Identifying Unmet Needs: How SANI Captures a Niche Market in the U.S.

By Hyesim Seo & B. Ellie Jin

Identifying a niche market is essential before launching a business. Unmet needs exist and consistently emerge as consumer demands evolve with societal changes. Successful entrepreneurship often comes from capturing a niche market rather than competing in oversaturated markets. This article presents a good example: the fashion brand SANI, which caters to South Asian fashion  in the United States.  

Finding a Niche in South Asian Fashion

SANI was founded in 2017 by Ritika Shamdasani while she was attending Wilson College of Textiles, North Carolina State University, along with her sister, Niki Shamdasani. They started the business to address the challenge of finding appropriate clothing for an Indian wedding. 

“Indian weddings are big affairs. They have 3 to 5 days of events. You need an outfit for every single day,” Ritika said. 

They explored every possible option to find the dresses that they wanted to wear for the wedding. 

“We traveled to clothing stores in major South Asian hubs. Then we also WhatsApp video called our grandmother, who was still in India at the time, but our grandmother honestly could not tell the front camera from that camera, so that ended terribly. What we ended up doing for that wedding specifically was just borrowing from our friends. We also ordered that exact outfit off of eBay, and what came was not like the picture whatsoever.”

Recognizing this pain point as an opportunity, Ritika and Niki decided to launch SANI to offer formal South Asian wedding attires. 

“There was a little bit of a pain point here because there are 80,000 South Asian weddings that happen in the US and Canada every year…82% of South Asian Americans wait to go abroad to shop for their cultural clothing.”

Targeting a niche market has been a key driver of SANI’s success. In 2020, the brand partnered with the fashion rental platform Rent the Runway, becoming the first brand targeting South Asian fashion on the platform. Notably, 100 units for each of the three styles sold out within 48 hours. Shortly after, SANI secured a partnership with retail giant Nordstrom. Wholesale, including sales at Nordstrom, now accounts for 40 percent of the brand’s revenue, while direct-to-consumer sales through its online store make up 60 percent. The market potential remains strong, given the continued growth of the Indian American population. According to the Pew Research Center, the Indian American population exceeds 4.5 million in the U.S. and is projected to surpass 9 million by 2050 (Brand Studio, 2023). SANI has expanded its offerings to position itself as a brand for everyone’s special moments. It now provides dresses for both casual and formal occasions, along with loungewear inspired by South Asian culture and craftsmanship. 

Where There’s a Will, There’s a Way: Transforming Vision into Reality

The sisters’ enthusiastic pursuit of opportunities and persistence have driven SANI’s growth through their dedicated time and energy, reflecting a core entrepreneurial mindset.

1. Winning Opportunities Without a Budget

With an unfulfilled fashion niche, Ritika and Niki have proactively pursued opportunities to secure investments and partnerships. While still in school, Ritika leveraged NC State’s entrepreneurial ecosystem, winning first place in the 2020 startup competition eGames along with a $5,000 prize (Huffman, 2023). As an alumna and Miller Fellow at NC State, she received a monthly stipend and venture support to aid her transition into full-time entrepreneurship (Huffman, 2023).

To secure a partnership with Nordstrom, they created and sent a TikTok video aimed at persuading Pete Nordstrom, Co-President of the company, to carry SANI with support from their investor Andy Dunn, founder of Bonobos. SANI’s strong TikTok presence likely played a role in this opportunity. With approximately 173,000 TikTok followers, the sisters have successfully engaged consumers, sharing their stories and showcasing SANI products online.

2. The Power of Cold Emailing

Ritika and Niki had no hesitation in sending cold emails. They wanted to reach out directly to Jennifer Hyman, the CEO and founder of Rent the Runway. Inspired by Hyman’s own story of cold emailing to collaborate with Diane von Furstenberg, the sisters tried every possible combination of her business email addresses. They even used her Harvard Business School email, hoping it would reach her. Ultimately, Hyman responded and liked the idea of SANI, leading to a successful collaboration.

3. No PR Team? No Problem

It is no surprise that a small startup does not have its own public relations division. The founders of SANI had no hesitation in taking the role themselves. They sent over 150 cold emails to major media outlets to share SANI’s story and gain visibility. Their efforts paid off. SANI is featured on several online news platforms, including Good Morning America and Insider. Additionally, in December 2022, SANI was recognized on Forbes’ 30 Under 30 – Retail & Ecommerce list. 

Conclusion

SANI’s niche strategy and proactive entrepreneurial mindset have enabled it to grow and establish a foothold in the U.S. market. The brand exemplifies the importance of identifying business opportunities to address unmet needs. For retailers, collaborating with such niche brands can help them reach a specific target audience, potentially opening new sales avenues.

Reference

Huffman, M. (2023, May 22). Ritika Shamdasani: From the Wilson College of Textiles to Nordstrom and Beyond. Entrepreneurship News. https://entrepreneurship.ncsu.edu/news/2023/05/22/ritika-shamdasani-from-the-wilson-college-of-textiles-to-nordstrom-and-beyond/ 

Brand Studio. (2023, July 28). Scroll.in: The #1 Way to Reach Indian Americans in the US. Scroll.in. https://scroll.in/bulletins/333/scroll-in-the-1-way-to-reach-indian-americans-in-the-us