Bombay Shirt Company has just opened its 20th retail store in India, situated in the vibrant Seawoods district of Navi Mumbai. Since its inception in 2012 as a trailblazing online custom shirt brand, Bombay Shirt Company has gained acclaim for its attentive customer service and unique in-store ambiance. Alongside their renowned custom shirts, tailored bottoms, and tees, they’ve now unveiled a collection of deluxe tailor-made blazers, all accessible at their newest retail outlet.
The innovative design of the new store breaks away from conventional product displays, opting instead for display boxes adorned with mannequins presenting each product category. Customers have the opportunity to explore a diverse range of fabric options for tailor-made shirts, blazers, jeans, chinos, and pants, with the added convenience of previewing their selected customizations on a large screen. Expert stylists are available to aid customers in choosing fabrics that align with their preferences and to navigate them through the complete customization process.
Akshay Narvekar, Founder and CEO, expressed, “Many of our customers who frequent the seven existing stores in Mumbai also reside in Navi Mumbai. With the new store layout, we aim to streamline the shopping experience by reducing visual clutter and enabling customers to make well-informed purchases that cater to their individual needs.”
Retail brands are actively expanding into religious cities, drawn by the burgeoning tourism industry and the opportunity to establish a presence in these promising markets.
Ayodhya, Ajmer, Katra, Somnath, Shirdi, Mathura, Bodh Gaya, and Madurai have witnessed the arrival of brands like Blackberrys, Manyavar, Spykar, Decathlon, and Fab India, among others.
As per CBRE, retail brands spanning various sectors such as fashion & apparel, food & beverage, hypermarkets, homeware & department stores, and consumer electronics are expanding by customizing their offerings to meet the needs of pilgrims.
“Government initiatives aimed at promoting tourism and enhancing connectivity between pilgrimage sites are bolstering this growth. Additionally, the emergence of online retail platforms providing convenient access to faith-based products and services is another significant factor,” stated Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE.
This trend mirrors a larger change in tourist preferences, as travelers increasingly seek transformative experiences beyond conventional rituals. The emergence of urban spiritual tourism caters to this inclination, drawing visitors to cities renowned for their profound religious and spiritual significance.
The report highlights Amritsar, Ajmer, Varanasi, Katra, Somnath, Shirdi, Ayodhya, Puri, Tirupati, Mathura, Dwarka, Bodh Gaya, Guruvayur, and Madurai as pivotal cities experiencing this surge in retail activity. Retail brands are strategically adjusting their offerings in established mall clusters as well as high-street locations to accommodate the expanding tourist demographic.
The rise in spiritual tourism is a result of improved infrastructure, including well-connected roads, airports, and public transportation, alongside the establishment of diverse accommodation options like hotels, guesthouses, and wellness centers.
In response to increasing demand for spiritual travel, local governments and businesses are collaborating to develop distinctive retail experiences.
Leading hotel operators are responding to the shifting needs of spiritual tourists by offering clean, sanitary, and family-friendly lodgings at premium prices.
Numerous cities are witnessing a robust influx of new hotel projects, with renowned brands such as Marriott, Taj, and Hyatt demonstrating significant interest in venturing into this market. Branded hotels are emerging as pivotal contributors, providing a fusion of comfort and traditional hospitality customized for spiritual travelers.
In India, a collaboration has developed between wellness centres and lodging firms to meet the needs of spiritual tourists. These wellness centres provide services such as yoga and Ayurveda to improve physical, mental, and spiritual wellbeing.
“Propelled by the increasing appeal of spiritual tourism, investors are rushing to capitalize on the market’s potential. This trend has opened up opportunities for the hospitality and retail sectors to flourish in these destinations,” remarked Ram Chandnani, Managing Director, Advisory & Transaction Services, CBRE India.
Lifestyle, the department store chain owned by Landmark Group, launched its first outlet in Aurangabad, marking the 24th addition to its portfolio in the Western region. Situated within the Prozone Mall on API Road, this new store spans across 22,000 square feet of retail area.
“We are excited to inaugurate the first Lifestyle store in Chh.Sambhaji Nagar. This is the 19th store in Maharashtra and the 112th across India. Expanding into new towns and markets is a goal for us, and this first shop in the region is a significant step forward,” said Vivek Thilakan, Senior Vice President – Operations (West) at Lifestyle International Pvt Ltd.
The new store is equipped with self-checkout options and provides an omnichannel experience, including services like ‘click and collect.’ This allows customers to shop online and collect their purchases from a Lifestyle store of their choice.
“We have ambitious expansion strategies in place. Our goal is to open approximately 4-5 stores in Gujarat and Maharashtra during the upcoming financial year. This expansion will encompass new towns as well as additional locations within existing cities,” Thilakan further elaborated.
Lifestyle is a large-format department store offering apparel, footwear, children’s wear and toys, furniture, home furnishings, and personal grooming products. Typically, a Lifestyle store spans an area of 20,000 – 50,000 sq. ft., varying based on location and product range.
The brand showcases over 350 national and international labels, including Louis Philippe, Van Heusen, Arrow, Park Avenue, Benetton, Nike, Adidas, Allen Solly, Levis, Tommy Hilfiger, Swatch, Tissot, and Tag Heuer.
The chain marked the inauguration of its 100th store in May 2023. It aims to launch a minimum of 50 new stores over the next three to four years to enhance its retail presence in the country.
During this year’s Holi festivities, liquor sales in Uttar Pradesh once again surpassed previous benchmarks. The excise department reaped a remarkable revenue of INR 17.75 crore, marking a significant 24% increase from the previous year. Compared to the INR 14.25 crore generated in 2023 from retail sales of beer, foreign liquor, and country liquor, this season saw a notable uptick, with an additional INR 3.5 crore in revenue.
Weather conditions resulted in an increased sale of beer cans, with a corresponding rise in demand for Indian Made Foreign Liquor (IMFL). Despite shops being closed on the day of festivities, known as a dry day, the excise department evaluates the demand and supply scenario two days prior.
Shops were closed on March 25, but by that time, enthusiasts had already stocked up on their favorite drinks on March 23-24. Similarly, last year, Holi was celebrated on March 8, and the department took into account the sales figures from March 6-7.
Rakesh Singh, the District Excise Officer, mentioned that last year the temperatures were not as high. “Initially, we were concerned and anticipated lower sales since Holi fell towards the end of the month,” Singh commented.
Another factor contributing to the influx of liquor patrons at retail vends was the vigilant monitoring of illicit liquor trade on the outskirts and neighboring districts, as well as continuous surveillance of the UP-Haryana border in the national capital region.
Devesh Jaiswal, spokesperson for the Liquor Sellers’ Welfare Association in UP, commented, “I believe the youth are more inclined towards enjoying the festivities rather than being concerned about financial difficulties. A majority of the bulk buyers who purchased large quantities of beer cans from retailers in Gomtinagar, Indiranagar, Sushant Golf City, Hazratganj, Mahanagar, and Aliganj were in the 25-50 age bracket and made their payments using credit cards.”
“Last year, we had nearly 3,000 food orders during the month of Holi, with less than 100 orders on the actual day of Holi. According to Shireesh Joshi, ONDC’s chief business officer, more than 30,000 orders were placed everyday through the Open Network for Digital Commerce (ONDC) throughout this year’s Holi extended weekend (Saturday, Sunday, and the holiday).
He further mentioned that the network is nearing the milestone of 600,000 food delivery orders for March, marking a staggering 200-fold increase compared to the previous month.
Speaking about the role of the food delivery category, Joshi remarked, “A year ago, food was the sole category on ONDC. Now, food constitutes only a small portion of our sales. This is positive news as we have expanded into numerous other categories and regions.”
In recent months, prominent food brands like McDonald’s North and East, Domino’s, Rebel Foods, and Biryani By Kilo became part of the ONDC.
ONDC saw approximately 7 million transactions in February.
Delhi-based Mr Makhana is gearing up to broaden its retail footprint in the UK with its healthy popped lotus seed snacks.
Founder Rishab Jain mentioned that the brand is “in discussions with several distributors” to introduce its products to major UK retailers.
When questioned about the retailers, Jain mentioned Tesco and Sainsbury’s.
He anticipates finalizing the discussions “hopefully within the next two to three days.”
A select range of Mr Makhana products has been available for purchase in the UK via Amazon since January.
Jain stated that the goal for 2024 is to “secure a distributor, introduce the product to retail stores, establish a network of outlets, and assess the product’s performance and feedback.”
Elaborating on the reasoning for expanding into the UK, Jain said, “There’s a perception that the product is only for the Indian or ethnic market, but I believe the taste is quite universal. We can cater to everyone.”
As part of its strategy, the company is creating new flavors tailored for the UK market to help consumers “adjust to the taste,” Jain noted, introducing options such as cheddar cheese, truffle, and smoky barbecue.
Mr Makhana offers a variety of makhana snacks, also known as popped fox nuts or lotus seeds from the water lily plant.
The company’s selection features chocolate-coated makhana, along with savory flavors like Pudina Party, Piri Piri Paradise, Butter Tomato, and Lime & Chilli.
Apart from India, Mr Makhana’s primary markets are in the GCC countries like Oman, Saudi Arabia, and the UAE, as well as Canada. The brand also has sales in Japan and the US.
Established in 2015, the company relied on outsourcing until 2019 when it established its first local production facility in Ahmedabad. It continues to use this site to supply the domestic market.
Last April, the company established a facility in Dubai to cater to customers outside of India.
The Indian plant produces approximately 50 tonnes of makhana snacks per month, whereas the Dubai facility has an annual capacity of 24 tonnes.
Last year, the company’s total annual production capacity was approximately 600 tonnes, with plans to increase it to 800 tonnes annually in the future, according to Jain.
Mr Makhana recorded a total annual turnover of around $43 million in 2023, with approximately $40 million generated within India.
Simpl, India’s leading Checkout Network, has strengthened its partnership with the food ordering and delivery platform, Zomato. The collaboration will integrate Simpl’s 1-Tap Checkout with Zomato Gold, Intercity Legends, and Zomato Everyday. This initiative aims to enhance convenience for millions of customers nationwide, improve conversion rates, increase the average order value, and promote user retention among other platform benefits.
This integration aligns with Zomato’s broader vision of providing customers with superior food options conveniently. With these integrations, millions of new and existing customers are anticipated to utilize Simpl’s 1-Tap Checkout on Zomato for various needs, thereby broadening the user base for both companies. This is particularly noteworthy as Simpl has surpassed 100 million checkouts on Zomato within six years since 2017, underscoring a strong consumer preference for streamlined checkout experiences.
Additionally, the expansion will be fueled by the rising influx of customers from tier-3 cities and beyond transitioning to online platforms, alongside a surge in order frequency from customers in metropolitan and tier-1, 2 cities. With an increasing number of customers opting for online convenience through Simpl’s 1-Tap Checkout, both companies anticipate a substantial enhancement of their customer base in the coming years.
Nitya Sharma, Founder and CEO of Simpl, remarked, “In today’s e-commerce landscape, convenience is emerging as a significant differentiator, following selection and affordability. This is especially true for food ordering and delivery, where transactions are more frequent than any other category. It highlights the importance of a seamless checkout solution that minimizes transaction failures and provides a one-tap experience. These core principles have facilitated over 100 million transactions on Zomato to date. We are enthusiastic about expanding our reach with offerings like Zomato Gold, Intercity Legends, and Zomato Everyday, further strengthening our presence in this sector.”
The success rate for checkout using Simpl’s 1-Tap on Zomato is an impressive 99%, showcasing customers’ growing preference for the added convenience of 1-Tap Checkout. Simpl’s contribution to the platform has seen substantial growth over the past five years, with per-user spending via 1-Tap checkout increasing by almost 27 times since 2018. The platform recorded its highest-ever single transaction on New Year’s Eve 2024, which was INR 18,807 through Simpl’s 1-Tap Checkout on Zomato.
“Our goal is to consistently provide outstanding and convenient customer experiences. Simpl has been a trusted partner for a long time, and integrating their services has enabled us to offer our customers 1-Tap access. This enhances their interaction with our platform, making it seamless and hassle-free,” stated Rakesh Ranjan, CEO of Food Delivery at Zomato.
Simpl’s 1-Tap Checkout, accessible at 26,000 merchants, provides the ease of completing a purchase with just one tap, boasting near-zero transaction failures and is favored by millions of consumers. Presently, numerous major enterprises and emerging Direct-to-Customer (D2C) merchants in the food and hyperlocal delivery sectors offer Simpl’s 1-Tap Checkout to millions of customers nationwide.
Consumers could soon see higher prices for their favorite Cadbury bars and chocolate cookies. The increase in cocoa prices, due to a global supply shortage, is raising production costs for companies. As a result, these companies might pass some of these additional expenses onto customers.
Major chocolate producers such as Mondelez, Hershey’s, and Nestle, along with local artisanal chocolate makers and biscuit manufacturers, are expected to feel the impact. As cocoa prices surpass $10,000 per ton for the first time, companies are encountering substantial challenges in controlling their expenses.
Industry experts caution that companies, particularly those targeting price-conscious consumers, will face difficulties in preserving their profit margins due to the higher cost of sourcing cocoa. This challenge is intensified by an anticipated 8% reduction in cocoa supply for the 2023-24 season, mainly because of supply disruptions in major cocoa-producing countries like Cote d’Ivoire and Ghana.
Some companies are already considering raising prices to counter the rising costs. Others are exploring alternative approaches, like reducing package sizes and using cocoa butter substitutes approved by the Food Safety and Standards Authority of India (FSSAI). Nevertheless, these strategies may offer only short-term relief.
For artisanal chocolate makers who depend on fine flavor cocoa, the situation is especially tough. The diminishing price gap between fine flavor cocoa and bulk cocoa, combined with supply challenges, jeopardizes their pricing strategies and profitability.
In light of these challenges, companies are exploring different solutions, such as looking for more affordable alternatives and renegotiating contracts with suppliers. However, the ongoing uncertainty surrounding cocoa prices continues to be a major worry for the industry.
The allure of the ‘bottom of the pyramid’ appears to be waning for major consumer goods manufacturers. Over the past two years, they’ve introduced a greater number of premium products compared to those aimed at the mass market across various categories, as indicated by data from companies and market researchers.
Experts have pointed out that inflation in the last financial year significantly impacted sales in the mass segment. As prices rose across various products, economic strain persisted among low to middle-income groups, showing little improvement since the onset of the pandemic.
Over the past two years, more than 70% of the new products introduced by India’s leading consumer goods manufacturer, Hindustan Unilever, were in the premium category. Similarly, ITC Ltd saw approximately 65% of its new personal care products launched in the premium segment, doubling the segment’s contribution to the division’s sales to 38% over the last four years. For Parle Products, the country’s largest biscuit maker, around 60-65% of new product launches were in the premium segment, up from 40% before the Covid pandemic.
According to the electronics industry market researcher GfK, the number of new smartphone models priced below INR 12,000 introduced in 2019 was about 370, which decreased to 175 in the calendar year 2023.
Conversely, the introduction of new models priced above INR 20,000 increased from 120 in 2019 to 175 last year. It’s worth noting that many smartphone manufacturers had exited the sub-INR 10,000 market during the peak inflation of 2022 but returned to this price segment the following year.
In terms of sheer numbers, the introduction of new mass-segment televisions with screens of 43 inches and below is still increasing, but at a slower rate compared to more expensive models. The segment witnessed 70 more models launched in 2023 than in 2019. In contrast, the number of new premium televisions with 44 inches and larger screens increased by 110 models during the same period, according to GfK.
Due to the ongoing impact of the pandemic on mass-market product sales, companies like Dabur, Emami, Samsung, LG, Xiaomi, Vivo Mobiles, and Haier have also launched more premium versions than entry-level ones.
“Large FMCG companies are ramping up their focus on premiumisation due to higher profit margins, particularly since the costs of product placement in both modern and general trade, as well as selling fees in e-commerce, has increased,” stated Mayank Shah, Vice President of Parle Products. “Additionally, the competition in the mass-market segment has intensified, with smaller regional players re-entering the market aggressively following a decrease in input costs last year. In the premium segment, competition remains relatively low, prompting bigger companies to primarily launch premium products. Manufacturing packs priced at INR 5 in large quantities has become less profitable due to rising packaging costs, leading to a natural shift towards INR 10 packs.”
Driven by consumer willingness to pay more for convenience, quality, and advanced features, manufacturers are increasingly expanding their premium offerings, according to Anant Jain, Head of Customer Success, India, at GfK. “This trend is being propelled by promotions, discounts, consumer financing, and the PLI scheme,” he added.
Data from FMCG market researcher NielsenIQ reveals that in 2022, four out of 10 new biscuit launches were packs priced above INR 20, promoting premiumisation. This proportion increased to five out of 10 in 2023. In the skincare sector, premium pack launches were even more predominant, constituting half of the total offerings.
The trend seems to contradict the bottom-of-the-pyramid theory advocated by management guru CK Prahalad and others, which was previously popular among Indian companies.
The growth of online platforms is also contributing to this trend.
“Premiumisation is also on the rise due to the convenience of reaching consumers through e-commerce. Value-added products are gaining more traction because of this,” noted social commentator and brand specialist Santosh Desai. “Although the bottom-of-the-pyramid and mass market segments do exist, they are widely scattered, making profitability a challenge for companies at the mass-market end.”
Premium skincare brands led the way in new launches, increasing their value contribution from 67% to 75% between 2022 and 2023, while also boosting volume contribution from 36% to 43% during the same period, according to Roosevelt Dsouza, Head of Customer Success, India, at NielsenIQ.
Industry executives noted that the emphasis on premium launches is a response to the evolving business landscape post-Covid and does not necessarily overlook consumers at the bottom of the pyramid.
Angshu Mallick, the Chief Executive of Adani Wilmar, stated that all companies aim to enhance margins, hence the push towards premiumisation.
“However, accomplishing top-line and volume growth will be challenging without mass-segment goods, as the contribution of premium products to sales in most categories continues to be in single digits,” he said.
Rajat Nanda, Business Head at CavinKare, mentioned that with evolving lifestyles and the growth of channels like e-commerce and modern trade, consumers are increasingly willing to pay more. CavinKare is recognized for pioneering the introduction of sachets.
“Consumers are shifting towards purchasing shampoo in bottles, so we are now focusing on bottles as well. We offer entry-level bottles of 80 ml at an average price of INR 55, which has been performing very well. While sachet sales have declined by a few percentage points over the past year, bottle sales for shampoos have seen faster growth,” Nanda explained. “There is a deliberate effort to upgrade consumers in e-commerce and modern trade channels. We are also targeting consumer upgrades and have introduced premium variants of Meera and Nyle shampoo.”
However, in the general trade sector, consumers are still opting for entry-level packs and even downgrading their purchases. “Sachets make up 70% of our shampoo sales, and this has remained consistent over the past two years,” he noted.
According to a report by ICICI Securities released on March 26, unlisted FMCG multinationals that focus on premium products and digital-first brands are gaining market share over their listed counterparts. This trend is particularly pronounced in the beauty and personal care sector, the report noted.
Ace Turtle, a retail tech company, has inaugurated the third Toys“R”Us store in India, located in Bengaluru at Bhartiya Mall near Hebbal. The new store spans 6,200 sq. ft. of retail space.
“We are excited to introduce Toys“R”Us to Bengaluru with our new store at Bhartiya Mall,” said Nitin Chhabra, CEO of Ace Turtle. “More than just a shopping venue, this expansive store will also serve as a holistic recreational area for children and families, featuring a diverse range of toys tailored to different interests and age groups.”
Toys“R”Us currently operates two stores in India: the retail outlet in Hyderabad, marking the brand’s comeback to the country, and the newly opened flagship store in Mumbai, spanning 12,000 sq. ft. and being India’s largest high-street toy store.
The company plans to launch 12 Toys“R”Us stores in 2024.
“Given the rapidly growing client base, we see tremendous opportunity for organised toy commerce in India. By encouraging toy manufacture domestically, Toys“R”Us’ growth will boost the Government of India’s ‘Make in India’ drive, Chhabra added.
In addition to several Indian brands like Playshifu, Funskool, and Winmagic, the store offers a variety of foreign brands like Lego, Hasbro, and Mattel.
“We are happy to welcome Toys”R”Us’ first Bengaluru location at Bhartiya Mall,” Bhartiya Urban Vice Chairman Arjun Aggarwal remarked. “This well-known brand offers kids and families a fantastic shopping experience. We anticipate that parents and kids will come to love this place.”
Founded in 1957, Toys”R”Us is an American retailer specializing in toys, clothing, and baby products. The brand achieves over $2 billion in global retail sales each year through its 1,350 stores and e-commerce operations across more than 30 countries.
Toys“R”Us entered the Indian market in 2017 in collaboration with Tablez India, a division of Abu Dhabi’s Lulu Group International, under an exclusive master franchise agreement. Although initially planning to open over 200 stores after launching the global toy brand in India in October 2017, the company only managed to open 14 stores, which closed within three years of operation.
In June 2021, Bengaluru’s Ace Turtle partnered with Flipkart Group’s Wholesale Entity in India to secure the license for Toys“R”Us and Babies”R”Us in India through a strategic agreement with WHP Global.
Established in 2013, Ace Turtle is the exclusive licensee for global retail brands like Lee, Wrangler, and Dockers in India and other South Asian markets.
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