Doubling from its 2023 value of $1.1 trillion, India's retail sector is set to exceed $2.2 trillion by 2030. Most of the growth will be dominated by the online retail segment that is projected to grow between $150 billion and $200 billion by 2030.

As per a joint report by Accel, Fireside Ventures and Redseer Strategy Consultants, brands are increasingly adopting an omnichannel approach though offline sales currently dominate.

Titled, ‘Decoding Omnichannel: Strategies for D2C Brands,’ the report cities data, personalisation, convenience, and customer engagement across both online and offline touchpoints as factors necessary to ensure a seamless shopping experience.

Prashanth Prakash, Partner, Accel, notes a significant shift in consumer behavior, with brands achieving Rs 100 crore milestone within 18 months, compared to a decade ago. He urges brands to opt for strategic scaling rather than relying solely on financial investments.

According to the report, Indians conduct approximately 24 billion online searches annually across various product categories before making purchases. Notably, 60 per cent of this search volume is concentrated in food and grocery, followed by fashion and lifestyle.

Kanwaljit Singh, Founder and Managing Partner, Fireside Ventures, urges entrepreneurs to develop an omnichannel retail playbook. He recommends them to integrate online and offline experiences into a unified customer journey as the gold standard for success.

Commencing operations online enables brands to swiftly access consumers, receive immediate feedback, and demand minimal initial capital expenditure. However, for sustained growth and the establishment of prominent brands, companies must maintain a presence where consumers are most active, the report says.

Underscoring the significance of omnichannel shopping behavior, the report reveals, omnichannel shoppers spend 2.5 times more than single-channel shoppers. Additionally, 95 per cent of holiday shoppers conduct online research before visiting a store, with 63 per cent confirming product availability online prior to making in-store purchases.

Successful examples of omnichannel strategies include Nykaa, an online e-commerce player generating 60 per cent of its gross merchandise value from Tier II cities, and Caratlane, a jewelry brand with a significant online presence complemented by over 230 offline stores. This approach caters to consumer preferences for physically experiencing high-value purchases before making a decision.

Known for its distinctive kaftan-focused apparel, The Kaftan Company has launched a new loungewear range for men. Dubbed the ‘Twilight Men's Lounge Wear Collection’ the range boasts laid-back designs that take a fresh take on loungewear. The collection offers a blend of patterned kaftans with cotton pyjamas.

Navin Rao, Co-founder, The Kaftan Company says, the new Men's Lounge Wear Collection provides stylish yet comfortable options for men to unwind in. The collection has received an overwhelmingly response since its launch, thus emphasising the growing demand for specially customised innovative loungewear solutions for men.

Offering products starting from Rs 1,499, the new range features a color palette comprising navy and light blues, blacks, neutral tones, and vibrant pops of color. While some pieces exude a monochrome and classic vibe, others boast bold prints such as large checks, stripes, and even leopard prints.

A frontrunner in the loungewear industry, the Kaftan Company boasts an impressive 60 per cent customer retention rate. In addition to its direct-to-consumer e-commerce platform, the brand also distributes its products through various multi-brand online platforms including Myntra, TataCliq, Ajio, and Shoppers Stop, etc.

Menswear brand Blackberrys launches 'TechPro', a smart casual range featuring stretchable, wrinkle-resistant fabric.

Director Nitin Mohan states it caters to diverse lifestyles, seamlessly transitioning from work to leisure.

The collection debuts across India, emphasizing durability with Zumba demos in 75 stores.

Established in 1991, Blackberrys aims to blend craftsmanship with contemporary flair, enhancing wearer confidence.

In 2027, Indira Gandhi International Airport's Aerocity will unveil India's largest mall spanning over 28 lakh sq ft. Costing $2.5 billion, this transformative endeavor is a significant stride toward the realisation of India's inaugural aerotropolis, a city strategically positioned near an airport, projected to experience an eightfold expansion within the next five years.

Following the mall's grand debut, the global business district is slated for a substantial expansion, adding an extra 65 lakh sq ft. This expansion will culminate in a total leasable area of 1.8 crore sq ft, accommodating offices, retail spaces, food courts, a sprawling entertainment-focused mega mall, and expansive public areas.

The journey towards this ambitious vision began with Delhi International Airport's (DIAL) call for development proposals, supported by GMR, eventually won by Bharti Realty. Bharti now holds the lease for Aerocity.

Raymond plans to boost its garment manufacturing and retail capacity by a third with an investment of Rs 200 crore. This expansion will make the company, the third-largest suit maker globally, says Amit Agarwal, CFO.

Despite facing challenges such as weaker demand in the wedding and general retail sectors due to inflationary pressures in FY24, Raymond remains optimistic about its growth prospects. Highlighting the company's positive performance, Agarwal reveals a notable growth of over 20 per cent in its branded apparel segment on an annual basis.

However, the garmenting segment experienced a decline in the fourth quarter, attributed to the disruptions caused by the Red Sea crisis affecting shipments.

Nonetheless, Raymond has a robust order book supported by initiatives like Make in India and the China plus one policy, which significantly benefit Indian garment manufacturers, notes Agarwal. In its quarter ended March 31, Raymond recently reported an 18 per cent increase in consolidated net profit to Rs 229 crore with revenue reaching Rs 2,688 crore compared to Rs 2,192 crore in the same period last year.

In a bid to bolster their capabilities and penetrate new markets, garment manufacturers in Indore have forged a strategic alliance with the Clothing Manufacturers Association of India (CMAI). With a burgeoning market valued at over Rs 1000 crore, Indore's ready-made garment sector, boasting of over 1000 manufacturers, is primed to elevate its brand presence both domestically and internationally.

Underlining this collaboration, the Readymade Textile Dealers Association recently inked a memorandum of understanding (MoU) with CMAI in the presence of 200 industry stakeholders. Rahul Mehta, Chief Mentor of CMAI, emphasized Indore's prominence as a manufacturing hub, particularly in children's wear, highlighting its rapid growth potential within the broader industry landscape.

Mehta underscored CMAI's commitment to nurturing regional industries, facilitating their evolution in line with contemporary trends and market demands. The partnership aims to empower Indore's garment manufacturers by providing avenues for enhancement, skill development, and access to untapped markets.

Ashish Nigam, President of the Readymade Textile Dealers Association, hailed the collaboration as a transformative milestone for Indore's garment sector. With a membership base of 2,200 manufacturers, Nigam anticipates that the partnership will facilitate their exposure to national and international buyers through prominent platforms and events.

While Indore's participation in exports currently remains modest, industry insiders foresee a significant uptick propelled by advancements in quality and skill development. The collaboration sets the stage for Indore's garment manufacturers to carve a niche in the global market, heralding a new era of growth and opportunity.

A renowned fashion event’s organiser based in Kolkata, Sutraa is all set to host its much-anticipated shopping fairs across three vibrant cities in India this May. Dubbed as a celebration of Indian fashion and accessories, Sutraa's upcoming events promise to unveil an exciting array of summer collections while introducing shoppers to a plethora of new labels.

The first of these fairs will be held on May 17, 2024 in Vizag. The two-day extravaganza will be held at the elegant premises of Hotel Novotel. The event will showcase a diverse range of product categories, spanning from women's ethnic, traditional, to fusion wear, alongside a captivating selection of accessories, jewelry, homeware, and gift items. Among the lineup of esteemed brands are names like Jaipur World, V Studio Rajasthan, Pehchaan, Lush, and Sequiaa Clothing, ensuring a delightful shopping experience for all.

Post Vizag, Sutraa will be held in Vijayawada from May 20-21, 2024 at the A Plus Convention Hall. Showcasing a blend of local designers and brands from distant locales, this edition of the event will cater to shoppers seeking trendy holiday wear and essential travel companions.

The last of these events will be held in Raipur from May 24-26, 2024 at the prestigious Triton by Shyama Hotels and Resorts. The event ,over three days, will showcase summer and resort fashion, highlighting the perfect ensembles for destination weddings and sizzling festivities under the sun.

Renowned for curating premium brands and appealing primarily to a female, millennial demographic, Sutraa Exhibitions captivates fashion enthusiasts nationwide with its meticulously crafted shopping fairs. The company reaffirms its premium position in the industry through its innovative approach and dedication to showcasing the best of Indian fashion.

A recent report by Knight Frank India, reveals, the number of ‘ghost malls,’ defined as those with over 40 per cent vacancy rates, jumped from 57 in 2022 to 64 in 2023 across eight key cities.

This trend reflects a shift in consumer and retailer preferences towards higher-end shopping experiences. The report reveals a significant rise in underperforming malls, with a total area of 13.3 million sq ft categorised as ghost malls in 2023. This translates to a staggering 58 per cent increase in vacant space compared to the previous year.

The rise of ghost malls has resulted in substantial financial losses, estimated at Rs 6,700 crore ($798 million) in 2023. The National Capital Region (NCR) witnessed the highest concentration of ghost malls, followed by Mumbai and Bengaluru. However, Hyderabad bucked the trend and saw a decline in ghost mall presence. Kolkata, on the other hand, experienced the sharpest rise, albeit starting from a lower base.

The report highlights a clear distinction in performance between mall categories. Grade A malls continue to perform well with high occupancy rates and strong customer traffic. In contrast, Grade C malls and ghost malls are struggling. This is prompting landlords to explore strategies for either revitalising these properties or selling them off.

Interestingly, the total number of shopping centers in Tier I cities has actually decreased despite the addition of new ones. This decrease is due to the closure of 16 malls, either demolished for redevelopment or permanently shut down and potentially auctioned.

Based on the survey of over 340 shopping centers and 58 high streets across 29 Indian cities, Knight Frank's report provides valuable insights into the current state of the retail sector and the challenges faced by malls in different categories.

Western wear dominating Indian men's wardrobes is passé as a revolution is underway, with traditional wear rising as the undisputed leader. Sales in this segment have skyrocketed by almost 25 per cent in just three years, as per a recent Times of India report. This can be attributed to a potent combination of factors: a booming retail presence, innovative designs, and the enduring cultural significance of traditional attire.

Sherwanis, the star of the show

Leading the charge is the sherwani. "Sherwanis have emerged as a standout category, constituting more than a quarter of all sales," says Ashish Mukul, Brand Head at Tasva. This isn't surprising. Sherwanis, with their rich embroidery and regal air, are the epitome of Indian elegance, perfect for weddings and festive occasions.

And this isn't just a fad. Major players like Aditya Birla Fashion and Vedant Fashions (Manyavar) are recognizing the goldmine and aggressively expanding their retail footprint. In the last two years alone, nearly 183 new stores have been launched, with plans for another 300 in the pipeline. This intense competition underscores the growing importance of the wedding wear segment, a market pushed up by the ever-growing desire for a grand Indian wedding.

Retail boom and design revolution

But the sherwani's rise is just one piece of the puzzle. A massive retail expansion is fuelling the fire. Big ethnic brands are opening hundreds of new stores across India. This increased accessibility makes it easier than ever for men to embrace traditional wear. "The success of Vedant Fashions' listing has further intensified competition," says Vedant Modi, Chief Revenue Officer. He highlights the "aspirational nature of weddings" as a key driver. Weddings are a once-in-a-lifetime event, and Indian consumers are increasingly opting for premium, high-quality ethnic wear to make a statement on their special day.

It's not just about availability, though. Brands are also upping their design game. Gone are the days of stuffy, traditional styles. Today's ethnic wear is a fusion of heritage and modern flair. Collaborations like Aditya Birla Fashion's partnership with designer Tarun Tahiliani for Tasva are a prime example. This blend of tradition and contemporary sensibilities is attracting a whole new generation of fashion-conscious men.

Beyond weddings, a market on the rise

While weddings are a major sales driver, the market for traditional wear extends far beyond the big day. The aspirational nature of Indian weddings, as highlighted by Modi, translates into a demand for high-quality ethnic wear for all kinds of special occasions. Even everyday wear is getting a touch of tradition, with the continued popularity of kurtas and kurta sets.

The Indian men's apparel market, despite facing pandemic hurdles, has shown remarkable resilience. With a Compound Annual Growth Rate (CAGR) of nearly 10 per cent between 2015 and 2020, the market is poised for further expansion. Experts predict 18 per cent CAGR in the next four years, driven by a growing middle class with more disposable income and evolving consumer preferences.

Ethnic wear, currently has 6 per cent share of the total men's clothing market, is expected to be a major growth engine. This segment is expected to move ahead at a CAGR of almost 20 per cent in the coming years. Demand for premium items like sherwanis is particularly strong, as customers prioritize comfort, luxury, and thoughtfully designed pieces. Classic favorites like kurtas and kurta sets also continue to be popular, with brands introducing new designs and expanding their reach to cater to this enduring demand.

Growth is due to several factors: a booming middle class with more disposable income, a changing demographic with a younger, more fashion-forward population, and a growing demand for premium, well-designed ethnic wear.

While online shopping is on the rise, physical stores remain the dominant force, accounting for 90 per cent sales. This suggests that the experience of shopping for traditional wear, the ability to touch and feel the fabrics, and the personalized service offered by store staff, are still highly valued by Indian men.

Traditional wear thus has successfully dethroned western styles as the leader in Indian men's fashion. With its focus on innovation, quality, and a celebration of rich cultural heritage, traditional wear is poised to maintain its reign for years to come.

India's bustling cities are witnessing a revolution in how people shop. Enter quick commerce, or q-commerce, the new kid on the e-commerce block promising delivery of essentials and more in under an hour. This sector has seen explosive growth, and it's not slowing down anytime soon. Quick commerce (Q-commerce), the delivery of essentials and everyday items within minutes, has become a game-changer in India's retail landscape.

From lockdowns to lightning speed

The COVID-19 pandemic undoubtedly played a catalytic role. Lockdowns restricted movement, pushing Indians towards online grocery shopping. However, the existing e-commerce model, with deliveries taking days, wasn't ideal for immediate needs. Q-commerce emerged to bridge this gap, offering a solution for that forgotten carton of milk or a last-minute birthday gift.

As per Redseer Strategy Consultants, India's q-commerce Gross Merchandise Value (GMV) skyrocketed a staggering 77 per cent year-on-year in 2023. This impressive growth comes despite an overall slowdown in the e-commerce market, highlighting the unique appeal of q-commerce. One prominent example of a Q-commerce player is Zepto, boasting deliveries in 10 minutes or less, CEO, Aadit Palicha, emphasizes the company's focus on “fulfilling needs, not wants.” This philosophy aligns perfectly with the core concept of Q-commerce - providing instant access to essentials.

The Indian q-commerce market is estimated to reach a $45 billion, significantly larger than the food delivery market. Analysts predict growth to continue at 40-45 per cent over the next few years, with a potential surge in user base.

Perfect storm for q-commerce growth

Several factors have propelled q-commerce forward.

• Urban consumer cravings: Busy lifestyles in cities create a demand for instant gratification. Q-commerce caters to this need by eliminating the need for physical store visits.

• Smartphone savvy: India's booming smartphone user base translates to a population comfortable with mobile shopping. Q-commerce apps provide a seamless user experience for on-the-go purchases.

• Deep pockets and innovation: Well-funded startups like Dunzo, Swiggy Instamart, Zomato Blinkit, and even established players like Amazon Fresh are investing heavily in optimizing delivery networks, expanding product categories, and offering attractive discounts to attract customers.

Fashion finds a place in the fast lane

While groceries dominate the q-commerce landscape currently, the fashion and lifestyle sector is starting to take notice. Busy professionals and fashion enthusiasts might find the convenience of quick delivery for forgotten accessories or a last-minute outfit change appealing. Major players like Myntra are exploring partnerships with q-commerce platforms to offer faster delivery options for apparel and accessories. Experts predict this segment to grow as consumers become accustomed to the convenience of quick deliveries for non-essential items as well. However, challenges remain. Unlike standardized grocery items, fashion products require a wider variety in terms of size, color, and fit. Streamlining the return and exchange process will be crucial for q-commerce to gain traction in fashion.

Indeed, the path forward is not without challenges. Ensuring profitability in a hyper-competitive market with razor-thin margins and the high cost of maintaining a robust delivery network will be crucial. Additionally, ethical sourcing, sustainable packaging, and responsible labor practices must be prioritized to create a long-term, sustainable model. As the segment expands, the battle for dominance will likely extend beyond groceries, with fashion and lifestyle potentially becoming the next battleground.

Clothing and lifestyle brand Jodi has launched its debut store in Mumbai. The brand recently opened its first exclusive brand outlet at Kala Ghoda housing the label’s brightly colored clothing and accessories.

Describing itself as the ‘Indian high street with a heart,’ Jodi launched its operations with an aim to bring together the interests of its founders Gauri Verma and Karuna Laugani in crafts, culture, fashion and travel. The brand retails its products online from its direct to customer e-commerce store and its open studio in Pune’s Wanowrie neighborhood.

Jodi also has a small showroom in Wanowrie. It recently revamped its Pune store to make it more colorful and engaging with a house party.

Adapting to the dynamic nature of the market, rising popularity of digital-first brands, and growing GenZ consumer base, shopping malls are actively opening their doors to online-only D2C brands going offline. “D2C brands are moving to the next phase of growth and recognize the need for an all-channel approach to reach more consumers and go deeper into geographies. More and more D2C brands are today going offline,” says Rajneesh Mahajan, CEO, Inorbit Malls. In fact, mall developers are working on short-term leasing agreements, pop-up stores, and experimental store models allowing D2C brands the opportunity to test waters before long-term leasing commitments.

Fashion brands lead the charge

While D2C brands across various categories are entering the mall space, fashion and apparel brands are a significant portion of this new wave. A handful of brands have already started making a mark. “D2C brands are doing about 25 per cent higher per-square-foot sales in the same category than other brands,” says V Muhammad Ali from Prestige Group. These brand's target customers are young and niche. They are doing product personalization and connecting with customers on a deeper level.

Newme, a fast-fashion brand, has opened four stores and is seeing a healthy contribution from offline sales to its revenue. The brand started with a short-term lease agreement for its first store but is now transitioning to long-term partnerships with malls. Shivam Tripathi, Co-founder, Newme, attributes this shift to the growing focus of malls on attracting younger customers, which aligns perfectly with Newme's target audience.

Zouk, an accessories brand, believes that D2C brands will be instrumental in driving GenZ and millennial shoppers, who have significant spending power, back to malls. Pradeep Krishnakumar, Co-founder of Zouk, expects offline sales to contribute around 25 per cent to the brand's overall business in coming years. Zouk currently has three stores and plans to expand to 20 outlets.

Similarly, Damensch, a menswear brand, is eyeing increased presence across 700 multi-brand outlets and currently enjoys a 14 per cent contribution from offline to its overall revenues.

Nestasia, an e-commerce home decor brand, has witnessed a 25-50 per cent increase in sales per square foot in its physical stores compared to established brands in the same category and malls. This success has prompted the brand to expand its store network from 4 to 15 by the end of the current financial year.

Benefits for both malls and D2C brands

The shift towards mall partnerships is mutually beneficial for both parties. Malls gain access to new and popular brands that attract younger demographics, leading to increased foot falls. D2C brands benefit from the exposure to a large and diverse customer base, the ability to provide a physical touchpoint for their products, and potentially higher sales per square foot compared to traditional brands. "We work with D2C brands that have reached a certain threshold and can sustain for at least a year," explains a Litestore spokesperson. "Initially, we started with a brand rotational model, however, as the market has matured we are working on more long-term associations."

Indeed, the partnership leads to:

• Higher sales per square foot: D2C brands are generating significantly higher sales per square foot compared to traditional brands. As Ali highlighted that D2C brands are doing about 25 per cent higher per-square-foot sales in the same category than other brands.

• Attract younger demographics: D2C brands tend to cater to a younger and niche customer base that malls are eager to attract. As Tripathi says, malls today are focused on driving footfalls of younger people and prefer D2C brands that cater to this audience.

• Product personalization and deeper customer connection: D2C brands are known for their focus on product personalization and building deeper connections with customers. Ali attributes this to the fact that D2C brands have a very young and niche target customer.

The future looks bright for D2C brands in malls. As D2C brands seek to expand their reach and malls look to attract new customers, partnerships between the two are likely to become even more common. One can expect to see more malls offering flexible leasing options and experimenting with pop-up stores to accommodate D2C brands. Additionally, fashion/apparel brands are likely to continue to be at the forefront of this trend.