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Mufti launches new concept store in Bangalore, pushes premium image

29 November 2025, Mumbai 

The inauguration of Mufti's new Exclusive Brand Outlet (EBO) at Lulu Mall, Bangalore, is a key maneuver in the brand’s aggressive repositioning strategy, dubbed "MUFTI 2.0."

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The move signals a major investment in retail experience aimed at shedding its conventional image and embracing a more premium, expressive, and sophisticated aesthetic. This store opening is directly linked to a broader initiative by its parent company, Credo Brands Marketing Ltd., which has significantly increased branding and advertising spends (by ₹8.3 crores in Q3 FY24 YoY) to communicate this new avtar to consumers.

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The challenge of elevating brand perception for growth

While the company reported a 15% year-on-year revenue growth in Q3 FY24, it is actively managing muted industry-wide demand. The launch of these premium flagship stores in high-traffic locations like Lulu Mall, a hub already crowded,is critical.

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The challenge lies in ensuring that the elevated in-store experience and new merchandise architecture translate into a sustainable Same Store Sales Growth (SSSG), which was noted at 1.4% for EBOs in Q3 FY24. The strategy is clear: use flagship openings to solidify the premium positioning and increase the brand’s share of the customer's wallet in key metro markets.

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From denim pioneer to lifestyle brand

Founded in 1998 by Kamal Khushlani, Mufti pioneered the concept of "alternative dressing" in Indian menswear, moving beyond traditional formal wear to focus on bold, comfortable casuals like stretch jeans and unique silhouettes. Operating on an asset-light, outsourced manufacturing model, the brand has grown to a pan-India presence through over 400 EBOs and extensive multi-brand outlets (MBOs).

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The Bangalore store format is designed to align with the refreshed brand identity, which emphasizes Mumbai’s free-spirited, creative energy and aims to evolve Mufti into a 360° men's lifestyle brand, now offering everything from relaxed holiday casuals to urban work attire.

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‘Unlimited’ store launch in Tirupattur, highlights tier-III retail strategy

28 November 2025, Mumbai 

The opening of the new Unlimited store in Tirupattur, Tamil Nadu, is a clear indicator of the aggressive expansion by India’s value fashion retail segment into smaller, high-potential markets. This move is part of a broader industry shift, where Tier-III cities, driven by rising disposable incomes and increased brand awareness via digital media, are becoming central growth drivers.

With Tier-II and Tier-III cities contributing an estimated 65% of e-commerce fashion orders in the last festive season, brick-and-mortar presence is now strategic, it enhances customer trust and facilitates the phygital (physical + digital) retail experience.

A southern strategy under V-Mart’s banner

Unlimited, a brand originally established by Arvind Lifestyle Brands, was acquired by V-Mart Retail Ltd. in 2021. This acquisition of 74 existing stores, including the network in Southern India, was V-Mart’s strategic leap to gain a quick footprint in the South and West, where it previously lacked presence.Unlimited serves as a crucial family fashion destination, offering a wide array of affordable apparel and accessories for men, women, and children, primarily through its own private labels like Excalibur and Karigiri. This model competes directly with chains like Max and FBB, leveraging lower real estate costs in markets like Tirupattur to maintain high affordability and volume.

Scaling Affordable Style: The challenge of logistics

The biggest challenge in this model is maintaining a consistent supply chain and rapid trend adaptation across a vast geographic spread of small towns. However, the move is underpinned by strong market opportunity: reports suggest that foot traffic in high-street stores across Tier-III cities has seen a remarkable increase, encouraging brands to open new outlets at a pace of up to 40-50 stores per year. The Tirupattur launch confirms the company’s intent to integrate the Unlimited stores fully into its value-focused operating model, catering to the aspirational, price-sensitive consumer base.

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‘Unlimited’ store launch in Tirupattur, highlights tier-III retail strategy

Festive fashion finds a new heartland, Tier-II consumers drive 60% shipments

27 November 2025, Mumbai 

This festive season, India’s fashion-and-apparel landscape saw a major shift. According to operational data from logistics-provider Emiza, overall order volumes rose 13 per cent year-on-year, while D2C shipments went up 30 per cent. Even more striking: nearly 60 per cent of total festive shipments came from Tier II cities. This isn’t just a sales bump, it signals a deepening of D2C adoption beyond metros, and homegrown fashion brands are at the heart of it.

Why small cities are driving the D2C fashion wave

Untapped demand, growing infrastructure: As Emiza’s founder Ajay Rao notes, "shoppers in smaller cities now demand the same speed and reliability as those in metros."

Logistics recalibrated: To meet that demand, Emiza increased capacity pre-festive, adding 140,000 cubic feet in warehouse space and handling up to 0.8 million shipments daily during peak.

Fashion still wins: Among categories, fashion (apparel, footwear, accessories) saw a 15 per cent seasonal growth, a healthy uptick in a maturing market. Fashion and beauty products together accounted for nearly 50 per cent of total festive e-commerce revenues, with fashion alone capturing approximately 27.73 per cent of sales, as per data from e-commerce enabler GoKwik. This signals that the rising middle class in smaller cities is prioritizing aspirational, brand-driven purchases, especially in apparel.

Local D2C brands rise up

Smaller, homegrown brands are capitalizing on this shift. One illustrative case is Kisah Apparels, a Kolkata-based men’s ethnicwear label. Founded in 2018, Kisah began as a marketplace-first business. In mid-2025, it raised Rs 13 crore (led by Wow! Momo’s Sagar Daryani) to double down on D2C and offline growth. Its strategy: use rich customer data from its e-commerce channels to design, market, and manage inventory targeting Gen Z and millennial consumers who want stylish, modern ethnic wear.

What underpins this growth is Kisah’s shift into a data-led design and distribution model. The company tracks style preferences emerging out of smaller cities shorter kurtas in the East, pastel palettes in the South, elaborate embroideries in the North and feeds those insights straight back into product development. This loop allows it to refresh collections at aggressive intervals, staying aligned with a customer base that is no longer passive but taste-making.

Financially, Kisah claims a revenue run rate of Rs 90-100 crore, up from Rs 40–45 crore, with positive operating cash flow and PAT. Using the fresh capital, Kisah plans three more stores (adding to its two existing ones) marking its move toward a true omnichannel model.

Another example is that of Brune & Bareskin's, a D2C brand specializing in handcrafted leather and bespoke accessories, recorded a strong rise in festive orders from non-metro regions. Founder Tabby Bhatia noted, "Consumers in these markets are increasingly seeking premium, personalized products and are willing to invest in quality. The growth from these markets isn't just incremental, it's signaling a long-term change in India's luxury and lifestyle consumption pattern." This case exemplifies the rising aspiration for premium fashion goods beyond the metros.

A new market, but not without friction

The festive boom confirmed the scale of opportunity, but it also highlighted the complexities D2C brands must now navigate. Delivering to Tier-II and Tier-III towns carries higher logistics costs, deeper return cycles, and more unpredictable inventory movement. For apparel, where size variations and styling change of mind returns run high unit economics remain fragile.

Brands must also contend with the challenge of building durable loyalty in a market flooded with discounts and aggressive festive pricing. With marketplaces holding enormous sway, most emerging labels still depend on algorithm visibility and platform-led promotions to drive volume. The long-term question remains whether these customers will migrate to brand-owned channels, where margins improve and lifetime value compounds.

And as more brands move toward offline expansion, capital intensity grows: store rentals, staffing, supply chain synchronization, and working capital all demand structured planning a hurdle that smaller D2C labels often underestimate.

Logistical hurdles and the path ahead

While the demand story is bright, it also has several operational challenges. The massive influx of orders from Tier II cities puts a stress test on logistics infrastructure.

Emiza's Founder, Ajay Rao, pointed out that "Shoppers in smaller cities now demand the same speed and reliability as those in metros." This shift necessitates logistics providers to redesign networks and place fulfillment capacity closer to consumption clusters. For instance, Emiza ramped up its festive-season hiring by 30 per cent and added significant warehouse capacity to manage peak daily shipments of up to 0.8 million.

Moreover, the digital advertising space is becoming increasingly competitive. Experts report a 15-30 per cent rise in Cost Per Mille (CPM) across regional OTT platforms and vernacular YouTube channels as D2C brands vie for the attention of the Tier II consumer. This growing customer acquisition cost is a major pressure point for the financial outlook of D2C firms, pushing them toward a more balanced, offline-integrated approach.

The growth narrative for fashion D2C brands is now inextricably linked to the evolving aspirations and increasing digital adoption in Tier II India. The challenge lies in efficiently scaling the logistics and physical retail footprint to sustain this exponential demand while maintaining profitability in a high-competition digital landscape.

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Festive fashion finds a new heartland, Tier-II consumers drive 60% shipments

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