New Delhi: Actor Hrithik Roshan’s fashion and lifestyle brand HRX is all set to launch its offline store this year. Initially, the brand has plans to set up five stores, first stores to be in Bengaluru followed by Pune, Delhi and Mumbai. The brand is targeting malls to set up the stores and these will be Exclusive Brand Outlets, as per HRX’s co-founder and MD of Exceed Entertainment, Afsar Zaidi.
Along with it, HRX also plans to roll out several new product categories shortly.
“The HRX fashion and accessories partnership is exclusive with Myntra in the e-commerce space and will continue the same way. However the next foray would be offline stores this year,” said Afsar Zaidi.
Besides clothing, HRX also has a signature workout called the HRX Workout and a meal plan called HRX Athlete Meal pack sold under the Curefit umbrella.
“This business is currently aggressively expanding and we will soon see these two services available at all big cities in India,” he added.
HRX also offers a fitness tracker called the Mi Band HRX Edition, which is available on the Mi online and offline stores and all major e-commerce portals in India.
HRX being a license brand, it licenses out various product categories and verticals to partners who are capable of managing the product and distribution.
HRX brings the brand expertise, communication, celebrity led marketing, PR, social media initiatives and other association opportunities to the table.
Fashion, fitness and technology are the main pillars of HRX and for each vertical it has licensed out categories to business partners including Myntra for fashion and accessories, Curefit for fitness content and clean eating and Xiaomi for tech wearables.
“Each partnership is structurally different from the other and the financial models are created with mutual agreement,” Zaidi added further.
As he said the company issued first license in fashion category to Myntra but they saw so much promise and potential in the brand and business that they invested in the company and created a JV for fashion with HRX.
Curefit is an equity partnership where HRX and HR both sit at the helm of things in the form of equity owners.
Xiaomi is a pure play licensing arrangement in lieu of royalty payout to the brand.
India’s retail industry is undergoing an unprecedented transformation driven by technological disruptions, evolving consumer behavior and new innovations redefining the retail experience. As Deloitte’s ‘Future of Retail’ report observes, these pivotal forces have set the stage for online retail to surge 5X over the next 7 years. With projections indicating e-commerce growing at 25 percent annually until 2030 compared to offline retail’s 10 percent, digital channels are primed to dominate India’s $1.5 trillion retail market in the years ahead.
Decoding the Underlying Market Drivers
As per the latest retail industry data, India’s Tier II and III cities have begun overshadowing metros as the next e-commerce frontier. In 2022, order volumes from Tier III cities witnessed 65 percent year-on-year growth, and Tier II cities saw 50 percent expansion. In contrast, Tier I cities clocked a modest 10 percent increase over the same period. Given this divergence, industry projections indicate Tier II and III cities will continue dramatically outpacing their Tier I counterparts in online order growth rates over the next decade.
Attractive value propositions like wider product choices, discounted offerings, convenience, and personalized engagement are driving smaller cities to warm up much faster to e-commerce adoption even within an inflationary climate. For retailers chasing the next wave of growth, the writing is clear – India’s underpenetrated towns and cities housing over 900 million people hold the key to market leadership.
Rising Data Analytics Creating Asymmetric Advantages
As consumer interactions increasingly shift online, data is creating radical differentiation between legacy retailers and digital-first brands leading tech-driven transformation-commerce majors are setting new benchmarks in leveraging analytics across areas – from inventory planning aligned to local consumption patterns to predictive demand forecasting models minimizing stock-out situations.
Delivering Relevant and Personalized Experiences
Hyper-personalization represents the new battleground as customers expect communications, recommendations, and experiences to reflect their individual preferences. Indian shoppers are willing to spend more with retailers who can effectively tap into the power of data to tailor offerings aligning with their needs and interests. Brands leveraging AI and ML to deduce insights from purchase journeys and browsing behavior hold an edge in continually customizing engagement across channels.
The Way Forward: A Roadmap for Retailers
Adopt Omnichannel Strategies Aligned with Evolving Consumption: As smaller cities drive more than 60 percent of e-commerce volumes, retailers need a presence across online and offline channels with a hyperlocal outreach to tap into growth opportunities beyond metros. Localization, vernacular interfaces, and experiential stores are key.
Build Intelligent Supply Chains Resilient to Disruptions: Invest in data integration across the value chain to obtain end-to-end visibility. Leverage analytics for demand planning, inventory optimization, and predictive maintenance. This can minimize stock-outs, and ensure faster deliveries while improving supply chain profitability.
Deliver Personalization through Customer Analytics: Capture every customer interaction and apply analytics to discern behavioral patterns. Offer contextually relevant recommendations via multiple channels. Personalize communication and marketing content based on purchase history and search trends.
The Pivot to Experience-First Retail Powered by Technology
As the Indian shopper gets more evolved and demanding, customer experience across retail journeys is emerging as the biggest differentiator for both customer acquisition and retention. Retailers unlocking the power of analytics and technology to elevate personalized engagement, and minimize friction while tailoring experiences to align with local preferences will lead to market dominance in the future. The secret sauce for success lies in using data and innovation to blend online convenience with offline experiential retail - a trend that will further accelerate as India ascends into a trillion-dollar consumer market.
Prerna Kalra, Co-founder & CEO of Daalchini Technologies
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