The Retailers Association of India (RAI) reported a 4 per cent year-on-year growth in India’s retail sector for February 2025, highlighting key trends across regions and categories.

RAI’s 59th Retail Business Survey indicates that retailers are prioritizing margin protection and stock management amid global tariff shifts and economic uncertainties. “Retail performance in India shows a modest 4 per cent year-on-year gain for February 2025. Categories such as food and grocery, QSR, and consumer durables have reported specific upticks,” said RAI CEO Kumar Rajagopalan.

Among regions, North India led with 5 per cent sales growth, followed by West India at 4 per cent, South India at 3 per cent, and East India at 2 per cent.

Category-wise, food and grocery registered the highest growth at 11 per cent, while consumer durables and quick-service restaurants (QSR) both saw a 5 per cent rise compared to February 2024. Other retail categories showed steady but slower growth.

Retailers continue to adapt to evolving market conditions, with strategic stock management and efficiency improvements shaping business operations. Despite ongoing economic challenges, the sector remains on a path of steady adjustment rather than rapid expansion.

Making a significant turnaround from the Rs 18 crore loss registered in FY23, Decathlon India reported Rs 197 crore profit in FY24. However, the brand’s revenue growth remained modest, increasing by only 2.2 per cent to Rs 4,008 crore.

Operating on a direct-to-consumer model, Decathlon India designs, manufactures, and sells sports gear through its 90 retail stores and e-commerce platform. The company is mainly engaged in sale of sports products although it also earns Rs 58 crore from interest and other non-operating income.

Decathlon’s recent profitability is a result of the stringent cost-control measures implemented by the company. The brand reduced its procurement costs by 4.3 per cent to Rs 2,448 crore. It also decreased its overall revenues by 4.5 per cent to Rs 3,797 crore due to controlled spending on power, rent, advertising, and other operational costs.

In the next 3 to 5 years, Decathlon India aims to double its revenue to Rs 8,000 crore. However, the company faces challenges in maintaining growth in a consumer market that is not expanding as rapidly as anticipated.

While Decathlon has successfully established itself as a leading sports retailer in India, it now faces increased competition and needs to adapt to evolving consumer preferences, particularly in e-commerce. The company is exploring new strategies, including utilizing third-party channels, to reach a wider audience.

As Decathlon enters its 16^th year in India, it may need to diversify its product offerings and explore new market segments to sustain its growth trajectory. The company's future success will depend on its ability to adapt to the changing market dynamics and continue to innovate.

Amazon India will waive referral fees on over 12 million products priced below Rs 300 from April 7, benefiting small businesses.

It will also lower shipping and weight handling fees. The move follows regulatory scrutiny over marketplace practices.

Amazon hosts 1.6 million sellers, with over 90 per cent being small and medium businesses.

Boosting its presence in the state’s men’s clothing market, Arrow has opened its largest store in Punjab.

Located in Model Town, Jalandhar, the store spans over 2,000 sq ft and is designed to provide a high-end shopping experience for men who value classic style and modern refinement.

Showcasing Arrow’s updated brand image, this large, multi-level store blends modern design with a top-tier retail experience. The store has been designed with sleek and contemporary to enhance its sophisticated atmosphere, allowing customers to explore the brand's latest collections in a smooth and engaging way.

Featuring a wide range of men's clothing, the store offers refined formalwear, adaptable smart casuals, and elegant formal wear. It has a well-organized layout that enables customers to browse and purchase the newest styles for various events, notes Anand Aiyer, CEO, Arrow.

Located in the center of Model Town, Jalandhar, the new Arrow store aims to transform the shopping experience for style-conscious men. Characterized by a sophisticated yet modern ambiance, the store’s interiors create a welcoming environment that matches Arrow's signature style.

With this strategic expansion, Arrow reinforces its commitment to providing world-class men's clothing while meeting the growing demand for premium fashion in Punjab. The opening of this store is a significant step in the brand's growth, paving the way for further expansion in Northern India.

Dropshipping, the e-commerce model where retailers sell products without holding any inventory, has stealthily become a global phenomenon. It's a low-barrier-to-entry strategy that empowers entrepreneurs to build online businesses with minimal upfront investment. But how is this model impacting the global and, more specifically, the growing Indian e-commerce landscape, especially in the competitive fashion and apparel sector?

The global dropshipping juggernaut

Globally, dropshipping has witnessed explosive growth, the rise of platforms like Shopify, AliExpress, and SaleHoo has given it a boost. The global dropshipping market was estimated to be worth approximately $162.44 billion in 2023, with a projected CAGR of 23.4 per cent from 2024 to 2030, reveals to Grand View Research. This indicates a potential market size exceeding $700 billion by 2030.

The phenomenon has grown due to falling startup costs as there is no need for warehousing or inventory management. The flexibility and scalability is immense as it’s easy to expand product offerings and reach new markets. Add to it the location independence. Businesses can be run from anywhere with an internet connection.

In fact, numerous successful online stores have been built on the dropshipping model, often specializing in niche markets. Many such stores leverage social media marketing to great effect. However, there are challenges in this business as reliance on third-party suppliers can lead to delays with longer shipping times. Quality control issues could arise due to lack of direct oversight over product quality. Dependence on external suppliers for inventory and fulfilment is an unsaid issue and competition could be intense in this field.

India's nascent dropshipping scene

As the Indian e-commerce market grows, dropshipping is gaining traction. Platforms like Flipkart and Amazon India have built consumer trust, paving the way for D2C and dropshipping companies.

As per Bain & Company, India's e-commerce market is projected to reach $350 billion by 2030. With this rapid growth, dropshipping is expected to have a significant share. According to Anand Ramanathan, Partner and Consumer Industry Leader, Deloitte India, the Indian dropshipping market, currently valued at approximately $1 billion, is expected to reach $5 billion by 2028, growing at an annual rate of 25 per cent.

Kapil Makhija, MD and CEO of Unicommerce eSolutions, highlights that dropshipping currently constitutes over half of e-commerce shipments in India, and he expects this share to grow to 65 per cent in the next five years. Platforms like Shopify and local suppliers are facilitating the growth of dropshipping businesses. The rise in dropship model can largely be attributed to the Covid-19 pandemic.

Challenges to dropshipping in India

Logistics and infrastructure is the biggest challenge particularly in rural areas. The building trust with customers is crucial in India, where online shopping is still evolving. About 30n per cent of dropshippers have reported problems with product quality and delivery times.

Competitive pricing is tough in India, as profit margins for dropshippers can be as low as 10-20 per cent. Logistics and shipping delays are common, affecting around 25 per cent orders. The preference for cash on delivery (COD), which accounts for 65n per cent of transactions, complicates payment processes. And most importantly finding reliable local suppliers is a major bug bear.

Emerging trends

A major trend is the integration of social commerce. Many Indian dropshippers are using platforms like Instagram and Facebook to sell goods. Many entrepreneurs are focusing on selling regional handicrafts and products. Dropshipping has also given a push to the D2C market in India, which has been seeing rapid growth in the past five years. The D2C market in India, valued at approximately $6-8 billion currently, holds 8-10 per cent share of the e-commerce market. What’s more starting a dropshipping business in India is affordable, with initial costs typically ranging between Rs 5,000 and Rs 50,000.

The fashion and apparel sector is particularly well-suited for dropshipping. Its vast product range, ever-changing trends, and demand for niche items make it ideal for this model.

Globally dropshipping has democratized fashion e-commerce, allowing small businesses to compete with established brands. It has enabled the rise of fast fashion and niche fashion brands that cater to specific tastes. It also gives oe the ability to test new fashion trends quickly, by listing products without large inventory commitments.

Closer home, India's diverse textile and apparel industry offers immense potential for dropshipping businesses. Entrepreneurs are leveraging dropshipping to sell traditional Indian wear, contemporary fashion, and accessories. In fact, the rise of social media influencers is driving demand for specific fashion items, creating opportunities for dropshippers.

Many small regional clothing producers are now able to sell their products on a national scale. As Pratik Mukherjee, Business Head-Beauty, House of Masaba, says, dropshipping has become an important practice in a high AOV (average order value) business or premium products, like fashion, and bridal products, when the products range between Rs 5,000 and Rs 1 lakh and above.

Many small Indian online stores are specializing in selling customized apparel, such as printed T-shirts or personalized accessories, through dropshipping. These stores often leverage social media marketing to reach their target audience. Regional textile products are also being sold through dropshipping, allowing artisans and small businesses to reach a wider customer base. The rise of online boutiques that curate niche fashion items from various suppliers, are leveraging dropshipping to offer a unique selection.

As technology continues to advance and e-commerce evolves, dropshipping is likely to become even more prevalent. The integration of AI, automation, and improved logistics will further streamline the process. Automation, demand forecasting, and data analytics are helping manage the stock at the dropshipper. However, businesses must prioritize customer satisfaction, quality control, and supplier reliability to thrive in this competitive landscape. In India, overcoming logistical hurdles and building trust will be crucial for the continued growth of dropshipping. As the Indian market matures, it is expected that more local suppliers will come online, and that the quality of service will increase.

Reliance Trends has teamed up with actor and film producer Mahesh Babu and his daughter Sitara to launch their new summer occasion wear collection for men, women, and children, with a campaign called ‘New Times, New Trends.’

The new collection celebrates India's rich cultural heritage with a modern twist, offering stylish and versatile options for the summer and holiday season, as per a press release by Reliance Trends. The campaign features a range of casual wear, western styles, and festive ethnic outfits, and includes a promotional film starring Mahesh Babu and Sitara, designed to showcase a fresh visual direction for the brand.

Reliance Trends' in-house labels are highlighted in the collection, including Avaasa's ethnic wear for women, Fig's contemporary workwear, and Dnmx's youth-focused denim. The collection also features offerings from the retailer's national and international brand portfolio.

With over 2,000 stores in more than 1,000 cities, Reliance Trends continues to expand its reach in India's apparel market. The brand aims to provide a mix of affordability and trend-driven fashion across multiple product categories. The new collection is currently available in Reliance Trends’ stores and online, with the campaign's promotional film live across digital platforms.

Bestseller, a major fashion company, has expanded its leadership team by appointing Sumit Dhingra as the Country Director for the Indian market, effective June 1, 2025.

Having over two decades of experience in the fashion and lifestyle industry, Dhingra has held leadership roles at various leading global and Indian fashion brands.

In this new position, Dhingra will be responsible for driving the growth and expansion of Bestseller's brands, including Jack & Jones, Vero Moda, Only, and Selected Homme, throughout India.

Anders Holch Povlsen, CEO, Bestseller, states, armed with an extensive experience in the fashion industry and a leadership style that aligns with Bestseller and its objectives in India, Dingra  will contribute to the brand’s growth in the country.

Dhingra adds, Bestseller has established itself as a significant player in the Indian fashion landscape and he looks forward to collaborating with the team to deliver excellence in the Indian market.

A 100-year-old bespoke suiting brand, PN Rao plans to expand its presence across the country by taking the franchisee route, note Ketan Pishe and Naveen Pishe, Partners, PN Rao.

The brand currently operates eight company-owned company-operated stores. Of these, five are located in Bengaluru, two are in Chennai, and one store is situated in Hyderabad. By this fiscal year-end, the brand plans to open four additional stores via a franchisee route and also one company-owned and company-operated luxury store in Bengaluru in the coming financial year.

In Bengaluru, Chennai and Hyderabad, the brand plans to adopt the FOCO model, which will also be promoted in other locations. The average stores that the brand plans to open via the franchisee route will span 2,500 -3,000 sq in metros and Tier I cities and 1,500 sq in Tier II and beyond, add, Ketan and Naveen Pishe.

The investment in FOFO model will be around Rs 1.2 crore and the ROI is expected in 2.5 - 3 years, they further add.

Currently operating in the ready-to-wear, fabric and tailoring categories, the brand will initial open stores in South India to penetrate into the market further.

Currently, the brand’s manufacturing unit spans across 1.5 acre and it plans to build another unit once the current unit gets closer to 80-90 per cent capacity utilization.

Going ahead, the brand also plans to build its online presence by offering bespoke services. It currently has an EBITDA profitability of 11-15 per cent and will close this fiscal with Rs 65 crore in revenue. It aims to close FY 26 with revenues worth Rs 75 crore. 

Making its debut in the capital city, American denim brand True Religion has launched its first store in Delhi. 

Located at Ambience Mall in Vasant Kunj, this 1,100-sq-ft store features the brand’s signature denim styles, as well as men's and women's apparel and accessories. The store's opening event included an appearance by Aman Gupta, Co-founder, Boat and prominent investor, along with fashion enthusiasts who explored True Religion’s latest collection, which combines premium denim with trendy casual wear designs.

True Religion has mastered the balance of style and comfort. Their graphic tees and hoodies complement the denim perfectly for a laid-back yet fashionable look, says Gupta.

The new store displays True Religion’s latest Spring/Summer 2025 collection featuring premium fabrics, signature stitching, and cuts designed to help the wearer stand out.

Founded in 2002 by Jeffrey Lubell and Kym Gold, the American denim label, True Religion is headquartered in California.

With the opening of this new store, True Religion introduces its iconic denim and premium collections to Delhi’s fashion-forward shoppers, adds Apoorv Sen, COO, Iconic Fashion.

Pernia's Pop-Up Shop plans to launch a new store in the Ismail Building in the Fort area of Mumbai.

Previously occupied by Zara, the 59,350 sq ft space is designed to elevate in-person luxury shopping experience by showcasing a significantly wider range of designer items under one roof.

Abhishek Agarwal, Founder, Purple Style Labs, which acquired Pernia's Pop-Up Shop in 2018, explains, the new store will feature nearly 5,000 pieces for customers to browse.

As a multi-brand retailer, the expansive space will allow Pernia's Pop-Up Shop to introduce a shop-in-shop concept, featuring curated designer sections. Previously, the retailer organized stock by rack due to limited space in its smaller stores, notes Agarwal. This store will utilize a floor-by-floor layout, making it easier for customers to find specific categories without having to navigate all five floors, he adds.

Pernia’s pop-up shop currently has stores at Kala Ghoda, Bandra and Juhu in Mumbai alongiwth Mehrauli in Delhi and Grosvenor Street in London. The brand has taken a very confident approach with this new store in Fort, says Agarwal. The experience it will offer of customer engagement and in-person shopping can never be replicated, he adds.