MUMBAI, Feb. 22 -- For more than two decades, Manyavar shaped how India's aspirational middle class shopped for weddings. Now, slowing discretionary spending and a surge of organized rivals are challenging one of India's best-known wedding-focused apparel brands.

India's ethnic wear market continues to expand, but Vedant Fashions Ltd, which operates Manyavar, is struggling to keep pace. The slowdown reflects both cyclical pressure on middle-class consumption and a structural shift as branded competitors multiply in what remains a largely fragmented market.

According to a Motilal Oswal report initiating coverage on Vedant Fashions, India's ethnic wear market is growing at a 5.5-6% compound annual growth rate, having expanded from Rs.1,80...