PepsiCo India rides high on in-home consumption trend, records highest product launches since 1995

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January 17, 2024

PepsiCo India, a prominent player in the beverage and snacks industry, has diversified its food portfolio with several launches over the past two years. This expansion was driven by the increased in-home consumption trend during the pandemic, which has continued for the brand.

Earlier this month, the leading fast-moving consumer goods (FMCG) company introduced three new variations within its Quaker Oats brand.

Last year, the company unveiled four new releases and introduced seven diverse variants in its snacks and chips portfolio.

In 2022, the company introduced five new launches and unveiled eight flavors within the same space.

This marked the highest number of product launches by the company since 1995, the year it introduced the Lay’s brand.

The company explained that the surge in launches was prompted by the increasing demand for snacks and chips amid the pandemic.

PepsiCo India president Ahmed ElSheikh said, “This promises to be India’s decade for sure, and at PepsiCo India we are excited to participate in this incredible journey the nation is undergoing. The Indian consumer is ever more discerning, and the exciting shifts in consumer behaviour have propelled us to keep innovating. 2023 marked further investment and expansion for PepsiCo India across foods and beverages portfolio.”

“We are very proud to have commenced work on our greenfield foods manufacturing facilities in Assam while our partners are also in expansion mode as they continue to set up facilities across the country. We are very bullish on the Indian growth story and will continue to keep in step with it through our investment plans,” he added.

Sravani Babu, the Associate Director and Category Lead for Quaker Oats, said that although oats as a category is still in its early stages compared to other FMCG categories, it is experiencing double-digit growth.

Continue Exploring: PepsiCo’s Quaker brand eyes wider reach and market share with new instant oats lineup

“Flavour oats is still a nascent category and is growing at double-digit growth. Base oats category continues to be the leading segment in the category. With this launch, we are looking at occasions which are breakfast and beyond,” Babu explained.

She mentioned that while the company has currently launched these three flavors, there are plans to expand and diversify its portfolio of offerings.

Looking ahead, Babu mentioned that there are additional launches in the pipeline.

In August 2022, the company introduced multigrain oats as one of the five launches made during the year.

E-commerce and Quick Commerce Boosting PepsiCo India’s Reach

Saumya Rathore, the Category Lead for potato chips at PepsiCo India, mentioned that the patterns of in-home consumption shifted during the pandemic. Additionally, with quick commerce gaining traction, it has further fueled demand.

“Consumer habits take decades to evolve but the pandemic has crunched that,” Rathore explained.

Rathore and Babu also emphasized that both e-commerce and quick commerce are contributing to the expanded penetration of snacks in the country.

Aligning with the changing consumption trend in foods, PepsiCo India announced its first food manufacturing plant in Nalbari, Assam, with an investment of INR 778 crore ($95 million). This unit, spanning 44.2 acres, is set to be operational by 2025.

Similar to PepsiCo India, other major players such as Amul and ITC have maintained an aggressive stance on product launches, particularly during and following the pandemic.

Italian restaurant chain Prezzo to launch takeaway outlets in UK train stations

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January 16, 2024

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Prezzo, the Italian restaurant chain, is gearing up to enhance its footprint in the UK. According to the Daily Telegraph, the company is set to introduce a new line of takeaway pasta and pizza shops at train stations.

Its goal is to rival well-established brands such as SSP’s Upper Crust and Pret A Manger in the competitive market.

The strategic move is in response to the challenges faced by traditional sit-down dining establishments, which have been under pressure due to inflation and the cost of living crisis.

Prezzo CEO Dean Challenger was quoted by the Telegraph as saying: “Train stations have options like Upper Crust, KFC, Burger King – but there’s nothing available at a slight level above these. I think there’s a gap there.”

Founded in the year 2000, Prezzo underwent substantial expansion during the casual dining boom in the late 2010s, achieving a milestone of 300 restaurants across the UK.

However, the current economic conditions have severely impacted the chain, resulting in the closure of 46 establishments and the unfortunate loss of 700 jobs in the year 2023.

Having scaled down to 96 locations, the company views the introduction of the new Prezzo Pronto takeaway concept as a chance to expand its footprint to 120 outlets.

Challenger mentioned that the plans are in their initial phases, as the company delves into the transition away from conventional sit-down dining.

The Prezzo Pronto menu is designed to meet the growing demand for fast and convenient dining choices. It will feature takeaway pasta and pizza slices, both of which have demonstrated popularity in the US market.

Despite its recent downsizing, the company is optimistic about potential growth through the Prezzo Pronto initiative.

The objective of the new stores is to draw in customers who are already engaged in shopping or other activities.

“We’ve got a model that works because pasta and pizza are relatively quick,” Challenger stated. “Any new sites that we look at will be in high footfall areas where people are looking for a brand they know.

“Shopping centres normally prefer to use chains because of the brand recognition – there’s less risk – and there will always be a space for casual dining brands wherever there are tourists.”

Continue Exploring: Popular pizza chain Papa John’s set to close dozens of UK locations amid rising cost

US non-alcoholic spirits market projected to soar to $13 Million by 2027: GlobalData Report

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January 16, 2024

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Data indicates that the emerging market for non-alcoholic spirits in the United States is projected to reach $13.3 million by 2027, driven primarily by expansion in on-premise sales.

According to GlobalData analysis, the United States generated around $8.93 million in revenue in 2022, selling approximately 32,222 nine-litre cases (equivalent to 290,000 liters) of non-alcoholic spirits during that period.

The analytics and consulting firm forecasted that this figure could increase to 40,000 nine-litre cases (equivalent to 360,000 liters) by the year 2027.

In terms of volume, the on-premise and foodservice channel is anticipated to experience faster growth compared to the off-trade, recovering to pre-pandemic levels by the year 2025.

Most non-alcoholic beverages are distributed through off-premise channels in the United States. In 2022, the off-trade accounted for nearly double the volume sold in on-premise and foodservice outlets. Nevertheless, by 2027, the on-premise sector is expected to close the gap.

According to GlobalData’s report, “United States Spirits – Market Assessment and Forecasts to 2027,” Diageo emerged as the leading player in the US non-alcoholic spirits market in 2022. This dominance was driven by Diageo’s brands, including Seedlip, Aecorn, and Tanqueray 0.0%.

Following closely, the second-largest player was the domestic producer Spiritless, boasting Kentucky 74 and Spiritless. Dry Soda’s Non-Alcoholic Botanical Bubbly and Pernod Ricard’s Ceder’s were also notable contenders in the market.

It comes as non-alcoholic spirits producers have highlighted the potential of the US market.

In December, the Australian non-alcoholic beverage company Lyre’s reported triple-digit growth in the US for the previous year and announced plans to concentrate its efforts in both the US and the UK in 2024.

Co-founder Carl Hartmann said, “We’ve got so much new business and wins that you’ll see into 2024 that we can’t take our eye off the prize in both markets and, you know, certainly not to discount other markets that have potential, but that just don’t have the materiality to move the needle as a market like the US does, for example.”

The Scottish manufacturer Spirits of Virtue recently launched its collection of non-alcoholic spirits in the US, expressing confidence that the market was “ready to go pop.”

Roddy Nicoll, co-founder and CEO of the Clydebank, Glasgow-based distillery, said the UK was seen as an experienced market from which US distributors were keen to learn.

“As a UK-based exporter, we’re not just exporting quality liquids, we’re exporting knowledge of where the market’s going to go,” he said. “My [US] export partners are greediest to know: ‘Tell me what’s coming. How do we position ourselves?’”

Spirits of Virtue’s US distributor initially shipped a 40ft container containing 19 SKUs, and subsequently, they doubled that order, amounting to approximately 45,000 bottles. “In non-alcoholic terms, that’s a substantial quantity,” remarked Nicoll.

The Mark Anthony Group, owner of the White Claw brand, dominated the overall alcoholic spirits market in the US with a 15.9% share. Just last month, the Canadian beverage company introduced a non-alcoholic variant of its flagship White Claw hard seltzer.

Continue Exploring: Indigenous spirits shine: India’s liquor exports soar, set to break $1 Billion barrier

Consumer advocacy group files lawsuit against Starbucks for deceptive ethical sourcing

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January 16, 2024

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The National Consumers League (NCL), a US-based consumer advocacy organization, initiated legal proceedings against Starbucks last week.

The legal action contends that Starbucks, the international coffee company, has falsely advertised its tea and coffee as entirely ethically sourced, despite obtaining supplies from farms in Kenya, Brazil, and Guatemala linked to human rights violations.

The filing claims that there is extensive evidence indicating that the company depends on farms and cooperatives engaged in egregious labor and human rights abuses.

Submitted in the Superior Court of the District of Columbia, the lawsuit highlights Starbucks’ efforts to portray itself as a frontrunner in ethical coffee and tea sourcing. Contrary to the promotional assertions of ethical sourcing, the case contends that Starbucks’ marketing “misleads consumers and neglects to communicate the extensive sourcing from coffee and the farms and cooperatives with a documented history of child labor, forced labor, sexual harassment, assault, and other human rights abuses.”

Sally Greenberg, chief executive officer of NCL, said, “On every bag of coffee and box of K-cups sitting on grocery store shelves, Starbucks is telling consumers a lie. The facts are clear: there are significant human rights and labour abuses across Starbucks’ supply chain, and consumers have a right to know exactly what they’re paying for. NCL is committed to exposing and reining in these deceptive practices and holding Starbucks accountable for living up to its claims.”

The group said in its court filing, “Starbucks’ failure to adopt meaningful reforms to its coffee and tea sourcing practices in the face of these critiques and documented labour abuses on its source farms is wholly inconsistent with a reasonable consumer’s understanding of what it means to be ‘committed to 100% ethical’ sourcing”.

“Similarly, Starbucks’ failure to disclose to consumers the unreliability of these certification programmes and their limitations as a guarantee of ethical sourcing are misleading omissions material to the decision-making of a reasonable consumer.”

Continue Exploring: Starbucks reaches out to union in a bid to resolve tensions with frontline workers

Mother dairy unveils buffalo milk variant in Delhi-NCR, aims for INR 500 Crore brand by March 2025

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January 16, 2024

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Mother Dairy has introduced a buffalo milk variant in the Delhi-NCR market, aiming to establish this new segment as a INR 500 crore brand by March next year.

At present, Mother Dairy supplies 35-36 lakh litres of milk daily in the Delhi-NCR region and 45-47 lakh litres per day across the country. The company distributes milk in pouches and through milk booths in the Delhi-NCR area.

“We are launching buffalo milk at INR 70 per litre. We are introducing this variant in Delhi-NCR,” said Mother Dairy Managing Director Manish Bandlish in an interview.

The company is set to supply 50,000-75,000 litres of buffalo milk daily in the Delhi-NCR region, with the product hitting the market starting this week.

“By March 2025, we aim to reach 2 lakh litres per day. We intend to make the buffalo variant a INR 500 crore brand in one year. This segment is growing. There is a demand for high-fat milk,” Bandlish said.

The Managing Director stated that within a few months, Mother Dairy plans to introduce the buffalo milk variant in Uttar Pradesh, Haryana, and Maharashtra as well.

Mother Dairy’s buffalo milk boasts a fat content of 6.5 percent and 9 percent SNF (Solid Not Fat), providing a creamy texture and a flavorful taste profile. Additionally, the upcoming variant will feature A2 protein.

During the last financial year, the company posted a turnover of around INR 14,500 crore, out of which INR 11,500 crore came from the dairy business.

Established in 1974, Mother Dairy is currently a fully-owned subsidiary of the National Dairy Development Board (NDDB).

The company boasts a diverse portfolio that includes edible oils marketed under the ‘Dhara’ brand, as well as a range of products such as fresh fruits, vegetables, frozen vegetables, snacks, unpolished pulses, pulps, concentrates, and more under the ‘Safal’ brand.

Continue Exploring: Mother Dairy’s Safal outlets to sell onions at subsidized rates amid soaring prices

Dairy brand Epigamia focuses on profitability, targets 25% year-on-year growth in FY24

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January 16, 2024

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Epigamia, the dairy brand under Drums Food International, aims to achieve a year-on-year growth of over 25% by intensifying its emphasis on profitability. With support from investors like the French foods giant Danone, the company plans to enhance its offline distribution channels and introduce smaller packs in the yogurt segment. Concurrently, Epigamia aims to fortify its position in the beverage segment.

Rahul Jain, Co-Founder and CEO, Epigamia, said, “In FY24, our focus has been on the transformation towards the path of profitability and we have made significant progress in this regard. We are close to reaching the milestone of becoming EBITDA positive on an annual or financial year basis. We aim to garner a growth of over 25 per cent plus year-on-year.”

The dairy industry has been grappling with significant inflationary pressures for the past two years. Jain said that, aside from price hikes, the brand has been focusing on optimizing raw material sourcing, supply chains, logistics, and marketing costs to expand margins.

The brand is also introducing its yogurt at an entry-level price of INR 25 to enhance household penetration.

“We have already started doing soft pilots for the entry-level yogurt product priced at INR 25. We want to have a much wider distribution with this price point. We believe this will bring new consumers to our brand’s fold,” he explained.

Continue Exploring: Epigamia appoints Rahul Jain as CEO, charts new course for growth in the health snack market

Simultaneously, the company is aiming for expansion in segments like beverages and desserts.

“We see massive growth opportunities in the beverage segment.We will soon also be launching the drinkable yogurt format,” he added.

Epigamia’s products are available in the leading 30 cities and across more than 25,000 outlets, encompassing both modern trade stores and general trade stores, in addition to key e-commerce marketplaces.

“We are looking to grow our distribution to about 50,000-60,000 outlets over the next few years,” he added.

The online channel currently contributes to almost 35 percent of the company’s sales.

“Consumers are now increasingly seeking “good-for-you” products, clean labels and functional benefits. Protein consumption has become an important conversation among users. So we are seeing good tailwinds in terms of demand,” Jain said.

TV personality and investor Rannvijay Singh earns 10x return on partial exit from Burger Singh investment

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January 16, 2024

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Renowned Indian TV personality and astute investor, Rannvijay Singh, has recently secured an impressive tenfold return through his partial divestment from the widely popular burger chain, Burger Singh. This strategic move stands out as a significant milestone in Singh’s diverse investment portfolio, encompassing various sectors, including the dynamic realm of food and beverage.

Rannvijay Singh’s participation in Burger Singh was a key element of a larger funding round that proved instrumental in propelling the brand’s success. Working alongside fellow investors, Singh played a substantial role in facilitating Burger Singh’s growth, leading to an expansion of its outlets and a heightened focus on improving delivery and takeaway services. This strategic investment reflects Singh’s acumen in identifying promising opportunities within India’s dynamic market environment.

In addition to his financial backing, Rannvijay Singh takes an active role in championing the brands he invests in, utilizing both his popularity and business expertise for promotional efforts and expansion. His investment in Burger Singh aligns with the increasing trend of functional food and beverages in India, emphasizing the importance of innovative products and marketing strategies.

Speaking about his successful investment strategy, Rannvijay Singh commented, “Investing in Burger Singh was a decision driven by my belief in the brand’s potential and its unique approach to the Indian fast-food market. The impressive growth of the company and the successful partial exit is a testament to the hard work of the Burger Singh team and the solid business model they have established.”

This successful exit, along with Rannvijay Singh’s other notable investments in startups such as Rage Coffee, Ultravilotte, Hypd, Noto, Assembly, ABC fitness, Eyewearlabs, Whiskers, and Leverage Edu, further cements his position as an influential figure in the startup community. It demonstrates his commitment to nurturing entrepreneurship in India.

Continue Exploring: Burger Singh secures Pre-Series B funding, plans rapid expansion with express kiosks

Innovation in a Mug: How Bevzilla is Revolutionizing Your Daily Brew

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January 16, 2024

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Anurag Chhabra, Co-Founder, Bevzilla Coffee

Hey coffee enthusiasts! If your day doesn’t start until that first sip of java hits your lips, you’re in for a treat. Introducing Bevzilla, the coffee brand that’s turning ordinary mornings into extraordinary experiences.

This article will spill the beans on what makes Bevzilla so special. From where they get their top-notch coffee beans to the expert touch that goes into roasting, we’re diving deep into the world of Bevzilla.

So, whether you’re a seasoned coffee pro or someone just starting to appreciate the magic in a mug, join us as we explore why Bevzilla is a love letter to everyone who enjoys a good cup of joe.

For starters let’s discuss their journey to becoming a successful brand.

The Journey

Bevzilla, founded in September 2020 by Divisha Chaudhry and Anurag Chhabra, emerged from the desire to offer a healthier and convenient coffee experience. The brand’s journey began by crafting 100% vegan coffee cubes with organic date palm jaggery, addressing concerns about artificial preservatives and high sugar content. They meticulously defined their brand’s identity, emphasising uniqueness and targeting discerning coffee lovers in the Indian market.

At the core of Bevzilla’s success is the exceptional quality of their ethically sourced coffee beans. By establishing strong relationships with reputable suppliers, they ensured a superior coffee experience for customers. The brand strategically built a captivating online presence through an engaging website and optimised user experience. Outstanding customer service became a cornerstone, fostering loyalty by providing personalised support and exceeding expectations.

Bevzilla’s funding status includes a significant USD 1 million investment from IDAM House of Brands. Their monetisation model revolves around online marketplaces, with successful sales on platforms like Amazon and Flipkart. The brand has also made strides in modern trade stores and plans to expand through kiosks. Bevzilla’s foray into the hospitality sector includes a range of coffee sachets featuring pure Arabica beans with unique flavors and the natural sweetness of date palm jaggery, offering a guilt-free indulgence.

Let us get into some more details and discover what Bevzilla exactly offers.

What Bevzilla Offers?

Emerging as a complementary and fitting breakfast accompaniment in the fast-paced lifestyle, Bevzilla offers an ‘on-the-go’ range of assorted coffee in the form of both cubes and powder, ready within 30 seconds. Bevzilla has gained popularity by providing all coffee lovers with a Pure Arabic coffee experience. Specialising in a healthier version of coffee with no added sugar, they have crafted a more nourishing and tasteful drink sweetened by date palm jaggery.

The savory flavored selection is available in a wide range of flavors, including Classic, Irish cream, Belgian Chocolate, Creamy Vanilla Coffee, and Hazelnut. These flavor-packed cubes are manufactured to balance the body’s requirements for iron, calcium, and vitamins, with just 27 kcal per cube. To suit the vast preferences of consumers, the brand accommodates the form of beverage choice between Iced, Hot, or even Flavored.

Owing to the idea of offering an assorted palate, Bevzilla recognized the perfect blend of creamy, delectable, and nutritious coffee cubes coupled with a sugar-free and vitamin-packed beverage that refreshes instantly. With an intent to craft high-quality instant coffee, Bevzilla’s founders engaged with the farmers of Chikmagalur, Karnataka, to create a brand that meets the highest standards.

Anurag Chhabra, Co-Founder of Bevzilla Coffee, mentions, “The herbal benefits of Ashwagandha blended with a dose of pure Arabica beans provide the power to lift your body and mind. Turmeric coffee powder, for instance, is an immunity booster.” He further comments, “As the next step of innovation to the instant coffee mixes and powder, Bevzilla coffee cubes serve both hot or iced coffee moods with its flavored coffee. The health alternative of date palm jaggery makes it health-conscious Gen-Z’s prime choice.”

Designed to serve satisfaction, Bevzilla establishes itself as a sought-after brand that believes itself to be an alternative to preservative options, offering a cutting-edge drink of choice available in cubical and powdered form. It is because of this innovative product that has modified the consumption pattern of coffee lovers that the company is looking at a rising graph of multifold growth, with a 12 times turnover increase since March 2022. Prospectively, the brand is looking forward to generating up to 2 crores of sales revenue.

Final Thoughts:

Bevzilla is not just a coffee brand; it’s a revolution in your cup. With a commitment to quality, health, and innovation, Bevzilla has transformed the coffee experience for enthusiasts. From vegan coffee cubes to ethically sourced beans and unique flavors, Bevzilla caters to the diverse tastes of coffee lovers. The brand’s rise in popularity and significant growth underscore its success in reshaping how we enjoy our daily dose of caffeine. As Bevzilla continues to brew excellence, it’s clear that they are not just serving coffee; they’re serving satisfaction in every sip. Cheers to a flavorful journey with Bevzilla!

Continue Exploring: Reinventing the local tapri: Bevzilla’s ambitious plan to drive economic growth in local communities

Hoteliers bet big on Navi Mumbai’s promising future as infrastructural projects take center stage

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January 16, 2024

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A range of hotels, spanning from economical options to luxurious accommodations, are emerging in and around Navi Mumbai. This growth is spurred by transformative infrastructure projects like the Mumbai Trans Harbour Link (MTHL) and the upcoming international airport.

According to hotel industry executives and transaction advisory firms, there is a notable increase in investments within the hospitality market, particularly in the regions of Navi Mumbai, Panvel, and Khopoli, which are now identified as key locations for investors.

Many prominent hospitality brands are either aiming to expand their existing presence or are making their entry into the region.

Radisson Hotel Group, the American hotel operator with its current property, Country Inn & Suites by Radisson in Turbhe, Navi Mumbai, has recently finalized plans for a 100-room hotel in Khopoli and has another of comparable size in the pipeline.

The MHTL, inaugurated for public use on Saturday, aims to alleviate congestion in Mumbai by enhancing connectivity between the island city and the mainland while fostering the growth of the Navi Mumbai region.

Stretching across approximately 21.8 km, this substantial infrastructure connection is anticipated to streamline traffic flow from Mumbai to Navi Mumbai, Navi Mumbai International Airport, Jawaharlal Nehru Port, Panvel, and extend all the way to Pune and Goa.

Ulwe and Panvel will be the key beneficiaries of the MTHL project in Navi Mumbai.

“Navi Mumbai is poised to become the next frontier in real estate development, witnessing a surge in strategic investments and infrastructural advancements,” said KB Kachru, chairman emeritus and principal advisor, South Asia at the Radisson Hotel Group.

The hotel group holds a first-mover advantage in the area, having already established a hotel and recently securing a deal for the 100-room Radisson Hotel.

“This development underscores our commitment to delivering exceptional hospitality experiences in one of the region’s dynamic and emerging markets,” said Kachru.

Noesis Capital Advisors, a firm specializing in hotel consulting and investment advisory, facilitated the transaction for the new hotel property. Additionally, the company is currently engaged in active discussions for two additional hotel deals in the same region.

“As connectivity improves, the hospitality potential in the region is projected to increase by five times over the next five years,” Noesis founder and chief executive Nandivardhan Jain said.

Suhail Kannampilly, the CEO of Concept Hospitality, the entity operating Fern Hotels & Resorts, envisions significant opportunities unfolding along the entire Mumbai coastal line with the MHTL.

“With better connectivity, destinations like Alibaug, Ganpatipule and Khopoli are set to gain further traction. We have signed for a 100-room property in Alibaug and are expanding our existing ones in the other two,” he said.

Diverse Brands Eyeing Navi Mumbai’s Growth

Concept, currently managing an 80-room establishment in Turbhe, is in talks for a 100-room property located near the DY Patil Stadium in Nerul, Navi Mumbai.

Noesis estimates that the present Navi Mumbai market comprises 1,486 operational branded hotel rooms, and there are plans for an additional 900 rooms in the pipeline for future supply.

Jain from Noesis mentioned that brands such as Marriott, Hyatt Regency, and Radisson are currently in different stages of development in Navi Mumbai, poised to become operational within the next four years.

Others are also seeking to enhance their presence.

JB Singh, the President of InterGlobe Hotels, which owns and manages the Ibis and Ibis Styles hotel brands, mentioned that the company has been closely monitoring the infrastructure development in the region and is eager to establish a presence there.

Mumbai is a key focus city for us as we already have four operational hotels and one under construction near BKC (Bandra Kurla Complex). We will commit only if it checks all the boxes with respect to price, location, demand drivers, etc.,” said Singh.

“The new airport will certainly act as a catalyst to drive ADR (average daily rates) in the region and if we undertake to develop something closer to the airport; it has to be at least a 200-room property,” he added.

According to him, InterGlobe presently operates a 196-room Ibis Hotel in Turbhe, Navi Mumbai, strategically positioned to meet the demand arising from the new airport.

Continue Exploring: Indian hospitality industry set for a record-breaking 2024: Surge in new hotel rooms expected

Strong demand propels 36 brands into tier-II cities throughout 2023

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January 16, 2024

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In the first three quarters of 2023, thirty-six domestic and international brands extended their reach into tier-II cities due to strong demand from smaller urban centers, continuing even after the pandemic. According to CBRE data, brands like H&M, Marks & Spencer, GAP, and Tasva entered cities such as Indore, Mangalore, Patna, Ranchi, Mysore, and Coimbatore.

As of September 23, the total retail space in these 14 tier-II cities amounted to 29 million square feet. Notably, Jaipur, Lucknow, and Chandigarh individually featured retail spaces ranging from 3 to 7 million square feet. The retail landscape in these cities has evolved into a well-balanced combination of high streets and malls.

“The E-commerce boom, tech-savvy consumer base, growing aspirations and surge in discretionary purchasing are defining the retail growth in tier-II cities. Investment-grade developers are setting up large-sized contemporary malls in these cities, which are seen as an entertainment destination and not just as a place to shop,” said Anshuman Magazine, Chairman, India, Southeast Asia, Middle East & Africa, CBRE.

Most non-metro cities, serving as established trade and business hubs, are now witnessing the establishment of offices by multinational corporations and startups alike. The burgeoning population in tier-II cities is further driving demand for a diverse range of retail offerings.

“India’s first retail REIT has encouraged developers to aggregate and upgrade their existing facilities, apart from developing new malls. Moreover, domestic and international fashion brands are looking to expand in non-metro cities, fueled by a well-aware and well-travelled consumer set,” said Ram Chandnani , Managing Director, Advisory & Transactions Services, CBRE India.

A city like Chandigarh showcases a collection of well-known brands, including Zara, Uniqlo, Lifestyle, Shoppers Stop, Marks & Spencer, The Collective, Nike, Adidas, Skechers, Puma, among others.

Executives from companies like Shoppers Stop, Meena Bazaar, Soch, Mohanlal Sons, and Tasva have stated that they are strategically planning the highest number of stores in a year to meet the surge in demand, particularly in tier 2 cities.

Expanding its reach, Soch, an ethnic wear brand, has inaugurated stores in cities such as Kurnool, Muzaffarpur, Gorakhpur, and Jaipur. The brand has intentions to establish outlets in Udupi, Dehradun, Allahabad, Madurai, Ludhiana, Barnala, Faridabad, Jodhpur, Vellore, and Thrissur.

Out of the 11 department stores launched by Shoppers Stop in the previous fiscal year, merely three are situated in metropolitan cities.

Continue Exploring: Meesho reports 14 Crore customer transactions in 2023, with 80% of orders originating beyond tier 2 cities

NewsHub

E-commerce and Quick Commerce Boosting PepsiCo India’s Reach

The Journey

What Bevzilla Offers?

Final Thoughts:

Diverse Brands Eyeing Navi Mumbai’s Growth