In 2023, Myntra recorded a remarkable surge in its user base and market presence, according to a company release. With a growth rate of 100 per cent Y-o-Y over the past 18 months, Myntra welcomed approximately 75 million new app users, marking a significant expansion of its customer base. The festive season alone saw a record high of 60 million monthly active users, showcasing the platform's popularity.

Sunder Balasubramanian, Chief Marketing Officer, says, the increase in both new and loyal customers highlights Myntra’s commitment to deliver an exceptional shopping experience.

During the last quarter of the year, Myntra experienced a 70 per cent Y-o-Y surge in its direct-to-consumer (D2C) sector. Additionally, its short-form video content feature, Myntra Minis, attracted a daily viewership of 1 million, demonstrating strong engagement among users.

By December 2023, Myntra had established partnerships with over 400 international brands, including renowned names like H&M, Levis, Tommy Hilfiger, and Mango. The platform added more than 50 international brands in 2023 alone, significantly broadening its offerings and appealing to diverse consumer preferences.

Recognising the importance of omnichannel retailing, Myntra expanded its presence offline through initiatives like Myntra Studio and collaborations with brick-and-mortar retailers. These initiatives aimed to enhance personalised styling services and engage customers through multiple channels.

Myntra also witnessed substantial growth in specific product categories. The beauty segment expanded by over four times in the last three years, supported by the introduction of virtual try-on features for makeup categories. Meanwhile, the home category experienced a 50 per cent Y-o-Y growth, focusing on offering stylish and unique home products to fashion-forward customers.

In May 2023, Myntra launched FWD, an app-in-app proposition targeting Gen Z, which saw a 2.25 times Y-o-Y surge in demand. FWD provides a personalised experience and access to global trends, catering to the preferences of younger consumers.

Founded in 2007 by Mukesh Bansal, Ashutosh Lawania, and Vineet Saxena,
Myntra initially started as an online retailer of personalised gifts before transitioning to fashion and lifestyle products. Since its acquisition by Flipkart in May 2014, Myntra has evolved into a vertical fashion, beauty, and lifestyle-focused marketplace, becoming a preferred partner for international brands entering the Indian market.

06 March 2024, Mumbai

The Indian retail market is undergoing a dramatic transformation, with significant implications for the commercial real estate sector. Recent reports by CBRE, a leading commercial real estate services and investment firm, highlight a robust rebound in retail activity, particularly in the latter half of 2023. This surge in demand is directly influencing the expansion of commercial spaces across India.
Rising lease activity, metros lead
The study throws up a few interesting patterns.
Leasing activity on the rise: Retail leasing activity in India experienced a notable 67 per cent year-over-year increase in the second half of 2023, reaching 4.2 million sq. ft. This growth represents a significant acceleration compared to the 43 per cent increase observed in the first half of the same year. This growth is primarily driven by the expansion of domestic and international brands seeking to capitalize on the country's growing consumer base.
Metros lead the charge: Metros Bangalore, Mumbai, and Pune have become major drivers of retail leasing activity, accounting for a combined 64 per cent of total absorption nationwide.
Quality malls in demand: Supply additions have also increased, reaching 4.9 million sq. ft. This demonstrates strong retail expansion egged on by the completion of investment-grade malls in major cities like Bangalore, Pune, Mumbai, Hyderabad, Ahmedabad, Delhi-NCR, and Chennai.
Rental values stabilizing: After a period of fluctuation, rental values across select micro-markets in various cities and retail categories have begun to stabilize. This indicates rising demand for premium commercial real estate within desirable retail locations. There's been a notable increase in the supply of high-quality retail spaces, particularly in the form of well-planned, investment-grade malls. These developments are attracting premium brands and offering a superior shopping experience to Indian consumers
Factors driving retail growth
Several key factors are contributing to the expanding presence of the retail sector in India. First is overall economic growth and rising middle class. India's expanding economy, coupled with a rapidly growing middle class, has created greater disposable income and increased consumer spending habits, especially in urban areas.
The rise of e-commerce has been a transformative element for Indian retail. While online shopping is gaining popularity, it's also pushing up demand for physical stores. E-commerce giants are investing heavily in brick-and-mortar locations to facilitate seamless omnichannel experiences.
There is growing demand for experiential retail as modern consumers seek more from their shopping experiences than just transactions. They desire engaging and immersive environments. As such, retailers and mall developers are investing in creating experiential spaces that blend shopping with entertainment, dining, and leisure facilities. Also, easing foreign direct investment (FDI) regulations and streamlining retail reforms have facilitated greater international participation in the Indian retail market.
Implications for commercial real estate
The growth Indian retail has had far-reaching implications for commercial real estate sector.
Tier-II and III Cities as growth zones: As Tier I markets become saturated, retailers are venturing beyond the traditional metropolitan hubs and expanding into Tier-II and III cities. This is creating new opportunities for commercial real estate development in previously less developed regions of the country.
Reimagined mall spaces: The increasing preference for experiential retail necessitates a change in how malls are designed and utilized. Developers are incorporating more mixed-use elements, with spaces dedicated to entertainment, food and beverage, co-working, and even healthcare services, thereby transforming malls into comprehensive lifestyle destinations.
Warehousing and logistics boom: The growth of e-commerce and omnichannel retail requires robust supply chains and efficient logistics networks. This has led to a surge in demand for modern warehousing and distribution centers in strategic locations across India.
Focus on quality: Retailers are prioritizing modern, well-maintained shopping environments that offer excellent amenities. This means that the focus is shifting towards investment-grade malls and shopping centers rather than traditional, unorganized retail formats.
Increased investment: Domestic and foreign investors are channelling capital into developing high-quality retail spaces to cater to rising demand. This is leading to an upswing in construction activity and the creation of new commercial hubs
Cautious optimism for the future
While the CBRE reports underscore positive trends in Indian retail and commercial real estate, a degree of caution is warranted. Potential headwinds, such as inflationary pressures and a looming global economic slowdown, could impact consumer purchasing power and retail expansion plans. However, the long-term outlook remains bright thanks to India's strong economic fundamentals and its growing young, urban population with a rising appetite for consumption.
The sector can expect to see more technology integration as retailers will increasingly incorporate technologies like augmented reality, virtual reality, and artificial intelligence to enhance the shopping experience. This will necessitate commercial spaces adaptable to evolving technological needs. Environmentally conscious consumers will influence the design and operation of retail spaces, leading to a greater emphasis on sustainability and energy efficiency in commercial real estate.
Overall, the latest data signals a vibrant and dynamic retail landscape in India, a trend poised to significantly shape the future of the country's commercial real estate sector.

Latest Fashion News

Fashion e-commerce company Flipkart recently infused funds worth $54 million in online fashion platform, Myntra. Disclosed in regulatory filings in Singapore, this investment marks the second funding round from Flipkart within a year. In March 2023, Flipkart had infused $105 million into Myntra.

Despite facing challenges, Myntra continues to show promise. For the fiscal year ending March 31, 2023, Myntra’s operating revenues grew by 25 per cent to Rs 4,375 crore, although its net loss widened to Rs 782 crore.

The company's India unit, Myntra Designs also received a significant investment of Rs 689 crore from Singapore-based FK Myntra Holdings.

Myntra has been strategically expanding its portfolio by adding international brands, with a focus on premium offerings that have demonstrated rapid growth.

However, there has been a softening demand for online fashion in lower-price segments. Notably, Myntra recently secured exclusive rights to sell products from Turkish brand Trendyol and partnered with French apparel brand Kiabi to enter the Asian market.

With over 420 global brands in its portfolio, Myntra derives a quarter of its revenue from international labels, marking significant growth from just two years prior. The company has shifted its focus towards select private labels, streamlining its offerings and undergoing a restructuring exercise that resulted in layoffs last July.

Despite holding a dominant 55 per cent market share in the fashion e-commerce segment, as per a research note by Bernstein, Myntra faces challenges. While it exhibited a 25 per cent growth rate in December 2023, there are concerns about user engagement and transaction rates on the platform. Myntra's gross merchandise value increased only by 12 per cent in FY23 compared to 35 per cent in FY22, reflecting a changing landscape in the online fashion market.

Flipkart's latest investment in Myntra closely follows its own $600 million commitment from parent company Walmart as part of a $1 billion funding round. This capital infusion underscores Flipkart's commitment to bolster its subsidiaries and maintain a competitive edge in the dynamic e-commerce landscape.

Ace Turtle, a prominent technology-driven retail company in India, has announced a strategic collaboration with Myntra, a leading platform for fashion and lifestyle, to launch Dockers online. Dockers, a division of Levi Strauss & Co., is renowned for its khaki lifestyle apparel and is exclusively licensed to Ace Turtle in India.
With a commitment to quality and versatile style, Dockers has remained a leader in khaki apparel, catering to both men and women. While retaining its classic khaki style, Dockers has expanded its offerings to appeal to a broader range of shoppers, blending professionalism with personal style.
Nitin Chhabra, CEO of Ace Turtle, expressed excitement about expanding their partnership with Myntra, leveraging the platform's extensive reach and dedication to providing a superior online shopping experience. Jayanti Ganguly, VP - Business at Myntra, highlighted their commitment to offering sought-after international brands to their fashion-forward consumers and emphasized Dockers reputation for timeless style and quality.
Myntra will offer Dockers complete apparel collection, comprising over 160 SKUs, catering to diverse fashion preferences of premium Indian consumers. The collection, including signature khakis, shirts, and sweaters, will be available through a dedicated Online Brand Store on the Myntra app, providing convenience and extensive visibility through Minis, Myntra’s short video content.
The partnership signifies an opportunity for Indian consumers to access premium quality fashion apparel seamlessly, blending technology-driven operations with a deep understanding of consumer preferences.

Esteemed Italian bespoke shoe company, Santoni is broadening its footprint in India with plans to establish two additional luxury boutiques in Mumbai and Hyderabad by 2026.

The expansion is facilitated by Santoni’s Indian partner, Luxerati Retail, co-founded by Sanjay Kataria, who disclosed an allocation of approximately Rs 15 crore for this venture. A comparable sum was invested in inaugurating the company's Delhi store back in 2018. Currently, Santoni operates a single outlet in Delhi's Emporio mall.

Kataria revealed intentions to explore the launch of an exclusive online storefront dedicated solely to the Indian market, a move akin to Louis Vuitton’s strategy, slated to materialise by 2026. Luxerati Retail has experienced a steady growth rate of 15-20 per cent Y-o-Y, turning profitable in 2021 with a projected Rs 8 crore in sales for the current fiscal year
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Santoni traces its origins to 1975 in Corridonia, situated in the shoemaking hub of the Marche region, Italy. Founded by Andrea Santoni, the company revolutionised artisanal processes, specialising in crafting products from both regular and exotic leathers such as ostrich and alligator, meticulously hand-cut, colored, and stitched. Today, the brand is stewarded by Andrea's son, Giuseppe Santoni.

India's luxury market is forecasted to have reached $8.5 billion in 2023, a significant surge from $2.5 billion in 2021, as per Euromonitor International. Experts predict even more substantial growth, with a Bain & Co. study projecting a 3.5-fold increase by 2030. This surge is propelled by India's rapid economic expansion, currently outpacing major economies with a recorded 7.6 per cent growth rate in the third quarter of 2023.

India's largest organised retailer, Reliance Retail is eyeing a strategic move into the beauty market by engaging in discussions to acquire Kiko Milano's India operations, a renowned Italian beauty brand.

Reliance Retail is in talks to acquire the 51:49 India joint venture between Italy's Percassi Group and New Delhi-based DLF Brands, which currently operates 8-10 Kiko Milano stores across key cities such as Mumbai, Delhi, Pune, Bengaluru, and Noida. The deal, estimated at around Rs 100 crore, may also encompass the franchise rights for the Kiko Milano brand in India.

Reliance Retail's existing ventures in the beauty sector reflect a diversified approach. Tira, an upscale offline-and-online beauty destination launched in April the previous year, caters to the premium segment, while Blushlace, introduced recently in Tier II and III cities, targets the value segment, offering beauty and innerwear products. With Sephora occupying the mid-to-premium segment, the potential addition of Kiko Milano, an international brand positioned in the premium BPC market, would further bolster Reliance Retail's presence across diverse consumer segments.

Anticipating a more promising business landscape in 2024 compared to last year, Vineet Gautam, CEO, Bestseller India, says, the brand will focus on improving customers’ physical retail experiences and, formulating new strategies to re-engage consumers in brick-and-mortar stores.

Gautam adds, learning from its past mistakes, his company is actively working to rectify them. Despite the recent setbacks, the company foresees a gradual recovery of business in the next two quarters. Gautam particularly hopes for a surge in positive sentiment following the upcoming elections.

Regarding Bestseller India's priorities for the year, Gautam emphasises on a renewed focus on product improvement and refining of the consumers’ shopping experience within their stores. Digitally, the company aims to offer a wider array of fashion choices beyond discounted items.

Looking ahead to the Phygital Retail Convention 2024 (PRC) scheduled for May in Mumbai, Gautam highlights the importance of holding discussions around omnichannel retail and the integration of online and offline experiences. He emphasises on the importance of physical retail, especially in the wake of COVID-19, noting resurgence in its importance and the growing recognition among direct-to-consumer (D2C) brands of its value.

The Retail Leadership Summit 2024 (RLS 2024), hosted by the Retailers Association of India (RAI), unfolded its curtains on February 28 and 29 at the Hotel Westin Powai Lake, Mumbai. Gathering luminaries from the retail sphere, the event served as a platform to delve into progressive strategies shaping the industry's future.

Kumar Rajagopalan, CEO of RAI, inaugurated the summit by reflecting on the retail industry's journey in 2023. He emphasized the imperative of aligning with market dynamics and evolving consumer needs. Rajagopalan advocated for a seamless integration of digital and physical retail experiences, underscoring the importance of omnichannel strategies.

A bullish outlook on Indian retail
Bijou Kurien, Chairman of RAI, set an optimistic tone, projecting significant growth for the Indian retail sector in the coming year. Citing a robust 8 per cent+ GDP growth in Q3 FY’24 and substantial investments from both the government and private sector, Kurien foresees a surge in consumption. He highlighted the fusion of online commerce with offline expansion, targeting tier 2 cities for market expansion, thereby broadening consumer access and meeting burgeoning demands.

RLS 2024 featured presentations and knowledge reports unveiling the industry's potential. Reports such as 'Unlocking the $2Tn retail opportunity by 2030: An activist agenda' and 'How India shops online: Consumer preferences in the metropolises and tier-1, 2, 3, 4 cities' shed light on evolving consumer behaviors and market trends.

Retail titans converge: Sharing vision and strategies
The summit witnessed stalwarts from the retail sector sharing their insights. Leaders like Hari Menon (bigbasket), Lalit Agarwal (V-Mart Retail), and Sagar Daryani (Wow! Momo Foods) deliberated on creating customer-centric retail experiences. Other notable attendees included Avnish Anand from CaratLane, Sanjay Vakharia of Spykar, and Gautam Saraogi, CEO of Go Fashion (India) Ltd (Go Colors), among others." Agarwal emphasized emotional connections and brand storytelling to foster customer loyalty, while Menon highlighted the significance of personalization and convenience.

Panel discussions delved into the nuanced strategies across retail categories. Rajesh Jain (Lacoste India) emphasized uniform customer experiences across online and offline channels, focusing on cultivating brand loyalty. The presentation by Darpan Mehta and Vivek Somareddy of Amazon explored mechanisms for business expansion, underscoring the importance of working capital.

David Macadam, CEO of MECSC and ICSC, delivered a keynote address emphasizing the evolution of experiential retail and e-commerce. He stressed the role of technology, AI, and mixed-use developments in reshaping the retail landscape. Macadam advocated for embracing change and prioritizing customer experience.

Celebrating excellence: Retail awards
The summit culminated with the felicitation of retail champions through India’s Retail Champions Award 2024 and Retail Start-up Awards 2024. Eminent personalities from the industry served as the jury, recognizing outstanding contributions to the retail sector.

The Retail Leadership Summit 2024 emerged as a beacon of innovation and collaboration, setting the stage for transformative strategies in the Indian retail landscape. With a focus on consumer-centric approaches, technological integration, and strategic partnerships, the summit provided a roadmap for retailers to thrive in an ever-evolving market.

Renowned German sportswear brand, Puma inaugurated a new outlet within Amanora Mall located in Pune. This latest store by the brand offers patrons a diverse assortment of sportswear and footwear from Puma's collection.

Expressing enthusiasm over the consecutive store launches at the establishment, Surjit Singh Rajpurohit, CEO, Amanora Mall, says, the mall is excited to announce yet another exciting addition with the outlet now ready to welcome shoppers.

Established in 1948 by Rudolf Dassler, Puma is a multinational corporation renowned for its athletic and casual footwear, apparel, and accessories. The group encompasses brands such as Puma, Cobra Golf, and Stichd.

Operating in over 120 countries, Puma employs approximately 20,000 individuals worldwide and maintains its headquarters in Germany. Puma entered the Indian market in 2006 and presently oversees around 500 stores across the country.

A joint report by the Boston Consulting Group (BCG) and the Retailers Association of India (RAI) paints a rosy picture for the future of India's retail sector. It projects a robust 9-10 per cent annual growth rate in the next decade, propelling the market to a staggering $2 trillion by 2034. This phenomenal expansion is primarily driven by robust economic growth and a burgeoning middle class with increasing disposable income, creating a fertile ground for retail businesses.
Middle class engine of growth
The report identifies India's robust economic growth as a key driver, with a growing middle class playing a pivotal role. As disposable income rises, consumption patterns are shifting, creating a strong demand for retail goods and services. Abheek Singhi, Managing Director and Senior Partner at BCG, emphasizes the importance of this segment: "The growing middle class with rising disposable income is fuelling a strong consumption story, making India an attractive market for retailers.
Despite the positive outlook, the report acknowledges challenges facing organized retailers, who need to adapt and innovate to maintain their market share. While the overall outlook is positive, the report highlights a slowdown in the growth of organized retail (like large supermarkets) in 2023 highlights the need for agility. As Singhi further explains, "Successful retailers will be those who challenge the perceived trade-off between growth and profitability through innovation."
Unlocking sustainable growth
The report proposes five key themes for unlocking sustainable growth in the Indian retail sector:
Embrace innovation: Challenge traditional business models by adopting innovative approaches, such as exploring new retail formats or leveraging technology for enhanced customer experiences.
Personalization is key: Leverage digital tools and Artificial Intelligence (AI) to create personalized customer experiences, catering to individual preferences and building stronger customer loyalty. Kumar Rajagopalan, CEO of RAI, emphasizes, "By focusing on personalized customer experiences, exploring new collaborations, and leveraging AI for efficiency, we can propel India's retail industry towards unprecedented growth and global competitiveness."
AI-powered efficiency: Enhance value chain efficiencies through the strategic implementation of AI across various aspects of operations.
Forge strategic collaborations: Foster partnerships with other businesses or brands to unlock new revenue streams and expand market reach.
Localization matters: Adapt merchandise and store formats to cater to the diverse needs and preferences of different regions within India, recognizing the concept of "Many Indias."
Interestingly, the report predicts continued store expansion despite the e-commerce boom. This growth is expected to be particularly pronounced in Tier I (large metropolitan cities) and Tier IV (smaller towns and cities) driven by increasing urbanization. While e-commerce is poised for further growth, the report suggests a potential slowdown in net new user acquisition, necessitating a reimagination of online retail strategies to maintain momentum.
In conclusion, India's retail sector stands at the precipice of exciting growth. By embracing new technologies, adapting to consumer preferences, and fostering innovation, retailers can capitalize on this promising landscape and contribute to the sector's projected success story.

Aditya Birla Fashion and Retail (ABFRL) has embarked on a transformative sustainability journey with the unveiling of 'Fashionabling Earth' at Bharat Tex 2024.
This innovative 3D coffee table book encapsulates a decade of ABFRL's commitment to environmental stewardship and social responsibility, marking a milestone in India's retail sector. 'Fashionabling Earth' features interactive 3D elements and pop-up images designed to inspire sustainable living among a broader audience.
The book not only commemorates ABFRL's past achievements in circularity, renewable energy, and zero waste but also outlines its dedication to clean by-design products, sustainable operations, and inclusive communities.
Dr. Naresh Tyagi, Chief Sustainability Officer, ABFRL, underscores the book's embodiment of the company's three sustainability pillars. As India's premier fashion and lifestyle player, ABFRL's narrative emphasises continuous innovation and leadership in addressing climate change.
ABFRL's partnership with Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) GmbH on the 'Approaches for Circular Textiles and Apparel Industry in India' initiative, supported by the German Federal Ministry for Economic Cooperation and Development (BMZ), underscores its proactive approach towards circularity.
Moreover, ABFRL's retail spaces, including Jaypore and Van Heusen, feature innovative digital displays and sustainable design, reflecting its commitment to environmental responsibility.
With ambitious goals like developing a net-zero built environment, ABFRL aims to elevate its sustainability initiatives over the next decade. The launch of 'Fashionabling Earth' signifies not only past successes but also ABFRL's unwavering dedication to crafting a sustainable future. The book serves as a powerful tool for engaging stakeholders and the public in ABFRL's ongoing mission towards sustainability excellence.