Luxury shoe brand Santoni plans to invest Rs 15 crore to expand its retail footprint in India. The burgeoning interest from cities like Mumbai and Hyderabad further substantiates their decision to expand.

The Italian label will unveil its next outlet in Mumbai this year, followed by another in either Hyderabad or Bengaluru within the next 2-3 years.

Sanjay Kataria, Managing Director, says, the burgeoning interest from cities like Mumbai and Hyderabad further substantiates their decision to expand.
The brand has achieved a steady 15 per cent Y-o-Y growth and a substantial influx of new customers, accounting for 60-70 per cent of their monthly footfall. In terms of sales, Mumbai currently contributes around 70 per cent of the brand achieves in Delhi, but Kataria anticipates Mumbai's growth to match Delhi's in the foreseeable future.

In a shift from the past fiscal year, women's wear now constitutes 30 per cent of the brand's revenue, up from 10 per cent, with men's wear making up the remaining 70 per cent. Kataria emphasises a strategic focus on women's, sneakers, and bespoke collections to bolster profitability, which currently stands at 15 per cent but aims to reach 20 per cent.

Regarding their online presence in India, the brand intends to offer product listings with prices for reference purposes only, without immediate integration with payment gateways or separate stock maintenance for online orders.

The brand aims to close the current fiscal year at Rs 7.75 crore, eyeing revenues of Rs 10 crore from the Delhi store and Rs 3 crore from the Mumbai store over the next two years.

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

Making its debut in the city, esteemed Swiss luxury watch brand Breitling opened its premier boutique in Chennai.

Situated on the upper ground floor of Phoenix Palladium Mall in Velachery, Tamil Nadu, the boutique stands as a testament to Breitling's commitment to expand its presence in India.

The Phoenix Palladium Mall is home to an array of distinguished luxury watch brands, including Horology, Ethos, Montblanc, and Omega, further enhancing its allure as a premier shopping destination.

Founded in 1884 by Swiss watchmaker and entrepreneur Léon Breitling in Saint-Imier, Breitling has remained at the pinnacle of the watchmaking industry for over a century. In 2022, Partners Group, a renowned Swiss investment and private equity firm, acquired a majority stake in the company, heralding a new chapter in Breitling's illustrious history. With a presence spanning over 23 countries, the 140-year-old brand continues to captivate watch enthusiasts worldwide.

In India, Breitling's retail footprint extends beyond Chennai, with an exclusive store in Hyderabad and a presence in leading multi-brand watch outlets such as Ethos, Horology, and Kapoor Watch.

The expansion underscores Breitling's unwavering commitment to delivering exceptional timepieces and unparalleled customer experiences across the Indian market.

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.

Strengthening its leadership team, footwear retailer Metro Brands has appointed Roch D’Souza as the new Senior Vice President-Marketing for the company.

In his new role, D’Souza will lead the company’s marketing strategies for in-house brands Metro Shoes, Mochi, and Walkway along with UK based brand Fitflop.

D’Souza says with Metro Brands extending its reach into multiple cities and brand domains, the company is embarking on an exciting journey. Each brand under MBL's umbrella presents a unique opportunity to engage with its target demographic and cater to diverse market segments.

Alisha Rafique Malik, President, Metro Brands adds, with over two decades of experience and strong marketing skills, Roch will guide the company towards becoming the foremost contemporary Indian footwear retailer with a strong omnichannel presence nationwide.

D’Souza has over 22 years of experience in the retail and FMCG sectors. Prior to joining Metro Brands, he worked in significant leadership positions at companies like Future Group and Parle. 

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.

A Reliance Retail brand, Tira unveiled its tenth Indian store at DLF Avenue, Saket, Delhi. This expansion underscores Tira's strategic vision to broaden its footprint beyond Mumbai, Hyderabad, Chennai, Bengaluru, and Pune, catering to beauty enthusiasts across diverse regions of India.

Dedicated to delivering a unique shopping venture by curating an unmatched selection of global and indigenous beauty brands, Tira addresses the evolving preferences of today's discerning consumers. The brand’s new store showcases internationally acclaimed labels such as Allies of Skin and the ever-popular K-beauty brand, Blessed Moon, alongside other esteemed names, ensuring patrons access to an extensive and exceptional range of products.

In alignment with Tira's commitment to innovation, the Delhi outlet incorporates cutting-edge technology to elevate the shopping experience. It boasts of features like the Fragrance Finder that utilises personal preferences to suggest suitable scents, ensuring a personalised match for each customer. Smart mirrors equipped with augmented reality capabilities enable shoppers to virtually try out products before making a purchase. Notably, the store also features a vending machine dispensing complimentary beauty treats and samples, enhancing the shopping journey.

The introduction of ‘Tira Signature Looks’ and dedicated gifting stations further enriches customer interactions. ‘Tira Signature Looks’ offers patrons the opportunity to receive their preferred complimentary glam look, courtesy of Tira's skilled beauty advisors. Additionally, the gifting stations, equipped with engraving machines, enable customers to personalise their purchases, creating memorable experiences.

With an impressive 5 million app downloads and coverage spanning 98 per cent of pin codes across India, Tira ensures swift deliveries to customers in over 100 cities nationwide.

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.