Festive Beauty Trends Shift from Makeup Staples to Skin Prep, Premium Kits and Omnichannel Shopping

India's fashion accessories and travel gear market is witnessing a shift as consumers increasingly view bags, luggage and small leather goods as extensions of their personal style rather than merely functional purchases. Growing brand consciousness, changing lifestyle preferences and rising demand for premium products are creating opportunities for companies operating across fashion and lifestyle categories. Brand Concepts Ltd. has been building its presence in this evolving market through a portfolio of international labels, in-house brands and multi-brand retail formats. Founded in 2007, the company has transitioned from character licensing to a broader fashion and lifestyle business, with brands such as Tommy Hilfiger, Superdry, United Colors of Benetton, Juicy Couture and Off-White in its portfolio.

"Our journey since 2007 has been defined by deliberate strategic pivots and identifying unaddressed white spaces in the Indian consumer landscape," said Abhinav Kumar, Co-Founder, Brand Concepts Ltd.

The company initially worked with character-led brands such as Cartoon Network and Rocky S in the school bags segment. Its partnership with Tommy Hilfiger for travel gear and small leather goods marked a significant turning point, taking it into the premium fashion accessories category.

In 2010–11, Brand Concepts introduced BAGLINE, a multi-brand retail destination bringing premium travel gear, handbags and lifestyle accessories under one roof. It subsequently incubated its own labels, Sugarush and The Vertical, targeting emerging niches in women's and contemporary men's accessories.

Over the years, the business has evolved into a House of Brands spanning youth-led lifestyle labels, established international names and premium fashion. Today, its portfolio includes United Colors of Benetton, Tommy Hilfiger, Superdry, Juicy Couture and Off-White™.

"Ultimately, our story isn't just about accumulating logos or scaling retail square footage. It has been about anticipating the Indian consumer's mindset shift, from viewing travel bags and accessories as utilitarian necessities to treating them as central fashion and lifestyle statements," Kumar said.

Building an Omnichannel Retail Ecosystem

Brand Concepts' retail model combines exclusive brand outlets, multi-brand retail, wholesale distribution and online platforms. The company operates more than 37 exclusive brand outlets across its portfolio, including BAGLINE stores and monobrand boutiques for labels such as Off-White™ and Juicy Couture.

Its offline presence extends to airports, luxury retail destinations and shop-in-shop formats across department store chains such as Shoppers Stop and Lifestyle. The company also has a distribution network spanning more than 2,000 multi-brand retail touchpoints nationwide.

On the digital front, its presence includes proprietary platforms such as Bagline.com, Juicycouture.in and Off-White.in, alongside marketplaces including Amazon, Myntra and Flipkart. It has also expanded onto premium commerce platforms such as Tata CLiQ Luxury and Nykaa Fashion, while selectively exploring quick-commerce channels.

"For Brand Concepts, omnichannel retail has never been about indiscriminate expansion or chasing vanity store numbers; it is about building a disciplined ecosystem where physical visibility and digital access feed each other," Kumar said.

The company's overall revenue mix is approximately 55% offline and 45% online, reflecting the importance of both physical retail and digital commerce in reaching consumers across markets.

The company aims to ensure that consumers experience consistent pricing, brand communication and product availability regardless of where they shop.

"Ultimately, this integrated network ensures our brands are present wherever the modern consumer decides to discover, touch, and transact," Kumar added.

Southern India in Focus for Retail Expansion

Having established a presence across Northern and Western India, Brand Concepts is now accelerating its expansion across Southern India. Its approach is based on different retail formats depending on the consumer profile and market potential.

In Tier I cities, the company is focusing on standalone Exclusive Brand Outlets (EBOs) for premium and bridge-to-luxury labels such as Off-White and Juicy Couture. These stores are being considered for prominent high-street malls and high-conversion locations such as airport terminals. Meanwhile, in Tier II and Tier III markets, BAGLINE will remain an important expansion vehicle, allowing the company to bring multiple international labels across travel gear, handbags and lifestyle accessories under one roof.

"Our expansion is anchored in unit-level profitability and store productivity rather than chasing door counts for top-line vanity," Kumar said.

Alongside geographical expansion, the company is looking to broaden its product portfolio beyond travel utility into apparel, footwear and statement handbags. The objective is to build wider lifestyle ecosystems around its brands and participate in more consumer spending occasions.

Manufacturing Integration to Strengthen Margins

A key differentiator in Brand Concepts' business model is its investment in backward-integrated manufacturing. Its 8-acre facility at Vikram Udyogpuri in Madhya Pradesh currently delivers an annual production capacity of 4.2 lakh hard-luggage units and 1 million backpacks.

The company has developed only a fraction of the facility's total footprint, leaving room for capacity expansion without significant greenfield capital expenditure. It currently manufactures up to 50% of its luggage in-house, giving it greater control over production, costs and product availability.

Kumar believes this integration will become increasingly important as the company expands its retail network and product portfolio.

"Bringing up to 50% of our luggage manufacturing in-house insulates us from global supply chain shocks, protects our gross margins, and ensures every new store we open is backed by rock-solid unit economics," he said.

The manufacturing facility is expected to support the company's expansion across both premium retail destinations and emerging Tier II and Tier III markets.

Handbags and Small Leather Goods Drive Festive Demand

During the festive season, women's handbags and Small Leather Goods (SLGs) have emerged as the strongest-performing categories for Brand Concepts. Demand for statement pieces and bridge-to-luxury designs is driving growth across Juicy Couture and BAGLINE's curated collections.

Premium wallets, belts and gifting sets from Tommy Hilfiger and United Colors of Benetton are also witnessing traction across festive, wedding and corporate gifting occasions.

"In handbags, we are seeing strong demand for statement pieces and bridge-to-luxury designs, particularly through brands like Juicy Couture and our curated BAGLINE edit," Kumar said.

Travel gear is another important category. While mass-market luggage faces price-led competition, the company is witnessing stronger demand in the premium, design-led trolley segment.

"Today's traveler treats luggage as a fashion accessory rather than a utility box," Kumar said.

Collections from Tommy Hilfiger, Superdry and United Colors of Benetton are benefiting from increased travel activity and consumers' preference for products that combine functionality with brand appeal.

The company is also observing different consumption patterns across markets. While metropolitan consumers are increasingly gravitating towards minimalist designs and understated luxury, Tier II and Tier III shoppers are showing greater interest in branded lifestyle products that combine aspirational appeal with accessible value.

Across its portfolio, Brand Concepts is expecting strong double-digit growth during the festive season, supported by demand across online and offline channels.

Targeting 20–25% CAGR Through Brand Diversification

Looking ahead, Brand Concepts aims to strengthen its position as an integrated fashion and lifestyle company, with a portfolio spanning international luxury, premium and accessible labels. The company is targeting a sustained 20–25% CAGR in top-line growth over the next two to three years. Tommy Hilfiger continues to be its core revenue contributor, accounting for around 80% of its wholesale volume. Meanwhile, newer international brand partnerships are expected to contribute to the next phase of growth.

Juicy Couture is one of the company's key growth priorities, with a revenue target of ₹50 crore by FY2027–28. The expansion will focus on statement handbags and apparel, supported by a wider retail presence.

For Off-White, the strategy is centred on establishing the brand's positioning and building a consumer community rather than prioritising store numbers or immediate volume commitments. The company plans to establish its presence across four to five premier luxury retail corridors over the next two years.

Kumar said the company's focus remains on balancing expansion with financial discipline and profitability, rather than pursuing revenue growth at the expense of margins.

With international brand partnerships, category diversification, omnichannel distribution and manufacturing integration forming the pillars of its business model, Brand Concepts is positioning itself to capture the changing demand for premium fashion and lifestyle accessories in India.

"Our long-term vision is to build Brand Concepts into India's defining House of Brands, an end-to-end fashion and lifestyle powerhouse spanning everything from international luxury to accessible homegrown labels," Kumar said.

As the next generation takes a larger role at Jaipur Rugs, Managing Director Yogesh Chaudhary is looking to balance the company’s legacy with a more contemporary approach to business. Founded in 1978 by Nand Kishore Chaudhary, the Jaipur-headquartered company has built its business around handmade rugs and artisan-led craftsmanship.

“I see leadership as the ability to honor what has been built while having the courage to reimagine what comes next,” Yogesh Chaudhary, Managing Director, Jaipur Rugs, said.

Chaudhary aims to combine entrepreneurial thinking with respect for artisans and heritage, while strengthening design, expanding retail and digital channels, and building collaborations to take Indian craftsmanship global.

From One Store to 18

Since 2016, Jaipur Rugs has expanded from one store in Delhi to 18 stores across India. The company has also established a presence in global markets including Milan, Singapore, Dubai, London, Russia and China.

The company currently generates revenue of around Rs 400 crore, with stores, online platforms and e-commerce forming its key sales channels.

“For me, this growth is not simply about the number of stores or markets. It is about taking Indian craftsmanship from the village loom to the global design stage,” Chaudhary said.

Retail Expansion

Jaipur Rugs is also expanding its physical retail presence. Its latest Mumbai store spans 20,000 sq. ft. and brings together rugs, design and craftsmanship under one roof.

The company plans to open 15–20 additional stores over the next five years across India and select international markets. Chaudhary said the focus will remain on key metros, emerging design destinations and global markets.

“Our retail expansion is not about opening stores for the sake of scale; it is about creating spaces where people can truly experience the world of Jaipur Rugs,” he said.

New-Age Collaborations

Jaipur Rugs is exploring beyond home interiors, with its PUMA collaboration bringing Indian craftsmanship to younger, contemporary consumers.

“The PUMA collaboration came from a shared belief that culture becomes more powerful when it is allowed to cross boundaries,” Chaudhary said.

He said such partnerships can help introduce craft and handmade products to consumers who may not have previously engaged with the category.

Digital and Product Innovation

Technology is another area where Jaipur Rugs is seeking to modernize its operations. The company has invested in e-commerce, digital platforms, data-led decision-making and product innovation.

According to Chaudhary, digital channels have expanded the company’s reach across India and international markets.

“Digital is now a significant and steadily growing contributor to our business,” he said, adding that its impact extends beyond sales to how the company connects with customers.

Building the Next Chapter

Over the next three to five years, Jaipur Rugs plans to expand its store network, grow its digital business, enter adjacent categories and build more collaborations with Indian and international designers.

“Our objective is to create multiple growth engines rather than depend on a single channel or category,” Chaudhary said.

He believes the next generation’s role is to extend rather than replicate the legacy. “The real measure of success will be whether we can make Indian craftsmanship more relevant, more scalable and more visible to the world,” he added.

Facts

• Founded: 1978
• Founder: Nand Kishore Chaudhary
• Headquarters: Jaipur
• Core Offering: Handmade Rugs
• Revenue: Rs 400 Crore
• Retail Stores: 18
• Store Expansion Target: 15–20 New Stores in 5 Years

India's home care market has traditionally been dominated by established FMCG companies, but changing consumer preferences and growing interest in sustainable alternatives are creating opportunities for new-age brands. Beco began as an effort to address the growing problem of plastic waste and later evolved into a broader home care business. The brand entered the market in 2019 with bamboo-based tissues, followed by garbage bags in 2020 and home cleaning products in 2023, including laundry detergent, floor cleaners and dishwash liquids.

"Two things happened in 2018. One, during our beach cleanups, we found a plastic wrapper that belonged to a chocolate that had been discontinued in the 2000s. It looked almost new. That made us realise how long the plastic we use today can last. The second was the plastic ban in Maharashtra, which created demand for alternatives. However, the available options were either not user-friendly or two to three times more expensive," said Akshay Varma, Co-Founder, Beco.

Despite its large market size, the home care category remained dominated by established players, with relatively limited innovation compared with segments such as personal care and snacking. This gap led to the birth of Beco.

Building an Omnichannel Retail Presence

Beco has expanded its distribution across e-commerce, quick commerce, general trade and modern trade. The brand is currently present in approximately 5,000 general trade stores across nine key markets: Mumbai, Delhi, Pune, Hyderabad, Chennai, Bengaluru, Chandigarh, Lucknow and Kochi.

Its modern trade presence includes approximately 150 D-Mart stores and over 250 Reliance Retail stores. While the brand initially entered D-Mart with four SKUs across 10 stores, it has since expanded its reach and is working towards increasing its assortment. Its Reliance Retail presence currently focuses on the tissue category, with plans to introduce its cleaning products as well.

Beco has also entered army canteen stores with four SKUs. On the digital front, it is available across major e-commerce and quick-commerce platforms, including Amazon, Flipkart, Blinkit, Zepto, Swiggy Instamart, Flipkart Minutes, BigBasket and JioMart. Currently, online channels contribute approximately 80% of the brand's sales, while offline retail accounts for the remaining 20%. However, expanding its physical distribution network is emerging as a major business priority.

"Over the next two to three years, we will continue expanding our categories and growing our online channels. Offline will be a major push, focusing on modern trade and key outlets. We have a target to reach over 25,000 general trade stores and expand across modern trade outlets catering to the mass-premium segment," Varma shared.

Beco is also looking to increase its presence in Tier-II cities and rural markets and make sustainable household products accessible through the retail touchpoints where consumers regularly purchase their everyday essentials.

Large share revenue from quick commerce

While offline expansion remains a priority, quick commerce has emerged as one of Beco's strongest growth channels. The platform-led business now contributes approximately 45% of the company's overall revenue, compared with 30% in the previous year. 

Beco currently holds the number two position in categories such as dishwash and floor cleaners across several quick-commerce platforms, according to Varma. The brand is listed across approximately 90% of dark stores and is working on improving product availability, fill rates and visibility to strengthen its position.

"Quick commerce is growing phenomenally. It contributes roughly 45% of our overall revenue, compared with 30% last year. We are growing across channels and gaining in several categories," he said.

The channel's growing importance is also reflected in the brand's approach to product accessibility. Unlike discretionary purchases, household cleaning products are regular-use essentials, and consumers generally expect them to be available when needed.

Varma believes that sustainability alone cannot drive adoption in this category. Product performance, competitive pricing and availability remain equally important.

"In a category like home care, efficacy is very important. People are not going to compromise on cleaning performance for sustainability. That is the table stake. The second is price. Consumers are not willing to pay even a 10% premium in home care, especially when comparing products with mass-premium offerings such as Surf Excel Matic or Vim Liquid. The third is accessibility. You have to be available where the consumer is buying," he explained.

Product Performance and Pricing Drive Category Competition

Beco competes with established FMCG companies in traditional cleaning categories such as laundry detergents, floor cleaners and dishwash liquids. In newer segments, including limescale removers and kitchen degreasers, it faces competition from emerging home care brands. The company is positioning itself through product innovation, targeted communication and consumer education around the benefits of its formulations.

In the tissue segment, the brand operates in a relatively fragmented market, competing with established players such as Origami and Paseo. Varma said Beco has built a strong retail position in the category despite entering it later than several competitors.

"With the cleaning category, we focus a lot on the right communication and storytelling around the products, what they contain, what traditional products have and what we don't have, and why our products are better. Our brand equity and communication across social media, along with influencer marketing and other activities, have helped us build our position," he said.

Laundry liquid is currently BECO's largest-selling category, contributing approximately 33-34% of its total sales. At the individual product level, its reusable bamboo kitchen towel is the highest-selling SKU, contributing approximately Rs 7 crore in revenue. The product is positioned as an alternative to both microfiber cloths and conventional paper towels.

Sourcing and Manufacturing: Building Greater Control

As Beco initially outsourced its entire production but gradually increased control over manufacturing and product development. Its research and development and formulations are managed in-house, while manufacturing follows a combination of owned facilities and third-party partnerships.

Around 80% of its tissue paper production takes place at its own manufacturing facility in Maharashtra, with the remaining 20% outsourced to third-party manufacturers. For home cleaners, Beco works with third-party manufacturers through technology-transfer arrangements. The company develops formulations and sources specific proprietary ingredients, which are supplied to manufacturing partners for incorporation into the final products. Its home cleaning products are manufactured across three regions in India: North, South and West.

The brand also works with more than 10 global manufacturers of natural and synthetic ingredients to introduce newer formulations into the Indian home care market.

On the sourcing front, approximately 80% of its bamboo requirement is currently sourced from central India, while the remaining 20% is imported from China and Thailand. This marks a shift from its initial sourcing model, when almost all its bamboo was imported. For surfactants, approximately 70% is sourced domestically, while 30% comes from Malaysia and Indonesia.

Varma said ingredient innovation also plays a role in managing costs and improving product formulations. One example is the use of methyl ester ethoxylate (MEE), a palm oil-based surfactant, as an alternative to petroleum-based surfactants commonly used in detergents and dishwash liquids.

"We are working with more than 10 global manufacturers of ingredients. They develop both natural and synthetic ingredients, and we are among the early players in India to incorporate some of these into our formulations. For instance, we use a palm-based alternative to a petroleum-based surfactant. This helps us maintain cost efficiency and gives us the flexibility to switch formulations when commodity prices fluctuate, ensuring that the cost impact on consumers remains minimal," Varma said.

Targeting Rs 2,000 Crore Revenue and a Larger Market Share

Beco's next phase of growth will focus on strengthening its position in key categories, expanding offline distribution and increasing household penetration. Over the next three years, the company aims to establish itself as the number two player in its major categories, including dishwash, floor cleaning and laundry care, while targeting a market share of 15-20% in these segments. 

Additionally, the brand is targeting Rs 2,000 crore turnover over the next three to four years. The founders also aspire to take the company public within the next three years. For the brand, the long-term opportunity lies in making sustainable alternatives a regular part of Indian household consumption rather than limiting them to a niche segment of environmentally conscious consumers.

"Our long-term vision is to provide sustainable, better-for-you alternatives for the average Indian household. We want to become one of the largest players in these categories and create a significant presence across consumer households," Varma said.

With everything now connected, it is becoming part of our daily life to have good power sources. We now live in a world filled with electronic devices, including smartphones, laptops, wireless headphones and smartwatches. As we become increasingly reliant on these, we now see a change in how we buy our accessories. Speed of charging, compatibility, quality, and reliability have become key factors.

This change has resulted in the growth of the electronics sector in India. The total Indian electronics market is projected to reach USD 125 billion in 2026 according to Ken Research and is anticipated to reach USD 300 billion by 2031. This growth is allowing local electronics brands to innovate, manufacture, and provide their products to consumers.

One such company is Ambrane India, which entered the market in 2012 with its focus on power banks and mobile accessories. Founded by Ashok Rajpal in Delhi, the company has slowly grown its product portfolio to include charging products, audio, wearables, and small household products.

"We started Ambrane India in 2012 with the idea of bringing more innovative products into the Indian market," said Ashok Rajpal, Managing Director and CEO of Ambrane India.

Also read: How India’s Beverage Shelf Is Evolving

From a Small Shop to a Manufacturing Business

The start of Ambrane was with products like power banks and other IT accessories. Before starting their brand, they spent 4-6 months getting to know the market, finding out what consumers want and which products would fulfill their expectations.

"We started with a small shop in Nehru Place to understand the market. We wanted to know what kind of products customers were looking for and what their expectations were," Rajpal said.

The company subsequently established its manufacturing operations, focusing on product quality and component sourcing. According to Rajpal, Ambrane was among the early brands to use lithium-ion cells sourced from South Korea, including those supplied by Samsung and LG.

Its manufacturing journey started with a facility measuring approximately 5,000 square feet and a workforce of around 50 people. Currently, the Delhi-based company has manufacturing units covering over 80,000 sq ft and employs more than 1,000 people.

Its portfolio has also expanded to more than 200 SKUs, covering charging cables, chargers, power banks, audio products, wearables, and small home appliances. The company has additionally introduced AA and AAA lithium-ion cells as an alternative to traditional cells.

Also read: From Organic Hampers to Personalised Gifts

Changing Consumer Demand

Consumer expectations in the mobile accessories market have changed considerably over the past few years. Earlier, customers could purchase a basic charger for Rs 200-300. Today, they increasingly look for chargers that match their devices and support higher charging requirements.

Rajpal explained, "The Indian consumer today has become smarter. People understand new technologies and know what products they need. They are looking for chargers and power banks that can support multiple devices, including laptops and other gadgets."

He identified charging products, particularly power banks, chargers and cables, as the company's strongest growth categories.

However, Ambrane is also expanding into smart home appliances, including vacuum cleaners, blowers, leaf blowers and car washers. The company is exploring further opportunities in products such as purifiers and other household gadgets.

Rajpal said the company's growth has come from maintaining focus on its existing categories while developing new products. According to him, established and newer categories are currently contributing equally to business growth.

Also read: Diwali Brings Growth in Furniture and Home Decor Sales

Online Discovery and Offline Expansion

For electronics accessories, online platforms have played an important role in introducing new products to consumers. Ambrane initially experienced this with power banks, as retailers often found it tough to explain unfamiliar products and their benefits to customers.

Rajpal said, "When a new product enters the market, online becomes a favourable platform because brands can educate customers through videos, product specifications and detailed listings."

He added that once products become established, offline retail becomes an important sales channel. Products that initially generated 80-90 percent of business through online channels can gradually move towards a 50:50 contribution between online and offline sales.

Ambrane currently reaches customers through e-commerce, modern retail, general trade, and B2B channels. Its products are available through major retail chains such as Reliance, Vijay Sales, and Croma. The company also claims to work with approximately 200 distributors and more than 20 modern retail chains.

Also read: India’s Alco-Bev Market Sees Festive Push as Premium Spirits Gain Ground

Local Manufacturing and Distribution Expansion

Domestic manufacturing remains an important part of Ambrane's business strategy. Having a local presence means greater control over quality, supply chains, and manufacturing, as well as faster incorporation of customer feedback.

This can be seen from the overall manufacturing goals set by India. It aims to build an electronics industry worth USD 500 billion in the country by 2030, with exports worth USD 240 billion. This would also provide greater value addition within the country of over 35 percent (NITI Aayog report on Global Value Chains).

According to the KPMG report, 2026, furthermore, the Electronics Manufacturing Services (EMS) sector is also projected to triple by FY2030 to USD 150 billion.

Ambrane has recorded more than 40 percent year-on-year growth over the past three years. The company is targeting at least 50 percent growth in the coming year and plans to increase its distributor network from around 200 to more than 500 within the next three years.

Rajpal also believes that Tier II and Tier III markets are becoming increasingly important. He said consumer awareness, purchasing preferences, and demand for gadgets are becoming similar across different city categories.

Also read: Diwali Demand Puts India’s Home Appliance Market on a Premium Growth Path

Ambrane's Next Growth Phase

Ambrane is also exploring international opportunities through partners in the Middle East, Europe, and US. The company has established a subsidiary in the US and has connected with Amazon in the Middle East, although its expansion plans there are awaiting more stable market conditions.

On the operational front, the company introduced SAP at its manufacturing facility in early 2019. It is ISO-certified and claims to hold more than 500 product certifications, including BIS certifications. It is also exploring AI-driven technology to improve operational efficiency.

In the future, Ambrane plans to increase manufacturing facilities around Jewar Airport. The proposed facility will cover more than 500,000 square feet, around six times its existing 80,000-square-foot setup.

Rajpal said, "We want to go deeper into manufacturing. With a larger setup, we will be able to innovate further, introduce new gadgets and add more categories to our portfolio."

With annual revenue currently at approximately Rs 400 crore and year-on-year growth of around 50 percent, the company is targeting revenue of Rs 1,500 crore by 2030. It expects to maintain annual growth of 50-60 percent as it expands its product portfolio, manufacturing capacity and distribution network.

For Ambrane, the next phase will be looking at trying to find a balance between the more traditional charging market and new consumer tech markets, while increasing its manufacturing base in India.

Also read: How India’s Edible Oil Market Is Evolving

Brandman Retail is stepping up its expansion in India’s premium sportswear, footwear and lifestyle market, targeting 50 stores across its retail formats by March 2027, as it looks to capitalise on rising consumer interest in international sports and lifestyle brands.

The company reported revenue of ₹162.41 crore in FY26, up from ₹135.22 crore in FY25, marking a growth of around 20% year on year. The performance was supported by the strengthening of its brand portfolio and expansion through exclusive brand outlets and its Sneakrz retail format.

For FY27, Brandman Retail is prioritising retail network expansion, deeper brand partnerships and e-commerce growth. While the company has not yet finalised a specific revenue target for the year, it plans to enter new markets while continuing to strengthen its presence across existing locations.

The company currently operates a portfolio spanning performance footwear, sportswear, outdoor and lifestyle categories, with brands including New Balance, ANTA, Saucony, Timberland, Rockport and Wilson.

“High-growth categories such as performance footwear, sportswear, outdoor and lifestyle fashion make up the larger part of our portfolio. The growing interest in fitness and sports in India is creating opportunities across our brand portfolio,” said Arun Malhotra, Founder & Managing Director, Brandman Retail.

Tier-2 and Tier-3 cities in focus

Beyond metropolitan markets, Brandman Retail sees significant potential in Tier-2 and Tier-3 cities, where consumer interest in international sportswear and lifestyle brands is increasing.

The company plans to evaluate individual markets based on their potential and deploy retail formats suited to local demand. Alongside physical stores, digital platforms and e-commerce will play a key role in expanding the company’s reach while maintaining brand positioning and customer experience.

“Physical outlets and digital platforms can both be used to increase our reach, and we will make sure the brand experience and positioning are maintained effectively,” Malhotra said.

Global brand portfolio to drive growth

Brandman Retail is also evaluating opportunities to add more international brands and complementary product categories to its portfolio. While footwear and fashion remain its core focus, the company is looking for global partnerships that can deliver long-term relevance in the Indian market.

“We continue to evaluate opportunities to expand our portfolio through partnerships with global brands that hold tremendous potential for the Indian market in the long run,” Malhotra said.

Its existing partnerships with New Balance, ANTA, Wilson and Saucony remain central to the strategy, while the company is also building Rockport’s presence in India through licensing and brand development.

The company is also exploring collaborations with athletes and sports communities as well as e-commerce platforms to expand consumer engagement and visibility.

“Our focus remains on strengthening existing partnerships with New Balance, ANTA, Wilson and Saucony, among other brands, while exploring collaborations with athletes, sports communities and e-commerce platforms,” Malhotra said.

Omnichannel and technology investments

The company's expansion strategy also includes strengthening its omnichannel capabilities. Investments are being directed towards new stores, retail infrastructure, inventory management, e-commerce and technology, with the objective of connecting physical and digital channels more effectively.

Brandman Retail said the overall investment quantum and allocation across these areas are currently being finalised for disclosure.

The company is also looking at India-led sourcing and manufacturing as a potential long-term opportunity. It believes the evolution of India's manufacturing ecosystem and the Make in India initiative could help global sports and lifestyle brands develop more efficient supply chains, improve cost management and bring products to market faster.

“India-led sourcing and manufacturing is attracting growing interest, and the Make in India initiative provides a positive opportunity to strengthen the local operating environment for global sports and lifestyle brands,” Malhotra said.

Building a long-term sports and lifestyle platform

Over the next three to five years, Brandman Retail aims to combine retail expansion with a stronger international brand portfolio and more efficient omnichannel operations.

While established metropolitan markets will remain important, emerging cities are expected to become an increasingly significant part of the company's growth strategy. Technology and data will also be used to improve productivity, inventory management and customer experience.

“Over the next three to five years, we want to grow our retail presence and strengthen our international brand portfolio, while making our omnichannel efforts more efficient,” Malhotra said.

The broader ambition is to position Brandman Retail as a long-term partner for global sports and lifestyle brands entering and expanding in India, while maintaining disciplined expansion, healthy profitability and sustainable value creation.

As India’s beauty market becomes increasingly omnichannel, brands are discovering that building an offline footprint is not simply about opening more stores. The challenge lies in identifying the right markets, managing store-level economics, ensuring product availability and creating an in-store experience that adds value to consumers who are already discovering products online.

For beauty and personal care brand Plum, the shift in consumer behaviour has made offline retail an increasingly important part of its growth strategy. While consumers may discover products digitally, many still turn to physical stores to access products, test them and seek guidance before making a purchase.

“ You can see the change in what people ask for at a beauty counter. A shopper might walk in asking for a particular niacinamide serum because she’s already read about it online. That changes what her local retailer chooses to stock. For Plum, it made sense to follow that demand into the stores she already shops at,” said Shankar Prasad, CEO and Founder, Plum.

Balancing online scale with offline reach

Despite its growing physical presence, Plum remains predominantly an online business. The company currently generates around 70% of its sales online, while offline contributes approximately 30%. According to Prasad, the mix has remained relatively stable as both channels have expanded to serve consumer demand.

Rather than treating offline retail as a replacement for digital channels, Plum is using physical distribution to extend its reach into the stores and markets where consumers already shop.

The company currently has close to 50,000 retail touchpoints across India, with general trade accounting for the bulk of its offline presence. It also operates through modern trade and has around a dozen exclusive Plum stores designed to offer consumers a more complete brand experience.

The scale-up, however, is not stopping there.

Plum is targeting more than one lakh general trade outlets over the next 12 months, with expansion planned across geographies. In modern trade, the company intends to remain more selective, prioritising stores that already attract its target beauty and skincare consumers. Exclusive stores will also be added in markets where the brand sees sustained local demand.

Store expansion comes with a profitability test

For retailers, expanding the physical footprint can quickly increase fixed costs through rentals, fit-outs, manpower and inventory. Plum’s approach highlights the importance of ensuring that individual stores can justify the investment.

“A compact store typically takes an investment in the tens of lakhs, depending on the location and fit-out. When we evaluate a site, we look for payback in less than a year. That keeps us disciplined about the rent and upfront investment the store’s sales can support,” Prasad said.

The focus on a sub-one-year payback period illustrates one of the central challenges of offline expansion: store growth has to be supported by store-level economics.

For retailers, a location that generates footfall is not necessarily a successful store if its rental and operating costs absorb too much of its revenue. This makes site selection, local demand assessment and the ability to achieve sufficient sales productivity critical as brands move beyond their initial cluster of successful stores.

Physical stores have to offer something digital cannot

For beauty brands in particular, the offline channel can also serve a role that goes beyond distribution.

Product discovery may increasingly happen online, but physical stores allow consumers to test textures, understand product application and receive personalised recommendations. Plum sees this as an important part of converting shoppers who may already have product awareness but remain uncertain about making a purchase.

Prasad pointed to Plum’s Black Rice & Nia-TXA Jelly Serum as an example. A consumer may understand the ingredients from online content but still be unsure about the product’s texture or how it fits into her existing routine.

“A tester answers that in seconds. An advisor can then help her work out where it fits alongside the products she already uses at night. For a first-time buyer, that conversation can be what gives her the confidence to take it home,” he said.

This creates another consideration for retailers expanding offline: stores need to provide a reason for consumers to visit rather than simply replicate the product catalogue available online.

Tier II and III markets emerge as a major growth engine

Geography is another critical component of Plum’s offline strategy. While metros remain important, smaller cities are increasingly contributing to the brand’s physical retail performance.

Tier II and III cities together accounted for roughly seven in ten rupees of Plum’s general trade sales in Q2 FY26, highlighting the importance of smaller markets to its offline strategy.

Among individual markets, Lucknow stood out for the size of its business, while Kochi recorded consistent growth across several quarters. Imphal, meanwhile, saw a sharp pickup during the second quarter.

The performance reinforces the opportunity beyond India’s largest urban centres, but it also underlines why retailers cannot simply replicate a metro expansion playbook across every market. Local consumer preferences, retail ecosystems, store formats and demand intensity can vary significantly from one city to another.

For Plum, the strategy therefore combines broad distribution through general trade with a more selective approach to modern trade and exclusive stores.

The next challenge: scaling without diluting economics

Plum’s expansion illustrates a broader challenge facing India’s consumer brands as they move deeper into offline retail. Distribution can be scaled relatively quickly, but profitable physical retail requires a more granular understanding of each market and each store.

The question for brands is increasingly not how many stores they can open, but how effectively each new physical touchpoint can contribute to growth.

For Plum, that means combining its digital strength with a significantly wider general trade network, selective modern trade expansion and exclusive stores where consumer demand can support the economics.

As the company targets more than one lakh general trade outlets, the next phase of its offline journey will test whether it can maintain that balance between reach, consumer experience and profitability at scale.

India's pet food market is witnessing steady growth as rising pet ownership, changing consumer preferences and greater awareness of animal nutrition reshape the category. According to IMARC Group, the market was valued at approximately $2.4 billion in 2024 and is projected to reach $ 4.6 billion by 2033, registering a CAGR of 7.2% between 2025 and 2033. India's pet population has also increased from 28.4 million in 2020 to 39.2 million in 2025, with dog food accounting for nearly 70% of pet-food retail value sales in 2025.

Against this backdrop, Drools has strengthened its position in the domestic market while expanding its international footprint. The brand claims a 38% share of India's pet food market and has extended its presence to 22 countries. Its growth has been supported by a broad product portfolio, an extensive distribution network and a pricing approach focused on making quality pet nutrition more accessible.

Over the past decade, Drools has adapted its offerings to changing consumer needs, with products spanning everyday nutrition, treats and newer formats such as wet food and fresh meals. 

"Drools focus on affordability, including its 'cost per meal' approach, has been central to reaching a wider base of pet parents in a market where value and convenience increasingly influence purchasing decisions,"  expressed Dr. Shashank Sinha, CEO, Drools Pet Food.

Strengthening Reach Across Retail Channels

Drools has built a distribution network covering more than 2,000 cities and nearly 50,000 retail touchpoints across India. Its e-commerce presence further extends product accessibility, with the brand stating that it serves all the serviceable PIN codes in the country.

The combination of offline distribution and digital channels has also helped Drools respond to changing shopping habits. While general trade and modern trade remain important to the category, online platforms and quick commerce are gaining traction, particularly for innovative products and convenience-led purchases.

Fresh Food and Wet Nutrition Drive Product Innovation

As it looks to strengthen its portfolio, Drools is focusing on emerging categories such as fresh food and wet nutrition. The brand's newer wet-food products have received an encouraging initial response, with its Fresh Food range designed to make nutritionally balanced, home-style meals more convenient for pet parents.

The offering includes four recipes across two pack sizes, with packaging that does not require refrigeration before opening. The brand is also catering to households seeking vegetarian options through its 100% Veg Gravy, while expanding its range with bone broth in the same Tetra Recart® format.

"Fresh Food remains an emerging category in India, and our focus is on making nutritionally balanced, home-style meals an easy part of everyday feeding routines," said  Sinha.

He added that consumer feedback and repeat purchases would guide the brand's plans for expanding the category. Alongside product development, Drools is continuing to engage with veterinarians and make science-led pet nutrition more accessible across markets.

Festive Focus on Pet Safety and Vegetarian Nutrition

For the festive season, Drools is focusing on educating pet parents about safety and responsible pet care during celebrations. Changes in the home environment, new decorations, loud noises and an increase in visitors can affect pets, making it important for households to take precautions.

The brand has also introduced a 100% vegetarian food SKU, particularly for Indian households that prefer vegetarian food choices during festivals. The product has been developed to meet pets' nutritional requirements while maintaining taste.

"During the festive season, our primary agenda is to offer the right advice for pet parents, for optimum care of the pets around the festivities. Pets are curious and usually intrigued by changes around them, so it is imperative that proper care and caution is taken while curating the celebrations and the decorations around the festivals,"  shared Sinha.

He noted that the brand typically sees a festive-season revenue spike, supported by higher sales of treats, fresh food and biscuits.

Digital Commerce Fuels Demand for Newer Categories

Changing lifestyles and consumer preferences are influencing the way pet food is purchased, with digital commerce gaining ground alongside traditional retail channels. Drools is seeing accelerated growth for products such as Cat Mousse, Fresh Food for Dogs, and treats for dogs and cats across digital platforms.

These categories are benefiting from a younger generation of pet parents who are more willing to explore new formats and prioritize convenience and product innovation.

"Driven by fast-paced lifestyles and evolving consumer preferences, the channel mix between Modern Trade, General Trade and Quick Commerce is increasingly shifting towards digital commerce," noted Sinha.

International Markets and the Next Phase of Growth

While India remains Drools' primary market, the brand is looking to strengthen its presence overseas. Exports currently contribute less than 5% of its business, but international markets are becoming increasingly important to its long-term growth plans.

The company is focusing on the GCC, Southeast Asia and Africa, where demand for nutritionally complete packaged pet food is growing. Cat ownership and cat-food consumption are also gaining traction in several markets.

"In exports, we are aggressively pursuing triple-digit growth this year, with the UAE positioned as our primary growth engine, followed by the broader Middle East and Southeast Asian markets," said Sinha.

He identified cat food as a key growth driver for the international business, with the launch of Cat Mousse and Cat Gravy Chunks expected to support further expansion. Over the next two to three years, the brand aims to sustain double-digit growth while deepening its penetration in India and strengthening customer retention. Its focus on accessible nutrition, newer product formats and international expansion will shape its next phase of growth as India's pet care market continues to evolve.

In an industry where brands, trends, and consumer preferences are constantly changing, building a business that stands the test of time is no small achievement. For Dayal Opticals, the journey has been one of steady growth, changing with the times while staying true to its core philosophy of offering quality products and a memorable customer experience.

Founded 65 years ago, Dayal Opticals has grown from a family-run optical store into a luxury eyewear retail destination with 20 boutiques across India. The next chapter of this journey is being shaped by Sarvash Kalra, Director, who joined the business in 2020 and is bringing a fresh perspective to the legacy brand.

The expansion began when his father joined the business around 1995 and opened the first store in Khan Market in 1998. Over the years, the brand established its presence across prominent retail destinations in Delhi-NCR, including Select Citywalk, Galleria Market, MGF Mall, DLF Avenue and The Chanakya. Its footprint has since expanded beyond the region, with boutiques in Mohali, Chandigarh and Mumbai, among other locations.

For Sarvash, however, growth has never been just about adding more stores. “For me, it's not about numbers. It's about quality rather than just quantity. If you spread yourself too thin, you cannot deliver that experience, and then the luxury and feel of the store really goes away,” he said.

A Destination for Global and Independent Eyewear

One of Dayal Opticals' biggest strengths is its carefully curated brand portfolio. The company currently houses around 75–80 brands, including approximately 25–30 boutique and independent labels, alongside established international fashion brands.

The idea is to bring together eyewear brands that customers may not easily find under one roof. While familiar international names continue to attract consumers, Dayal Opticals is also creating space for independent designers and lesser-known labels that stand out through their craftsmanship, materials and design.

“Today, the eyewear industry is quite fragmented and unorganized. We realised that, to do luxury well, we have to offer clients something they have not seen or experienced before. For us, that means bringing those brands together under one roof,” Sarvash explained.

Taking Luxury Eyewear Online

An important milestone in Dayal Opticals' recent journey was its entry into e-commerce. When Sarvash joined the business in 2020, he identified a gap in the luxury optical retail market. While consumers in major cities had access to premium eyewear boutiques, customers in smaller cities often had limited access to the same brands.

He believed that customers who trusted Dayal Opticals enough to visit its stores should also be able to shop from the brand online. Dayal Opticals launched its e-commerce website in 2021, becoming one of the early optical retailers in India to take this step.

The response was encouraging, particularly from customers in Tier II and Tier III cities. Today, the brand delivers across India, including the Northeast and the Andaman and Nicobar Islands. 

Partnerships Built Around the Product

Dayal Opticals' recent partnership with D'YAVOL is another example of its approach to brand selection. The eyewear label, backed by Shah Rukh Khan, made its Indian retail debut through Dayal Opticals, with the collection available exclusively across eight of its boutiques in India.

While celebrity association can generate interest, Sarvash believes that the product itself must deliver. “Of course, having a celebrity such as Shah Rukh Khan back a brand is fantastic. But the most important thing is that the product needs to be good. Nobody is going to spend their money a second time if the product is not good,” he noted.

He was particularly drawn to D'YAVOL's focus on materials, product quality, and its vision of building a brand beyond celebrity recognition. 

Two Retail Concepts, Two Distinct Experiences

Alongside Dayal Opticals, Sarvash is also developing Brooke & Carter, a more exclusive luxury eyewear retail concept. While Dayal Opticals offers a mix of fashion and boutique labels at relatively accessible luxury price points, Brooke & Carter caters to a more premium customer.

With two locations at DLF Emporio and The Chanakya, Brooke & Carter is positioned alongside some of the world's leading luxury brands, including Cartier, Hermès and Chanel. Its store design, product selection, and overall environment are created to complement the luxury setting around it.

The distinction is important. While Dayal Opticals has greater scope for expansion, Brooke & Carter is intended to remain selective, opening only in locations that match its positioning.

Growth with a Clear Purpose

Dayal Opticals currently has 20 boutiques across India, with its presence concentrated in Delhi-NCR. Its expansion outside the region began with Mohali and Chandigarh in 2023. More recently, the brand entered Mumbai with a boutique in Kala Ghoda and opened another at DLF Summit Plaza in Gurugram.

Despite the opportunities in India's growing luxury markets, Sarvash is not looking at aggressive expansion. His benchmark is approximately two new stores a year, provided the brand can maintain consistent service standards.

He also sees considerable potential beyond metropolitan cities. Markets such as Lucknow, Ahmedabad, Pune, and cities in the Northeast are witnessing growing demand for premium products. “I want a customer walking into our Chandigarh boutique, Mumbai boutique, or Khan Market store to receive the same experience. That consistency is very important to us,” he added.

The Diwali season is giving India’s men’s personal-care market another growth opportunity, with consumers increasingly looking beyond traditional grooming categories towards products addressing specific skin and body concerns.

For men’s personal-care brand Mannlich, the festive period has translated into stronger demand across its portfolio, particularly for gifting. The brand’s gift pack has recorded a nearly 300% increase in daily orders during the festive season, highlighting the growing acceptance of personal-care products as gifting options during Diwali.

“The festive season brings an increase in personal-care purchases as consumers prepare for family gatherings, social occasions and travel. Alongside this, convenience is playing a greater role in how consumers shop for these products, with quick commerce making everyday personal-care essentials more accessible,” said Pritam Kudev, Founder & CEO, Mannlich.

While the company has seen steady demand across its wider portfolio rather than a sharp festive spike, products such as its De-Tan Body Wash, lip-care and body-care range are benefiting from consumers looking for solutions to specific personal-care needs.

Gifting opens new opportunity for men’s personal care

Mannlich’s festive performance points to a broader shift in how consumers are viewing men’s personal care. Traditionally associated with shaving, fragrances and basic grooming, the category is increasingly expanding into specialised skincare and body-care solutions.

Kudev said the brand was created to address gaps in the market around concerns such as body acne, tanning, pigmentation, chafing and intimate hygiene.

“When we started, we noticed that most men's grooming brands focused on appearance, shaving and fragrances, while concerns such as body acne, tanning, pigmentation, chafing and intimate hygiene received much less attention,” he said.

The brand currently has 10 live SKUs spanning body care, lip care, underarm care and intimate hygiene. Its formulations are developed with chemists in Germany and India, validated by Indian dermatologists and manufactured in India.

Mannlich’s product development strategy is centred on identifying specific consumer problems rather than following ingredient-led or trend-driven launches.

Quick commerce reshapes festive buying

The growing role of convenience is also influencing how consumers purchase beauty and personal-care products during the festive season. Quick-commerce platforms have made personal-care essentials increasingly accessible, particularly for last-minute purchases and everyday needs.

According to Kudev, Mannlich is strengthening its presence across quick commerce, online marketplaces and its own website to capture consumers across different shopping occasions.

The company is also using micro-influencers to demonstrate how its products address everyday concerns, as awareness of skincare ingredients and efficacy continues to increase among younger male consumers.

“Social media has made information about skincare more accessible and encouraged men to explore products beyond basic grooming essentials,” Kudev said.

AOV doubles as festive shoppers respond to offers

Mannlich has also seen a significant improvement in its festive-period average order value (AOV). According to the company, AOV has doubled during the festive period, as consumers respond to deals and promotional offers.

The company’s net revenue in September 2026 was approximately five times higher than September 2025, reflecting the brand’s expansion over the past year.

Kudev, however, said premiumisation in men’s personal care should not be viewed simply through the lens of higher prices.

“Premiumisation is not simply about spending more on higher-priced products. It is about offering better formulations and products that deliver tangible solutions to everyday concerns, while ensuring consumers get clear value for their money,” he said.

Mannlich targets ₹100 crore ARR

The festive momentum comes as Mannlich looks to scale rapidly after recording approximately ₹2.6 crore in monthly net revenue as of September 2026, equivalent to an annualised revenue run rate of around ₹30 crore.

The company said it has served more than 10 lakh customers since commencing operations in April 2023 and has achieved EBITDA profitability, alongside approximately 4X year-on-year revenue growth.

Mannlich has raised $294,000 in seed funding, led by BeyondSeed, and is now targeting ₹100 crore in ARR over the next 1.5 years. Over the longer term, it aims to build a ₹500–600 crore revenue run rate over five years.

The company plans to expand its existing categories while entering adjacent skincare segments, including face wash and sunscreen. It also intends to invest in original content and intellectual properties to strengthen brand recall and drive organic discovery and repeat purchases.

“We want to build a global skincare brand for men from India,” Kudev said.

With festive gifting adding a new consumption occasion to the category, Mannlich is betting that the next phase of men’s personal care growth will be driven not just by grooming, but by specialised, problem-solving skincare and body-care products.

India’s small-town consumers are emerging as a major growth engine for direct-to-consumer (D2C) brands, but lower order values, higher return costs and fragmented last-mile logistics are putting pressure on profitability.

According to Punit Gupta, Co-founder and CEO, EasyEcom, 57.2% of orders on the platform now originate from outside the top 96 cities, but these orders account for only 39.3% of total order value. The gap highlights both the scale of demand beyond metros and the challenge of making smaller baskets commercially viable.

“The demand is real, but each order is worth less, and every cost on that order matters more,” said Gupta. He added that brands succeeding in smaller towns are not necessarily those offering the deepest discounts, but those that keep inventory closer to customers, monitor failed deliveries and focus on driving repeat purchases.

Smaller packs over deeper discounts

For D2C brands looking to penetrate emerging markets, product architecture could play a bigger role than aggressive discounting.

Gupta said smaller packs and lower entry price points can help first-time customers experiment with a brand without forcing companies to sacrifice margins.

“A buyer in a smaller town is often trying the brand for the first time and wants a low-risk entry point. A smaller pack gives them that, and the brand does not have to give away margin to get the order,” he said.

While discounts can accelerate customer acquisition, Gupta cautioned that excessive promotions could train consumers to wait for the next sale. He suggested that brands reserve discounts primarily for clearing slow-moving inventory, while using pack sizes to attract new customers.

Inventory decisions need to become more granular

The ability to identify products that work in specific clusters of emerging markets will also be critical to controlling working capital.

Rather than committing large inventories upfront, Gupta recommended a test-and-scale approach, where brands place limited stock in regional warehouses and track sales, cancellations and returns at a pin-code or town-cluster level.

“Send a little, watch closely, then decide,” he said. Products that demonstrate sustained demand can receive additional inventory, while slower-moving SKUs can be pulled back before they tie up cash.

According to Gupta, national-level inventory data alone is insufficient for this strategy. Brands need visibility into what is selling across individual clusters of towns.

Returns emerge as the biggest profitability risk

While shipping and fulfilment costs are easier to track, returns can have a disproportionately large impact on the economics of low-value orders.

“Returns, first. Shipping and fulfilment costs are visible upfront, but returns hide in the numbers,” Gupta said.

He pointed out that when a cash-on-delivery order is returned, brands may effectively pay for two-way shipping, packaging and inventory that remains tied up in transit. For lower-value baskets, a single return can wipe out the margin generated by several successful deliveries.

Gupta said brands should therefore measure cost per delivered order after returns, region by region, rather than evaluating logistics costs in isolation.

Delivery density holds the key to lower costs

The cost of serving smaller towns varies significantly depending on shipment density. While metro delivery routes can carry dozens of parcels within a concentrated area, smaller-town routes often involve fewer shipments over longer distances.

“Density is the biggest reason,” Gupta said, adding that longer distances and multiple delivery attempts can further increase costs.

However, he believes economics can improve rapidly once order volumes build within a particular cluster. Regional inventory and order consolidation, he said, can have a greater impact on profitability than simply negotiating lower courier rates.

Rather than applying a universal minimum shipment volume to determine whether a town is commercially viable, Gupta suggested evaluating clusters of neighbouring towns together and tracking whether cost per delivered order fits within the brand’s margin.

“If both are true”, the cost fits within the margin and continues to decline as volumes grow, “the market is working for you,” he said.

COD remains a challenge beyond metros

Cash-on-delivery continues to be more prevalent in smaller towns, where consumers may be less familiar with online brands and prefer to pay only when the product arrives.

The model, however, can contribute to higher failed deliveries and return-to-origin rates. Gupta attributed this to a combination of consumer trust and logistical issues, including incomplete addresses and delays that can cause customers to lose interest.

Brands can reduce such losses by confirming orders before dispatch or offering small incentives for prepaid purchases, he said.

Regional fulfilment could reshape unit economics

For brands looking to improve profitability, moving inventory closer to demand could be one of the most effective levers.

“When stock sits closer to the buyer, the order reaches them sooner, and a faster delivery is less likely to be cancelled or refused at the door,” Gupta said.

He added that D2C brands do not necessarily need to build their own warehouse infrastructure. Shared fulfilment facilities can allow multiple brands to store inventory in the same region while splitting fixed costs.

Many third-party logistics providers working with EasyEcom already operate such shared warehouse models, Gupta said, allowing multiple brands to use the same facility while maintaining separate inventories.

Small-town growth is real, but profitability remains uneven

The shift towards smaller cities is therefore showing signs of structural improvement, but the transition is far from complete.

“Honestly, both,” Gupta said when asked whether brands are seeing genuine improvements in small-town unit economics or continuing to subsidise growth through discounts and customer acquisition spending.

Brands that have moved inventory closer to customers, improved order-level data and prioritised repeat purchases are seeing more sustainable economics, he said. Others continue to rely heavily on discounts and advertising to drive growth.

The festive season has further highlighted the challenge, with smaller baskets being seen in smaller towns compared with the previous year.

“Smaller towns clearly have the demand. What decides the outcome is whether the operations behind each order were built for these markets,” Gupta said.