14 August 2023, Mumbai

Indeed e-commerce has enabled products to expedite their footprint to all four corners of India, capturing the wallets of non-metro consumers as they gained access to brands they had to go to metros to shop for.

And what made e-commerce so attractive is the choice, discounted prices, easy return and cancellation, and a flood of offers.

The tale of physical retail seemed to have been relegated to the back burner and some experts went as far as predicting “the beginning of the end of physical retail as we knew it”. Fortunately, physical retail in India is far from declining.

In fact, its revving is boosted by Tier II and III cities which are relishing the experience of malls and supermarkets that was hitherto only in Tier I cities.

Organised physical retail to be $230 billion by 2030

End of the day, the proof of this prolific growth lies in the figures. India’s organised retail is valued at $110 billion today and in the next seven years, it is expected to more than double in value. When Covid-19 led to economic despair due to lockdowns, retailers started beefing up their online presence and those who weren’t online ensured they were.

The fate of physical retail then was a big question mark. That disastrous two years saw the demise of popular retail brands like Big Bazaar, FBB, and Central, all part of the now-bankrupt Future Group.

Of course, retail chains were right in bolstering their online sales because as per Deloitte India’s Future of Retail Report’s projection, e-commerce retail will be worth $325 billion by 2030. As Shashwat Goenka, Chairman, of Spencer’s Retail points out, today consumers are keener to make larger purchases at brick-and-mortar stores.

In contrast, e-commerce and quick commerce tend to fulfill their regular purchases. Again, Deloitte India states that India will see more retail growth. As the demographic factor of India changes and its swathes of urban pockets grow, millennials and the Gen Z population will demand more multi-format points from brands.

One brand, many avatars

In line with the onslaught of e-commerce and changing shopping habits of young Indians, many brands are rethinking their current format and also extending their lines to target different socio-economic demography.

For example, the new mash-up of lingerie and beauty. Now that Indian women are adept at online purchases of a wide range of makeup, she also has the option of physical retail stores selling the same makeup with makeover thrown in - Shoppers Stop’s SS Beauty and Reliance’s Tira and Nykaa. Reliance is planning to launch Blush Lace, a beauty-cum-lingerie format targeting the masses.

Growth is a way of life

Trent Retail, a part of the Tata Group, is expanding its mass-market brand Zudio at a faster rate than its flagship stores in Westside as the expanse of the population is in Tier II and III towns. The mantra for all these retail brands is to be wherever there are consumers rather than rely on Tier City Strategy. V Subramaniam, MD, Reliance Retail is clear about the company’s strategy – as India continues to grow as one of the fastest-growing consumer markets worldwide, Reliance Retail, which opens at least two to three outlets across various formats, is scale orientated and will be wherever there are consumers ready to shop.

Big names bust retail myths and go everywhere

The list of who’s who of Indian retail is now everywhere. Trent Retail, Shoppers Stop, Lifestyle, Aditya Birla Fashion Retail, Arvind Fashion, Raymond, Spencer’s Retail, and V-Mart, etc, are all busy reinventing formats to suit markets and entering uncharted territories to chase the vast number of consumers outside the top 20 Indian cities.

Of course, Reliance Retail is the market leader with 7,000 cities and getting deeper into the hinterlands as its portfolio of products resonates with consumers across the country.

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14 August 2023, Mumbai

Reliance Brands Ltd. announced the opening of a new Armani Exchange store in Goa. The trendy Italian apparel and accessories brand's latest outlet is situated at Manohar International Airport (MOPA).

Armani's fashion-focused sub-brand

Armani Exchange (A|X), launched in 1991, caters to fashion-conscious individuals and emerged as Armani's mass market sub-brand. It amalgamated elements from Armani Jeans and Armani Collezioni. Presently, A|X's offerings are available in over 270 stores across 31 nations and online.

Indian venture and collaboration

A|X marked its Indian debut in 2016 at New Delhi's Select Citywalk Mall through a partnership with Reliance Retail Ventures Ltd., affiliated with Mukesh Ambani's Reliance Group.

Reliance Brands' extensive portfolio

Founded in 2007, Reliance Brands collaborates with 50+ global brands and manages 2,000+ stores in India. Its diverse brand roster includes Emporio Armani, Burberry, Coach, Hugo Boss, Michael Kors, Superdry, Versace, and many others.

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09 August 2023, Mumbai

Reliance Retail, the retail arm of billionaire Mukesh Ambani's Reliance Industries, has crossed the milestone of 1 billion transactions in FY23.

Expands reach into tier 2 and 3 markets

Adds multiple stores; The company also added 3,300 new stores, taking its total count to 18,040 stores with a total area of 65.6 million square feet. Reliance Retail plans to continue expanding its reach into tier 2 and 3 markets through store network expansion.

Omnification

The company's digital commerce and new commerce businesses contributed to 18% of its revenue in FY23. Reliance Retail is also investing in the backend warehousing and logistics assets of its retail business.

It has added 12.6 million sq ft of warehouse space during the year.

Reliance Retail has also forayed into the FMCG sector, relaunching the iconic beverage brand Campa and its own brand 'Independence'.

Vision

Its beauty business also launched the digital commerce platform 'Tira' and opened its flagship store in Mumbai.

Reliance Retail envisions expanding its offerings and scale of operations to make products available to Indian consumers at affordable prices.

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14 August 2023, Mumbai

Shoppers Stop, the renowned Indian department store chain, inaugurated its inaugural store in Guntur, Andhra Pradesh, within the Phoenix Padmavathi Mall. The sprawling 20350 sq. ft. retail space marks the brand's foothold in the enchanting city.

Focusing on Tier 2 and Tier 3 Cities

Venu Nair, CEO of Shoppers Stop Ltd., expressed excitement about introducing the brand's exceptional shopping experience to Guntur. This strategic move aligns with the company's objective of catering to Tier 2 and Tier 3 cities.

Diverse Offerings and Brands

The store encompasses diverse categories such as fashion, beauty, home decor, and lifestyle. Notable brands, including Levi’s, Titan, Armani Exchange, Caprese, and Myglamm, contribute to its appealing product array.

Shoppers Stop's Legacy and Expansion

Founded in 1991 by K Raheja Corp, Shoppers Stop started in Mumbai's Andheri area. Currently, the company manages 99 department stores in 53 cities, along with premium home concept stores, specialty beauty stores, and airport doors, totaling 3.9 million sq. ft.

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12 August 2023, Mumbai

In the first quarter of the current fiscal year, V-Mart Retail reported a 15.41% rise in revenue from operations, reaching Rs 678.52 crore, compared to Rs 587.88 crore in the corresponding period last year. However, the company faced a net loss of Rs 21.94 crore for the quarter.

Shifting Profit Dynamics

Contrasting with the previous year's April-June period, which had seen a net profit of Rs 20.45 crore, this quarter recorded a net loss. The company attributed this shift to various factors affecting profitability.

EBITDA Margin and Acquisitions

The company's EBITDA margin remained robust at 13% of revenue, excluding losses from the recently acquired Limeroad marketplace segment. EBITDA, signifying Earnings Before Interest, Taxes, Depreciation, and Amortisation, maintained its significance in assessing operational performance.

Expense Increase and Income Growth

Total expenses for the value fashion retailer surged by 25.67% to Rs 708.99 crore in the Q1 of FY 2023-24. On the other hand, total income climbed to Rs 680.02 crore, marking a 14.87% rise during the June quarter.

Expansion Strategy

The company continued its growth strategy by adding 9 new stores in the June quarter, reaching a total of 431 stores.

09 August 2023, Mumbai

Platform reports profitability

Meesho, a Bengaluru-based platform specializing in value commerce, achieved profitability in July 2023, marking a significant milestone.

The company demonstrated impressive growth, with a 54% increase in revenue and a commendable 43% rise in order volume over the past year.

Notably, Meesho is the pioneering horizontal ecommerce platform in India to attain profitability. This achievement can be attributed to factors including robust order volume expansion, improved monetization, and strategic cost reduction.

Revenue growth & order volume growth

Over the last twelve months, Meesho experienced a substantial 43% increase in order volumes, exceeding one billion orders.

Particularly remarkable is the 120% growth in non-fashion categories within the same period. Crucially, Meesho's profitability strategy involved an 80% reduction in customer acquisition costs (CAC) and marketing spending year-on-year, along with a 15% reduction in employees in May as part of cost-cutting measures.

Nuances

Valued at $4.4 billion and backed by around $1.06 billion in equity funding from investors like SoftBank, Prosus, and Sequoia, Meesho serves 140 million transacting customers, processing 3.5 million daily orders.

Notably, it refrains from charging commissions to sellers, offering diverse categories such as apparel, electronics, and home essentials.

Meesho's profitable milestone holds significance in the Indian ecommerce industry, positioning the company for sustained growth and a competitive stance against industry giants like Flipkart and Amazon.

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