What's Hot in Fashion Retail: The Forward Story

Couture Meets Cafés & More! The New Language of Retail Diversification

If your only goal is to only sell products, you’re missing out on selling experiences.

Retail brands are diversifying their offerings and creating ecosystems that connect with the aspirations of the modern consumer. From H&M and Zara introducing beauty lines to Primark opening up an exclusive store for its home line, brands globally are making an effort to diversify thoughtfully, maintaining an emotional connection with their customers and aligning their values with those of the consumer.

The brands that succeed at this will be the ones with the greatest chance of remaining competitive in a constantly evolving market. A few business objectives behind this diversification include greater footfall, more cross-sell opportunities and higher AOVs. With diversified offerings, customers are bound to enjoy a better, more-integrated, more memorable shopping experience.

Even high-end luxury brands aren’t holding back. Christian Dior Couture , expanded into the food experiences space through the launch of Monsieur Dior restaurant. Ralph Lauren Coffee & Bar opened its doors in 2016 and quickly became one of the hottest dining destinations in Mayfair, London, Veterans still adore it! Breitling ventured into gastronomy with its café in Seoul and restaurant in Geneva. Versace, Hermès, Elie Saab and Fendi have expanded into real estate, cosmetics, and furniture design. And then of course, there’s the Dior Spa on the Royal Scotsman, Christian Louboutin 13-room Hotel Vermelho in Portugal, the Moschino hotel in Milan and LVMH acquired high-end Belmond Hotels!

While diversification into hospitality, beauty, real estate, and other sectors allows luxury brands to engage consumers in innovative ways, it also presents a number of risks.

Of course with brand diversification comes the potential dilution of the brand’s essence, especially if & when the brand lacks full control over pricing, distribution, and product design. Maintaining consistency with the brand’s core identity across new ventures is essential, but also challenging. Moreover, executing these values accurately across different channels and markets demands meticulous attention to detail and precision.

This move for any retailer will require careful oversight and coordination to uphold the brand’s reputation for excellence, refinement, quality, and innovation. Furthermore, successfully entering new markets in new geographies requires an in-depth understanding of consumer preferences, market dynamics, and competitive landscapes.

Mid-size retailers must be prepared to allocate resources, people and expertise to support their diversification efforts effectively.

Brands will need to ensure that their strategy aligns closely with the intent.

The D2C India Download: What’s Making Headlines?

1. FMCG major HUL has acquired 90.5% stake in Jaipur-based skincare brand Minimalist , backed by Peak XV Partners for Rs 2,955 crore in an all cash deal. As part of the agreement, the Minimalist team, led by Founders, Mohit Yadav and Rahul Yadav, will continue managing the business for the next two years.
2. Krvvy, a women's innerwear and shapewear brand, has raised Rs 6.1 crore in funding in a pre-seed round co-led by Titan Capital and All In Capital, the funds are to be used for R&D and Product Development. Aditya Singh, Co-founder of All In Capital, added, ‘With rising awareness and a growing movement of body positivity, Indian women are now more inclined to invest in innerwear that is comfortable and functional. Krvvy's designs are well-positioned to meet this demand and potentially disrupt the market.’ India's womens innerwear market is currently valued at over Rs 50,000 crore.
3. D2C fragrance startup House of EM5 by Shashank Chourey aims to reach Rs 24 crore revenue by this fiscal year & is eyeing global expansion. In India, the brand has focused on optimizing its product portfolio with over a 100 fragrances, with an impeccable repeat rate of 25-30%, as communicated by the team.
4. The Indian Garage Co. (TIGC) has entered into offline retail with plans to establish 100 stores over two years. Adopting a COCO model initially, the firm will later expand through franchises. TIGC by Anant Tanted aims for profitability and sustainable growth, with future plans to enter international markets and diversify its product categories. Backed by TMRW House of Brands by Aditya Birla Group, TIGC had secured an investment of Rs 155 crore, a strong financial runway for the next 2-3 years.
5. Bengaluru-based omnichannel brand Snitch has opened its first store in Delhi. The brand is targeting 17 stores in the North region by the end of 2025, as part of its ambitious plan to reach 100 stores across India.

Fashion’s Growth Trajectory, Globally & Locally

In India, Statista projects that Indian fashion market’s revenue will grow from $14.68 billion in 2024 to $17.24 billion in 2025. Similarly, the beauty and personal care market in India is expected to see revenue rise from $31.51 billion in 2024 to $32.53 billion in 2025.

What are fashion brands doing to keep up though?

To attract new consumers, brands are rethinking their go-to-market strategies by localizing approaches, expanding price ranges, and fine-tuning brand positioning to resonate with value-conscious shoppers.

This shift has also led to significant growth in the resale and off-price segments, space that are gaining traction among younger, sustainability-conscious consumers or those looking for affordable luxury.

Resale platforms are evolving from niche marketplaces to mainstream channels, with brands even launching their own resale initiatives to control quality and maintain brand loyalty. Similarly, the off-price segment is becoming a critical driver of foot traffic, especially in uncertain economic conditions, as shoppers seek deals without compromising on quality.

For brands choosing not to compete in these segments, it’s more important than ever to clearly demonstrate the value or the 'why' behind their premium pricing. This includes emphasising superior craftsmanship, exclusivity, durability & anything + everything that the product stands for.

Moreover, retailers are heavily investing in highly trained staff who can elevate the shopping experience, provide personalised assistance, and inspire loyalty among discerning customers, both the new generation and the slightly overlooked ‘silver generation'.

Are Icons Influencing or are Influencers (cc: Creators) Iconic: The Blurring Lines in The World of Fashion Retail

Traditionally, luxury fashion brands have gravitated toward collaborations with A-list celebrities from film, music, and sports.

However, the rise of social media and the growing influence of digital creators has sparked a shift in this strategy. Today, luxury brands are increasingly teaming up with influencers who not only boast a loyal following but also share a true passion for high-end fashion. These influencers bring a fresh, authentic vibe and connect with a younger audience, allowing luxury brands to maintain their relevance in an ever-evolving market.

Fashion powerhouses like Dior, Ralph Lauren, and Jimmy Choo are forming new alliances with them all - a fresh wave of actors, sensations & socialites who perfectly embody the spirit of India’s booming luxury market.

Think Ananya Pandey, Masoom Minawala, Sonam Babani, Sawai Padmanabh Singh AKA Pacho in India and Camila Coelho, Chiara Ferragni & Luka Sabbat globally!

These blurring lines are overdue. Truly, at the core of it all is relatability.

Deepika Padukone becoming the first Indian to become a Louis Vuitton House Ambassador? Iconic. Masoom Minawala repping India in Seoul for LV? Also Iconic.

We’re also seeing brands employing interesting strategies for broader representation, as seen with Tira’s Ambassadors - Kareena Kapoor Khan, Kiara Advani, Suhana Khan - who are resonating with audiences across generations.

Decoding Retail: Your Insider Glossary

'Mass customisation'

This is a product that can be produced at a low cost in high volume, but still provides each customer with a customised offering.

"NIKEID" by Nike is a prime example of a shoe that can be mass produced but in the specific colors a customer wants.

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