Libas plans hyperlocal push, increases festive spend to 18-20% of revenue

Come September, and something magical begins to unfold across India. Walk past any garment shop, and you'll notice the change. Vibrant lehengas, embroidered kurtas and shimmering outfits take centre stage in every storefront window. The same scene plays out digitally as well. Open any e-commerce app, and festive fashion floods your screen in waves of gold, crimson, and royal blue.

In India, clothing is more than just fashion; it is how people celebrate, express identity, and connect with their cultural roots. The relationship between festivals and fashion has evolved dramatically. Nearly half of India's festive shoppers (43%) plan to spend more than Rs 20,000 this season, according to MiQ's Festive Shopper Insights 2025 Report. 

For the ethnic wear industry, this opens up new doors. The global Indian Ethnic Wear market size is expected to reach USD 558.5 billion by 2033, at a CAGR of 12.6%. The real magic for this industry happens during the festive period, when 40-50% of annual revenues are generated. 

And advertisers are catching up. They are launching campaigns 30 days before Diwali, with programmatic video, shoppable social media, and rich media creatives dominating spending. The geographic spread is equally telling; Tier III and smaller regions are driving significant growth, while urban markets are becoming more discerning, seeking authentic cultural narratives over generic festive messaging.

This is where brands like Libas have found their sweet spot. Rather than treating festivities as a seasonal sales opportunity, they've understood that festivals are personal, regional, and deeply emotional. AsNisha Khatri, Head of Marketing at Libas, says, celebrations in India have become both personal and regional. For this festive season, Libas is allocating 18-20% of its revenue to marketing, and the brand has moved from pan-India campaigns to hyperlocal storytelling, recognising that Gujarat's Navratri calls for different narratives than Maharashtra’s Ganesh Chaturthi or Kerala's Onam festivities. 

In this conversation, Nisha Khatri gives more insights on how the brand is navigating the complex landscape of India's most profitable retail season while staying true to the cultural nuances that make each celebration unique.

Edited Excerpts: 

The ethnic wear market sees 45-50% of annual revenues concentrated in the 3-month festive window from Navratri to Diwali. How does Libas's revenue distribution align with this industry pattern, and what specific strategies are you implementing to maximise this compressed selling season when consumer discretionary spending is under pressure from inflation? 

The OND quarter is by far the most crucial for the apparel industry in general, and at Libas, it’s the same. It coincides with the festive and wedding season in India, when consumer demand peaks. 

Around 60-65% of our annual revenue comes from this period, and for our retail stores specifically, 70% of business comes from H2.

We plan our product launches, campaigns, and sales strategy to capitalise on this demand. Our festive assortment follows a three-tier price architecture: aspirational premium pieces for occasion buyers, mid-value options for wardrobe refreshers (Diwali parties, weddings), and affordable festive staples for value-conscious shoppers. This ensures price is never a barrier.

We also start early. While Shradh may impact some shoppers, our younger TG doesn’t dwell on it much, so we begin festive narratives in August with Rakhi and continue through the wedding edits. This extends the window, helps spread marketing costs, and captures early intent before heavy discounting kicks in.

This festive season, brands are moving beyond generic "celebration" messaging toward hyperlocal cultural storytelling. What cultural insight is driving Libas's creative narrative this year, and how are you tailoring your storytelling approach to resonate with the expanding Tier II/III customer base while maintaining relevance in metro markets? What does your marketing playbook look like for the season?

We’ve realised that celebrations in India have become both personal and regional. 

Tier 2 and 3 consumers are no longer passive aspirants; they’re shaping the country’s festive mood board. Their rituals, colours, and stories deserve the same celebration as Diwali in Delhi or Durga Puja in Kolkata.

To reflect this, we’ve moved from pan-India campaigns to hyperlocal storytelling. For example, in Ahmedabad, collections highlight what you’d wear for Garba, while in Punjab, they’re inspired by local drapes and music. Even our store imagery, discounts, and campaign timing are aligned with local festivals—Onam in Kochi, Ganesh Chaturthi in Mumbai, Durga Puja in Kolkata.

We’ve onboarded regional influencers, created content in local languages, and designed occasion-based collections like Navratri and Bhai Dooj edits. Even within weddings, we tailor content for events like mehendi, sangeet, or cocktail nights—so that Libas becomes the go-to brand across occasions.

Fashion brands typically allocate 12-15% of revenue to marketing, with ethnic wear brands skewing higher during festive periods. What's your media spend distribution look like? What metrics guide your decision to shift budget between these approaches?

Our festive allocation is slightly higher—about 18-20%. But it’s not a blanket spend; it’s precision-led. Around 50% goes to performance marketing, 30% to brand storytelling, and 20% to retention and CRM.

Two metrics guide us:

1. Incremental URs by channel – for example, regional influencer-led ads in Tier 2 cities deliver 1.5–2x higher ROAS compared to generic ads.
   

2. Purchase probability – if a segment shows a 40% higher chance of repurchasing within 60 days, we prioritise retention over fresh acquisition.
   

For us, lifetime value is more important than just festive spikes, so we balance acquisition with retention carefully.

The influencer marketing industry in fashion is projected to reach ₹2,000 crores by 2025, with festive seasons accounting for 40-45% of annual influencer spends as brands compete for consumer attention during peak purchase intent periods. What's Libas's approach to influencer strategy during festive peaks?

Festive is the Super Bowl of influencer marketing, so while we go heavy, we’ve moved away from vanity-driven celebrity tie-ups to a more layered, ROI-led approach.

Around 70% of our influencer budget goes to micro and hyperlocal creators in Tier 2 and 3 cities—Indore, Lucknow, Jaipur, Kochi. These partnerships feel authentic and deliver better returns. For high-reach festive campaigns, we still collaborate with marquee names, but our focus remains content-first.

We sign multi-content deals so that influencers look like genuine advocates, not one-time endorsers. Creators are also integrated into our affiliate ecosystem—we track codes, conversions, and optimise in real time. That way, influencer marketing isn’t just glamorous festive noise; it’s a measurable, sustainable revenue driver.

Your store launches feature cultural events and community engagement activities that generate significant social media buzz and user-generated content. How do you leverage these experiential moments as content marketing assets across your digital channels? What's your strategy for converting experiential engagement into measurable marketing outcomes?

Our stores have become third spaces for communities. Store launches aren’t just ribbon cuttings; they’re cultural experiences. We collaborate with Indian B2C brands to offer customers free activities—music, food, makeovers, nail art, cookie baking, even “Sharbath at ₹1.”

These events make Libas a brand that’s fun, accessible, and culturally connected. We measure success not just in footfall, but in new followers, email sign-ups, reviews, and revenue. It bridges offline connections with digital lifetime value.

Your recent expansion into Kerala requires localised marketing approaches across different cultural contexts. How does your marketing mix and messaging strategy vary between established markets like North India and new markets like Kerala? What percentage of your marketing budget is allocated to market entry campaigns versus retention campaigns in established markets?

Kerala is culturally distinct, so we don’t copy-paste Delhi’s playbook. It’s about cultural translation, not brand transplantation.

For instance, our Kerala store became operational in May, but we launched in August to align with Onam, because that’s when people shop. Store activations included regional-specific activities, food, and influencers.

For new markets like Kerala, 60% of our local budget goes to awareness, lead generation, and influencer seeding. In contrast, established markets focus more on retention. 

This dual-track approach helps us expand aggressively without diluting our core brand values.

The global Indian diaspora represents a significant untapped market for authentic ethnic wear. What's your assessment of international expansion opportunities, and what would be your go-to-market strategy for overseas markets? Which geographies show the highest organic demand for Indian ethnic wear?

We already sell globally online, and the diaspora is a high-intent, high-frequency segment. Our biggest demand comes from North America, the Middle East, and the UK, with growth pockets in Australia and Southeast Asia.

Interestingly, even non-Indians are adopting Indian prints and festive wear, especially in the US and UK. For us, the roadmap is: strengthen global shipping and marketplace presence, then move to localised merchandising. We’ll start with diaspora hubs like Dubai, Toronto, and London, and eventually build a strong international retail presence.

As online-to-offline commerce evolves, how are you creating seamless experiences between digital discovery and physical engagement? What percentage of your in-store customers can be traced back to digital touchpoints, and how does this influence your store location strategy?

For us, digital is the starting point of nearly every journey. Around 75-80% of offline customers can be traced back to digital—Instagram, marketplaces, or campaigns.

Our stores are designed as extensions of our digital brand: same styling guides, curated collections, and storytelling. We use digital demand heatmaps to decide store locations. If a city like Bhubaneswar shows high search and conversion data, it signals store readiness.

This reduces risk, making stores high-conversion nodes rather than just awareness tools. Our omnichannel goal is that the customer should never feel a difference between shopping at Libas online or offline.

What percentage of your annual revenue does Purple Days represent, and how has this evolved over the past three years? During high-discount periods, are you primarily attracting price-sensitive new customers or driving additional purchases from existing customers?

Purple Days is like a mela now—it’s something customers wait for. It contributes about 18-20% of our annual revenue, up from low double digits when we started three years ago.

Earlier, it attracted mostly price-sensitive shoppers, but today, 55% of customers are new acquisitions and 45% are repeat buyers. We’ve turned it into more than just clearance sales—it includes curated collections, loyalty-first drops, Golden Pass benefits, and brand collaborations (like free goodies with Sirona, Sugar, etc.).

Even in-store, we create a festive vibe with experiences—kulfi, candy floss, gajra-making, or free lemonade for thousands of people. That’s what makes Purple Days both a sales and brand-building driver.

The Indian retail industry is witnessing a surge in AI adoption, with 68% of brands investing in personalisation technologies. What AI-driven marketing capabilities do you believe will become table stakes for ethnic wear brands in the next 2-3 years, and how are you preparing for this technological shift?

AI is shifting from a competitive edge to infrastructure. For apparel, a few capabilities will become non-negotiable:

• Predictive & dynamic personalisation – one-on-one experiences from homepage to checkout.
  

• Conversational commerce – AI chatbots and voice assistants that don’t just answer queries but complete sales on WhatsApp or in-app.
  

• Demand planning & inventory optimisation – forecasting micro-market demand weeks in advance, reducing overstocking and working capital pressure.
  

At Libas, we’re already piloting AI-powered WhatsApp shopping, styling recommendations, and AI-led product sequencing. These will define how apparel retail scales in the coming years.

The trend toward premiumisation in ethnic wear is particularly notable, with customers investing in higher-value pieces. How has your customer demographic shifted over the past five years, and how has the marketing changed for this changing consumer base?

Over the past five years, average order values have grown in double digits, and the share of premium wear (₹3,000–₹5,000) has increased significantly. Tier 2 and 3 cities now contribute almost 50% to this growth, which shows a clear appetite for premiumization.

Our marketing has shifted from price-led to value-led storytelling. Campaigns highlight innovation, design, and styling versatility, rather than just discounts. We’ve also built our D2C channel aggressively, reducing reliance on marketplaces and building a direct consumer relationship.

With the ethnic wear market expected to reach USD 558.5 billion by 2033, where do you see Libas positioned in this expanded market?

Our vision is clear: move from being a fast-growing player to one of the top three digitally-led omnichannel brands in India.

We want to dominate the mid-premium sweet spot (₹2,000–₹6,000), which is seeing the fastest growth, while also being accessible to the aspirational mass consumer. Our goal is a 50:50 split between online and offline revenue, seamless omnichannel journeys, and aggressive Tier 2-3 expansion (which will drive 60% of our future growth).

By 2030, we aim for 40% of revenue to come from repeat customers. By 2033, our aspiration is simple: to be India’s go-to brand, not just for festive wear, but for everyday ethnic needs as well.