New Delhi, Oct 1 (NationPress) Fashion and apparel brands represented nearly 60 percent of retail leasing by direct-to-consumer (D2C) brands in the first half of this year (H1 2025), according to a report released on Wednesday.

Following fashion, Homeware and Furnishings and Jewellery each constituted 12 percent, while Health and Personal Care accounted for 6 percent.

From 2020 to 2022, numerous digital-first brands experienced significant growth, largely driven by the surge in online shopping during the COVID-19 pandemic. These brands are now transitioning to an omnichannel approach.

As per CBRE's latest findings, the share of retail leasing by these innovative brands rose to 18 percent in H1 2025, up from 8 percent in H1 2024, as they increasingly utilize pop-ups, flagship stores, and franchise locations.

"While online shopping continues to expand, in-person purchases still make up a significant portion of transactions, underscoring the importance of omnichannel growth," stated Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East, Africa, CBRE.

Unlike the standardized online shopping experience, physical stores enable brands to cultivate a customized shopping atmosphere, fostering a deeper connection with their target consumers and reinforcing their values, he added.

The report emphasized that D2C brands are diversifying their outlet locations beyond just malls.

In H1 2025, an impressive 46 percent of total leasing by these brands occurred on High Streets.

"This was followed by 40 percent in Malls and 14 percent as standalone outlets. Furthermore, D2C brands are embracing various formats, including pop-up shops, showrooms, and traditional brick-and-mortar stores," the report noted.

Between January and June, Delhi-NCR had the largest share of retail leasing among major cities at 26 percent, with Bengaluru at 22 percent and Hyderabad at 18 percent.

Ram Chandnani, Managing Director, Leasing Services – CBRE India, mentioned that an offline presence allows brands to reach traditional customer bases and deepen their penetration into lower-tier towns.

“Physical stores enhance brand trust and credibility, reassuring customers about product quality. They also enable brands to craft a personalized shopping environment. This combination of digital outreach and offline experience is poised to shape the next chapter of India’s retail evolution,” he added.