itle: Integrating Zari Cluster Insights into a Comprehensive Economic Strategy for the

Fashion Industry

Executive Summary​
This report analyzes the Zari cluster in Varanasi through economic lenses—cost structures,
market dynamics, branding, and macroeconomic influences. It identifies high-value
consumer segments, outlines challenges in artisan livelihoods, and proposes strategic
solutions including D2C branding, digital supply chains, and export expansion. The goal:
sustainably integrate heritage craft into modern fashion ecosystems.

1. Textile Industry Analysis​

The Zari cluster in Varanasi represents one of the most iconic and culturally rich sectors of
Indian traditional textiles. Zari involves weaving gold and silver threads into luxurious fabrics,
primarily used in ceremonial and bridal wear. With a centuries-old heritage, it is not only a
craft but a marker of identity and tradition.

Varieties and Specializations:

●​ Karchobi: Raised metallic embroidery typically used in bridal blouses and traditional
attire.
●​ Kalabatun: A form of metallic wrapping on silk or cotton, enhancing sheen.
●​ Gota Patti: A decorative technique using metal appliqué; popular in festive attire.

Regional Strength: Varanasi is an indigenous textile production hub, deeply associated with
Banarasi silk, Zari brocade, and handloom craftsmanship. Its Geographical Indication (GI)
status reinforces authenticity and economic potential.

2. Data Collection​
Primary insights from the cluster visit and secondary research provide a comprehensive
economic picture:

●​ Raw Materials: Fine silk yarns, metallic (gold/silver) threads, cotton bases, and
natural dyes.
●​ Labor: Highly skilled, predominantly male artisans from hereditary weaving families;
however, rising artisan attrition due to insufficient remuneration.
●​ Transport & Logistics: Localized for sourcing; distribution spans domestic metros
and export hubs.
●​ Applications: Bridal lehengas, sarees, ethnic suits, dupattas, accessories (potlis,
stoles).
●​ Observed Price Range: ₹999–₹3,999 for kurtas and suits in retail stores; higher for
bespoke bridal items.
●​ Brands and Merchandising: Biba, Libas, Inddus, Mimosa—selling Zari work via
ready-to-wear formats.
Secondary data can enrich this by tracking export volumes, artisan employment statistics,
and comparative input costs over time.

SWOT Analysis of the Zari Cluster

Strengths Weaknesses

GI-tagged heritage product Low artisan wages

Skilled hereditary craftsmanship Limited scalability

Strong domestic & NRI demand Lack of unified branding

Opportunities Threats

Rise of slow fashion and ethical buying Artisan attrition to other jobs

FTAs enabling exports Synthetic machine-made knock-offs

3. Production & Cost Structure

●​ Fixed Costs: Loom procurement and installation (₹25,000–₹1 lakh), workshop rent,
electricity, compliance costs.
●​ Variable Costs: Daily artisan wages (₹300–₹800), raw materials (threads, dyes),
pre- and post-loom processing, design development.
●​ Cost Efficiency: While manual labor lowers mechanized productivity, the uniqueness
ensures higher price realization.
●​ Economies of Scale: Limited in handcrafts, but efficiency gains possible via shared
resources (dyeing units, packaging hubs) and standardization in mid-range SKUs like
kurtas.

4. Market Analysis & Demand Dynamics​

According to the India Ethnic Wear Market report (Statista 2024), ethnicwear contributes
₹82,000 crores annually, with bridal wear comprising ~35%. The luxury ethnicwear segment
is expected to grow at a CAGR of 8.5% through 2030, driven by destination weddings and
digital-native luxury buyers.

●​ Target Consumer Segments:

○​ Urban luxury buyers seeking bridal and festive exclusives.
○​ Global Indian diaspora in the US, UK, UAE valuing heritage aesthetics.
○​ Millennials & Gen Z preferring ethnic-fusion wear, especially during Diwali and
wedding seasons.
●​ Price Elasticity of Demand:
○​ Bridal/festive Zari wear is price inelastic—consumers are emotionally driven
and quality-focused.
 ○​ Mid-market ethnicwear shows moderate elasticity, sensitive to seasonal sales
and online discounts.
●​ Demand Drivers:
○​ Increased interest in handwoven luxury.
○​ Gifting culture during festivals.
○​ Content-driven discovery via influencers, especially Instagram reels.

5. Branding & Positioning Strategy​

Currently, Zari products lack unified brand recall. A strategic branding approach should:

●​ Heritage Emphasis: Use GI tag and “Made in Varanasi” as brand pillars.

●​ Luxury Positioning: Partner with high-end designers to co-brand limited-edition
lines.
●​ Storytelling: Highlight artisan stories, sustainability credentials, and regional
uniqueness.
●​ Economic Justification:
○​ Marginal Utility: Unique pieces give consumers higher satisfaction per
rupee.
○​ Consumer Surplus: Emotionally valuable, culturally authentic pieces warrant
premium pricing.

6. Supply Chain & Trade Considerations

●​ Challenges:
○​ Middlemen dilute artisan margins.
○​ Absence of warehouse/inventory planning.
○​ Poor digital literacy among artisans.
●​ Policy Support:
○​ ODOP (One District One Product) scheme.
○​ Handloom Mark and India Handloom Brand for authentication.
○​ Ministry of Textiles schemes for skill upgradation.
●​ Trade Pathways:
○​ E-commerce: Myntra Luxe, Ajio Luxe, Jaypore, and curated Shopify websites.
○​ D2C via Instagram and Facebook Shops.
○​ Exhibitions: Dastkar, Hunar Haat, FabIndia artisan showcases.

Recommendations:

●​ SHG formation for group bargaining and bulk raw material procurement.
●​ Blockchain or QR-based provenance certification.
●​ Incubation support to youth for digital marketing of Zari products.

7. Sustainability & Ethical Production

 ●​ Environmental Strengths: Manual weaving has near-zero emissions; natural dyes
are biodegradable.
●​ Challenges:
○​ Migration of skilled artisans to urban jobs.
○​ Low artisan wages.

Strategies:

●​ Certification: Fairtrade, Craftmark for transparency.

●​ Training: Skill schools for youth, upskilling women.
●​ Circular Economy: Fabric offcut reuse for bags, stoles, home décor.

8. Macroeconomic Influences

●​ Inflation: Raises cost of silk and metal threads, but high-end consumers show
spending resilience.
●​ GDP Growth: Boosts wedding expenditure and discretionary apparel consumption.
●​ Exchange Rates: Favorable INR depreciation makes Indian exports cheaper.
●​ Consumer Confidence Index: Stronger confidence = greater spend on aspirational
products.

Export Outlook:

●​ Leverage FTAs (Free Trade Agreements) with UK, UAE.

●​ Boost Indian Pavilion presence in international expos (Heimtextil, Dubai Expo).
●​ Use diaspora influencers for Zari promotions abroad.

9. Final Deliverables & Visual Tools

●​ [Appendix A] Cost Breakdown Pie Chart

●​ [Appendix B] Elasticity Graph: Price vs. quantity graph to show Zari’s inelastic
demand.
●​ [Appendix C] Brand Positioning Canvas: Visual map comparing Zari with FabIndia,
Raw Mango, Anita Dongre.
●​ [Appendix D] Supply Chain Map: From artisan to consumer (current and ideal
structure).
●​ [Appendix E] Macro Dashboard: Visuals showing GDP, inflation trends, and export
data corre
lation.