New Zealand's changing demographics in recent years is being reflected in the rising demand for Indian fashion.

The demand has been fuelled by a fast-growing Indian population, which has overtaken the Chinese community to become the country's third-largest ethnicity, according to the 2023 Census.

Numbering almost 300,000, the Indian community loyally patronises specialist fashion outlets selling sarees, salwar kameez (top and trousers), Patiala suits, lehengas and kurtas throughout the country.

Outlets selling Indian footwear items such as mojaris, juttis and Kolhapuri chappals are also proving popular.

But non-Indian consumers are also bolstering the growing trade in ethnic garments, buying items as part of Indian festival celebrations, corporate events or Bollywood-themed parties.

Not surprisingly, most of the outlets selling Indian fashion and ethnic wear can be found in Auckland, where almost 60 percent of the country's Indian community resides.

One such outlet is Sona Sansar in the South Auckland neighbourhood of Papatoetoe, which is owned and operated by Harish Lodhia, who is also the honorary consul of Fiji in Auckland.

Naveen Talwar, manager of Sona Sansar, said he had witnessed a shift in consumer purchases as affordability in the Indian community increased.

"Increasingly we are seeing customers demanding designer sarees, and those are made from expensive silk. This is bound to happen as buying power of the community sees an uplift," Talwar said.

"During the months of September and October, which coincides with Navratri and Diwali, demand for chaniya choli [designs] increases quite a bit."

Chirag Ahuja, owner of Akarshan Photo. (Blessen Tom/RNZ)

Chirag Ahuja, owner of fashion outlet Akarshan in South Auckland, moved to New Zealand from northern India in 2007.

"I have seen a sea change in customer demand over my time in New Zealand," Ahuja said.

"We started modestly selling readymade suits. Then, as demand increased, we gradually grew," he said.

"Today, we have the entire range of Indian ethnic wear, from Patiala suits to Kanjivaram sarees," he said.

"We also sell imitation jewellery, which has proven quite popular with customers not wanting anything valuable but still desire a smart look."

Nearby Ahuja's shop is Batra's Fashion Villa, a multiple outlet store selling everything from shoes and jewellery to leather materials and clothing.

"We have been in Papatoetoe for over two decades now. Apart from the usual stuff, we also have a bridal studio that gets quite busy during the wedding season," said TS Batra, owner of the business.

"We import everything from various parts of India, as every region has its own distinctive taste. We get stuff from Mumbai, Surat, Delhi and, of course, Punjab.

"We also sell Indian palazzos and a Pakistani suit range. We even have ladies' size 64, which is very difficult to find in any other shop here.

"I would say the main base of our shop is Fiji-Indian customers."

Mahesh Kumar owns Roopdarshan outlets in the Auckland suburbs of Papatoetoe and Mt Roskill.

"Our family immigrated from Gujarat in India to Fiji, where we had a retail clothing business. Then I moved to Auckland in 1997," Kumar said.

"Noticing there were no shops here selling Indian stuff, we started with a 60-square-metre space that was open only on weekends," he said.

"Now with the growth in population and the subsequent demand, we have four stores."

Kumar also expanded to Melbourne last year.

"Our most-selling items are sarees and salwar kameez," Kumar said.

"Our low margins and huge variety have generated customer loyalty over the years, which I feel is the reason for our rapid expansion."

Indian fashion outlets in Auckland also appeal to Indo-Fijian customers, as well as those in the Pakistani and Bangladeshi communities.

"Other ethnicities are slowly warming up to Indian ethnic wear in a testimony to the country's multicultural nature," Ahuja said.

"We see such customers shopping around for Indian clothes during Diwali and Eid, or when they get invited to Indian homes for dinners or celebrations."

Indian ethnic items were also in demand for people attending corporate events or Bollywood-themed evenings, Kumar said.