retail outlets over the medium term while targeting sustained double-digit growth.
The appeal extends beyond revenue growth. Demand-driven manufacturing allows retailers to maintain tighter inventory control, improve cash-flow management, and generate higher average transaction values compared with traditional ready-to-wear sales.
Growth beyond traditional luxury markets
The premium tailoring business is no longer confined to metro high streets and luxury shopping districts. Rising incomes across emerging cities have increased demand for customized apparel well beyond India’s largest cities. Industry investment models suggest establishing a premium tailoring experience center requires capital expenditure of roughly Rs 1.60 crore in Tier-I cities and approximately Rs 1.37 crore in Tier-II cities. Despite the investment requirements, projected returns remain attractive, with internal rates of return estimated at around 35 per cent.
Regional demand patterns reveal the broadening appeal of customized menswear. North India currently commands the largest share of the market, accounting for approximately 29 per cent, supported by strong wedding expenditure and luxury consumption across Delhi-NCR and surrounding regions. South follows closely with a 27 per cent share, benefiting from a large population of high-income professionals in technology hubs such as Bengaluru, Hyderabad, and Chennai. The growing concentration of white-collar workers in these markets is creating sustained demand for executive suiting, business formalwear, and occasion-based tailoring.
As a result, franchise-led expansion has become an increasingly attractive growth strategy for tailoring brands seeking national scale without incurring excessive capital costs.
Technology solving tailoring’s biggest challenge
Despite growing demand, the custom tailoring industry has always faced several growth barriers. Long delivery timelines, inconsistent craftsmanship, fragmented customer acquisition, and the complexity of collecting accurate body measurements have limited scalability. Technology is beginning to address these constraints.
As per Credence Research, advancements in digital printing, automated embroidery, and 3D body-scanning technologies are helping manufacturers significantly reduce production lead times while improving measurement accuracy and consistency. These innovations are enabling retailers to combine the personalized experience of traditional tailoring with the operational efficiencies of modern fashion retail.
Aditya Birla Fashion and Retail Limited (ABFRL) embraced this hybrid model by integrating MTM offerings into flagship stores under brands such as Louis Philippe. By combining in-store fit consultants with digital customer measurement databases, the company is creating a scalable framework that bridges physical retail and personalized manufacturing. The result is a more seamless customer journey that allows retailers to capture tailoring demand without sacrificing operational efficiency.
Heritage tailors adopt corporate playbooks
The transformation is not limited to large apparel conglomerates. Traditional tailoring houses are also modernizing their operations to remain competitive in an increasingly organized retail environment. A notable example is PN Rao, one of India’s oldest menswear tailoring brands. The company has developed a franchise-led growth strategy supported by centralized production systems and standardized pattern-making processes.
Their stores typically require between 1,500 and 2,000 sq ft of retail space and operate under seven-year partnership agreements. The model reportedly delivers returns on investment over 50 per cent, with capital recovery periods of just over three years. By separating measurement collection from centralized manufacturing, PN Rao has been able to ensure consistent quality across locations while preserving the personalized experience that customers expect from bespoke tailoring. This approach showed how heritage tailoring brands can scale nationally without diluting craftsmanship or brand equity.
The broader direction of India’s menswear market suggests that customization will become an important driver of value creation. As consumers become more sophisticated and willing to invest in fit, quality, and exclusivity, personalized apparel is moving from a niche luxury offering toward a mainstream premium category.
For retailers, the appeal is clear. MTCM apparel generates stronger customer retention, higher average order values, and lower inventory risk than conventional fashion formats. At a time when seasonal volatility continues to pressure apparel margins, these advantages are becoming valuable.
With organized retail investing heavily in technology, franchise expansion, and customer experience, India’s MTM market is ready to capture a larger share of the country’s rapidly growing menswear economy. The next phase of growth in premium fashion may not be defined by global luxury logos, but by how precisely a garment fits the individual wearing it.
