NEWME Aims to Grow by 5X in Next Financial Year
NEWME Aims to Grow by 5X in Next Financial Year

NEWME, the fast fashion tech company, has launched its fifth experience store in Hyderabad. As the largest store to date, the brand is targeting the city's growing tech-savvy and Gen Z population. The company aims to grow by 5x in the next financial year, with plans to open 40-50 stores in 20 key cities across India's top malls and high streets over the next 12-18 months.

NEWME has established a strong online presence and recognizes the shift towards a 'Phygital Retail' experience. Following the success of its stores in Bengaluru, Mumbai, and Chandigarh, the brand opened its latest experience store in Sarath City Mall, Hitech City, Hyderabad. The city consistently ranks among the top 5 for NEWME's online business.

Expansion in the South

Against the backdrop of the store launch, Sumit Jasoria, Co-founder and CEO of NEWME spoke to IndianRetailer.com and discussed the company's growth and expansion strategies. Regarding the launch of the fifth store in Hyderabad, Jasoria said, “We are thrilled to announce the launch of our 5th experience store, and our first in Hyderabad. This is our largest retail outlet in the country and reflects our commitment to growing accessibility for our Gen Z women customers across India.”

He continued, “Hyderabad has consistently shown up as a key market for NEWME. Data is at the heart of our business, and we've seen a significant portion of our online shoppers residing in this vibrant city. Opening our largest store here allows us to cater to this enthusiastic customer base and provide them with a truly immersive shopping experience.”

Explaining the choice of Hyderabad for their latest store, Jasoria said, “We believe Hyderabad's thriving fashion scene and growing tech-savvy population perfectly align with NEWME's vision. We are confident that our innovative approach to fashion and aesthetically inspirational stores will resonate with Gen Z women in Hyderabad, offering them a seamless blend of online and offline experiences.”

NEWME, the fast fashion tech company, has launched its fifth experience store in Hyderabad

Spike in Offline and Online Sales

According to the latest PayNearby report, titled ‘Atmanirbhar Bharat Digital Empowerment, the local retailers in Telangana have taken a commanding lead in the e-commerce sector, witnessing an astonishing 1100 percent growth in transactions.

Discussing the growth in online sales, Jasoria said, “We have been fortunate to receive tremendous customer love over the last two years and feel that we have a long way to go. At NEWME, we focus on our vision to offer the latest fashion trends quickly to our customers, rather than solely on sales growth.”

“We strongly believe that if we continue to refine our offerings, we can grow significantly in the next few years. With this mission in mind, we set ambitious targets and strive to achieve them. We aim to grow the business 4-5 times in the next financial year.”

With five offline stores now, NEWME aims to gain 30-40 percent of its sales from experience stores in the next 3-4 years. Jasoria said, “Given our limited offline presence, our brick-and-mortar business currently contributes a smaller percentage to our overall revenue. While online sales dominate, we are actively investing in expanding our offline presence to capitalize on opportunities in both digital and physical retail platforms.”

He further said, “Our long-term goal is to create a seamless shopping experience for our customers, whether they choose to shop online or visit our stores, ultimately driving growth and establishing a strong market position for NEWME in both channels. We aim to have 30-40% of our sales coming from offline experience stores in the next 3-4 years.”

When asked about customer retention and growth among first-time buyers, Jasoria said, “As mentioned, we have received massive customer love over the last two years, serving more than 600,000 customers across India. Most have been first-time buyers since we are a very young brand, started just two years ago. While we can't share exact retention rates, we enjoy one of the best in the industry and constantly strive to improve it.”\

NEWME, the fast fashion tech company, has launched its fifth experience store in Hyderabad

Agility and Expansion

Fast fashion companies face the challenge of keeping up with evolving fashion trends, which also pressures inventory management. Jasoria explains, “We typically introduce 500 new designs every week. Central to our market positioning is our supply chain agility, operated through our tech solution deployed across partner factories, allowing precise control over the entire production process.”

Elaborating further, Jasoria said, “From sourcing materials to final delivery, we ensure tight quality control. Our proprietary data science models provide detailed insights into design lifecycles, helping us predict demand and production capacities. This tech stack has been the backbone of our journey since day one.”

After launching its fifth store in Hyderabad, NEWME has major expansion plans for the next 12-18 months. Jasoria said, “We are a young brand in the dynamic fashion space. Our vision is to put India on the world fashion map and empower the young to express their individuality by staying on trend. Over the next 12-18 months, we are focusing on growth by opening 40-50 stores in 20 key cities. We plan to open stores in top malls and high streets across India, bringing the 'World of NEWME' to life in ways no other brand have done in India.”

India as Sourcing Destination? 

With Indian government planning to enhance its Made in India extension to its existing Make in India India initiative launched in 2014. During the pandemic the world was looking at reducing the supply chain dependence on China, multiple brands and multinational companies set up manufacturing units in India.

When asked about the sourcing of its merchandises, Jasoria said, “Currently, over 40% of our merchandise is sourced from India, reflecting our strong commitment to supporting local industries and leveraging the expertise and craftsmanship available within the country.”

He further said, “We recognize the immense potential that India holds as a sourcing destination, and we are dedicated to further scaling our sourcing activities within the country. Through the integration of innovative technologies and advancements across our supply chain, we aim to enhance efficiency and streamline our operations, thereby facilitating the expansion of our sourcing capabilities in India. We have deployed our own Tech solutions in our partner factories which allows us to scale the business massively and at the same time makes these factories ready to compete with some of the best fashion brands in India.”

He further explained, “While a significant portion of our merchandise is currently sourced domestically, we maintain a global outlook in our sourcing strategy, ensuring that we have access to a diverse range of products and suppliers from around the world. This balanced approach allows us to offer a wide variety of fashion choices to our customers while also supporting local economies and fostering sustainable sourcing practices.”

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