Fashion, apparel brands account for 60 pc of retail leasing in H1 2025: Report

New Delhi, Oct 1 (IANS) Fashion and apparel brands accounted for nearly 60 per cent of retail leasing by direct-to-consumer (D2C) brands in the first half of this year (H1 2025), a report said on Wednesday.

It was followed by the Homeware and Furnishings (12 per cent), Jewellery (12 per cent) and Health and Personal Care (6 per cent).

Between 2020 and 2022, several digital-first brands witnessed considerable growth, mainly fuelled by a rise in online shopping during the COVID-19 pandemic. They are now going omnichannel.

According to CBRE's latest report, as compared to 8 per cent in H1 2024, the share of retail leasing by these new-age brands has gone up to 18 per cent in H1 2025 as they are increasingly leveraging pop-ups, flagship outlets, and franchise stores.

"While online shopping continues to grow, physical purchases still account for a majority of transactions, making omnichannel growth important," said Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East, Africa, CBRE.

Unlike a standardised online experience, a physical store allows brands to create a tailored shopping environment that helps them connect deeply with their target audience and reinforce their ethos, he added.

The report further highlighted that, as compared to only malls earlier, D2C brands are diversifying the locations of their outlets.

In H1 2025, a whopping 46 per cent of total leasing by these brands was on High Streets.

"It was followed by 40 per cent in Malls and 14 per cent as standalone outlets. Moreover, D2C brands are also opting for a mix of formats, from pop-up shops and showrooms to traditional brick-and-mortar stores," the report said.

Between January and June, Delhi-NCR saw the highest share of retail leasing among all major cities at 26 per cent. It was followed by Bengaluru at 22 per cent and Hyderabad at 18 per cent.

Ram Chandnani, Managing Director, Leasing Services – CBRE India, said that offline presence helps brands in tapping into the traditional customer base and deepening their penetration into lower-tier towns.

“Physical stores enhance trust and credibility of the brands and reassure the customers about the product quality. They also allow brands to create a tailored shopping environment. This dual play of digital reach and offline experience is set to define the next chapter of India’s retail growth,” he added.

--IANS

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