Did Fashion and Apparel Brands Dominate D2C Leasing in H1 2025?
Click to start listening
Synopsis
Fashion and apparel brands have captured almost 60% of the retail leasing market in H1 2025, according to a recent report. This significant trend highlights the growing importance of omnichannel strategies for D2C brands, as they navigate the evolving retail landscape and seek to connect more deeply with consumers.
Key Takeaways
- Fashion and apparel brands lead with 60% of retail leasing.
- Growth in D2C brands is driven by omnichannel strategies.
- 46% of leasing occurred on High Streets.
- Delhi-NCR tops retail leasing at 26%.
- Physical stores enhance brand trust and customer engagement.
New Delhi, Oct 1 (NationPress) Fashion and apparel brands represented almost 60% of the retail leasing activity by direct-to-consumer (D2C) brands during the first half of this year (H1 2025), according to a report released on Wednesday.
Following closely were the Homeware and Furnishings segment at 12%, Jewellery at 12%, and Health and Personal Care at 6%.
From 2020 to 2022, various digital-first brands experienced significant growth, largely driven by the surge in online shopping amid the COVID-19 pandemic. These brands are increasingly adopting an omnichannel approach.
CBRE's latest findings revealed that the proportion of retail leasing by these emerging brands has increased from 8% in H1 2024 to 18% in H1 2025, as they capitalize on pop-ups, flagship stores, and franchise models.
"While online shopping continues to expand, in-store purchases still comprise the majority of transactions, making omnichannel growth crucial," stated Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East, Africa, CBRE.
He emphasized that, unlike a standardized online shopping experience, a physical store creates a customized shopping atmosphere that fosters a deeper connection with the target audience and reinforces brand values.
The report also pointed out that D2C brands are diversifying their outlet locations beyond just malls. In H1 2025, an impressive 46% of total leasing was on High Streets, 40% in Malls, and 14% as standalone outlets. Furthermore, these brands are exploring various formats, from pop-up shops and showrooms to conventional brick-and-mortar establishments.
Between January and June, Delhi-NCR led in retail leasing among major cities, accounting for 26%, followed by Bengaluru at 22% and Hyderabad at 18%.
According to Ram Chandnani, Managing Director, Leasing Services – CBRE India, having an offline presence enables brands to engage with traditional customer bases and extend their reach into lower-tier towns.
“Physical stores build trust and credibility for brands, assuring customers of product quality. They also provide an opportunity to create a tailored shopping atmosphere. This combination of digital reach and offline experience is poised to shape the future of India’s retail growth," he added.
Point of View
I believe this report underscores a critical shift in the retail sector. The ability of D2C brands to adapt and thrive through omnichannel strategies is a testament to their resilience and understanding of consumer needs. This trend signifies a broader transformation in the retail landscape where physical stores play a vital role in enhancing brand credibility and customer engagement.
NationPress
01/10/2025
Frequently Asked Questions
What percentage of retail leasing is attributed to fashion and apparel brands in H1 2025?
Fashion and apparel brands accounted for nearly 60% of retail leasing by D2C brands in H1 2025.
Which sectors followed fashion and apparel in retail leasing?
Homeware and Furnishings, Jewellery, and Health and Personal Care sectors each accounted for 12%, 12%, and 6% respectively.
What is the significance of omnichannel strategies for D2C brands?
Omnichannel strategies are crucial as they allow brands to connect deeply with their audience and enhance customer experiences through both online and offline channels.
What percentage of retail leasing was on High Streets in H1 2025?
46% of total leasing by D2C brands was on High Streets in H1 2025.
Which city saw the highest share of retail leasing in H1 2025?
Delhi-NCR saw the highest share of retail leasing at 26% in H1 2025.
