Buoyed by its robust GMV growth and operational efficiencies, prominent e-commerce firm Flipkart remains optimistic about its future growth prospects

In January 2024, Flipkart experienced $5 billion of Rs 41,000 crore decline in valuation compared to its value in January 2022. This valuation shift was indicated by equity transactions conducted by its parent company, Walmart, based in the United States. Flipkart's valuation decreased from $40 billion in the fiscal year ending January 31, 2022, to $35 billion by January 31, 2024, following changes in Walmart's equity structure related to Flipkart.

Walmart had initially diluted 8 per cent of its equity in Flipkart for $3.2 billion during fiscal year 2022, establishing the enterprise value of Flipkart at $40 billion. However, by fiscal year 2024, Walmart increased its shareholding by 10 per cent to approximately 85 per cent, paying $3.5 billion, which reflected the revised enterprise valuation of Flipkart at $35 billion. This increase in ownership was attributed to Walmart's acquisition of shares from certain Flipkart non-controlling interest holders and the settlement of liabilities related to former non-controlling interest holders of PhonePe.

Flipkart attributed this decline in valuation primarily to the demerger of PhonePe, its fintech subsidiary, into a separate entity. However, sources suggested that Flipkart's current valuation might range between $38-40 billion, contradicting Walmart's reported figures.

Responding to these discrepancies, Flipkart clarified that the separation of PhonePe had been completed in 2023, with corresponding adjustments made to Flipkart's valuation. The company insisted that there had been no organic change in Flipkart's valuation since the last valuation exercise conducted in 2021, which included PhonePe's valuation as part of Flipkart's overall worth.

Furthermore, Flipkart sources emphasised on the significant growth in Gross Merchandise Value (GMV), which rose by 25-28 per cent Y-o-Y to reach $29-30 billion in 2023. This growth, coupled with near-profitability, was expected to positively impact Flipkart's valuation, potentially pushing it back to the $38-40 billion range.

Despite these assertions, Flipkart reported a net loss of Rs 4,846 crore and a consolidated net total income of Rs 56,012.8 crore in FY23, with total expenses amounting to Rs 60,858 crore. Nevertheless, the company remained optimistic about its future prospects,

In February, the momentum of retail store expansion surged by 23 per cent to over 76 establishments, inclusive of shop-in-shops. As per data compiled by IndiaRetailing Insights, a retail intelligence unit, this spike marks the highest growth in the last three months, following December's 48 new stores and January's 62.
North India continued to dominate, outpacing other regions with 24 new stores, while the South and West regions trailed closely with 23 each. The East maintained a modest count of 1-5 new stores, albeit with a burgeoning retail scene in the North East.
Geographically, Bengaluru led with nearly 12 new stores, followed by Mumbai with nine, Delhi with eight, and Pune and Hyderabad with seven each. Brands such as Wow! Momo, Lenskart, and H&M expanded their footprint, alongside newer entrants like Honasa Consumer and Plaka by Chef Ajay Chopra.
Noteworthy expansions include Intune by Shoppers Stop adding five new stores, while Good Flippin’ Burgers and Gargi by P N Gadgil & Sons opened three each. International expansion saw Lenskart opening outlets in the Middle East, while Malabar Gold & Diamonds ventured into Australia, and Moti Mahal expanded into Europe.
Additionally, global brands made their foray into the Indian market, with Fenty Beauty by Rihanna partnering with Nykaa and French brand Kiabi collaborating with Myntra. Dockers also made a comeback to India's casual wear market.
Key industry developments included Reliance Retail's move to acquire Kiko Milano's Indian beauty business and Ikea's decision to close its Mumbai RCity Store. On the infrastructure front, Bharti Realty and Benoy announced plans for a large business district near Delhi's airport and Gurugram's first luxury mall, respectively.
In Q3, FY2024, around 150 new stores were opened by leading retailers and these numbers are expected to increase in this quarter with already 138 new stores opened in January and February.

Mumbai-based menswear brand Raymond is revamping its strategy to attract younger demographics and strengthen its ready-to-wear segment, said Sunil Kataria, CEO, Raymond Lifestyle.

Speaking at the Great India Retail Summit 2024, Kataria highlighted a shift towards casual wear within the brand to cater to evolving consumer preferences. He noted the challenges of predicting consumer behavior, especially after the pandemic, which has been marked by a ‘You Only Live Once’ mentality and a focus on health and safety.

Kataria also pointed to a growing demand for premium products, driven by a combination of pandemic-induced behavior changes, generational shifts, and economic factors. The growing middle class's interest in premium and bridge-to-luxury categories is further fueling this trend, he added.

While acknowledging the resurgence of offline retail post-pandemic, Kataria also recognised the continued importance of e-commerce, which has stabilised at a level exceeding pre-pandemic figures. This indicates a potential shift in how consumers navigate online and offline retail channels.

In terms of pricing and market strategy, Kataria emphasised Raymond's focus on capturing the mid-range to premium market segments. He anticipates a growth in branded products as consumers move away from unbranded options.

With a focus on product quality and branding, Raymond is expanding its ethnic wear portfolio to cater to a wider audience. The company also plans to add over 125 stores in the next 12-18 months, expanding its retail presence and capitalizing on new market opportunities.

India's premier luxury multi-designer fashion retailer, Aza Fashions plans to expand into the United States with its cutting-edge global shopping mobile app and convenient doorstep delivery service spanning all US states. Aza is renowned for curating the pinnacle of Indian fashion, embodying modern luxury and unparalleled service. Through its website and mobile app, Aza showcases over 1,000 brands from across India, presenting the epitome of Indian design and craftsmanship to clientele worldwide.

Based in Mumbai, Aza is an omni-channel brand that offers apparel and accessories from India's most celebrated designers, including Sabyasachi, Seema Gujral, Rohit Bal, Anamika Khanna, Tarun Tahiliani, Ritu Kumar, Masaba, Amit Aggarwal, Papa Don't Preach, Payal Singhal, Shantanu & Nikhil, etc. Aza also champions emerging talent, providing a platform for brands like Aseem Kapoor, Paulmi & Harsh, Lashkaraa, and Ariyana Couture. As a pioneering force in the organized Indian luxury fashion industry, Aza remains dedicated to delivering unmatched quality and service.

Dr. Alka Nishar, Founder & Chairperson, Aza Fashions, says, the brand is committed to showcase the exquisite craftsmanship and timeless elegance of Indian design. From intricately embroidered sarees and lehengas to chic holiday kaftans, Aza offers an extensive and exclusive collection reflecting the diverse cultural heritage of India.

Devangi Parekh, Managing Director, Aza Fashions, adds, the company’s popularity stems from its ability to cater to a wide range of preferences and occasions, whether it's weddings, festivals, or black-tie events. Its trained stylists collaborate with clients to curate and customise pieces that resonate with their individual style.

Proving an immersive shopping experience, the Aza app features convenient functionalities like image search, styling recommendations, and outfit customisation, alongside seamless customer service and hassle-free return policies. With new collections introduced daily and curated edits for special occasions like Diwali, Eid, and Raksha Bandhan, Aza's wedding store boasts a vast array of bridal lehengas, bridesmaid sarees, sherwanis, kurta sets, accessories, and fashion jewelry.

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.

Besides expanding its presence in online marketplaces like Ajio and Myntra, menswear brand BeYours also aims to explore offline retail opportunities. With a vision to increase its revenues to Rs 9 crore, the brand aims to continue delivering high-quality, minimalist clothing to an ever-expanding customer base.

Catering specifically to the tastes and sensibilities of millennials, BeYours stands as a beacon of quality craftsmanship and transparent pricing in the realm of men's clothing. The brand advocates for timeless pieces of attire that seamlessly integrate into any discerning man's wardrobe.

The brainchild of Ashish Baheti and Nilesh Karnani, BeYours was conceived in response to the burgeoning trend of 'Timeless and Sustainable Fashion'. In its nascent stages, the brand launched collections specifically tailored to resonate directly with millennials.

Disrupting the fashion industry in multiple ways, BeYours introduced unique product colors besides establishing a sustainable and ethical business model. It also crafted minimalist designs using premium fabrics, and leveraged technology to deliver a personalised shopping experience. Anticipating the growing appeal of minimalistic fashion and the increasing emphasis on sustainability, the brand aims to evolve with its customer base, consistently reinventing itself to offer conscious clothing choices.

BeYours boasts impressive monthly sales figures, a rapidly growing customer base, and a significant expansion of their workspace. Despite the challenges posed by the pandemic, the brand has doubled its marketing budget, underscoring its dedication to sustained growth and customer engagement.

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.

Renowned Californian clothing and accessories retail chain, Gap Inc achieved a significant milestone by opening its 30th store in India. Operated by Reliance Retail, this new store is located in the R-City Mall in Ghatkopar, Mumbai

This is Gap’s third store in Mumbai. In line with modern retail trends, it offers a tech-enabled shopping experience, featuring amenities such as smart trial rooms, express check-out, and an omni-channel shopping experience.

Gap Inc opened its first full-fledged store in India at Infiniti Mall, Mumbai, in February 2023. Prior to that, the brand had established over 50 Gap shop-in-shops in 2022, signaling its commitment to the Indian market.

Founded in 1969 by Donald Fisher and Doris F. Fisher, Gap Inc. offers a wide range of apparel, accessories, and personal care products for men, women, and children through various retail channels, including its own stores, franchised outlets, and e-commerce platforms.

A subsidiary of Reliance Industries, Reliance Retail operates Gap stores in India as a part of its diverse portfolio of fashion and lifestyle brands. Alongside Gap, Reliance Retail manages brands such as Reliance Trends, Avantra by Trends, Azorte, Yousta, Fashion Factory, and Centro, and boasts a collection of over 50 international brands, including Armani, Burberry, Diesel, Marks & Spencer, Superdry, Brooks Brothers, and Steve Madden.

India's e-commerce landscape is witnessing a significant shift driven by the growing importance of online shoppers from Tier II, III, and IV cities. While urban consumers were early adopters, recent data reveals a new wave of online buyers from smaller cities and towns. This trend highlights the evolving consumer behavior across the nation, presenting both challenges and opportunities for brands and retailers. The study reveals a fascinating contrast in online shopping behavior between India's metro cities and Tier II & III cities. While both segments are embracing e-commerce, their motivations and preferences differ significantly, presenting unique opportunities for businesses.
Metro vs small town consumers, a study in contrast
Metro consumers prioritize convenience, speed and access to wider variety. They are frustrated by crowded malls, limited product variety, and pushy sales staff in physical stores. Consequently, they flock to online platforms seeking instant gratification and are willing to pay a premium for express delivery. For them, limited product variety in physical stores, excessive crowds during weekends, lack of knowledge among store staff is a challenge. They prefer browsing the net for express delivery options and are willing to pay premium), focus on categories like electronics, fashion, and groceries. Their payment methods are mostly UPI gaining but concerns regarding online fraud persist among some segments.
In contrast, consumers in smaller towns and cities face a different set of challenges. Limited access to brands and products restricts their choices. Additionally, the absence of attractive offers and discounts drives them online. Interestingly, homemakers play a significant role in influencing purchase decisions even though men might handle the final transaction. Lack of awareness about e-commerce platforms, concerns regarding online fraud and product quality, limited internet connectivity are a concern for small town consumers. They prefer mobile apps for shopping, focus on categories like sports and fitness, home and kitchen, and health and wellness.
The rise of online shopping in small cities
A sharp increase in first-time online shoppers, primarily from Tier II, III, IV cities, has been observed. This segment differs from urban dwellers in terms of digital literacy, infrastructure, and socio-cultural aspects. Online shopping platforms offer a lifeline for these consumers, providing access to the latest trends and a wider variety of products often unavailable in physical stores. This trend is evident in festive season sales, with smaller cities contributing over 80 per cent sales for some major e-commerce platforms, highlighting the immense potential of these markets.
Despite geographical differences, both segments share a preference for apps over websites for online shopping. However, this trend changes for high-value purchases. Interestingly, social media plays a crucial role in influencing buying decisions across the board. Nearly 62 per cent users have tried products after seeing them on platforms like Facebook and Instagram. This trend is particularly prominent in Rier II & III cities, where social media replaces traditional media like TV and radio as the primary platform for product discovery.
While fashion remains a key driver for both segments, metro consumers focus more on electronics and groceries, while Tier II & III cities lead in sports and fitness, home & kitchen, and health & wellness categories.
The study highlights the need for e-commerce players to tailor their strategies to each segment. Building trust is crucial, especially in Tier II & III cities. Brands can leverage social media to educate and guide these new online users, fostering a sense of security. Moreover, understanding the importance of value perception beyond just price is essential. Delivering a comprehensive service package encompassing delivery, returns, and loyalty programs can significantly enhance customer satisfaction.
The moot point is Indian e-commerce landscape is rapidly evolving, and understanding the nuances of customer behavior across different regions is critical for success. By adopting a localized approach and focusing on the unique needs and aspirations of each segment, businesses can unlock the immense potential of this diverse and rapidly growing market.

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.