₹3.75 lakh crore - this is what the Indian wedding industry made in November and December across 32 lakh weddings🤯
That's more than auto market in India for reference. Let's decode the Great Indian Wedding Industry and 4 businesses that benefit from it.
A thread 🧵
1/n
That's more than auto market in India for reference. Let's decode the Great Indian Wedding Industry and 4 businesses that benefit from it.
A thread 🧵
1/n
2/n
India records around 1 cr weddings each year.
Not a surprise when you look at the age distribution of Indian population. Approx 40 crore Indians are in the age bucket of 20-34 years.
Another 50 crores are under 20 years, so the industry has a long revenue pipeline :)
India records around 1 cr weddings each year.
Not a surprise when you look at the age distribution of Indian population. Approx 40 crore Indians are in the age bucket of 20-34 years.
Another 50 crores are under 20 years, so the industry has a long revenue pipeline :)
3/n
Let's look at businesses that gain from India's 'wedding bonanza'.
Indian weddings leads to steady cash business for many sub-industries:
👩❤️👨Matrimony portals
💎 Jewellery
👗 Clothing
🏨 Hotels
🧳 Luggage
..and some others🍷🧑🍳
Let's decode them👇
Let's look at businesses that gain from India's 'wedding bonanza'.
Indian weddings leads to steady cash business for many sub-industries:
👩❤️👨Matrimony portals
💎 Jewellery
👗 Clothing
🏨 Hotels
🧳 Luggage
..and some others🍷🧑🍳
Let's decode them👇
4/n
Business 1: Matrimony
As per a 2016 UN report, 88% of Indian weddings are arranged weddings!
And most happen on the basis of language and religion.
This is why matrimonial platforms like:
- Matrimony
- Jeevansathi
- Shaadi
enjoy 'Micro-market Network Effects' advantage.
Business 1: Matrimony
As per a 2016 UN report, 88% of Indian weddings are arranged weddings!
And most happen on the basis of language and religion.
This is why matrimonial platforms like:
- Matrimony
- Jeevansathi
- Shaadi
enjoy 'Micro-market Network Effects' advantage.
5/n
Financials of matrimonial companies:
A. Matrimony (Rev, EBITDA) ₹cr
(Over 50% share of online market)
FY19 364 (90)
FY20 390 (72)
FY21 395 (85)
FY22 452 (104)
B. Jeevansathi (Rev, EBITDA) ₹cr
(loss making)
FY19 72 (-33)
FY20 85 (-62)
FY21 97 (-94)
FY22 100 (-114)
Financials of matrimonial companies:
A. Matrimony (Rev, EBITDA) ₹cr
(Over 50% share of online market)
FY19 364 (90)
FY20 390 (72)
FY21 395 (85)
FY22 452 (104)
B. Jeevansathi (Rev, EBITDA) ₹cr
(loss making)
FY19 72 (-33)
FY20 85 (-62)
FY21 97 (-94)
FY22 100 (-114)
6/n
Let's look at market leader Matrimony.com
- Has a strong user base in South India
- Enjoys a network effect as marriages in India happen on the basis of language
These 'Micro Market Network Effects' makes a platform very strong and discourages new entrants.
Let's look at market leader Matrimony.com
- Has a strong user base in South India
- Enjoys a network effect as marriages in India happen on the basis of language
These 'Micro Market Network Effects' makes a platform very strong and discourages new entrants.
7/n
Three key metrics to analyze a matrimony business:
- Paid users growth
- Average Revenue per user (ARPU)
- Marketing Spend as % of sales
Matrimony (Market cap: ₹1290 cr at 28 P/E) has ~50L users. Key metrics:
- Paid Users: 9L
- ARPU: ₹4.5-5k
- Marketing Spend: 37.31%
Three key metrics to analyze a matrimony business:
- Paid users growth
- Average Revenue per user (ARPU)
- Marketing Spend as % of sales
Matrimony (Market cap: ₹1290 cr at 28 P/E) has ~50L users. Key metrics:
- Paid Users: 9L
- ARPU: ₹4.5-5k
- Marketing Spend: 37.31%
8/n
Business 2: Wedding wear (Clothing)
Some mind-boggling facts about India's wedding wear market:
- Valued at ₹1.02 Lakh cr
- Only 20% mkt share of organized players
- To grow at 18% CAGR
- Brands get 70% gross margins🤑
Let's talk about the top clothing brands in wedding👇
Business 2: Wedding wear (Clothing)
Some mind-boggling facts about India's wedding wear market:
- Valued at ₹1.02 Lakh cr
- Only 20% mkt share of organized players
- To grow at 18% CAGR
- Brands get 70% gross margins🤑
Let's talk about the top clothing brands in wedding👇
9/n
/Wedding wear
Which is the top brand on your mind?
Manyavar (#TaiyaarHoKarAaiye, #DulhanwaliFeeling)
It has 5 major brands grossing ~90% of its revenue
- Manyavar
- Mohey
- Mebaz
- Manthan
- Twamev
For details, check this:
Source: Vedant Fashions (Manyavar) RHP
/Wedding wear
Which is the top brand on your mind?
Manyavar (#TaiyaarHoKarAaiye, #DulhanwaliFeeling)
It has 5 major brands grossing ~90% of its revenue
- Manyavar
- Mohey
- Mebaz
- Manthan
- Twamev
For details, check this:
Source: Vedant Fashions (Manyavar) RHP
10/n
/ Wedding wear
A retail clothing chain has two major costs:
- Manufacturing
- Brand Outlet Costs
@Manyavar_ manages it through outsourcing and has:
- 300 franchise partners
- 535 exclusive brand outlets
- 1.12 Mn+ in sq ft area
- 73% partners with 3+ yrs of relationship
/ Wedding wear
A retail clothing chain has two major costs:
- Manufacturing
- Brand Outlet Costs
@Manyavar_ manages it through outsourcing and has:
- 300 franchise partners
- 535 exclusive brand outlets
- 1.12 Mn+ in sq ft area
- 73% partners with 3+ yrs of relationship
11/n
Manyavar helps its franchise partners with:
- Selecting location
- Staff Training
- Supply chain & inventory management
For reaching out to their target audience, Manyavar has stars like:
- Virat Kohli
- Anushka Sharma
- Amitabh Bachchan
- Ranveer Singh
- Alia Bhatt, etc
Manyavar helps its franchise partners with:
- Selecting location
- Staff Training
- Supply chain & inventory management
For reaching out to their target audience, Manyavar has stars like:
- Virat Kohli
- Anushka Sharma
- Amitabh Bachchan
- Ranveer Singh
- Alia Bhatt, etc
12/n
/Wedding wear
Manyavar procures key raw materials from 450+ vendors and
Gets it manufactured from third parties
As a result of all this, it enjoys a business with:
- 70% Gross Margins
- 30% Operating Margin
....
A fascinating business built by Mr. Ravi Modi.
/Wedding wear
Manyavar procures key raw materials from 450+ vendors and
Gets it manufactured from third parties
As a result of all this, it enjoys a business with:
- 70% Gross Margins
- 30% Operating Margin
....
A fascinating business built by Mr. Ravi Modi.
13/n
Business 3: Jewellery
They add sparkles to a wedding.
While Titan is known for watches, but its major revenue comes from Jewellery (Tanishq, Zoya).
It captured a key trend:
- In 2000, 95% of jewellery sold was via unorganized dealers.
- In 2022, the number stands at 65%
Business 3: Jewellery
They add sparkles to a wedding.
While Titan is known for watches, but its major revenue comes from Jewellery (Tanishq, Zoya).
It captured a key trend:
- In 2000, 95% of jewellery sold was via unorganized dealers.
- In 2022, the number stands at 65%
14/n
/ Jewellery Business
With strong factors like:
- Trustworthy hallmark jewellery
- Pan India presence
- Variety in designs
Not just Tanishq is poised to grow, but other brands as well like:
- Malabar
- Kalyan (L)
- TBZ
- Joyallukas
- Goldiam (Artificial jewellery) - (L)
/ Jewellery Business
With strong factors like:
- Trustworthy hallmark jewellery
- Pan India presence
- Variety in designs
Not just Tanishq is poised to grow, but other brands as well like:
- Malabar
- Kalyan (L)
- TBZ
- Joyallukas
- Goldiam (Artificial jewellery) - (L)
15/n
Trivia: Did you know that current RBI Governor Shaktikanta Das was the Chairman of Titan from 2006 to 2008!
Trivia 2: Tanishq has 1,000 Cr+ in customer deposits.
Here's a great read on how Tanishq was revived from brink of closure.
Trivia: Did you know that current RBI Governor Shaktikanta Das was the Chairman of Titan from 2006 to 2008!
Trivia 2: Tanishq has 1,000 Cr+ in customer deposits.
Here's a great read on how Tanishq was revived from brink of closure.
https://twitter.com/zhr_jafri/status/1316828204204584960?t=o841R4rF5t5POPgfQAOBjQ&s=19
16/n
Business 4: Luggages
A surprising fact is that 80% of the suitcases are purchased for weddings. Has higher revenue from weddings than from travel.
Post wedding, the bride generally carries her luggage in 3-4 suitcases.
Two big players in this industry are:
- VIP
- Safari
Business 4: Luggages
A surprising fact is that 80% of the suitcases are purchased for weddings. Has higher revenue from weddings than from travel.
Post wedding, the bride generally carries her luggage in 3-4 suitcases.
Two big players in this industry are:
- VIP
- Safari
17/n
That's a wrap. There are more businesses such as Hotels, alcohol, foods that gain from the Indian wedding extravaganza.
Follow us (@ICICI_Direct) for more research content.
And retweet this thread to tell more people about the big fat Indian wedding industry.
#icicidirect
That's a wrap. There are more businesses such as Hotels, alcohol, foods that gain from the Indian wedding extravaganza.
Follow us (@ICICI_Direct) for more research content.
And retweet this thread to tell more people about the big fat Indian wedding industry.
#icicidirect
Disclaimer: bit.ly/fulldisclaimer
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