Are you an aspiring saree entrepreneur? Then read up on our in-depth insight into the 5 Biggest Saree Business Challenges Faced by Retailers and How to Overcome Them.
In a population-dense developing country like India, starting a new business in almost every sector is a daunting task.
However, if you’ve chosen the saree industry for your business, you’re in for quite an adventure. Known both for its crowd and its direct link to our country’s culture and tradition, the saree market, while lucrative, is also equally challenging.
Today, we unveil five critical challenges in the saree retail industry and explore strategic solutions that empower business owners to overcome them with ease.
One of the most prominent fashion retail challenges, which also affects the saree industry, is saturation in the market. The Indian saree market today has no shortage of established saree retailers and wholesalers with businesses that go back a century (or more).
For a new entrepreneur, setting up a successful business amidst the high competition of this saturated market is not an easy job. In order to overcome this challenge, you must adopt strategies that will aid your business’s awareness.
When you’re starting out, your goal should be to win your audience’s attention. They’re only going to buy from you once they notice you. Start by asking yourself: What’s something unique that I can offer to my customers? Something that most saree businesses do not have yet.
Once you have recognised and acknowledged that USP, it can truly set your business apart.
So, you can either pick one of them or come up with your own unique selling point (USP) – as long as it fulfills two purposes.
When you find your business’s USP, keep it in the forefront of your business. Print it on your shopping bags, highlight it in your interactions with customers, and include it in your ads.
Now that you have your business’s USP figured out, your next step involves reaching the right audience. While approaching your customers directly as a new business might seem like too much work, there are middlemen you can rely on for better results – Influencers.
These social media gurus with high engagement rates and large followings have great potential to improve your business’s visibility among its target audience.
The influencers are storytellers and respected bards of the Society. Their words carry weight. So, take a look at your saree brand, observe its personality. If your brand doesn’t have one, give it one.
It is by partnering with these creators and influencers that you can improve your brand’s visibility and credibility, thereby solving one of the most common problems in the saree retail business.
Once you’ve managed to find your place in the saree market by overcoming its high competition, pricing is another saree business challenge that you’ll come across. Because your audience has countless buying options – both online and offline – they often tend to compare prices, hoping to get themselves the best possible deal.
In other words, they’re more likely to go for sarees at the lowest price, even if it means a compromised quality. This tendency among the buyers minimizes the room for healthy margins, putting undue pressure on retailers.
The real challenge isn’t price, it’s perception. In the world of luxury, value isn’t dictated by cost but by the story a piece tells and the exclusivity it commands. Instead of lowering the prices of your sarees, you can show them why they’re worth a higher price.
As a saree business owner, exclusivity is your greatest ally. Let your customers discover why owning one of your sarees won’t just be a purchase but an investment in their own prestige.
Suggested Read – Luxury Brand Exclusivity Strategies – An Illustration of a Cultural Collaboration (Research Paper link)
Another way to overcome the pricing issue is by offering value-added services for your customers. Besides the saree itself, several other small tweaks and custom services can make a higher price worthwhile for your buyers.
Some examples include:
Providing these services as a complementary offering combined with the saree can enhance your customer’s overall shopping experience, making a higher price more justifiable for them.
As the digital revolution continues to transform our world, more saree buyers are browsing the web to find their next purchase. To adjust to this changing shopping behaviour, many saree businesses have embraced online platforms to showcase their collections.
However, this shift to the digital-first shopping experience might prove challenging to some traditional retailers.
The fear of online fraud, lack of technical knowledge, and the notion that sarees must be “felt” before buying are some common reasons behind this challenge. Regardless of the cause, not going digital can prove to be a fatal mistake for your business.
To overcome this fashion retail challenge, you must start by setting up a digital storefront. A simple, clean, mobile-friendly, SEO-optimized website is good enough to begin with. Once the website is ready, add relevant keywords to improve your visibility on Google and help customers find you more easily.
To make your digital presence more comprehensive, we also recommend you set up your business’s handles on different social media platforms, including Instagram and Facebook. On these platforms, you can showcase your new collections via livestreams, reels, stories, and posts. To enable smooth, direct communication with your customers, WhatsApp Business is ideal.
Read more about how online marketing is changing for small businesses here.
Then there’s online advertising – a powerful tool that helps businesses reach a much more niche target audience, leading to a higher conversion.
Many social media platforms offer detailed targeting with advertising tools, allowing you to customize your audience based on their age, location, interest, and shopping behavior. Over time, as you start learning the ropes of these tools, you’ll be able to build a system that consistently attracts your ideal customer base online.
All in all, a strong digital presence not only makes your saree business more visible and accessible but also more relevant.
So far, we’ve discussed how saree retailers can tackle market saturation, price wars, and digital presence. Now, it’s time to address one of the biggest backend saree business challenges – managing the inventory.
When it comes to your inventory, both overstocking and understocking can be huge headaches for your business. While overstocking results in dead stock, understocking can equate to missed sales opportunities. As you can gather, it’s a tough line for saree businesses to walk.
Another common problem you’re likely to face in your saree retail business is sourcing quality products. If you’re switching vendors frequently, you’ll end up facing issues with a steady supply of raw materials, which, in turn, can create serious problems for your business.
To prevent it, you should prioritize forming long-term partnerships with your suppliers and weavers. Singing binding contracts and advance agreements can help secure a better price, reduce the risk of delays and last-minute cancellations, and ensure priority during high-demand periods.
Another effective way of overcoming the supply chain issues in your retail saree business is to offer pre-booking services. It is an excellent strategy to measure demand before committing to bulk inventory. Share updates of the upcoming collections on your social handles, allowing your customers to make bookings.
When it comes to designing custom collections – of bridal or festive sarees – made-to-order collections help you cut down the excess stock. As a bonus, they also elevate the sense of exclusivity of your business in your customers’ eyes.
Modern saree shoppers today have much bolder tastes and are open to experimenting with fusion styles, contemporary drapes, and minimalist designs. The younger generation no longer seeks traditional sarees but is looking for ones that have a modern twist.
In order to meet the changing preferences of shoppers, your business must be willing to adapt to the ongoing market trends, sourcing collections that match the needs of fashion-forward customers.
Evolution is your only path forward in this age and time. In order to stay relevant amidst the changing trends, you should be proactive in your approach to spotting and responding to them.
Being proactive in the saree business involves following and monitoring fashion weeks, influencer content, and bridal shows. If you browse on platforms like Pinterest and Instagram, you’ll get a feel of which fabrics, color palettes, and styling ideas are currently in demand.
As a business, it also helps to subscribe to the industry’s leading fashion newsletters and attend trade and fashion events.
Explore more styles in pre-draped sarees that are a must-have for your wardrobe here.
The reason why the saree business is still thriving in a world where fashion trends change in the blink of an eye is that it has continually evolved. As a smart saree retailer, you must recognize that and be prepared to adapt to the changing trends and customer behavior. As long as you’re clear on this end, your saree business will continue to stay relevant.
Designer sarees are an investment in more than just fabric—they represent craftsmanship, culture, and timeless elegance. At Tapobhumi, we bring this experience within your reach, offering designer-level sarees that are as beautiful as they are accessible.
Whether you’re looking for something traditional or modern, our sarees offer the perfect blend of artistry and personal preference.
And what are designer sarees if not pieces of wearable art?
This concludes the 5 Biggest Saree Business Challenges Faced by Retailers and How to Overcome Them.
For business enquiries, visit https://thetgncompany.com/
For social updates, follow us on Instagram @maisontapobhumi
Suggested Readings:
How to Build a Successful Saree Empire: Tapobhumi’s Guide for New Entrepreneurs
What is Tapobhumi? Exploring Its Spiritual and Cultural Significance
Tapobhumi’s Design Inspirations: From Kashmiri Carpets to Paris Runways
Stocking Designer Sarees: Why should you NOT say no to it
Saree Trends 2025: Essential Tips for New Saree Business Owners
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