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.

Pepe Jeans aims to achieve gross sales of Rs 2,000 crore by 2027 alongside the inauguration of 100 fresh stores.

As part of its expansion strategy, the company intends to penetrate deeper into Tier-II and III cities, with a focus on smaller towns accounting for two-thirds of the new store openings. Furthermore, Pepe Jeans is diversifying its product range by venturing into the footwear segment, particularly targeting the women's market segment with the introduction of an India-made footwear line slated for May.

In a strategic move, Pepe Jeans recently solidified a partnership with the Red Bull Academy for Formula 1, assuming the role of title sponsor for the F1 Academy team, including the women's team. This collaboration paves the way for the launch of a Red Bull racing line around August.

Noteworthy financial growth has been reported by Pepe Jeans India, with a substantial increase in revenue. According to regulatory filings accessed by Tofler, there was a 54 per cent surge in operations revenue to Rs 562 crore in FY23 from Rs 364 crore in FY22. Additionally, the brand’s net profit rose by 59 per cent to Rs 20.86 crore in FY23 from Rs 13.09 crore in FY22. This growth was accompanied by a significant boost in marketing expenditure and sales promotions, which surged by 67 per cent to Rs 40.28 crore in FY23 from Rs 24.19 crore in FY22.

Manish Kapoor, Managing Director and CEO, outlined the company’s evolving marketing strategy, highlighting a shift towards digital channels. Notably, 60 per cent of the advertising budget is allocated to digital platforms, while traditional mediums such as print and television receive the remaining 40 per cent. Additionally, the brand plans to increase expenditure on content creation to 18 per cent in the coming years.

Global casual footwear brand, Crocs Inc has collaborated with young influencers Rasha Thadani and Vedang Raina for its 'Come as you are' campaign. Through this partnership, Crocs aims to capitalise on the immense popularity of these young artists, particularly among millennials and Gen Z, to fortify its connection with its youthful customer base.

Expressing her enthusiasm about the collaboration, Thadani states, the brand exudes vibrancy and playfulness, perfectly encapsulated the motto 'Come as you are'.

Sumit Dhingra, Vice President & General Manager, Crocs India, adds, the emergence of Thadani and Raina as prominent figures in the Indian entertainment scene brings a fresh perspective, and this partnership will further enhance the relevance of Crocs’ Classic Clogs and Jibbitz across the nation.

Crocs has a significant presence in the Indian market through its partnership with Metro Brands. Since signing a non-exclusive retail license agreement in 2015, Metro Brands has successfully established over 200 exclusive Crocs brand outlets across India, making the brand accessible to a wide audience.

Being Human Clothing bagged five awards at the India Fashion Forum (IFF) 2024, held on February 21-22, 2024, at Conard Bangalore. Serving as the fashion partner for IIF 2024, Being Human Clothing was awarded across various categories such as:

The brand was honored with the ‘Most Admired Marketing & Promotion of the Year’ award for its innovative multimedia campaign, notably leveraging Salman Khan's birthday to raise awareness and drive foot traffic, resulting in remarkable sales growth.

Additionally, Being Human Clothing earned recognition for its celebrity-endorsed campaign as it leveraged Salman Khan’s popularity for men's wear and Alizeh Agnihotri’s fresh appeal to launch its Gen Z-centric women's wear collection.

Emphasising its commitment to societal contributions, the brand received the ‘Most Admired Marketing & Promotion of the Year: Social Cause Campaign’ award, highlighting initiatives such as sustainable garment production practices, fair wages for farmers, and ensuring safe working conditions.

Being Human Clothing's dedication to environmental, social, and governance (ESG) initiatives was acknowledged with the ‘Most Admired ESG Initiative of the Year’ award, particularly for its use of sustainable materials and employment practices supporting diversity and inclusivity.

The brand's commitment to diversity and inclusivity was celebrated, with awards recognising its gender-fluid collection ‘Blur’ and initiatives supporting underprivileged and specially-abled individuals.

All the above accolades underscore Being Human Clothing's commitment to transcend conventional norms, foster a diverse and inclusive environment, and adopt a holistic approach encompassing sourcing, manufacturing, innovation, and environmental stewardship.

Sanjeev Rao, CEO, Being Human Clothing, reaffirms, this recognition serves as inspiration to continually push boundaries and innovate across all aspects of the business.

India's largest and most influential fashion retail intelligence platform, the India Fashion Forum has evolved into a premier platform for curated knowledge exchange, peer networking, and business development within India's fashion industry.

Marking a significant expansion of its product offerings, menswear brand Arrow, has unveiled its latest Spring/Summer 2024 collection. Meticulously crafted to bring both comfort and functionality to the workplace, this new collection boasts innovative textiles like 'Autopress Flex'.

Anand Aiyer, CEO, Arrow, says, the Spring/Summer 2024 collection is a a fusion of timeless elegance and contemporary flair. With a keen focus on innovative design elements and fabric selections, the collection caters to the refined preferences of modern gentlemen."

The highlight of Arrow's latest collection is the introduction of Autopress Flex, a blend of cotton and spandex engineered to provide stretch for enhanced comfort and ensure garments remain wrinkle-free throughout wear. Inspired by the vibrant hues of spring, the collection showcases a color palette featuring sage green, dusty pink, olive, tan, and beige.

Arrow's legacy traces back to 1851, with its global presence expanding to the Indian market in 1993. Presently, the brand boasts over 200 brick-and-mortar stores across India and a footprint in more than 1,000 multi-brand outlets spanning 109 cities nationwide.

A Bengaluru-based men's fashion and apparel brand, Snitch has recently made a significant addition to its leadership team by appointing Maruthy Ramgandhi as its inaugural Chief Technology Officer (CTO).

With 18 years of experience, Ramgandhi brings a wealth of expertise garnered from reputable companies such as Stumbl, Amazon, McKinsey & Co., Bewakoof.com, Ajio, and Commonfloor.com.

Siddharth Dungarwal, Founder, Snitch, says, Ramgandhi’s exceptional communication skills, enthusiasm, and impressive presentation abilities will add value to the Snitch team. Dungarwal emphasized the versatility of Ramgandhi's role, which is deemed essential at the current juncture for the company.

In his capacity as CTO, Ramgandhi will concentrate on shaping the company's product strategy towards innovation, aiming to provide customers with an advanced and seamless shopping experience. He will also be tasked with leveraging emerging technologies efficiently and securely while aligning technological strategies with the company's overarching business objectives.

The company has also hired Varun Muralidharan, Former Retail Manager, Bestseller India to lead retail operations and projects while it hired Mayur Ashtekar, Rare Rabbit as Head-Business Development and Offline Expansion.

Notably, Snitch has been actively pursuing offline expansions, intending to launch approximately 20 new stores this year. The brand opened two new stores in Surat, with plans for further expansion across the state and other regions of the country. The brand has witnessed significant growth in gross merchandise value (GMV) and revenue, maintaining a consistent increase quarter-on-quarter (Q-o-Q).

Since its inception in 2020 as a direct-to-consumer (D2C) brand, Snitch has garnered attention by featuring on Shark Tank India Season 2 and securing an all-Shark Deal. The brand also successfully raised Rs 110 crore in its Series A funding round from prominent venture capital firms.

Armani Exchange (A|X) is gearing up for the third edition of A|X Press Play, a vibrant cultural extravaganza set to unfold over two days at Kopa Mall in Koregaon Park, Pune, on March 09-10, 2024.

Promising a dynamic blend of global and local music, A|X Press Play will feature performances curated by both internationally renowned electronic artists and homegrown talents.

The inaugural day will showcase sets by esteemed musical acts such as Dualist Inquiry (DJ set), Todh Teri (live), Blurry Slur X Orbs, and Nariki, while the following day will see electrifying performances by Kohra, Prismer, Mogasu X Baawra, and Aayna. Attendees can immerse themselves in interactive installations and witness the mesmerizing art of projection mapping.

Established in 1991, Armani Exchange serves as Armani's accessible fashion line for style-conscious individuals, blending elements from both the Armani Jeans and Armani Collezioni labels upon its inception. With products distributed across 31 countries and online, the brand has solidified its global presence.

A|X made its debut in India at New Delhi's Select Citywalk Mall in October 2016, marking its entry into the Indian market through a partnership with Reliance Retail Ventures Ltd., the retail arm of Mukesh Ambani’s Reliance Group. Presently, A|X boasts over 17 stores across the nation.

Esteemed fashion brand, Madame has unveiled its much-anticipated Spring/Summer 2024 collection in Mumbai. The collection is set to be endorsed by renowned actor Shanaya Kapoor under the campaign banner 'Fashion is me.'

Kapoor will lead the promotion of this vibrant collection through various media platforms, including print, digital channels, and in-store displays. The assortment perfectly encapsulates the spirit of spring with its vivid hues, contemporary designs, and effortless elegance, says Kapoor.

Sumedha Jain, Head-Marcom, Madame, adds, Kapoor’s innate style and grace seamlessly align with the brand’s essence. The collection has received an overwhelming positive response from the audience for its unique features. It will be available through Madame's exclusive outlets, prominent retail stores, leading online marketplaces, and the brand's official online platform, Glamly.

A leading apparel brand under the Raymond Group, Raymond Shop has collaborated with Bollywood celebrity couple Aparshakti Khurana and Aakriti Ahuja to highlight offerings in the Raymond's men's wardrobe.

With over 1,000 outlets spread across 600 towns and cities in India, Raymond Shop has been a stalwart in the fashion industry for nearly a century, offering a diverse range of clothing options including casual wear, semi-formal attire, formal wear, and Indian ethnic wear.

As a part of the Raymond Group, Raymond Shop boasts a comprehensive portfolio of brands such as Raymond Fine Fabrics, Raymond Made-to-Measure, Raymond Ready-to-wear, Ethnix by Raymond, Park Avenue, Color Plus, and Parx.
Recently, the fashion retailer unveiled its largest store in Kerala spanning 22,500 sq ft. This move underscores the brand's commitment to provide an immersive shopping experience to its customers.

In terms of financial performance, Raymond Group reported a substantial increase in its consolidated net profit during the December quarter of the Financial Year 2024, nearly doubling to Rs 185.39 crore. This growth reflects the company's resilience and strategic initiatives in navigating the evolving market dynamics.

Tata Group's prestigious watch brand, Titan, has unveiled an exclusive brand store in Dhaka, Bangladesh. Nestled within Mascot Plaza, this new establishment aims to cater to the discerning tastes of the country's premium shoppers, expanding Titan's reach within Bangladesh.

The new store promises a luxurious experience, inviting patrons to explore an extensive collection of watches, including the high-performance 'Fastrack' series, the elegant 'Raga' line tailored for women's special occasions, the sleek 'Edge' timepieces, as well as the 'Sonata' and 'Zoop' lines.

Aside from its physical presence, Titan Company caters to customers through its e-commerce platform, Titan World, offering a seamless shopping experience. As part of the renowned Tata Group, Titan specialises in premium watches, epitomizing style and sophistication.

Furthermore, Titan recently launched a campaign to commemorate International Women's Day, showcasing the multifaceted nature of womanhood and how its watches complement each facet. The brand's commitment to celebrating diversity resonates with its global audience.

With aspirations of sustained growth, Titan Company focuses on expanding its premium brands segment, targeting high-earning individuals. By bolstering its brick-and-mortar presence and leveraging digital platforms, Titan endeavors to meet the evolving demands of its discerning clientele, both in India and beyond, in the years to come.