As has been the case since 2022, the premiumization trend in the fabric and custom tailoring industries is still going strong, with more expensive textiles performing better. On a like-to-like basis, we at P N RAO have seen a 17% increase in price point. We are informed that this tendency is also present at the industry level as a whole. Second, customers, particularly those with a taste for high-quality clothing—more specifically, those in SEC A and B class—prefer more customized clothing over mass-produced items due to “fast fashion” firms that sell in large quantities and the entry of several brands into the mass market sector with low price points. Keeping up with consumer requests and requirements has become more difficult as a result of customization, particularly during periods of strong demand. Conversely, the number of people wearing suits to work has decreased in the retail industry (also known as the Ready-To-Wear Segment) as casual and semi-formal attire has become more popular. The good news is that travel and ceremonial wear have maintained a steady pace and are still making a sizable contribution to the total pie. These two segments also account for a significant amount of the contribution at P N RAO. Except for designer clothing, the price points haven’t changed.
Due to a lack of wedding dates, the first half of the year was particularly difficult for P N RAO, with some empty periods; this was not the case in 2024. As a result, the demand decreased. This led us to change course and focus more on the tailoring industry. Demand increased in the second half of the year, and we made the most of the chance to meet the requirements and desires of our customers. To expand further and farther into other regions, we will also investigate the franchisee path. Franchisees have sent us excellent offers for several sites. P N RAO is now looking for properties to kickstart after signing a Letter of Intent with one of the possible franchisees.
Attributed to Mr. Ketan Pishe, Partner, P N RAO
