Smaller cities emerging as vital growth engines: Industry leaders at ET Great India Retail Summit 2025
9 May, Mumbai 2025
Transforming India’s retail landscape, smaller cities in the country are emerging as vital growth engines rather than just secondary markets, highlighted industry leaders at the The Economic Times Great India Retail Summit 2025, held in Mumbai. They discussed strategies for capitalizing on the increasing aspirations and demand in Tier-II and Tier-III cities.
Titled, ‘Emergence of Non-Metros: Exploring Unexplored Frontiers of Retail,’ the summit included a panel discussion featuring top executives who shared how they're tailoring their strategies for these evolving consumer bases.
Rajesh Jain, Managing Director & CEO, Lacoste India, highlighted on the need for premium brands to adopt a selective expansion approach. Operating only company-owned stores, Lacoste carefully evaluates demographics and the presence of other premium brands before entering a Tier-II city, he informed.
Emphasizing on the critical importance of a mall's location and its neighboring brands for creating the right customer experience, Jain noted, while e-commerce data helps pinpoint potential cities, significantly cheaper rents in smaller cities are often a ‘myth,’ as overall operating costs remain comparable to metros.
Rahul Shanker, Group CEO, Quest Retail, emphasized, relevance is key. This involves choosing the right product mix for the right sales channel, he added citing The Body Shop's success in quick commerce with a focused gifting range. Even within metros, micro-markets require distinct approaches while maintaining brand consistency, he stated.
Other speakers at the event underscored the importance for localization. Karan Mehta, CEO, Easybuy, highlighted, it is important to understand regional tastes while offering fashionable, affordable apparel. Kamal Khushlani, Mufti Jeans, said, youthful, fashion-forward consumers in non-metros favor tailored collections. However, simply replicating strategies from larger cities is not vaiable, as cultural preferences vary significantly between Tier-II locations, warned Sameer Manglani, Meena Bazaar
Amitabh Suri, CEO, USPA Brands, emphasized, to build trust it is important to maintain a high-quality store experience and well-trained staff, regardless of city size.
Gargi Singh, Pincode discussed how hyperlocal commerce and improved digital infrastructure allow brands to build demand in smaller towns without massive physical investments. Anand Aiyer, Arrow reinforced the need for a comprehensive omnichannel strategy, engaging customers across digital platforms and local activations alongside physical stores.
