For decades, the typical Indian man chose the same kurta for Diwali, weddings, or family gatherings. A single outfit, often paired with a jacket or mojris, served multiple occasions. Ethnic wear remained functional, predictable, and rarely updated.

Today, that pattern is changing.

The kurta is evolving beyond tradition

Yash Sarawagi, cofounder of Kolkata-based brand Kisah, explains that Indian men now consider how ethnic wear reflects their personal style, body type, and the event. Social media, short-form video, and online marketplaces allow easy comparison of silhouettes, colors, and fits—something difficult when a kurta was just a kurta.

Brands have responded by expanding beyond single garments. Instead of selling kurtas alone, they now design complete, occasion-specific looks. Nilesh Chhadva, cofounder of Kora by NM, states the opportunity isn’t just to sell more kurtas during festivals but to create new reasons for men to wear Indian clothing in everyday situations.

This evolution has positioned men’s ethnic wear as a growing segment for direct-to-consumer brands. Yet the shift isn’t automatic. More occasions don’t guarantee more spending. The challenge lies in generating new demand while maintaining viable inventory and retail economics.

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For many, ethnic wear still feels tied to special occasions. Persuading men to wear it to work events or casual dinners requires more than fresh designs—it demands a shift in perception. Brands are testing lighter fabrics, modern colors, and hybrid styles like kurta-shirts that blend tradition with everyday wear. The aim is to make ethnic clothing feel as natural as jeans and a polo, while keeping a cultural connection.

The change isn’t just about fashion. It reflects how men view themselves in these clothes. A well-fitted kurta or stylish jacket can feel like a statement rather than an obligation. Younger consumers, in particular, see ethnic wear as a way to express identity without sacrificing comfort. Brands must keep this relevance alive beyond seasonal peaks.

The business behind occasion wear

Generating demand is one challenge; making it profitable is another. Men’s ethnic wear follows a different cycle than fast fashion. Purchases remain infrequent, and customer acquisition costs can’t be spread across multiple transactions annually. Brands need strong margins on initial purchases or a strategy to move customers into related categories like accessories or footwear.

Inventory management adds complexity. Unlike t-shirts, which tolerate minor fit variations, structured ethnic wear such as sherwanis or jackets often requires alterations. Brands must establish a physical presence through stores or partnerships with multi-brand retailers. For smaller players, this can be costly.

Regional differences also shape demand. Ethnic wear preferences vary across states, with some festivals driving sales in one region but not another. Brands respond with shorter merchandise cycles, smaller initial orders, and faster replenishment to avoid overstocking.

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Premiumization is another trend. Established brands are targeting higher price points, where larger margins offset lower sales volumes. However, premium ethnic wear carries risks—markdowns, slower inventory turnover, and the need for sophisticated retail experiences. Mass and mid-market products offer scale but thinner margins.

Data from CRISIL shows men’s ethnic wear accounts for just 7% of the overall menswear market. This leaves room for brands to attract customers away from tailoring shops and local retailers. Success won’t come from simply adding more products or stores. It will require creating new demand rather than competing for existing customers.

Mani Singhal, managing director at Alvarez & Marsal India, highlights four warning signs: falling full-price sell-through, rising inventory days, store expansions outpacing growth, and customer acquisition costs increasing faster than gross profit per customer.

The path forward isn’t just about selling more kurtas. It’s about making ethnic wear feel essential, not just occasional.

The category remains fragmented, and profitability varies widely. For brands that succeed, the reward could be a permanent place in the modern Indian man’s wardrobe—not just for festivals, but for daily life.