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Retail 26-09-14

India’s affluent boom creates a two-tier retail market

India’s consumption is in a sharply segmented phase, with the country projected to become home to 108 million affluent consumers by 2036, overtaking China’s 103 million, says a joint study by NielsenIQ (NIQ) and World Data Lab study. The affluent cohort is defined by daily expenditure of over $90, rather than conventional wealth or asset ownership. From 26 million people in 2026, India is expected to add 82 million affluent consumers over the next decade, the largest absolute increase globally. China is projected to add 62 million during the same period.

Yet the opportunity is not confined to the top end. India also has 649 million core consumers spending between $13 and $90 a day, creating a market where premiumisation and value consciousness will coexist.

Table: India’s consumer market over view

Consumer segment/market (2026-36)	Affluent count 2036 (mn)	Net growth from 2026 (mn)
United States	231	+31
India	108	+82
China	103	+62
Germany	32	+5
Japan	30	+5
United Kingdom	27	+6
Brazil	23	+8
Rest of World	471	+170
Global Total	1,025	+369

Source: World Data Lab, NielsenIQ

Globally, the affluent segment is already disproportionately powerful. Although affluent consumers number 657 million against 4.1 billion core consumers in 2026, their annual expenditure is projected at $35.9 trillion, compared with $31.6 trillion for the much larger core segment.

Premium meets value

For Indian retailers, however, the growth in affluent consumers does not translate into an across-the-board luxury boom. India remains a volume-growth market whose sheer population scale creates significant consumption potential. Experience so far also shows that projections of middle-class growth do not always translate into sustained purchases of high-ticket discretionary goods. Wealth concentration, currency movements, real-estate constraints and import duties have historically restricted the depth of premium consumption.

The latest consumer behaviour indicators reinforce this caution. Among upgrade buyers, 60 per cent prioritise value for money and 46 per cent seek convenience. This means consumers may be willing to move up the price ladder, but only when the additional value is clearly visible.

Table: Projections vs consumption realities

Market characteristic	India market context	Implication for retailers
Consumer Classification	Volume growth market driven by scale	Expand entry points; avoid single-price assumptions
Value Orientation	60% of upgrade buyers demand clear value	Premium pricing requires tangible product differentiation
Inflationary Impact	26% increase in global consumer prices (2021–2025)	Margin defense requires operational cost controls
Spending Threshold	High spenders spend >$90/day; core spend $13–$90/day	Distinct assortments needed for affluent versus core buyers

This bifurcation is becoming particularly important in fashion, where retailers have to balance aspiration with affordability rather than assume that rising incomes automatically create luxury demand.

Fashion builds a two-tier market

India’s fashion and luxury apparel market was valued at $9.85 billion in 2025 and is projected to reach $15.17 billion by 2034. Clothing and apparel account for 61 per cent of luxury fashion demand, supported by ceremonial dressing, occasion wear and premium western apparel. Women’s apparel makes up 52 per cent of category sales, reflecting rising workforce participation and increasing discretionary expenditure. North India accounts for about 30 per cent of luxury apparel demand, supported by wedding expenditure, affluent households and dense premium retail infrastructure across Delhi-NCR.

The implication is that fashion companies can no longer rely on a single retail pattern. Premium consumers require curation, service and exclusivity, while aspirational customers need accessible price points and convenience. For retailers, the emerging model is therefore less about choosing between mass and luxury and more about building distinct propositions for each consumer tier.

Stores regain importance

Physical retail remains central to high-end fashion, contributing around 70 per cent of luxury fashion revenue. For premium customers, stores offer functions that online channels cannot fully replicate, including personalised styling, alterations, product discovery and immersive brand experiences. The increase in Grade-A retail destinations is consequently reinforcing physical luxury. Developments such as Jio World Plaza in Mumbai and premium DLF properties in Delhi-NCR are creating international-standard environments for global brands and Indian designers.

Flagship stores are becoming experience centres, hosting private appointments, capsule launches and high-value customer events. Digital channels, meanwhile, allow brands to extend their reach into smaller cities without replicating the cost structure of a flagship store.

Reliance bets on portfolio discipline

Reliance Brands Limited (RBL) showcases how India’s premium market is being approached through portfolio management rather than indiscriminate expansion. RBL, the luxury and lifestyle arm of Reliance Retail, operates over 50 global labels, including Burberry, Diesel and Stella McCartney, alongside Indian designer partnerships. Its network includes 935 exclusive stores and 762 shop-in-shops.

The company reported FY26 revenue of Rs 3,494 crore, up 44.6 per cent year on year, while narrowing its net loss to Rs 137 crore. The performance reflects focus on closing non-viable stores, rationalising operations and concentrating investment around stronger brands and locations. Its portfolio also shows the importance of balancing high-margin luxury with categories capable of generating more frequent purchases. Premium beauty, for instance, can give greater transaction frequency than occasional luxury apparel purchases.

New retail equation

Increase in India’s affluent class gives luxury and premium retailers a substantial long-term opportunity, but the market will not evolve into a uniformly affluent consumer base. Instead, the next phase is likely to produce a highly stratified retail economy. At one end, affluent consumers will support flagship stores, luxury labels, private shopping and premium occasion wear. At the other, hundreds of millions of core consumers will remain highly sensitive to value, convenience and price.

The winners are likely to be retailers that recognise this divide early. Rather than pushing every customer towards premium products, brands will need differentiated assortments, store formats and digital strategies. India’s affluent increase, therefore, is less a signal for retailers to simply raise prices than a cue to redesign the market around multiple consumption tiers with luxury growing at the top while value remains decisive across the broader consumer base.

Retail 26-09-14

India’s affluent boom creates a two-tier retail market

India’s mall giants are going smaller to win everyday shoppers

India’s retail real estate market is looking at a format reset. As urban congestion, digital discovery and quick commerce reshape shopping behaviour, developers are moving beyond the traditional million-square-foot destination mall to smaller, high-density lifestyle plazas embedded within residential catchments. The objective is not simply to generate footfall but to increase shopping frequency. By positioning apparel, dining, wellness and lifestyle services within a five-to-10-km radius, these assets seek to capture the weekday discretionary wallet that destination malls typically access only during planned visits.

DLF Retail’s recent expansion shows the strategy. Its 2.8-lakh-sq. ft. DLF Midtown Plaza in Moti Nagar, West Delhi, serves a catchment of about 2.5 million residents. The property opened with over 90 per cent operational occupancy and 95 per cent leased space, housing around 150 brands. This was followed by the 4.5 lakh sq. ft. DLF Summit Plaza in DLF5, Gurugram, planned for approximately 215 brands. As Pushpa Bector, Group Executive Director and Business Head, DLF Retail puts it, the proposition is to make customers visit a plaza twice a week rather than make an occasional trip to a destination mall.

Smaller stores, higher density

The economics of these properties are also changing the tenant equation. Traditional shopping centres often accommodate fashion stores of 2,500-3,000 sq. ft, while neighbourhood plazas can work with modular 250-500 sq. ft. units. That smaller footprint reduces fit-out requirements and lowers the entry barrier for emerging fashion labels and digital-first brands. For landlords, it creates greater tenant density and a more diversified rental base.

The shift is happening alongside strong leasing momentum. CBRE data shows retail leasing across major Indian cities increased 20 per cent year-on-year to 3.9 million sq. ft. in the first half of 2026, with Delhi-NCR accounting for 35 per cent of absorption. Fashion and apparel remained the largest demand category, contributing roughly 40-48 per cent of leased volume.

The composition of demand is equally significant. Homegrown and direct-to-consumer brands represented 28 per cent of retail leasing in early 2026, compared with 23 per cent a year earlier. Within digital-native brands, apparel and lifestyle products accounted for nearly 69 per cent of new space commitments.

D2C brands go physical

For online-first fashion companies, the neighbourhood store is becoming more than a sales outlet. It functions as a physical touchpoint for brand discovery, product trials, returns, styling and local fulfilment. Brands such as Suta and The Bear House exemplify this shift. Instead of committing capital to expensive high-street flagships, smaller stores can give a physical presence in affluent residential clusters while maintaining inventory centrally.

The model can improve sales productivity because the store does not need to carry the breadth of stock associated with a conventional flagship. Digital replenishment allows a compact unit to operate as a styling and fulfilment node, connecting online demand with offline conversion. This is particularly relevant as digital customer acquisition becomes more expensive. A physical store can reduce dependence on paid online discovery while improving consumer confidence and potentially lowering return rates.

Experience replaces commodity

The tenant mix is also revealing where developers expect future retail margins to emerge. The proliferation of quick commerce is reducing the importance of large commodity-led grocery formats, encouraging developers to favour boutique supermarkets, premium activewear, wellness services, restaurants and entertainment. The result is a more curated neighbourhood proposition. Instead of competing directly with quick-commerce platforms on speed, these plazas compete on immediacy combined with experience.

This distinction matters for fashion. Consumers may order basic products online within minutes, but apparel remains an experiential category where touch, fit, authenticity and styling can influence purchase decisions.

Spending beats footfall

The stronger argument for the format comes from consumer economics rather than visitor numbers alone. Across DLF’s retail portfolio, tenant sales have grown 11-12 per cent annually, while operational retail consumption rose 13.5-14 per cent year-on-year in the first quarter of FY27. The difference between footfall and spending is particularly important. While traffic increased about 5 per cent, tenant billing across core properties grew at a double-digit pace. This suggests that retailers are monetising fewer but more purposeful visits more effectively. Gen Z and millennials are central to this change. Their shopping journeys begin online, with consumers researching products, prices and reviews before entering a physical store. The store therefore becomes the final stage of a digitally initiated purchase journey rather than the starting point.

Two formats, one strategy

The rise of neighbourhood plazas does not signal the death of destination malls. Instead, India’s retail real estate market appears to be moving towards a dual-format model. Developers are continuing to invest in large regional assets for high-value shopping, entertainment and weekend consumption while deploying smaller community properties to capture frequent local spending.

More than Rs 30,000 crore is expected to be deployed across Indian retail assets over the coming years, underlining institutional confidence in the sector. DLF, for instance, is developing the 2 million sq. ft. Mall of India in Gurugram alongside neighbourhood properties. Its planned 7 lakh sq. ft. DLF Promenade in Panjim further expands the portfolio. The company expects its new retail additions to lift total retail revenue by 20-22 per cent.

The message is clear: India’s next retail growth phase may not be defined by bigger malls, but by a denser network of smaller ones. As digital commerce takes care of convenience and quick commerce compresses delivery times, physical retail must increasingly win on frequency, proximity and experience. The neighbourhood plaza is emerging as the format designed to do exactly that.

Retail 26-09-08

India’s mall giants are going smaller to win everyday shoppers

Festive campaign backlash forces brands into defensive retreats

Modern retail marketing strategies in India are increasingly caught in a volatile crossfire between progressive creative positioning and intense digital moral policing. The recent withdrawal of a high-profile Raksha Bandhan promotional campaign by silver jewelry major GIVA, featuring brand ambassador Kriti Sanon, underscores the fragile nature of festive storytelling. The campaign faced immediate social media backlash over the actor's contemporary Indo-Western attire and an unconventional framing that extended sibling rituals to pets. Industry observers note, consumer-facing lifestyle brands are finding it exceptionally difficult to balance modern lifestyle aspirations with rigid traditional aesthetic codes without triggering organized digital boycotts.

DFU Profile

Corporate risk and commercial vulnerability

This episode reflects a broader commercial vulnerability facing major apparel and lifestyle labels attempting to modernize traditional narratives. Previous high-profile controversies - such as Tanishq’s interfaith baby shower campaign and Manyavar’s reinterpretation of the traditional kanyadaan ritual featuring Alia Bhatt - demonstrate that cultural experimentation frequently results in immediate corporate capitulation. Marketing specialists indicate that aggressive online outrage directly threatens retail footfalls, franchise security, and brand equity. Consequently, corporate boards routinely choose risk mitigation and campaign withdrawal over defending progressive creative messaging, signaling a cautious phase for festive advertising budgets across the retail sector.

Refer

Focusing on accessible luxury and financial performance

Founded in 2019, GIVA is a prominent Indian direct-to-consumer fine silver and lightweight jewelry brand. Operating primarily in urban and semi-urban markets, the company offers contemporary silver, gold, and lab-grown diamond collections. Driven by aggressive omnichannel expansion and celebrity partnerships, GIVA targets high-growth segments in modern retail, focusing on accessible luxury and strong financial performance ahead of planned public listings.

SUSTAINABILITY

Retail 26-09-03

Festive campaign backlash forces brands into defensive retreats

Luxury retail consolidation: Purple Style Labs sets terms for landmark IPO

The parent organization steering the luxury fashion powerhouse Pernia's Pop-Up Shop, Purple Style Labs has formally established its share price band between Rs 546 and Rs 575 to secure Rs 680 crore through its upcoming IPO. The primary issue features entirely fresh equity shares without any secondary promoter dilution, signaling aggressive capitalization for future physical and digital footprints. Industry analysts note that approximately Rs 371 crore of the net proceeds will directly service retail lease obligations and scale experience centers through its subsidiary, PSL Retail. The capital infusion arrives precisely as India’s luxury and high-end wedding apparel segments experience unprecedented structural expansion, remarks Maneesh Sharma, Senior Retail Strategist, Apex Financial. Institutional investors are increasingly backing organized omnichannel plays that bridge premier designer labels with affluent consumer demographics.

SUSTAINABILITY

Navigating operational scaling and omnichannel demands

As consumer preferences transition toward curated multi-brand luxury experiences, the enterprise faces the intricate operational challenge of balancing high real estate overheads with rapid inventory turnover. To mitigate structural risks, the management is deploying advanced supply chain analytics across its flagship experiential studios in metropolitan hubs. A prominent case study in this omnichannel execution is their recent rollout of integrated digital-physical styling appointments, which successfully elevated average transaction values by 22 per cent over the previous fiscal cycle. Company executives emphasize, maintaining stringent cost controls while scaling premium retail storefronts remains central to achieving long-term operating profitability. Sector observers indicate, successful deployment of these IPO proceeds could establish a definitive benchmark for high-end fashion capitalization across the broader South Asian retail ecosystem.

DFU Profile

Eyeing sustained margin improvements with capital market debut

Purple Style Labs operates as an omnichannel luxury fashion aggregator centering on high-end designer apparel and accessories. Targeting affluent domestic and international markets, the firm focuses on aggressive experiential retail scaling and digital integration. Backed by strong historical growth following its acquisition of Pernia's Pop-Up Shop, the company targets sustained margin improvements alongside its capital market debut.

Retail 26-08-27

Luxury retail consolidation: Purple Style Labs sets terms for landmark IPO

British fashion retailer Next enters Mumbai market with flagship store opening

British fashion major Next has marked its retail debut in Mumbai by launching a sprawling, 12,000-sq-ft flagship outlet at Infiniti Mall in Malad. Developed in strategic partnership with Myntra Jabong India and licensed franchise operators, the new location houses approximately 1,000 distinct styles spanning women's, men's, and children's apparel categories. The launch underscores an accelerating trend of international labels establishing physical footprints in India's top-tier urban clusters, targeting cosmopolitan consumers seeking contemporary, design-led everyday wear.

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Mumbai represents an essential fashion market, and introducing our first store in the city reflects our ongoing growth trajectory across India, states Venu Nair, Chief-Strategic Partnerships and Omnichannel, Myntra. Industry analysts observe, foreign apparel brands are increasingly utilizing localized omnichannel models to optimize inventory turnover, pairing immersive brick-and-mortar retail experiences with robust digital distribution to capture rising discretionary spending.

Refer

Expanding footprint in high-potential urban areas

Next operates as a prominent British fashion and home products retailer offering apparel, footwear, and accessories. Serving international markets through franchise networks and digital platforms, the brand focuses on scaling its physical footprint in high-potential urban economies while maintaining solid financial performance, anchored by its foundational launch in the United Kingdom in 1982.

SUSTAINABILITY

Retail 26-09-07

British fashion retailer Next enters Mumbai market with flagship store opening

Retail expansion meets boundless creativity with new The House of Rare campaign

The House of Rare has officially launched its highly anticipated Autumn/Winter 2026 campaign, titled Walk 7.0: ‘No Room Is Big Enough,’ Shifting away from the expansive natural vistas that characterized previous chapters, this campaign takes viewers into a structured, single-room set featuring multiple doors. The enclosed architectural design serves as a physical metaphor for limitless creative evolution, explains Manish Poddar, Founder and Creative Director. The visual storytelling utilizes a striking red-and-white color palette to underscore the tension between disciplined framework and expressive design.

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Diversification through new sub-brands

Alongside the core presentation, the retail enterprise is scaling its commercial footprint by introducing Guild, an elevated premium range. This fresh tier integrates seamlessly with flagship lines Rare Rabbit, Rareism, and Rare'Z to target evolving consumer preferences across menswear and womenswear. Akshika Poddar, Co-founder notes, the latest iteration bridges individual label identities into a unified cultural ecosystem. Industry analysts observe that this strategic portfolio expansion arrives as the company builds on robust financial scale, having registered Rs 818 crore in revenue for FY25, positioning the brand to capture higher-margin market segments despite intensified competition in premium Indian retail.

Refer

Disciplined product diversification and immersive experiential marketing

Operating under parent entity Radhamani Textiles, The House of Rare was established in 2015 by Manish and Akshika Poddar. The company designs and retails contemporary apparel, footwear, and accessories across dominant urban markets via flagship brands Rare Rabbit and Rareism. Backed by institutional investor A91 Partners, the firm continues to scale its brick-and-mortar and digital retail presence rapidly, maintaining strong multi-fold growth trajectories through disciplined product diversification and immersive experiential marketing.

SUSTAINABILITY

Retail 26-09-02

Retail expansion meets boundless creativity with new The House of Rare campaign

Amazon Global Selling intensifies focus on regional clusters as apparel grows by 37%

Amazon Global Selling is intensifying its strategic focus on India’s core manufacturing clusters, aiming to harness localized production strengths to fulfill rising international demand. Recent performance data indicates, key lifestyle categories are expanding rapidly across global marketplaces, with the apparel segment growing by 37 per cent. According to company executives, this reflects a broader structural evolution, as domestic enterprises transition from traditional wholesale models to direct-to-consumer international brand building. By targeting specialized production hubs across states like Rajasthan, Uttar Pradesh, and Tamil Nadu, the digital export initiative provides micro, small, and medium enterprises with streamlined logistics, automated customs clearance, and direct access to hundreds of millions of overseas consumers.

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Scaling brand equity and global reach

The strategic initiative is heavily supported by digital enablement tools, including automated inventory management and data analytics playbooks that assist exporters in aligning product catalogs with shifting North American and European consumer preferences. Industry participants are increasingly leveraging these platforms to establish proprietary label recognition rather than competing solely on unbranded volume. For instance, home textile ventures originating from regional clusters have scaled international revenues exponentially by marketing sustainable cotton bedsheets and handcrafted decor directly through foreign digital storefronts. The objective is centered on empowering Indian manufacturers to transition from contract suppliers into recognized global brands, states Srinidhi Kalvapudi, Business Head, Amazon Global Selling India. Despite lingering macroeconomic headwinds, the program continues to expand its seller base significantly, maintaining a steady trajectory toward its cumulative export target of $80 billion by 2030.

SUSTAINABILITY

Initiative operational overview

Amazon Global Selling is an international e-commerce export program that enables domestic enterprises of all sizes to list and sell products directly to consumers across more than 18 global marketplaces. The initiative provides comprehensive logistics, digital payment solutions, and brand registry infrastructure to facilitate cross-border trade.

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Retail 26-08-26

Amazon Global Selling intensifies focus on regional clusters as apparel grows by 37%

Eddie Bauer partners Outdoor Goats to foray into the Indian retail marke

American outdoor lifestyle brand Eddie Bauer has officially entered the Indian apparel market through a strategic partnership with Outdoor Goats, utilizing Wild Country as its exclusive licensee. The brand launch addresses expanding domestic interest in the mid-premium outdoor and activewear segments, which are currently recording a robust 35 per cent Y-o-Y growth trajectory. Focusing primarily on metropolitan and emerging urban centers, the initial product rollout targets consumers aged 25 to 40 seeking versatile utility wear. Henry Stupp, President, EMEA-India, Authentic Brands Group, notes, the brand's century-old heritage aligns naturally with the evolving preferences of Indian consumers who demand high-performance apparel suited for multiple environments.

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Digital-first introduction and upcoming omnichannel expansion

The initial collection features specialized technical apparel including UPF 50 sun-protected items, active cooling garments, and four-way stretch materials, with price points ranging from Rs 2,299 for basic essentials up to Rs 20,000 for heavy insulated outerwear. Merchandise is currently accessible via the brand's dedicated Indian e-commerce platform and Myntra, with broader digital marketplace integration scheduled before the close of 2026. Following the digital-first introduction, the enterprise is preparing for an extensive physical retail rollout starting in 2027, featuring dedicated standalone boutiques and shop-in-shop formats across key commercial real estate corridors.

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Outfitting major international expeditions

Eddie Bauer is an iconic American outdoor lifestyle brand founded in Seattle in 1920. Operating across 41 countries, it specializes in high-performance apparel, down jackets, and travel gear. Targeting long-term global expansion, the brand maintains strong financial performance, anchored by its century-old legacy of outfitting major international expeditions.

SUSTAINABILITY

Retail 26-09-05

Eddie Bauer partners Outdoor Goats to foray into the Indian retail marke

DLF Avenue and ARKS By Ranbir Kapoor host a 10 km community in New Delhi

DLF Avenue recently partnered with contemporary fashion label ARKS By Ranbir Kapoor to host a high-visibility 10K community run in New Delhi, merging high-performance fitness with experiential retail. By serving as the official merchandise partner, ARKS bypassed traditional brick-and-mortar constraints to position its apparel directly within an active lifestyle environment. Over several hundred participants gathered for the event, receiving exclusive branded gear before embarking on the city circuit. Retail analysts note. experiential marketing campaigns yield a 34 per cent higher consumer brand recall than conventional advertising, illustrating why upscale shopping centers increasingly substitute static displays with physical wellness initiatives.

SUSTAINABILITY

Bridging lifestyle retail and performance apparel

The strategic alliance underscores a broader shift among Indian commercial real estate destinations toward community-centric curation. Rather than relying solely on traditional tenant leases, urban shopping centers like DLF Avenue continuously integrate wellness, entertainment, and fashion to drive foot traffic. Modern consumers demand authentic brand interactions that align with their personal health values, remarks Ananya Sen, Retail Leasing Consultant, Cushman & Wakefield India. Collaborations connecting fashion labels directly with fitness communities create powerful emotional connections that translate into long-term customer loyalty and repeat retail engagement, she adds.

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Targeting urban millennial across metropolitan markets

Created in collaboration with Bollywood actor Ranbir Kapoor, ARKS is a contemporary Indian fashion and lifestyle brand specializing in modern apparel and casual wear. The label targets urban millennial across major metropolitan markets with plans to expand physical retail footprints. Financially backed by robust early consumer reception, the brand traces its origins to recent celebrity-led direct-to-consumer lifestyle ventures in South Asia.

DFU Profile

Retail 26-08-31

DLF Avenue and ARKS By Ranbir Kapoor host a 10 km community in New Delhi

Online meets offline as Indian fashion retail rewrites its growth strategy

India’s fashion retail market is moving beyond the old ‘online vs offline’ debate. As the apparel market approaches the $50-billion mark, digital brands are opening stores while established retailers are building stronger digital layers around physical networks. The result is an integrated model in which online channels generate discovery and customer data, while stores build trust, improve fit, enable faster fulfilment and support profitable repeat purchases. The shift is not simply about adding stores. It is about changing the economics of customer acquisition, inventory utilisation and returns.

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From rival channels to one network

The traditional retail model treated digital and physical channels as competing businesses. That equation is changing rapidly.

Table: Omnichannel retail transformation

Old retail model	Emerging omnichannel model
Channel cannibalisation	Unified inventory visibility
High performance-marketing costs	Lower blended customer acquisition costs
High online apparel returns	Stores used for returns and exchanges
Separate online and store inventory	Shared inventory pools
Stores focused on transactions	Stores also serve as fulfilment hubs
Digital discovery, physical purchase	Continuous online-offline customer journey

For a fashion consumer, the journey can now begin on Instagram, move to a marketplace for comparison, shift to a brand website for product information and end with a purchase at a nearby store. In other cases, the customer may discover a product in-store and reorder it online. This makes physical retail an extension of digital customer acquisition rather than an alternative to it.

SUSTAINABILITY

Rising CAC makes stores strategic

For digital-first fashion brands, escalating performance-marketing costs have made pure-play online expansion difficult to justify. A customer acquired through paid digital advertising carries an acquisition cost regardless of whether that customer makes a second purchase.

A physical store changes that equation. It creates visibility in a local catchment, generates walk-in traffic and allows online customers to experience products before purchasing. The same store can subsequently function as a return point, exchange centre and fulfilment node. Large retail networks are pursuing the reverse strategy. Companies such as Aditya Birla Fashion and Retail, Reliance Retail, Shoppers Stop, Pantaloons, Westside and Max Fashion are now connecting stores with digital inventory systems, click-and-collect services and location-based marketing. The common objective is to increase revenue generated from every retail asset rather than treating the store merely as a sales floor.

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Leasing shows where capital is moving

Commercial real estate data reinforces the trend. According to the CBRE India Retail Figures H1 2026 report cited in the data, organised retail absorption reached 3.9 million sq ft in the first half of 2026, up 20% year-on-year. Fashion and apparel accounted for about 40 per cent of total take-up. Domestic retailers contributed over 70 per cent of leasing activity, while direct-to-consumer brands expanding into physical stores accounted for 28 per cent of absorption.

The expansion is also moving beyond traditional metros. Delhi-NCR, Mumbai and Chennai accounted for roughly two-thirds of leasing volumes, but Jaipur, Chandigarh, Lucknow and Kochi are emerging as important regional markets. In Jaipur and Chandigarh, fashion and apparel reportedly represented close to 69 per cent of commercial retail leasing. That suggests the store rollout is not merely a metro saturation strategy. Brands are targeting aspirational consumers in Tier-II, III cities where organised branded apparel still has considerable headroom.

Five models, five retail systems

Different fashion businesses are using stores to solve different problems.

Retailer/Brand	FY26 Revenue run-rate (Rs cr)	EBO store count	Gross margin profile (%)	Offline channel share (%)	Primary omnichannel & retail strategy
Snitch	Rs 900 cr	115 EBOs	50% - 52%	40%	High-velocity fast fashion; rapid EBO expansion to lower digital marketing acquisition costs and handle store returns.
The Souled Store	Rs 1,150 cr	52+ EBOs	50% - 55%	28%	IP-led merchandise; experiential community store hubs driving repeat customer retention and subscription sign-ups.
Go Colors	Rs 838 cr	825 EBOs	63.20%	72.70%	Category-specific bottom-wear focus; expanding retail doors in high-footfall malls and high-street locations.
House of Rare (Rare Rabbit)	Rs 637 cr+	140+ EBOs	55% - 58%	60%	Premium apparel positioning; elevated high-street store design driving strong average order values.
Credo Brands (MUFTI)	Rs 430 cr (9M)	380+ EBOs	58.20%	70%	High-street store optimization, store format refreshes, and regional Tier-II market penetration.

The table illustrates an important point: there is no single omnichannel template.

Speed is Snitch’s advantage

Snitch is the most visible transition from digital-first fashion to an integrated physical network. The menswear brand ended FY26 with operating revenue of about Rs 900 crore, an 80 per cent year-on-year increase, and positive EBITDA margins of 2-3 per cent. Its 115 exclusive brand outlets now contribute around 40 per cent of revenue. For a fast-fashion operator, stores offer more than incremental sales. They offer local visibility, reduce dependence on paid digital discovery and give customers an opportunity to check fit before purchasing.

The model also supports faster inventory rotation. Online search and sales data can identify emerging trends, while physical outlets provide immediate distribution for winning styles. This can reduce reliance on seasonal collections and limit markdown exposure. Snitch is targeting Rs 1,400 crore in FY27, with store expansion and quick-commerce integration expected to play a role in that growth.

Fandom turns stores into destinations

The Souled Store operates a different model. Its competitive advantage is built around intellectual property and fandom rather than pure fashion velocity. The company has more than 200 global licensing agreements, with licensed products contributing about 62 per cent of net revenue. Its 52-plus stores generate around 28 per cent of revenue and function as community and experiential destinations.

This changes the purpose of the physical outlet. Instead of competing directly with online discounting, stores create experiences around entertainment franchises, limited-edition launches and fan engagement. The company also uses domestic production clusters in Tiruppur and Ludhiana to shorten sampling and production cycles. With sample turnaround reportedly reduced to seven days, trend-led merchandise can reach stores in less than a month.

Category depth rewards scale

Go Colors highlights why category specialists can extract strong economics from physical retail. Go Fashion, which owns Go Colors, reported Rs 838 crore in FY26 revenue and an EBITDA margin of 28.3 per cent, with gross margins of 63.2 per cent. Its 825 exclusive brand outlets and 2,546 large-format store doors give the brand substantial physical reach. Exclusive outlets contribute 72.7 per cent revenue, highlighting how category dominance can make stores economically attractive.

Its strategy is different from fast fashion. Rather than constantly refreshing a broad assortment, category specialists use store networks to offer deeper product availability within a focused segment. Larger store footprints can therefore improve product discovery and raise inventory productivity.

Stores also solve the returns problem

Reverse logistics is becoming an increasingly important part of fashion retail economics. Online apparel returns can reach 30-40 per cent, creating costs across transportation, inspection, repackaging and inventory reallocation. Physical stores provide an alternative infrastructure for returns and exchanges.

A customer who returns an online purchase at a store may also exchange it for another product, generating an additional sale. At the same time, returned inventory can potentially be brought back into local circulation rather than being routed through central warehouses. Stores are consequently evolving into hybrid assets: sales outlets, customer-service centres, fulfilment points and inventory nodes.

Next battleground is store productivity

The future of Indian fashion retail is unlikely to be defined by whether a brand is online or offline. The competitive question will be how efficiently it combines the two. For digital-first brands, the challenge is to ensure that store expansion does not simply replace one expensive acquisition channel with another. Store-level revenue, rent-to-sales ratios, inventory turns and payback periods will determine whether expansion creates value. For legacy retailers, the challenge is different: digitising stores is not enough. They must use customer data, unified inventory and digital discovery to make their existing physical footprint more productive.

The winners will therefore be brands that treat stores and screens as one commercial system. In this model, digital channels create reach, physical outlets create trust and both channels share inventory, customers and data. India’s next fashion-retail cycle is consequently not about bricks versus clicks. It is about making every click more valuable through bricks and every store more productive through clicks.

Retail 26-08-25

Online meets offline as Indian fashion retail rewrites its growth strategy

Indian craft clusters emerge as high-value global sourcing hubs

Origin, traceability and cultural authenticity are the main commercial differentiators for global textile and apparel procurement today. International retailers, boutique fashion houses and B2B sourcing companies are moving beyond generic, white-label manufacturing towards products tied to identifiable Indian craft clusters. The shift is being driven by tighter traceability requirements, anti-counterfeiting measures and consumers’ growing interest in products with a verifiable story. For Indian textile MSMEs, this is creating an opportunity to move up the value chain from low-margin contract manufacturing to origin-led, higher-margin exports.

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From volume to provenance

International procurement teams in the US, UK, Italy, UAE and South Korea are now seeking products with identifiable regional origins. GI tags, artisan documentation and cluster-level traceability can give Indian exporters a stronger proposition than simply competing on production costs.

India’s broader export economy reached $863 billion in FY26, while MSME exports grew from Rs 3.95 lakh crore in calendar year 2021 to Rs 12.39 lakh crore in 2025. The textile sector is also showing a gradual shift towards value-added segments.

Trade metric	Baseline	Current verified data	Primary drivers
Total Exports	$676 bn (FY22)	$863 bn (FY26)	Broad-based manufacturing & engineering expansion
MSME Exports	Rs 3.95 lakh cr (2021)	Rs 12.39 lakh cr (2025)	High-value artisan, handloom & technical exports
Textile Exports	Rs 3,09,859.3 cr (FY25)	Rs 3,16,334.9 cr (FY26)	Value-added growth across 120+ export markets
Registered GI Products	370 (2016)	800+ Total (445 Handicraft/Textile)	Formalization of regional craft IP
Authorized GI Users	365 (2014)	29,000 Users	Systemic onboarding of master craftspeople

The composition of textile exports reinforces this trend. In FY26, ready-made garments grew 2.9 per cent to Rs 1,39,349.6 crore, while cotton yarn, fabrics and handloom exports rose 0.4 per cent to Rs 1,02,399.7 crore. Man-made yarn and fabrics increased 3.6 per cent to Rs 42,687.8 crore. The strongest growth, however, came from non-carpet handicrafts, which rose 6.1 per cent to Rs 15,855.1 crore. That performance suggests that products carrying greater design, cultural and craft content are finding increasing commercial relevance.

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GI becomes a pricing tool

Geographical Indications are increasingly moving beyond their traditional role as intellectual-property protections to become commercial assets in international sourcing. India now has over 800 registered GI products, including 445 across handicrafts, textiles and traditional weaves. The number of authorised GI users has risen to over 29,000 from just 365 a decade earlier.

This growth matters because provenance can create pricing power. A Kanjeevaram silk, Pochampally Ikat, Muga silk or Lucknow Chikankari product can command a different proposition from an otherwise similar generic textile when its origin, production technique and artisan community can be verified. For international buyers, certification also reduces risks associated with counterfeit products and supports increasingly stringent supply-chain transparency requirements. As regulatory frameworks such as the EU's Digital Product Passport evolve, documented product histories are likely to become more important in procurement decisions.

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Traceability changes the contract

The traditional model was straightforward: an overseas retailer purchased unbranded Indian fabric or apparel, applied its own label and owned the consumer-facing story. That model is being challenged by co-branded and origin-led sourcing. Buyers want to know not only where the product was made, but also which cluster produced it and, in some cases, which artisan or producer group was responsible.

Batch-level QR identification can connect a shipment to a GI registration, production cluster and artisan group. This transforms provenance from marketing language into supply-chain data. It also creates an opportunity for Indian exporters to retain more of the value generated by their heritage techniques. Instead of exporting craftsmanship as an invisible input, exporters can monetise it as part of the product proposition.

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Scale remains the weak link

The opportunity comes with operational challenge. Craft clusters are inherently decentralised, while international retail operates on tight specifications, predictable delivery schedules and consistent quality. Dye-lot variation, fragmented artisan capacity, limited testing facilities and inconsistent delivery cycles can prevent smaller clusters from meeting enterprise procurement standards.

The emerging solution is not to industrialise the craft itself, but to industrialise the support infrastructure around it. Export consortia and producer organisations can establish centralised dyeing, finishing, testing, quality-control and logistics facilities while retaining hand-weaving, printing or embroidery within traditional communities. Digital lot tracking can further connect production batches to compliance documentation and GI credentials.

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Sanganer offers a template

The potential are shown by the Sanganer and Bagru printing ecosystem in Rajasthan. A Jaipur-based sourcing consortium, JCEC, reportedly onboarded 1,200 artisans from the GI clusters and retained hand-block printing while introducing standardised, non-toxic dyes designed to meet European requirements. Its traceability system assigned QR codes to shipments, linking products to the relevant cluster and GI registration. The resulting transition from unbranded fabric to certified, traceable exports reportedly lifted average FOB prices from $4.20 to $7.80 per metre.

B2B export revenue increased from Rs 18.5 crore in 2023 to Rs 41.2 crore by CY25, while participating artisan household incomes rose 28 per cent during the period. The larger lesson is that traceability can alter the economics of the supply chain, rather than merely adding compliance costs.

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Trade policy to boost opportunity

India's trade is also becoming relevant to this transition. Export-remission mechanisms such as RoSCTL and RoDTEP support the competitiveness of exporters, while newer trade agreements and market-access arrangements can improve the landed economics of Indian products. For origin-rich textiles, lower tariffs can be particularly valuable because these products compete less directly on commodity pricing and more on design, craftsmanship and authenticity.

India's distinctive opportunity lies in combining two capabilities that few sourcing destinations possess at comparable scale: industrial textile manufacturing and deeply rooted craft ecosystems.

The next phase of export competitiveness may therefore depend less on producing ever larger volumes of generic merchandise and more on building commercially scalable systems around India's regional textile identities. For international retailers, certified provenance offers differentiated merchandise and stronger traceability. For Indian MSMEs, it offers pricing power. For artisans, it can provide a greater share of the value created by their skills.

The shift is clear: India's craft clusters are no longer simply production locations. With certification, digital traceability and organised export infrastructure, they can become globally marketable brands in their own right.

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Retail 26-09-04

Indian craft clusters emerge as high-value global sourcing hubs

Myntra unveils AI and hyperlocal fulfillment frameworks at Tech Threads 2026

Leading fashion and lifestyle marketplace Myntra hosted its annual brand conclave, Tech Threads 2026, centering on the theme 'Where Velocity Meets Voice' to showcase an advanced suite of artificial intelligence integrations and rapid logistics infrastructure. Held in Mumbai, the flagship event convened top industry executives, international brand directors, and retail leaders to evaluate how personalized shopping frameworks and creator-driven distribution channels are reshaping digital commerce. The platform highlighted innovations designed to streamline apparel discovery and accelerate brand scaling, addressing rising consumer expectations for immediate fulfillment and intuitive style curation across urban markets.

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Optimizing brand operations and discovery

The showcase emphasized the rollout of comprehensive technology stacks designed to compress traditional design and cataloguing lifecycles while maximizing supply chain efficiency. Initiatives such as the AI-powered brand stack and enhanced partner tools act as operational strategists for vendors navigating shifting market trends. "Myntra Tech Threads was a great opportunity to hear from our brand partners on how our tech-led innovations are propelling their journey on the platform to build for evolving customer needs," stated Sharon Pais, Head of Myntra. Concurrently, consumer-facing propositions like the Glamstream feature blend shopper communities with influencer content, driving deeper engagement and measurable conversion metrics across the digital ecosystem.

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Expanding digitally with speed-led delivery models

Founded in 2007, Myntra is a premier Indian e-commerce platform specializing in apparel, beauty, and lifestyle products. Operating primarily within domestic urban and emerging tier-two markets, the company focuses on digital expansion through speed-led delivery models, such as M-Express and M-Now, backed by consistent marketplace growth.

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Retail 26-08-28

Myntra unveils AI and hyperlocal fulfillment frameworks at Tech Threads 2026

Peachmode to balance online storefronts with new physical outlets

Modern ethnic womenswear brand Peachmode is seeking to balance its online storefronts with new immersive physical outlets. The brand recently inaugurated a specialized outlet at Aparna Neo Mall in the Nallagandla micro-market of Hyderabad. This strategic addition brings the brand's expansive portfolio of traditional and contemporary apparel closer to urban consumer clusters in Telangana, capitalizing on robust foot traffic within suburban retail complexes. The new store showcases a curated selection of festive wear, everyday kurtis, intricate sarees, and statement occasion-led ensembles designed to cater to evolving demographic preferences.

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Bridging traditional craftsmanship with retail convenience

Industry analysts note, establishing brick-and-mortar locations in high-density shopping destinations effectively mitigates customer acquisition volatility while fostering direct brand loyalty. Bringing the brand’s collections into physical retail environments allows consumers to experience the craftsmanship and fabric quality firsthand, which remains vital for ethnic and occasion wear categories, remarks Senior Head-Retail Operations. Demonstrating the broader impact of this strategy, the brand's nationwide footprint has surpassed 50 operational stores across multiple states, reinforcing a scalable business model that bridges traditional craftsmanship with modern retail convenience.

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Eyeing aggressive omnichannel expansion with mall partnerships

Peachmode is an established Indian modern ethnic womenswear brand specializing in sarees, salwar suits, and festive apparel. Operating across key urban and tier-one markets, the company targets aggressive omnichannel expansion through strategic mall partnerships, supported by steady financial performance and a strong historical foundation in digital commerce.

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Retail 26-08-25