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Business Standard organises ‘BS Manthan’ to explore luxury’s sector’s potential in India

With global luxury brands turning their attention to India, and indigenous luxury labels venturing into international markets, the luxury sector is poised to play a pivotal role in India's aspiration to position itself as a developed nation by 2047.

However, navigating the luxury business terrain demands steadfast relationship-building, time, and infrastructure support. To explore India’s potential to keep pace with these demands, Business Standard organised a two-day national
two-day national summit titled ‘BS Manthan,’ on Mar 27 and 28 at Bharat Mandapam, New Delhi.

Held under the theme ‘Ramp to resorts to retail: How can luxury in 2047 redefine a developed India,’ the summit comprised forward thinking discussions by industry leaders and observers. These leaders envisioned the luxury industry's trajectory over the next 23 years.

According to ‘The State of Fashion 2024’ report by The Business of Fashion and McKinsey & Company, India is deemed one of the most promising destinations for luxury consumption globally. This sentiment was echoed by Benedicte Epinay, CEO, Comité Colbert, France's luxury association, citing a 75 per cent increase in the desire for luxury products. Pushpa Bector, Senior Executive Director, DLF Retail, termed the next decade as ‘the decade of retail for India.’

Industry stalwarts like Kapil Chopra, Founder, The Postcard Hotel, and Abheek Singhi, Managing Director, Boston Consulting Group, dissected the luxury sector's potential to propel India towards its development goals. Featuring luminaries such as Alexis de Ducla, Mathieu Lustrerie and Nikhil Sethi, KPMG India, the panel aimed to catalyse ideas among policymakers, government officials, industry leaders, and innovative entrepreneurs attending the summit.

Business Standard organises ‘BS Manthan’ to explore luxury’s sector’s potential in India

Metro Brands renews partnership with Crocs India

Metro Brands (MBL) has renewed its partnership with Crocs India with notable adjustments to the agreement terms. The renewed agreement gives Metro Brands exclusive rights to own and operate Crocs ‘full price’ stores across the western and southern states of India along with an extension of the contract's residual balance term.

Additionally, the agreement retains MBL’s rights to maintain, renew, and operate all existing stores currently operational in the Northern and Eastern states.
This renewal marks the evolution from the previous Non-Exclusive Retail License Agreement signed in April 2015 between the two companies, effectively superseding it.

Launched in 2008, the partnership between MBL and Crocs India began with the introduction of Crocs' products within MBL's multi-brand outlets. Subsequently, in 2015, the companies entered a non-exclusive retail license agreement, allowing MBL to distribute Crocs products in India. Presently, MBL operates over 200 exclusive Crocs stores.

Commending MBL’s role in enhancing Croc’s presence in India, Sumit Dhingra, VP and General Manager, India, Middle East, and Africa emphasised their contribution in creating a retail experience resonating deeply with Indian consumers.

Besides Crocs, Metro Brands also boasts an array of Indian labels like Metro Shoes, Mochi, Walkway, and international brands such as Crocs, Fila, and FitFlop. Additionally, the company recently partnered with the US-based footwear giant Foot Locker.

Metro Brands renews partnership with Crocs India

Bombay Shirt Company introduces new premium blazers range

India’s pioneering online custom-made shirt brand Bombay Shirt Company (BSS) has introduced a new range of premium tailor-made blazers at their latest retail store.

BSC recently inaugurated its 20th retail outlet in India. Located in Navi Mumbai, the new store is innovatively designed with traditional product racks being replaced with display boxes featuring mannequins showcasing each product category.

The store allows customers to browse through various fabric options for tailor-made shirts, blazers, jeans, chinos, and pants. They can also view their chosen customisations on a large screen. The store has in-house stylists to guide customers through the fabric selection and customisation process.

Established in 2012, Bombay Shirt Company is known for its meticulous customer service and unique in-store shopping experience. The brand has seven stores in Mumbai. Its new store in Navi Mumbai aims to minimise customers’ visual clutter and help them make an informed purchase decisions, says Akshay Narvekar, Founder and CEO.

Bombay Shirt Company introduces new premium blazers range

Barcelona launches physical store in Muzaffarpur

Renowned menswear brand, Barcelona has made its much-anticipated brick-and-mortar debut in Muzaffarpur, marking an expansion into the vibrant northern state of Bihar. With this new store, the brand aims to offer its diverse selection of both casual and formal wear to the city's fashion-savvy shoppers.

Situated at Kalambag Chowk, Station Road, near Mai Sthan, the store promises a fresh take on men's fashion, steering away from the conventional choices.

Inside the store, customers can expect to find an array of western wear essentials, ranging from sophisticated blazers, shirts, and trousers to laid-back t-shirts, hoodies, and polo shirts, among other garments. Of notable mention is the dedicated segment showcasing Barcelona's denim line, boasting a wide variety of cuts and washes to suit every preference.

Employing a franchise model for its expansion, Barcelona aims to penetrate new markets efficiently, with plans to unveil an additional 100 franchise stores across India in the 2024 calendar year, showcasing its commitment to widespread accessibility.

Founded by entrepreneur Jaimin Gupta in Ahmedabad back in 2015, Barcelona initially emerged as a mid-priced men's western wear label. Since then, the brand has flourished, boasting over 125 franchise stores nationwide and a presence in more than 50 cities. Looking ahead, Barcelona is also gearing up for an initial public offering, although the exact date for this move remains to be determined.

Barcelona launches physical store in Muzaffarpur

When Online Goes Offline: Why brick-and-mortar is back in fashion

The e-commerce boom in India, fuelled by rising in internet penetration and digital payments, appeared unstoppable. But the tide seems to be turning, with brick-and-mortar stores regaining their footing. Even successful D2C (direct-to-consumer) brands, born online, are embracing an omnichannel strategy by opening physical stores.
Return of off-line stores
Several factors have contributed to this trend.
The ‘touch & feel’ factor: Customers, especially when considering higher-priced items, still value the ability to physically interact with products before buying. This is particularly true for categories like cosmetics, apparel, and eyewear. Beauty brands like Nykaa and Just Herbs understand this, with Nykaa tripling its offline store count in just two years.
Experience over transaction: Shopping is no longer just about acquiring goods; it's about the entire experience. Larger physical stores allow brands to showcase a wider product range, create a more inviting atmosphere, and offer personalized service, all of which can elevate the shopping experience. Anarock Retail reports a significant rise in stores exceeding 2,000 sq. ft. As Tushar Ved, President of Apparel Group India, emphasizes the importance of creating an inviting space that elevates the shopping experience.
Data speaks volumes: Growth in online user acquisition for major e-commerce players has significantly slowed down compared to pre-pandemic years. A report by Boston Consulting Group and Retailers Association of India suggests a partial shift back to offline shopping.
Importance of omnichannel strategy: D2C brands recognize the value of an omnichannel approach, offering a seamless online-offline experience. For example, Mamaearth, a leading D2C brand, boasts over 170,000 physical retail touchpoints, complementing its online presence.
D2C brands go physical blurring the lines
The move to physical stores by D2C brands might raise concerns about losing their unique online positioning or becoming generic. However, the evidence suggests it's more about brand expansion and wider reach. In fact, for D2C brands, venturing offline doesn't necessarily dilute their unique positioning.
Physical stores can complement online presence. For example, beauty retailer Nykaa grew its offline store presence from 72 to 150 in just two years. Similarly, for boAt, an audio wearables brand, nearly a third of its revenue now comes from physical stores. Ghazal Alagh, Co-founder of Mamaearth, highlights their 1.7 lakh retail touchpoints, demonstrating the potential for wider brand reach.
Financial performance and the future
While bigger stores translate to higher rental costs, retailers are focusing on conversion rates rather than just foot traffic. The future seems bright for this trend. CBRE reports a 25 per cent increase in retail leasing by international brands in 2023. This was record-breaking with a significant portion driven by fashion & apparel brands.
A JLL study indicates a strong supply pipeline of nearly 41 million sq ft of retail space expected to be operational in major Indian cities by 2028, catering to this growing demand.
The once-meteoric rise of e-commerce seems to be plateauing. A report by BCG and RAI suggests a 50 per cent drop in active users for top online retailers in 2023, compared to the previous year. This slowdown could be due to post-pandemic shift as mobility restrictions ease, consumers are returning to physical stores to some extent.
Indeed, the rise of brick-and-mortar retail signifies a consumer desire for a more engaging shopping experience. D2C brands are embracing this trend by adopting an omnichannel approach, leveraging the strengths of both online and offline channels. While the financial impact of this shift needs further observation, the future of retail seems to be a well-integrated blend of physical and digital experiences.

When Online Goes Offline: Why brick-and-mortar is back in fashion

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