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

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

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

Barcelona launches physical store in Muzaffarpur

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

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

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

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

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

Barcelona launches physical store in Muzaffarpur

Madame unveils Spring/Summer 2024 collection in Mumbai

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.

Madame unveils Spring/Summer 2024 collection in Mumbai

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