29 December 2023, Mumbai

Operating revenues of Flipkart Internet, the marketplace arm of e-commerce major Flipkart surged by 42 per cent to Rs 14,845 crore in FY’23 while its total loss declined by 9 per cent to Rs 4,026 crore.

As per filings sourced from Tofler, Flipkart Internet’s earnings from logistical services grew by 50 per cent to Rs 5,789 crore in FY23. Its earnings from marketing services grew by 32 per cent to Rs 3,713 crore while advertising revenue grew to Rs 3,324 crore in FY23, up from Rs 2,083 crore a year earlier.

The company’s total expenses grew by 26 per cent Y-o-Y to Rs 19,043 crore in FY23.Its expenses towards employee benefits surged to Rs 4,482 crore up from Rs 3,735 crore a year earlier.

Flipkart Internet’s logistic expenses grew by 30 per cent Y-o-Y to Rs 6,571 crore while advertising and promotional expenses rose to Rs 2,407 crore from Rs 1,945 crore.

As per a report by the Economic Times, Flipkart is plans to raise $1 billion, with parent Walmart committing to inject $600 million. This would be the online retailer’s first fundraise for India. It will increase Flipkart’s value to 5-10 per cent to its valuation of $33 billion.

Retail chain Value Zone Hyper Mart has forayed into the Hyderabad market with its first outlet mall at Patancheru. Spread across 1 lakh sq. ft. of carpet area, this is the biggest outlet mall in the city

The hypermart will offer over 2 lakh products including fashion products, groceries, footwear, luggage, furnishing, stationary, mobile accessories among others. These products will be offered with a 70 per cent discount. The outlet will meet the customers’ emerging need for newer shopping formats and value-for-money products, says Suresh Seema, Director, Value Zone Hyper Mart.

Blending style with value and convenience, the outlet mall is spacious with well-thought-out interiors. Offering virtually every product one can imagine, it is a shopper’s paradise, adds Keshav Gupta, Director, Value Zone Hyper Mart.

Activewear brand BlissClub plans to open 20 brick-and-mortar stores in FY’24. The brand opened several new stores across Mumbai and Bengaluru in FY’23, boosting its revenue by over fourfold to Rs 68 crore. However, the brand’s D2C business’ losses also rose by a similar amount to Rs 36 crore.

BlissClub’s offline expansion will enable it to connect with shoppers in person to receive feedback and build connections. The brand will focus on opening company owned and operated stores to enable it to have full control over the stores. 

Along with retail expansion, BlissClub also expanded its product categories to add a wide range of plus size garments to its portfolio.. The brand has also launched campaigns to promote an active lifestyle and body positivity.

29 December 2023, Mumbai

Mall operators’ rental income is expected to grow by 9 percent in 2024 and by 8 percent in 2025, as per an analysis by ICRA.

Having grown by 24 percent in Q1 FY’23, leasing activities will continue growing in 2024, says Abhishek Bansal, Executive Director, Pacific Malls.

Demand for increased space among existing stores will grow along with a preference for larger areas by new tenants, he adds.

In the current year, malls registered an increased demand for premium products, value experiences, and more store space.

Quotes

This demand persisted across Tier II and III markets too, adds Rajneesh Mahajan, CEO, Inorbit Mall. In the coming year, stores selling jewelry, entertainment products, and athleisure goods are expected to increase their sizes by 40 percent, Mahajan adds.

India is expected to become the world’s third-largest consumer market by 2030, with the introduction of newer categories and international brands foraying into the Indian market.

Evolving scope

Omnichannel retail is expected to evolve during this period, with brands providing a seamless experience across all channels, including offline, online, mobile, and social commerce.

The F&B category will continue to grow with the evolution of mall’s crowd-pulling strategies. In line with these changing retail trends, the brand mix in malls is focusing more on these categories. adds Mahajan.

Latest Textile Events

India’s leading kidswear brand, MiniKlub has opened a new store in Bhatinda, Punjab.

Catering to the requirements of parents of 8-year old kids, the store ensures a comfortable and convenient shopping experience to its consumers. It reflects the brand’s dedication to quality, style, and comfort, and aims to become the most-sought after destination for kidswear in the city.

A part of the First Steps Babywear, MiniKlub was established in 2013. The omni-channel brand currently is present in over 450 multi-brand outlets, leading e-retailers, and both physical and online exclusive brand stores. It also has 65 EBOs in 28 Indian cities.

With designs focusing on comfort and safety, MiniKlub is inspired by the spirit of childhood. The brand adopts sustainable manufacturing processes to deliver top-quality products. It has a robust presence on e-commerce platforms like Amazon, Myntra, Flipkart, and Ajio besides serving customers across India through its dedicated e-commerce platform, miniklub.in.

Reliance Brands, the fashion retail arm of Reliance Industries, has expanded its offline facilities by opening new offices for premium apparel brand Ak-Ok in Kolkata. The modern style of these offices facilities elevate the brand’s operations and facilitate future expansion. 

Blending natural beauty sharp lines and edges, the office’s design reflects Ak-Ok’s youthful fusion wear garments. Art pieces on wall decorate the space’s walls while the books on Chanel and William Morris offer diverse inspiration.

Ak-Ok was launched by designer Anamika Khanna as a subsidiary to create more experimental designs and connect with a younger audience. Led by her sons Viraj and Vishesh Khanna, the brand has retail stores in Kolkata, Delhi, and Mumbai in addition to its direct to customer e-commerce store.  

 Ak-Ok also opened the Lakme Fashion Week in autumn 2022. Launched in partnership with the Fashion Design Council in India, the brand unveiled its menswear offering at the event.  

German apparel brand Adidas has forayed into the Udaipur market with a new store at the Urban Square Mall.

Spread across 1,278 sq ft, the store is designed in a stadium format. It showcases a curated collection of premium category sports shoes, sportswear, activewear, and accessories.

Established in 1949, Adidas entered into the Indian market in 1989 through a licensing agreement with the footwear brand Bata. It re-entered India in 1996 through a joint venture with Magnum International Trading Company Ltd.

After launching its flagship store in India in 2021 at Connaught Place, Delhi, Adidas opened its largest Indian store in November 2022. Spanning 6,800 sq ft,the store is located in Select CityWalk Mall, New Delhi.

Becoming the group’s first online venture to turn profitable, Reliance Retail’s online fashion business, Ajio is expected to achieve an EBITDA of Rs 6-8 crore in December.

The company’s performance can be attributed to factors including a premiumisation trend in the market that helped it improve its average billing value, reduction in logistic costs by shipping most orders from nearby stores, and reduction in return rates to 28 per cent from the earlier 38 per cent.

Ajio also reduced marketing costs by setting up five different storefronts for each consumer class. Additionally, it set up 4,000 stock points for last-mile fulfillment, including Reliance Retail's nearest store for delivery. .

Ajio’s gross merchandise sales during the year surged to $2 billion with 51 per cent of the business coming from the Reliance Retail portfolio and the balance 49 per cent from its own and exclusive brands.

Gurugram-based eyewear retail chain Lenskart plans to expand its operations in the UAE market by opening its first flagship store in Riyadh, Kingdom of Saudi Arabia.
Foraying into the Middle East market in 2021 with its first store opening in Dubai, UAE, Lenskart plan to invest around $50 million towards its expansion in the UAE market.
In 2021, Lenskart raised $220 million in a funding round led by Temasek & Falcon Edge Capital to expand its presence in India as well as to scale its operations in Southeast Asia and the Middle East.
Founded in the year 2010 by Peyush Bansal along with his two co-founders Amit Chaudhary and Sumeet Kapahi, Lenskart has over 1,100 stores across cities like Delhi, Bengaluru, Mumbai, Ahmedabad, Chennai, and other 1,100 cities across India.
Offering over 5,000 eyewear styles across its stores and online website, Lenskart is among the first companies in India to use robotic techniques in the eyewear sector.

Women’s ethnic wear brand Taneira has expanded its network by launching its seventh ‘Weavershala’ in Godda, Jharkhand.

Having artisans equipped with machine reeling facilities, the Weavershala is dedicated to the manufacturing Tussar sarees.

Located in the picturesque Hira Khutari, Bhagaiya, Godda, this Weavershala serves as a hub for skilled weavers and women reelers. It reflects Taneira's commitment to preserve and boost the art of weaving Tussar sarees by providing weavers with modern and efficient handlooms.
 
Built to be well-lit and clean, Taneira’s Weavershala institutes are equipped with new age frame looms to enable precision and create a close-knit community of artisans at each location. 

Launched in 2022, the Weavershala initiative aims to preserve the art of hand-weaving across India, according to the brand’s website. Designed to strengthen artisans’ skills and help them earn a living wage while working towards preserving heritage Indian crafts and creating work for Taneira products. 

US-based footwear and sportswear retail giant, Foot Locker Inc, has entered into a long-term licensing agreement with footwear retail chain Metro Brands (MBL )to own and operate the brand’s stores in India.

Foot Locker has also entered into an agreement with Nykaa Fashion to manage its India website and selling the brand’s authorized merchandise on Foot Locker branded shops through Nykaa's existing e-commerce platforms.

A global leader in sneaker culture, Foot Locker aims to tap the robust Indian sneaker market. Driven by a surge in demand for unique designs that blend traditional Indian elements with modern trends, the segment is anticipated to reach a volume of 66 million pairs by 2028.

Mary Dillon, President and CEO, Foot Locker Inc, says, the combined omni-channel capabilities of its partners will help the company connect with the rapidly growing Indian market.

Adwaita Nayar, Co-Founder, Nykaa, and CEO, Nykaa Fashion adds, MBL’s partnership with Foot Locker allows it to offer the world's best sneaker brands and styles to its customers in India.