In a challenging economic environment marked by global trade tensions and domestic uncertainties, V-Mart Retail has emerged as a resilient player in India’s value retail sector. Despite initial setbacks worsened by the pandemic, the company has navigated through acquisitions, financial challenges, and operational adjustments to position itself for sustainable growth and profits.

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Retail expansion and operational strategies

V-Mart Retail, known for its extensive network of nearly 500 stores across India encompassing 4 million sq. ft, specializes in value apparel targeting mass consumers. The company’s resilience amidst economic disruptions underscores its robust operational strategies. Despite the pandemic-induced slowdown, V-Mart persisted with its expansion plans, albeit cautiously, focusing on enhancing store efficiency and geographic footprint.

The acquisition of Unlimited from Arvind Fashions in 2021 marked an important move towards strengthening its presence in South India.

The acquisition, valued at Rs 150 crore, included 74 stores integrated into V-Mart’s operational framework. By rebranding and optimizing these stores primarily located in Tier-I cities, V-Mart successfully aligned Unlimited’s operations with its value-focused retail model. This alignment has yielded promising results, with Unlimited reporting a 10 per cent same-store sales growth (SSSG) in Q4 FY25, outperforming V-Mart’s 7 per cent SSSG during the same period.

Digital expansion and turnaround efforts

In a bid to boost its digital footprint and tap into evolving consumer trends, V-Mart acquired Limeroad in FY23. This acquisition aimed to synergize digital capabilities with its physical retail strength. Despite initial challenges, including EBITDA losses, V-Mart’s concerted efforts in optimizing Limeroad’s operations have shown promising signs. By reducing advertising expenses and enhancing integration with V-Mart’s sales channels, Limeroad’s EBITDA losses halved to Rs 6.5 crore in Q3 FY25, showcasing a significant turnaround path.

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Financial performance and debt management

V-Mart’s financial journey has been characterized by strategic investments and prudent financial management amidst rising debt levels. Over three years, the company invested approximately Rs 900 crore in CAPEX for acquisitions and store expansions, significantly impacting its debt profile. Despite this, V-Mart has demonstrated resilience in improving operating profits and managing working capital efficiencies.

Table: V-Mart’s performance and growth

The company’s shift towards profitable growth strategies, including store consolidation and inventory optimization, has contributed to reducing inventory days from 129 in FY23 to 92 as of December 2024. This operational efficiency has increased working capital pressures, reflecting V-Mart’s commitment to sustainable financial health.

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Future outlook

Looking ahead, V-Mart Retail remains optimistic about its growth prospects, driven by the recovery in rural demand, supported by favorable monsoons and government stimuli.

The company plans to add 60-65 new stores in FY26, increasing its footprint and capturing emerging market opportunities. With a focus on increasing store productivity, category expansion, and digital integration, V-Mart aims to sustain its growth momentum and strengthen its market position.

Thus, V-Mart Retail’s journey from adversity to resurgence exemplifies its resilience and adaptability in India’s competitive retail market. Through targeted acquisitions, operational efficiencies, and prudent financial management, V-Mart has navigated challenges and positioned itself for sustained growth.

As the company continues to innovate and expand, its commitment to value retailing and customer-centric strategies sets a promising trajectory for the future.

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The demand for women's clothing in India decreased by 6.68 per cent in the FY 2025,  as per a report by the digital marketing agency Techmagnate.  

However, despite this downturn, branded online retailers have maintained their lead, with the top five—Meesho, Myntra, Flipkart, Amazon, and Ajio—capturing over 97 per cent of the total branded search interest.

Notably, while Meesho experienced a 32.14 per cent drop in search interest, it still became the most downloaded app, showing a 16.44 per cent increase in downloads, surpassing Flipkart, Shopsy, Amazon, and Myntra.

This trend suggests a growing preference for shopping via mobile devices, as consumers increasingly favor the convenience and user-friendly features of fashion apps.

Zara leads the women's wear market with an average monthly search interest of 279,000, although its declining search interest indicates potential difficulties in maintaining its top position in search engine results.

H&M, Biba, Libas, and Puma are the next four in the top five list.

In the ethnic wear category, 'Chikankari kurti for women' has gained significant popularity, showing a remarkable 809.39 per cent increase and reaching an average monthly search interest of 823,000.

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Furthermore, ethnic wear as a whole dominates the market with an average monthly search interest of 1,659,900.

Geographically, Delhi, Bengaluru, and Mumbai continue to be the dominant regions, accounting for nearly 68 percent of the total online search interest, while Chennai is the only city showing positive growth at +0.92 per cent, increasing its market share to 11.30 per cent.

The women's fashion market in India is undergoing a dynamic transformation, states Sarvesh Bagla, Founder and CEO, Techmagnate.

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"The trends and the industry are evolving rapidly, driven by shifting consumer preferences, technological advancements, and the increasing influence of social media and global trends.

Today's consumers research women's wear, assess their choices, and make their purchases online; therefore, a comprehensive understanding of search behavior is crucial for developing a more effective digital marketing strategy, he adds.

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Fast-fashion giant Shein is renegotiating its global sourcing partnership with India's Reliance Retail and might significantly scale back the deal.

This shift reportedly follows pressure from Beijing, discouraging Chinese companies from moving production overseas amid ongoing trade disputes, particularly concerning US tariffs.

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Tariffs imposed during a previous US administration sparked concerns in China that manufacturers would relocate to avoid duties, potentially favoring countries like India.

While companies like Apple have moved some production to India, major Chinese brands have largely kept manufacturing within China, even while producing locally for the Indian domestic market.

Although Shein is headquartered in Singapore, most of its manufacturing remains in China.

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Sources indicate Shein was eager to reduce this reliance and significantly increase sourcing from India.Shein re-entered the Indian market in February 2025 through a standalone app developed and managed by Reliance Retail Ventures.

This occurred nearly five years after a ban during heightened India-China border tensions. Aiming beyond retail, their partnership planned on creating an export platform for Indian small and medium-sized businesses (SMBs) involved inb apparel and textiles.

Shein had committed technology and expertise to integrate around 25,000 SMBs, establishing a parallel global supply chain based in India – a plan now facing uncertainty.

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India’s government previously confirmed the platform would be domestic, hosted on infrastructure that Shein could not access, nor would it have rights to the data. Shein and Reliance are reportedly trying to find solutions regarding the latest directive from Chinese authorities.

Despite these hurdles, Shein's 2024 global sales increased by 19 per cent to $38 billion, though net profit declined by nearlry 40 per cent to $1 billion, according to international news reports.

The potential scale-back contrasts with India's booming fast fashion market, which expanded by 30-40 per cent in FY2024 despite slow overall consumer spending and is projected to hit $50 billion in sales by 2030-31.

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Indian cricket superstar Virat Kohli has terminated his Rs 110 crore (approximately $13.2 million) deal with Puma in order to invest in Agilitas, a homegrown Indian sportswear startup.

Founded in 2023 by Abhishek Ganguly, Former Managing Director, Puma India and Southeast Asia, Agilitas was launched with an aim to build a global sportswear brand from India. A long-term ally of Kohi, Ganguly originally signed the cricketer for the German sportswear giant in 2017.

Kohli’s personal brand One8 will now be integrated and expanded under the Agilitas umbrella. Agilitas will lead the brand’s retail expansion across India and on a global scale.

Kohli’s departure is more than just a business decision. Kohli ended his endorsement with PepsiCo in 2017 on concerns of promoting sugary drinks. His move to invest in Agilitas aligns with a similar pattern of purpose-driven decision-making.

Agilitas has already secured over Rs 530 crore (approximately $63.6 million) in funding from investors such as Convergent Finance and Nexus Venture Partners. The startup owns the 40-year licensing rights for India, Australia, and South Africa for the Italian sports brand Lotto and has also acquired Mochiko Shoes, a sports footwear manufacturer.

In the fast changing fashion market, where aspiration meets accessibility, Iconic Fashion has carved a unique niche. Bridging the gap between top mass-market retailers and high-end luxury labels, Iconic Fashion is fast emerging as the go-to destination for India’s style-conscious, experience-seeking urban and semi-urban shopper.

With a multi-brand strategy, in-house labels, and foray into non-apparel categories, their journey is more than a retail story — it’s a case study in premiumization done right.

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From concept to category expansion

What began as a multi-brand store concept is now a serious contender in India's premium fashion retail market. As of April 2025, Iconic Fashion operates 26 stores, with five more to open shortly. These stores offer over 40 international brands. And this growth is not limited to metros alone the brand is penetrating Tier II, III cities, recognizing the growing consumer base in these places.

Iconic Fashion has carved a niche by curating a portfolio of international brands like Tommy Hilfiger, Calvin Klein, and Gant, alongside its own successful private labels like Blue Giraffe and Iconic Clothing. This blend allows them to cater to a broad spectrum of aspirational Indian consumer. This diversification aligns with increasing consumer appetite for holistic lifestyle offerings — from accessories and footwear to premium designer collaborations and tech-enabled fashion.

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A retail portfolio straddling aspirational and affordable

Iconic’s unique brand positioning places it between mass-market chains like Shoppers Stop and luxury players such as The Collective. This 'affordable premium' space is seeing tremendous traction, particularly among Tier II and III city consumers — who now seek international aesthetics without the sticker shock of high fashion. What’s more, Iconic Fashion has also facilitated the entry of international brands into the Indian market. For instance, Italian fashion brand Antony Morato partnered with Iconic Fashion to open its first physical outlet in India at Mumbai's Palladium Mall

Table: Iconic Fashion’s retail brand portfolio

Building a private label powerhouse

Among its key growth pillars is the private label strategy, particularly in children’s wear. Blue Giraffe, the brand’s flagship kids wear line, has been gaining popularity for its stylish, durable, and affordable designs.

And it now plans to launch standalone stores for private labels like Blue Giraffe and Iconic Clothing, their adult clothing brand, helping build brand equity while reducing dependency on third-party vendors. This move will allow Iconic Fashion to further solidify its presence in the market and cater to specific consumer segments.

A key aspect of Iconic Fashion's growth strategy is the expansion of its product categories beyond apparel. This move aligns with the increasing demand for non-apparel items, such as footwear, accessories, and home decor, among Indian consumers.

And their expansion strategy isn’t just limited to metros. Cities like Indore, Lucknow, Jaipur, and Bhubaneswar have become central to the brand’s growth.

These cities are seeing a year-on-year increase in discretionary income and digital fashion influence through social media platforms like Instagram and Moj and Iconic is successfully tapping into this market. 

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In recent years, Iconic Fashion has aggressively pursued expansion into Tier I, II cities. Notable store launches include a 22,000-sq. ft. outlet in Surat and a presence in Ludhiana.

As per Technopak Advisors, India’s premium fashion segment is expected to grow at a CAGR of 15-17 per cent, reaching Rs 1.2 trillion by 2028. And what’s driving this growth is the rising middle-class incomes, young population with exposure to global trends, urbanization of smaller cities, and increased online-offline brand engagement.

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Table: India’s premium market size

Retail initiatives and portfolio expansion

Iconic Fashion's retail initiatives are focused on enhancing the customer experience. This includes integrating online and offline channels to provide a seamless shopping experience. Focusing on experiential retail and creating immersive store environments that go beyond traditional retail.

Offering personalized styling and shopping assistance is another positive initiative. The retailer is also including designer wear in the store portfolios to attract more affluent consumers besides adding more product variety and value to the customer .

Thus, Iconic Fashion's strategic expansion, focus on premium offerings, and understanding of the Indian consumer make it a key player in the country's evolving retail landscape.

By expanding its product categories and enhancing the shopping experience, they are setting new standards for premium retail in India. The brand's commitment to growth and innovation positions it for continued success in the years to come.

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Department store chain Shoppers Stop has forayed into the Faridabad market with its debut physical store opening in the city's Pacific Mall. 

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The store aims to strengthen Shoppers Stop's retail presence in the National Capital Region.

According to the brand, Faridabad is an ideal destination for its new store because it is one of Delhi-NCR’s key cities and home to a vibrant mix of traditional heritage and modern infrastructure.

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The multi-brand store offers a wide range of clothing and accessories for men, women, and children for the Spring/Summer 2025 season. It also features a dedicated beauty section with products from both Indian and international brands.

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A subsidiary of K Raheja Corp, Shoppers Stop was established in 2003.

The company is listed on both the National Stock Exchange and the Bombay Stock Exchange and operates in approximately 45 cities across India.

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With changing market scenario global fashion brands operating in India are dealing with numerous challenges. Once symbols of prestige, flagship stores are now shuttering due to exorbitant rents, while the dynamic e-commerce and quick-commerce sectors are reshaping consumer behavior. Can these international giants adapt to survive in this fiercely competitive market, or will they succumb to the forces reshaping India's retail reality?

The crushing weight of prime real estate

The closure of iconic stores, burdened by unsustainable rental costs, highlights the growing financial pressures. Prime retail spaces in major cities command sky-high prices, squeezing profits and forcing brands to reconsider their physical footprint. As per a Knight Frank ‘India Retail Real Estate Report 2023’ report, "Prime retail rents in key Indian cities witnessed an average annual growth of 15 per cent in 2023, with some micro-markets experiencing surges of up to 20 per cent." This rental trap, coupled with rising operational costs, is compelling many to downsize or exit altogether.

Table: Prime retail rent growth in major Indian cities (2023)

Supply chain disruptions, a global domino effect

What’s more, supply chain disruptions, intensified by global events, are adding to the woes. Increased shipping costs and delays are impacting product availability and pricing, forcing brands to rethink their sourcing and distribution strategies. The Red Sea crisis, for example, significantly impacted shipping costs. As per Drewry World Container Index, January 2024, freight rates on key Asia-Europe routes rose over 150 per cent in January 2024 due to rerouting around the Cape of Good Hope. Therefore, the need to reduce import dependence is driving some towards local sourcing, but this presents its own set of challenges regarding cost and efficiency.

For example, Zara, the global fashion giant, has begun to increase local sourcing in India. Reporsts say, Inditex, Zara’s parent company has set a goal of sourcing at least 25 per cent of its products for the Indian market by 2025. This move aims to mitigate supply chain risks and reduce import costs, demonstrating a strategic shift towards localized production.

Regulatory hurdles and tax complexities

Adding to the complexity are India's regulatory hurdles. High taxes and intricate compliance requirements further strain profitability, demanding strategic partnerships and a deep understanding of local market dynamics. A Deloitte India report said, India's complex GST structure and varying state-level regulations create significant compliance challenges for international retailers.

The rise of domestic disruptors

Meanwhile, local competition is intensifying. Domestic brands and direct-to-consumer (D2C) labels are rapidly gaining market share, offering stylish and affordable alternatives tailored to Indian consumers. These agile players leverage digital platforms and influencer marketing to build strong brand loyalty, often outpacing their global counterparts.  Avendus Capital D2C Report of 2023 says, Indian D2C market is expected to reach $100 billion by 2025.

The rise of e-commerce and quick-commerce platforms too is altering shopping habits. While these platforms offer a lifeline for brands struggling with physical retail, they also introduce new competitive pressures, with marketplaces promoting their own private labels. As Arvind Singhal, Chairman, Technopak Advisors points out, more and more Indian consumer are demanding value, convenience, and a personalized shopping experience. Local brands and e-commerce platforms are delivering on these expectations.

Adapting to survive

Therefore, in this fast-evolving market, simply being a global brand is no longer a guarantee of success. Brands must demonstrate agility and adaptability to thrive. This includes:

Optimizing retail footprint: Reevaluating store sizes and locations to manage rental costs.

Strengthening supply chains: Diversifying sourcing and exploring local manufacturing to mitigate disruptions.

Embracing digital transformation: Building a robust online presence across e-commerce platforms and D2C channels.

Adapting local preferences: Tailoring products and marketing strategies to resonate with Indian consumers.

Navigating regulatory challenges: Building strong relationships with local partners and staying abreast of policy changes.

The fact is Indian retail market is dynamic and demanding and those who can effectively navigate these challenges, embrace innovation and change as per the evolving consumer landscape, will have the best chance of survival.